Vietnamese, Vietnamese working overseas and foreigners working in Viet Nam will all pay reduced personal income tax from now.
The new rates came into effect from July 1 under Government Decree 147/2004/ND-CP issued by the PM.
Under the decree, personal income tax will be applied to both regular and irregular incomes. Taxable thresholds start at VND5 million ($320) for locals and VND8 million ($510) for foreigners and Vietnamese working overseas.
Vietnamese with monthly incomes of between VND5-40 million ($510-2,500) will pay a tax rate ranging from 10 to 30 per cent; those earning more than VND40 million ($2,500) a month will incur a 40 per cent tax rate. Income tax for foreigners who work in Viet Nam and Vietnamese who work overseas will be as follows: a monthly income of between VND8-20 million (US$510-1,280) will be taxed at 10 per cent; from VND20-50 million ($1,280-3,200), 20 per cent; from VND50-80 million ($3,200-5,100), 30 per cent, and more than VND80 million ($5,100), 40 per cent.
Vietnam Agency - (02/08/2004)