The current Personal Income Tax Law generally stipulates that taxable income includes 10 types of income, including: income from business; income from salaries and wages; income from capital investment; income from capital transfer; income from real estate transfer; income from winning prizes; income from royalties; income from franchising; income from inheritance; income from receiving gifts.

The Law on Personal Income Tax is assigned to the Government for detailed regulations and guidance.

In the draft Law on Personal Income Tax (replacement) that is soliciting opinions, the Ministry of Finance proposes to add many other types of income to the list of income subject to personal income tax in addition to the 10 types of income according to current regulations.

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Proposal to make income from transferring auctioned car license plates, transferring digital assets... subject to personal income tax. Photo: Nam Khanh

Specifically, additional income includes:

Income from the transfer of assets, property rights, such as the Vietnamese national Internet domain name “.vn”; income from the transfer of emission reduction certificates, carbon credits, green bonds; income from the transfer of auctioned car license plates; income from digital assets (virtual assets, encrypted assets); income from the right to use, the right to own, or transfer other assets according to Government regulations.

Personal income tax on other income is calculated by multiplying taxable income by tax rate. In which, taxable income is the income exceeding 10 million VND that the taxpayer receives each time income arises; tax rate is 5% (similar to current income from royalties and franchises).

Particularly for income from transferring digital assets (virtual assets, encrypted assets...) on a transparently managed trading floor with public prices and regular frequency, the Ministry of Finance proposes to apply a tax rate of 0.1% on the transfer price of each transaction as for current securities transfers.

According to the Ministry of Finance, for income from the right to use, ownership and transfer of other types of assets as prescribed by the Government, assigning the Government to issue detailed regulations will help ensure compliance with emerging practices, while promoting decentralization and delegation of authority in handling fluctuating issues, thereby creating flexibility in direction and administration.

In addition, the draft also proposes to add a number of cases of tax exemption and reduction, such as the proposal to add regulations on personal income tax exemption for income from salaries and wages from performing scientific , technological and innovation tasks using the state budget.

Supplementing regulations on exemption of personal income tax for the first 2 years, reducing 50% of tax payable for the next 4 years for income from salaries and wages of experts and scientists received from innovative startups, research and development centers, innovation centers, and intermediary organizations supporting innovative startups.

Proposal to reduce personal income tax by 50% on income from salaries and wages of individuals who are high-tech human resources. This policy applies to those working in enterprises or projects in the fields of high technology, information technology, science and technology, innovation, digital transformation and priority development sectors.

Source: https://vietnamnet.vn/hang-loat-khoan-thu-nhap-khac-co-the-phai-chiu-thue-thu-nhap-ca-nhan-2424332.html