Mr. Ming is a single engineer from China.

He worked as a technical engineer in Thien Binh company from 01/01/

According to labor contract signed by Mr. Ming and Thien Binh company, Mr. Ming’s income for the year 2
- Salary: USD 2,200/month
- He can use a company’s car for business trips. The expense related to this car in accounting record is U
- House rent paid by the company: USD 400/month CAP = taxable up to 15% of total
- Housemaid salary paid by the company: USD 100/month
- 13th month bonus paid in December: one month salary
Exchange rate used for tax purpose is VND 23,000/1USD
Required:
1. Determine amount of PIT payable by Mr. Ming which is monthly withheld by Thien Binh company
2. Calculate the amount of PIT payable by Mr. Ming for the whole year in PIT finalization.

1. Since Mr. Ming was present in Vietnam for more than 183 days, he was identified as resident under Vietnam PIT law
PIT on employment income withheld monthly
Taxable incomes
Salary 50,600,000
Car - exempt
House maid 2,300,000
52,900,000
Maximum taxable house rent (15%) 7,935,000
Actual house rent 9,200,000
Taxable house rent 7,935,000
Total taxable incomes 60,835,000
Less: Deductions
Insurance - Before 2022, foreigners were not required t
Self (11,000,000)
Taxed income/month 49,835,000
PIT payable per month 9,208,750 withheld monthly by Thien Binh Co.

2. PIT payable for the whole year under annual finalization

Taxable incomes for the whole year
Salary 607,200,000
Car - exempt
House maid 27,600,000
13th month salary 50,600,000
685,400,000
Maximum taxable house rent (15%) 102,810,000
Actual house rent 110,400,000
Taxable house rent 102,810,000
Total taxable income 788,210,000
Less: Deductions
Self (132,000,000)
Taxed income for the year 656,210,000
Taxed income/month 54,684,167
PIT payable/month 10,555,250
PIT payable for the year 126,663,000
ien Binh company from 01/01/2019 to 31/12/2019.
r. Ming’s income for the year 2018 as follow:

his car in accounting record is USD 800/month

CAP = taxable up to 15% of total employement income without house rent

hien Binh company

esident under Vietnam PIT law

22, foreigners were not required to contribute compulsory insurance

monthly by Thien Binh Co.

Mr. Tuan is a Vietnamese resident. He works for Vietnam Airlines (VNA) as a pilot.
According to labor contract signed with VNA, Mr. Tuan has to work 110 hours per month, with gross salary of USD
Mr. Tuan also has some assets and investments as follow
Market price
Purchasing
= Transfer
price
Assets and investment price
(VND
(VND million)
million)
Residential house 2,000 2,500 sold co-ownership
Real estate 3,200 5,000 sold
Gold 500 700 sold non-taxable
Stock 800 600
sold
Capital in limited companies 1,500 3,500 sold
Deposit in commercial bank (interest 10%) 600 - kept exempt

The residential house is owned by Mr. Tuan and his wife. The other assets and investment are under his ownership.
He has 2 children under 18 years old and a 20 year-old son studying university in Australia.
On 30 September, 2019, Mr. Tuan sold all of his assets and investment but has kept the deposit in bank.
The selling price is determined as market price and there is no other expense related to these sales and transfers
Exchange rate used for tax purpose is VND 23,000/1USD
Required:
1. Calculate the amount of PIT withheld by VNA for the year = employment income
2. Determine the amount of PIT Mr. Tuan has to pay on his incomes other than salary. Specify the tax declar

1. PIT on employment income withheld by VNA

Salary 3,036,000,000
Less: Deductions
Insurance (29.8mil*10.5%*12) (37,548,000)
Self (11mil*12) (132,000,000)
Dependent (3*4.4mil*12) (158,400,000)
Taxed income 2,708,052,000
Taxed income/month 225,671,000
PIT payable/month 69,134,850
PIT payable for the year 829,618,200 withheld by VNA

2. PIT payable on incomes other than employment

PIT on transfer of real estate
Residental house (2.5bil*2%/2) 25,000,000 Assume that the PIT was split equally betw
Real estate (5bil*2%) 100,000,000
Total PIT payable 125,000,000 Mr. Tuan declares and pays tax by himself

Income from capital transfer

Stock (600mil*0.1%) 600,000 withheld by the stock exchange
Capital (3.5bil-1.5bil)*20% 400,000,000 Mr. Tuan declares and pays tax by himself
Total PIT payable 400,600,000
month, with gross salary of USD 100/hour.

Income from transfer PIT = Transfer

of real estate price*2%

PIT = Transfer
Income from captial price*0.1%
transfer PIT = Gain*20%

ment are under his ownership.

he deposit in bank.
ted to these sales and transfers.

an salary. Specify the tax declaration obligations of Mr. Tuan for each type of income.

hat the PIT was split equally between Mr. Tuan and his wife

declares and pays tax by himself at time of transfer

by the stock exchange

declares and pays tax by himself at time of transfer
Mr. Long, a tax resident, receives the following incomes during the tax year 2019
1. Income from ITM Corporation as an engineer:
- Salary: VND400 mil
- Performance bonus: VND100 mil
- Occupational allowance as stipulated by law: VND50 mil
- Toxicity allowance: VND40 mil
- House allowance in cash: VND60 mil Not house rent
2. Other incomes
- Remuneration from a consultant job (freelance contract, Mr. Long does not apply for business regist
- Won a prize on a TV show (gross of income tax): VND100 mil
- Dividends: VND57 mil
3. Personal information
- Married and has two children, a 20-years-old son and a 15-years-old daughter.
Required:
1. State the necessary conditions for Mr. Long to be entitled to family relief under Vietnam PIT law
2. Calculate the amount of PIT payable by Mr. Long that was withheld during the year.
3. Calculate any additional PIT payable or PIT refund for Mr. Long under annual finalization.

1. Conditions for family relief

Family deductions are only applicable to resident
Conditions
Self Resident
Dependent
Children < 18 years old Registered
Children >18 years old Registered, studying up to university or unable to work
Family members out of working age Registered, <1mil/month
Family members in working age Registered, unable to work

2. PIT withheld during the year

Employment incomes
From ITM Corporation
Salary 400,000,000
Bonus 100,000,000
Occupational allowance - exempt
Toxicity allowance - exempt
House allowance 60,000,000
Taxable income 560,000,000
Less: Deductions
Insurance (29.8mil*10.5%*12) (37,548,000)
Self (11mil*12) (132,000,000)
Dependent (2*4.4mil*12) (105,600,000)
Taxed income 284,852,000
Taxed income/month 23,737,667
PIT payable/month 3,097,533
PIT payable for the year 37,170,400 withheld by ITM

From POA Co. (freelance contract)

Since Mr. Long did not apply bussiness registration, the income from freelance contract was treated as emplo
Because the contract is less than 3 months, PIT was provisionally withheld as 10% of taxable incomes.
Taxable income 50,000,000
 Provisional PIT (10%) 5,000,000 withheld by POA

Prize 100,000,000
PIT payable 9,000,000 withheld by TV station

Income on capital investment

Dividend 57,000,000
PIT payable 2,850,000 withheld by company paying dividend

3. PIT payable under annual finalization

Employment income
From ITM 560,000,000
From POA 50,000,000
Total taxable incomes 610,000,000
Less: Deductions
Insurance (29.8mil*10.5%*12) (37,548,000)
Self (11mil*12) (132,000,000)
Dependent (2*4.4mil*12) (105,600,000)
Taxed income 334,852,000
Taxed income/month 27,904,333
PIT payable/month 3,930,867
PIT payable for the year 47,170,400

Prize 9,000,000
Capital investment 2,850,000
Total PIT payable for the year 59,020,400
Less: PIT withheld during the year (54,020,400)
Additional PIT payable 5,000,000
oes not apply for business registration) with POA company: VND50 mil

r Vietnam PIT law

nalization.

unable to work

nce contract was treated as employment income under PIT law.

as 10% of taxable incomes.
by TV station

by company paying dividend

Mr. Truong, a resident under the Law on Personal income tax of Vietnam had the following financial data for the tax
1. Incomes received from DGRA Corporation = Employment incomes
- Main salary: 35 per month
- Compulsory insurance fee deducted by DGRA Corporation each month: 10.5% of main salary
- House allowance: 4 per month
- Occupational allowance as stipulated by Law: 2 per month
- Meals at company’s refectory: 3 per quarter
- Income from membership of boards of management for whole year: 120
- Performance award received in December: 50
- Year-end bonus: main salary of one month
2. Other incomes
- Won a laptop in a promotional program with value of 20
- Interest received from a saving deposit in Shinhan Bank: 14
- Transfer of a piece of land, which was one of his long-term investment: transfer price was 5,000; transaction f
- Rent received under house rent contract: 26 per quarter Business income: Annual reven
Required:
a) Explain various deductions that an individual may claim when calculating PIT. Are deductions available to all inco
b) Calculate Personal income tax payable by Mr. Truong for this tax year. Given that:
- He is married and has 2 children of 6 and 15 years old.
- He has also nurtured his mother, who is 80 years old
- Salary and other benefits received from DGRA Corporation are specified in his labor contract signed with the c
- The economic transactions in which he was engaged are supported with sufficient documents as stipulated by

a. Deductions Resident non-resident Employment in

Self deduction Yes no Yes
Family
Dependent deduction yes no Yes
Compulsory insurance yes no Yes
Contribution to charity yes no Yes

b.
Employment income
Salary 420,000,000
House allowance 48,000,000
Membership 120,000,000 1
Award 50,000,000 2
Bonus 35,000,000 3
673,000,000 4
less: Deduction 5
Self deduction (132,000,000) 6
Assume that his mother
has income lower than 1
Dependent deduction (158,400,000) mil/month 7
Compulsory insurance (37,548,000)
Taxed income on employment 345,052,000
Taxed income/month 28,754,333
 PIT payable/month 4,100,867
PIT payable/year 49,210,400 withheld by employer

PIT payable for other incomes

Prize 1,000,000 withheld by paying org
Transfer of land 100,000,000 self declaration when income incurs
Rent (Business income) 5,200,000 annual revenue is >100mil: taxable

Total PIT payable for the year 155,410,400

ng financial data for the tax year 2019 (in VND million):

ice was 5,000; transaction fees was 10 and value of the land at time of acquisition was 3,500
siness income: Annual revenue > 100 mil: taxable 104

uctions available to all income categories and both resident as well as non-resident?

or contract signed with the company

documents as stipulated by Laws

Other incomes
No
No
No
No

Taxed income Rate

Year Month
0 60 0 5 5% 0
60 120 5 10 10% 0.25
120 216 10 18 15% 0.75
216 384 18 32 20% 1.65
384 624 32 52 25% 3.25
624 960 52 80 30% 5.85

960 80 35% 9.85