ORDINANCE

amend some articles of the Ordinance
on Income Tax Rates for High-income Earners
****

1. Clause 1, Article 2 is amended as: Impermanent income as gifts, gifts from overseas, technology transfer, copy-right of invention and brand, technical method, technical design of construction, design of industries and services, lottery winning.

2. Article 9 is amended as: permanent incomes imposed tax as stated in clause 1, Article 2 of this Ordinance are individual incomes of VND2,000, 000 and up in average for Vietnamese citizen residing in Vietnam, VND5,000, 000 and up for foreigner residing in Vietnam or Vietnamese citizen working overseas. Especially the foreigner supposed not to reside in Vietnam, his tax-imposed income is total of income gained by working in Vietnam. The foreigner is supposed to reside in Vietnam if he spends 183 days and up within 12 months from arriving day to Vietnam. He is supposed not to reside in Vietnam if he spends less than 183 days.

3. Clause 1 of Article 10 is amended as: Vietnamese citizens and other individuals residing in Vietnam are imposed tax rates based on monthly average income: Over 2 million and up to 3 million 10%; over 3 million and up to 4 million 20%; over 4 million and up to 6 million 30%; over 6 million and up to 8 million 40%; over 8 million and up to 10 million 50%; over 10 million 60%.

Individuals, after paying income tax as stated in this tax rate chart, it the rest of income is over VND8 million per month in average, must paid supplement tax as 30% for the income part of over VND8 million.

This ordinance is effected since announcing day.