THE PERSONAL INCOME TAX RELIEF IS INCREASED TO 11 MILLION DONG PER MONTH
Resolution No. 954/2020/UBTVQH14 issued by Standing Committee of the National Assembly about Changes to personal income tax reliefs comes into effect since July 1st, 2020. This regulation is applied from July 2020 tax period.
New provisions adjust the personal income tax relief
According to the Resolution, the personal relief increases from 9 million VND/month (108 million VND/year) to 11 million VND/month (132 million VND/year) and the dependent relief increases from 3.6 million VND/month (43.2 million VND/year) to 4.4 million VND/month (52.8 million VND/year).
When taxpayers apply for the new personal income tax relief, a person who has taxed income up to 15 million VND and has one dependant must not pay tax amounts, instead of 120,000 dongs/month previously. A person who has taxed income to 20 million VND and has two dependants, he/she must only pay 10000 dongs/month instead of 190,000 dongs/month as the old provision. As a result, changes in personal income tax relief breed positive effects on taxpayers.
Content of Official dispatch of the implementing organization for the Resolution
On June 23, 2020, the General Department of Taxation issued the Official dispatch of the implementing organization for Resolution No. 954/2020/UBTVQH14 to Tax departments of centrally-affiliated cities and provinces. Their responsibility is the instruction to taxpayers in tax declaration according to the new personal income tax relief.
In this Official dispatch, the new provision is applied to taxpayers who conduct monthly tax declaration from tax declaration period in July 2020 (the deadline for submission of declaration forms shall be in August 2020) and those who conduct quarterly tax declaration from tax declaration period in the third quarter of 2020 (the deadline for submission of declaration forms shall be on October 30th, 2020. During the tax period 2020, taxpayers temporarily paid fully their personal income tax following the provision of personal income relief in Law on personal income tax 2007, however, when they make tax finalization for all their income in 2020, they are re-determined payable personal income tax in 2020 accordance with the new personal income tax relief.
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