[Legal Updates] The changes in personal income tax exemptions

LEGAL UPDATES

[Legal Updates] The changes in personal income tax exemptions

1| Our prominent legal articles in June 2020

In June 2020, our personnel had some remarkable, specifically:

  • Lawyer Le Tien Dat and Tran Thi Ngoc Hoa with the Article “Tax implications applied to the foreign contractor carrying out EPC Contract in Vietnam”, provides a legal summary on tax implications of the Contractor during performing the EPC Contract in accordance with the laws of Vietnam, please visit here.
  • L.L.M Tran Chau Hoai Han and Le Thi Anh Thu with the Article “A guide to intellectual property in Vietnam”, provides overview information to the legislation of intellectual property of Vietnam. To read the entire article, please visit here.

2| The remarkable news in June 2020

a) The changes in personal income tax exemptions

On June 02nd, 2020, the Standing Committee of The National Assembly promulgated Resolution No. 954/2020/UBTVQH14 to change the personal income tax exemptions, which takes effect on July 01st, 2020. According to this Resolution, the personal income tax exemptions shall be changed as follows:

  • Personal exemption: 11 million VND/month (132 million VND/year);
  • Exemption for each dependent: 4,4 million VND/dependent/month.

Taxpayers who have paid tax and applied the exemptions specified in the previous regulations, may recalculate the personal income tax payable by applying the exemptions specified in this Resolution when preparing the 2020’s annual personal income tax declaration.

The new exemptions are applied from the tax period of 2020.

b) Vietnam National Assembly adopted EVFTA and EVIPA

On June 08th, 2020, Vietnam National Assembly adopted both EVFTA and EVIPA. For more details, please visit here.

c) Ratifying 30% corporate income tax (CIT) cut in 2020 for SMEs

On June 19th, 2020, Vietnam National Assembly adopted a resolution to cut off 30% corporate income tax (CIT) in 2020 for the SMEs which have no more than VND200 billion (US$8.6 million) in revenue in 2020.

The adopted resolution shall have effect after 45 days from the date of signing and will be applied to the tax period 2020.

3| The remarkable executed legislations in June 2020

No. DOCUMENT TITLE EXECUTION DATE  EFFECTIVE DATE
1.     

Decree No. 66/2020/NĐ-CP dated June 11th, 2020 amendments to the Government’s Decree No. 68/2017/ND-CP dated May 25th, 2017 on management and development of industrial clusters

11/06/2020 01/08/2020
2.     

Nghị định 66/2020/NĐ-CP ngày 11 tháng 06 năm 2020 sửa đổi, bổ sung một số điều của Nghị định số 68/2016/NĐ-CP ngày 01 tháng 7 năm 2016 của Chính phủ quy định về điều kiện kinh doanh hàng miễn thuế, kho bãi, địa điểm làm thủ tục hải quan, tập kết, kiểm tra, giám sát hải quan 

15/06/2020 10/08/2020
3.     

Thông tư số 11/2020/TT-BCT ngày 15 tháng 6 năm 2020 của Bộ Công thương quy định quy tắc xuất xứ hàng hóa trong Hiệp định thương mại tự do giữa Việt Nam và Liên Minh Châu Âu

15/06/2020 01/08/2020

 

Download Legal Updates as a PDF here.