[Legal Updates] The changes in personal income tax exemptions08/06/2020 admin
1| 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.
2| New regulations on compulsory social insurance contributions to the occupational accident and disease insurance fund
On May 27th, 2020, the Government promulgated Decree No. 58/2020/NĐ-CP on compulsory social insurance contributions to the occupational accident and disease insurance fund.
Accordingly, the employers contribute monthly to the occupational accident and disease insurance fund for employees equal to 0.5% of the salary fund used as a basis for payment of social insurance.
In case the enterprises operate in industries with high risks of occupational accidents and occupational diseases, the contribution is 0.3% of the salary fund used as a basis for payment of social insurance when the following conditions are met.
- Within 03 years up to the time of proposing not to be sanctioned for administrative violations in the form of fines, not to be examined for criminal responsibility for acts of violating the legislation on occupational safety and sanitation and social insurance;
- To make periodic reports on occupational accidents and occupational safety and sanitation reports accurately, entirely and on time within 03 years preceding the proposed year;
- The rate of occupational accidents of the year preceding the proposed year must be reduced by 15% or more compared to the average occupational accident frequency of 03 years preceding the proposed year; or not to cause occupational accidents from 03 years preceding the proposed year.
Decree No. 58/2020/ND-CP comes into effect from July 15th, 2020.
3| Ministry of Public Security warns of phishing
On June 4th, 2020, the Ministry of Public Security Portal posted a warning notice about new tricks to defraud the sellers’ property. The fraudster pretends to be a buyer and suggests transferring money in advance to the seller through Western Union, then the fraudster sends the victim a link that looks like the official Western Union website to receive the payment. After the victim completes the bank account information on the fake website, the fraudster also simultaneously transfers money from the victim’s account.
Ministry of Public Security warns: Online sellers who have never transacted via international money transfer systems, should be wary of this fraud. It is recommended to verify the information carefully when making remittance. Only conduct transactions on official and public websites of financial institutions or banks. Never give OTP codes to others. Limiting the publicity of date of birth, citizen identification number, telephone number, bank account number on cyberspace. For public accounts used for online transactions, it is necessary to limit the excess amount of money to avoid property appropriation.
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