[Vietnam Legal Update] Increasing The Level Of Pit-Deductible Amount From July 2020

June 5, 2020
Photo: Hanoi Tax Department

At the Government meeting on 18 May 2020, it was stated that from the beginning of 2013 until now, CPI has increased by 23.2%. Thus, it shall be a requisite fact to raise the level of deduction amount for family circumstances towards employees. Therefore, dated 02 June 2020, National Assembly Standing Committee announced a resolution no. 954-2020-UBTVQH14 regulated about personal tax income (PIT) deduction increment which already provided in Article 19 of the Law on Personal Income Tax no. 26/2012/QH13.

The adjustment is as follows:

This Resolution is effective from 01 July 2020 and applied for tax calculation period of 2020.

In a case of already paid PIT tax by the previous level of deduction, then the amount of taxable will be calculated again following by the new level of deduction prescribed in this Resolution when conducting tax finalization in 2020.

Reference:

* Resolution no. 954-2020-UBTVQH14

This is not a legal document. The information here is for reference and general guidance purposes only.

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Mr. Huynh Minh Quan | (84) 903 969 118 | quan.huynh@nvmgroup.com

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