According to the Law No. 71/2014/QH13 dated November 26, 2014 amending and supplementing a Number of Articles of theLaws on Taxes approved by the National Assembly, incomes from independent professional activities of individuals possessing practice licenses or certificates in accordance with law and having an annual turnover of 100 million VND or less shall not have to pay personal income tax from January 01, 2015. Similarly, incomes from casinos are also omitted from taxable incomes from January 01, 2015.
Besides, the Law also amended the tax rate for businesspeople. Accordingly, personal income tax for businesspeople shall pay personal income tax calculated as a certain percentage of turn-over in each field, industry or business line. Of which, tax rates for goods distribution and supply: 0.5%; Services and construction activities without supply of raw materials and materials: 2%. Particularly for asset lease, insurance agency, lottery agency and multi-level marketing agency: 5%; Production, transportation and services associated with goods, construction activities involving supply of raw materials and materials: 1.5%;
Incomes from capital investment; Incomes from copyright, commercial franchising; Incomes from prizes; Incomes from inheritances, gifts; Incomes from capital transfer shall pay at the tax rates of 5%; 10%; 2% and 0.1% respectively.
Another significant content is regulation on cancellation of penalty of 0.07%/day for late payment if paying tax after 90 days. From January 01, 2015, taxpayers that pay tax after the prescribed time limit or extended time limit for tax payment or the time limit stated in the notice or handling decision of a tax administration agency shall fully pay tax amounts and late payment interest at the rate of 0.05% of the late paid tax amount per each day of late payment.
This Law takes effect on January 1, 2015.
Source: http://vietnamlaw.vn
