VietnameseDEPOSIT INTERESTS’ TAX ARE EXEMPTED FROM PERSONAL INCOME TAX
On January 26, 2011, the Ministry of Finance issued the Circular No. 12/2011/TT-BTC amending the Ministry of Finance’s Circular No. 84/2008/TT-BTC of September 30, 2008, guiding a number of articles of the Law on Personal Income Tax, and amending the Ministry of Finance’s Circular No. 02/2010/TT-BTC of January 11, 2010, additionally guiding the Ministry of Finance’s Circular No. 84/2008/TT-BTC of September 30, 2008.
According to the Circular’s regulations, tax-exempt deposit interests under this Point are interests received by individuals from their deposits at banks or credit institutions in the forms of demand deposit, time deposit, saving, deposit certificate, promissory note, bill and other forms of deposit on the principle of full repayment of principal and interest to depositors as agreed upon. All cases of receipt of deposit interests not from credit institutions established and operating under the Law on Credit Institutions are not tax-exempt.
Bases for determining tax-exempt incomes for the above interests are as follows: savings books (or savings cards), deposit certificates, promissory notes, bills and other papers on the principle of full repayment of principal and interest to depositors as agreed upon, for incomes from deposit interests; vouchers of payment of interests from life insurance policies, for incomes from these interests.
As in the Decree, individuals who have already had houses or residential land who transfer contracts on the purchase and sale of houses to be formed in future are exempted from tax. Incomes from such transfer are ineligible for personal income tax exemption.
A tax declaration dossier comprises: notarized contract on the purchase and sale of houses to be formed in future. For second and subsequent transfers, the involved parties shall produce the previous contract; contract on the purchase and sale of houses to be formed in future signed with the tier-I or -II project owner or the project owner’s trading floor; completed personal income tax declaration form No. 11/KK-TNCN (issued together with the Ministry of Finance’s Circular No. 62/2009/TT-BTC of March 27, 2009). To fill in Box 04 on the declaration form the contract on the purchase and sale of houses to be formed in future in replacement of the land use rights and house ownership certificate.
For households and individuals transferring contracts on the purchase and sale of houses to be formed in future, if the transfer price written in the contract on the transfer of the contract on the purchase and sale of houses to be formed in future and the tax declaration form does not accord with the market price, tax agencies shall fix a transfer price for tax calculation after referring to (according to working minutes) the prices at the real estate trading floors of the project owners or those based in the locality in which exists the transferred real estate.
These amends and supplements take effect from March 12, 2011; and To annul guidelines on personal income tax contrary to this Circular.
Circular 12/2011/TT-BTC DOC (Word)
Circular 12/2011/TT-BTC PDF (Original)
Circular 12/2011/TT-BTC ZIP (Word)
