Personal income tax (PIT) is one of the important financial obligations that every individual with income in Vietnam needs to understand. From looking up personal tax identification numbers and determining taxable income to understanding regulations related to PIT from securities, this article will provide an overview and specific guidance, helping employees, accountants, and investors easily access the necessary information.
Based on current legal regulations, especially Personal Income Tax Law 2007 (amended and supplemented) Expertis will clarify each aspect so you can apply it effectively.
1. What is personal income tax?
Personal income tax is a direct tax that individuals with income must pay to the state budget after deducting the prescribed allowances. Article 1 of the Personal Income Tax Law 2007, Personal income tax applies to both resident and non-resident individuals, depending on whether the income originates within or outside the territory of Vietnam. This is an important tool for the state to manage income and ensure social equity.
The taxpayers include:
- Individuals residing in Vietnam: Taxable income arises both within and outside Vietnam.
- Non-resident individuals: Having taxable income arising in Vietnam.
2. Taxable and non-taxable personal income
Determining taxable income is the first step in complying with personal income tax regulations. According to Article 3 of the Personal Income Tax Law 2007, taxable income includes:
- Income from salaries and wages: This includes base salary, allowances, bonuses, and other income derived from the employment contract.
- Income from business: Profits from the production and sale of goods and services (except in certain exempted cases).
- Income from the transfer of assets: Such as real estate and stocks.
- Income from capital investments: Dividend income, bond interest, minus interest on bank deposits.
- Income from winnings: Lottery winnings, promotional prizes (excluding winnings at casinos).
Conversely, some income is exempt from personal income tax as stipulated in Article 4 of the Personal Income Tax Law 2007, include:
- Interest earned on bank and credit institution deposits.
- Pension payments are made by the Social Insurance system.
- Income from scholarships and gifts from charitable organizations.
- Income from the transfer of real estate between spouses, parents, and children.
Understanding these income streams helps employees and accountants avoid errors in tax declarations and optimize tax obligations.
3. Personal income tax on securities
For investors, personal income tax on securities is a major concern. Article 22 of the Personal Income Tax Law 2007 , and Decree 65/2013/ND-CP, Income from securities transfers is subject to a fixed tax rate of 0,1% on the transfer value each time, regardless of whether there is a profit or not. However, income from dividends or bond interest is exempt from personal income tax.
For example: If you sell shares worth 500 million VND, the personal income tax payable is:
500.000.000 x 0,1% = 500.000 VND.
Please note that investors need to retain transaction documents for tax declaration and settlement purposes when necessary. Securities companies often support direct tax deductions, but investors should carefully check to ensure accuracy.
4. How to look up your personal tax identification number.
A personal tax identification number (TIN) is a unique 10-digit number issued by the General Department of Taxation to manage each individual's tax obligations. Article 30 of the 2019 Law on Tax Administration. Looking up your tax identification number (TIN) is very simple and can be done online, making it suitable for employees, accountants, or anyone who needs to check tax information.
Instructions for looking up your personal tax identification number (MST):
- Access the General Department of Taxation's website: Go to page tracuunnt.gdt.gov.vn.
- Enter information: Enter your ID card/passport number and the verification code (captcha).
- View the results: The system will display the MSTCN along with related information such as the issuance date and operational status.
Alternatively, you can use the app. eTax Mobile (Download from CH Play or AppStore) for faster searching:
- Log in using your personal tax identification number (MST) or citizen identification number (CCCD).
- Select the "Look up taxpayer information" option to view details.
If an individual does not yet have a personal tax identification number (TIN), they can register directly with the tax authority or through the income-paying organization (enterprise, company).
5. Benefits of researching and understanding personal income tax regulations
- For employees: Checking your Tax Identification Number (TIN) helps verify your tax status, ensuring you receive personal deductions (11 million VND/month for yourself and 4,4 million VND/month for each dependent) and a refund if you overpay.
- For accountants: Update the regulations from documents such as: Circular 80 / 2021 / TT-BTC Assisting in the preparation of accurate and timely tax reports and settlements.
- For investors: Understanding personal income tax on securities helps optimize profits and ensure legal compliance.
6. Conclusion
Personal income tax is not only an obligation but also a tool to help individuals and businesses manage their finances effectively. Looking up your personal tax identification number, determining taxable or non-taxable income, and understanding personal income tax on securities are crucial steps to ensure legal compliance. With the above guidelines, we hope you – whether you are an employee, accountant, or investor – will easily apply and update the necessary information.
If you need further assistance or have any questions, Contact Expertis' tax experts today for quick, effective, and completely free advice!