Two million HCM City people to pay personal income tax
05-SEP-2008 Intellasia | Saigon Times Daily page 4
Sep 5, 2008 - 7:00:00 AM
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Under the new Law on Personal Income Tax that will take effect early next year, about two million people in HCM City will have to pay this tax, including 1.5 million salaried workers, said the HCM City Tax Bureau.
Trinh Thi Thu Thuy, head of the personal income tax department, told reporters last week that every taxpayer would be issued a private tax code and that the tax registration must be finished by late this year in line with the prime minister's instruction.
The HCM City Tax Bureau also has plans to provide tax codes for tax payers soon, she told a press conference.
For 1.5 million salaried workers, the tax sum will be deducted at sources. About 30,000 people under this category have been granted tax codes so far. The city's taxman has also worked with many administrative bodies and companies to register tax codes for all their employees at one time.
The registration of the remaining 500,000 people who are subject to the tax law and who have free occupations will be a huge challenge for the taxman.
Tran Thi Le Nga, head of the information department of the tax bureau, said that the number of taxpayers was too big while time was running out. Therefore, the bureau is considering providing online registrations to make it most convenient for people to perform their obligations.
Tran Dinh Cu, deputy head of the HCM City Tax Bureau, said that tax registration and management in the near future would devolve upon district-level authorities, allowing people to go to tax offices at the locality where they live to register and pay the income tax.
He also said that the Ministry of Finance and the city's tax bureau would be applying information technology in tax payment management and would launch a national database processing centre to collect information of taxpayers in the country to manage tax enumeration and payment.
In the new law, income from transferring stocks and real estate will also be imposed tax. Cu said the tax bureau would work with the Hochiminh Stock Exchange and securities companies to enumerate tax for investors.
The government and the Ministry of Finance are collecting ideas for a draft decree and circulars guiding the implementation of the law, he added.
The taxable income threshold under the new law is 4 million dong a month. A big change in the law is that income from freelancers and household businesses is subject to individual income tax, meaning family businesses will no longer have to pay corporate income tax.
Income from capital investment excluding government bonds and bank interest sums, from transferring property, excluding transfer between people having only one house or land lot in the country, and between relatives, will be subject to the tax.
Also within the scope of the income tax law are monies earned from bonuses and lotteries higher than 10 million dong each time, from copyright royalties, from transferring commercial rights, and from inheritance.
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