In response to an enterprise’s proposal regarding personal income tax (PIT) should be reduced for the first 6 months of 2020 (due to effects of Covid-19 pandemic), the Ministry of Finance assumes that PIT- liable incomes are deducted family circumstance – based amounts, contributions to compulsory insurance, etc. in which the family circumstance-based deduction for a taxpayer is increased from VND 9 million/month to VND 11 million/month and the family circumstance-based deduction for each dependant of the taxpayer is increased from VND 3.6 million/month to VND 4.4 million/month under Resolution No. 954/2020/UBTVQH14.
Although the aforesaid family circumstance – based deductions are applied from July 1st, 2020, they shall be accounted to the whole income in 2020.
Accordingly, the increase of family circumstance – based deductions under Resolution No. 954/2020/UBTVQH14 may be construed that the State gave PIT deduction to employees.
Regarding value added tax (VAT), the Government has promulgated Decree No. 41/2020/ND-CP regarding VAT deferral therein.
|Published||Vietlaw's Newsletter No. 475|