Job Discussion Forums

[spycatcher reincarnated]

As of 1 July there will be some personal income tax changes:

Personal allowance increases from 4 million VND to 9 million VND/ month
Dependent allowance increases from 1.6 million VND to 3.6 million VND/ month

See page 31:

http://www.pwc.com/vn/en/publications/2013/pwc_vietnam_pocket_tax_book_2013.pdf

[toiyeuthitmeo]

For some of us it'll mean several hundred thou dong tax reduction each month.

In case anyone doesn't get it, it means that now 9 million of your pay will be tax free, and if you have registered a dependant with the tax authorities (even non-native children count, but it requires birth records translated in VN and a form from DOLISA) an additional 3.6 million of your pay is tax free.

But here's a question for anyone in the know-

What if I work three jobs and none of them know about the others, and who all seem to tax me legitimately, and I usually make about 9 million before tax at each job? Will all three jobs give me the 9,000,000 tax-free? Seems like a pretty sweet loop-hole if that's how it works.

Oh and in case anyone's curious, here's the current tax scheme for Resident (anyone who lives in Vietnam as verified by passport and visa records for over 50% of the calendar year)

Non residents are charged a flat 20% of all earnings.


Pay Tax Percent
1-5 mil 5
above 5-10 mil 10
above 10-18 mil 15
above 18-32 mil 20
above 32-52 mil 25
above 52-80 mil 30
above 80 mil 35

[mark_in_saigon]

Pay Tax Percent
1-5 mil 5
above 5-10 mil 10
above 10-18 mil 15
above 18-32 mil 20
above 32-52 mil 25
above 52-80 mil 30
above 80 mil 35

On this scheme, does going over the threshold mean your entire income is then taxed at that higher rate?

For example, if you made 51.9999 million, you would be taxed at 25% for all income, but then at 52.0001 million, you would be taxed at 30%? So then it would make sense to closely watch your total and not go over it by a small amount, if you reach the threshold, you need to pass it and earn quite a bit more to make up for the extra 5% they are taking from the whole pile, right?

Still, I wish my country had a simpler deal, at least this seems rather clear. You guys see how Apple is circumventing taxes by funneling money through Ireland? Perfectly legal, but you have to be some monster corporation with all these resources to be able to pull it off. It seems that everywhere in the world, the rich have the ability to trick the system, so the real burden falls on the average citizens.

[spycatcher reincarnated]

[spycatcher reincarnated]

This app may help you calculate your PIT:

http://www.tanner.vn/En/news_dates/news/2012/TANNER_free_Personal_Income_Tax_Application_is_available_on_Google_Play.php

[mark_in_saigon]

I wish our deal in the states had simplicity like that. Still, rather certain that the big guys over here are able to do the same thing we do in the west with circumventing taxes, though they seem to have a very different process for it, yet the result is more or less the same. In the west, one thing we often fail to note is the huge expense of time and money we put into doing taxes. I know lots of people who pay as much for their taxes to be done as they pay the govt in actual taxes. A terrible waste of money, and one of the somewhat hidden costs of these taxing schemes, which, no matter how fair and well thought out, always seem to be gamed by the elite to the point where they become unfair for the folks without the resources to figure out how to circumvent taxes.

[1st Sgt Welsh]