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yogurtpooh
Joined: 26 Oct 2010
Posts: 85
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 Posted: Wed Aug 24, 2011 12:41 am Post subject: do these tax numbers make sense? |
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| I was told that if I made more from 11 to 15 million, i would get taxed 10% - 16 to 20 million and it would be 15%. That is a load of shiz - any thoughts? |
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_smaug
Joined: 08 Sep 2010
Posts: 92
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| Posted: Wed Aug 24, 2011 1:24 am Post subject: Re: do these tax numbers make sense? |
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| yogurtpooh wrote: |
| I was told that if I made more from 11 to 15 million, i would get taxed 10% - 16 to 20 million and it would be 15%. That is a load of shiz - any thoughts? |
Six months working in country, 10%
Less than six months, 20%
At least, that's the way it was in 2008-09 when I worked there.
I interviewed at one school where the director told me they take a flat 20%. When I asked if I'd be reimbursed the difference after six months he said, �not likely�.
Hey, at least he was honest. |
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1st Sgt Welsh
Joined: 13 Dec 2010
Posts: 946
Location: Bandar Seri Begawan, Brunei
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| Posted: Wed Aug 24, 2011 3:21 am Post subject: Re: do these tax numbers make sense? |
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| _smaug wrote: |
I interviewed at one school where the director told me they take a flat 20%. When I asked if I'd be reimbursed the difference after six months he said, �not likely�.
Hey, at least he was honest. |
Tell me about it! I'm currently in the process of trying to get my tax refunded (I'm entitled to a refund of about $500) and it's like trying to nail jelly to a wall  . Although I hate to do it, I'm actually at the stage where I am thinking of just giving up.
When I first arrived in Vietnam I lived in a guesthouse for a while so I was not under a lease or anything. Of course, the tax office now requires my receipts from said guest house (which would be well over a year old) to prove that I was living in Vietnam at the time! Foolishly I had thrown the receipts out ages ago . They also apparently need a letter from the Australian Government to prove that I have not been working in Australia during the time period in question.
The fact that I can supply my passport (which documents exactly when I have been in Vietnam and proves that I have not returned to Australia since I've been living here) is apparently irrelevant  . |
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LettersAthruZ
Joined: 25 Apr 2010
Posts: 466
Location: North Viet Nam
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| Posted: Wed Aug 24, 2011 7:07 am Post subject: Re: do these tax numbers make sense? |
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| 1st Sgt Welsh wrote: |
When I first arrived in Vietnam I lived in a guesthouse for a while so I was not under a lease or anything. Of course, the tax office now requires my receipts from said guest house (which would be well over a year old) to prove that I was living in Vietnam at the time! Foolishly I had thrown the receipts out ages ago . They also apparently need a letter from the Australian Government to prove that I have not been working in Australia during the time period in question.
The fact that I can supply my passport (which documents exactly when I have been in Vietnam and proves that I have not returned to Australia since I've been living here) is apparently irrelevant . |
Right, because, unlike, say, The States and Canada - you DO NEED A STAMP ON YOUR PASSPORT UPON ENTRY AND EXIT from Vietnamese Immigration! That should be more than enough proof.....
"Guesthouse receipts???" - "Letter from your home nation's Government stating that you didn't return there during that time frame??"
Duuuuuude.....they just don't to give you your legally-owed refund back because some tax department manager blew your five hundred dollars on his brand new SH 150 scooter!!! |
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snollygoster
Joined: 04 Jun 2009
Posts: 478
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| Posted: Wed Aug 24, 2011 8:20 am Post subject: Tax |
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Tax Dept in Vietnam is a joke.
I ran a small business in Vietnam which my GF (Viet) fronted. The Tax people came every month to do an "audit". They never opened or looked at a book, asked any questions or anything, because my GF just used to give them an envelope, and they would smile and leave after ticking the boxes on their "report".
One time I asked them to pose while I took a picture of them receiving the envelope- "too shy" and other stupid lies- they never returned, and that was the end of the little business either paying tax or being audited. |
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Jbhughes
Joined: 01 Jul 2010
Posts: 254
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| Posted: Wed Aug 24, 2011 8:24 am Post subject: |
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If you look on page 33 of PWC's Pocket Tax Book for 2011, it shows the rates you pay on your taxable income.
For tax-residents:
The yearly tax allowance is 48million - 4million a month.
http://www.pwc.com/vn/en/publications/2011/vn-pocket-tax-booklet-2011.jhtml
Monthly:
0-4 mil 0%
4-9 mil 5%
9-14 mil 10%
14-22 mil 15%
22-36 mil 20%
36-56 mil 25%
(this is over your whole income, I have incorporated the tax allowance)
I've just found some newspaper articles in Vietnamese that seem to suggest that for the final 5 months of this year that private income tax is somehow reduced, I don't fully understand the articles though- so I'm looking on PWC or for other English sources to support or deny this. |
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toiyeuthitmeo
Joined: 21 May 2010
Posts: 213
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| Posted: Wed Aug 24, 2011 10:03 am Post subject: |
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The tax holidays this year are for people earning far less than teachers (I recall the number being in the single million digit range) and there is a tax holiday for SMEs (small medium enterprises). Finally, there is a tax holiday for households that let rooms to students or laborers. Nothing there for us rich folks  Could change though, so keep checking the papers.
To clarify this tax schedule
Monthly:
0-4 mil 0%
4-9 mil 5%
9-14 mil 10%
14-22 mil 15%
22-36 mil 20%
36-56 mil 25%
I've been told that it is not a flat rate, e.g. if you make 25mil one month, they take 5% of 9 million, 10% of 14 million, and 15% of 2 million.
Am I understanding this correctly?
Thanks |
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Jbhughes
Joined: 01 Jul 2010
Posts: 254
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| Posted: Wed Aug 24, 2011 6:58 pm Post subject: |
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25 million would be:
0-4million band: 0% of 4million = 0 . 21million left
4-9million band: 5% of 5million = 250,000 . 16million left
9-14million band: 10% of 5million = 500,000 . 11million left
14-22million band: 15% of 8mlllion = 1,200,000 . 3million left
22-36million band: 20% of 3million = 600,000 . 0million left
total = 2,550,000
(my maths and understanding withstanding...)
When I last really looked into tax back at the end of 2009, the rule was that tax would be worked out on a job by job basis, by that I mean if you earned 12,500,000 with one employer and 12,500,000 with another, you would pay less than 2,550,000. Or for an extreme example, if you earned 25million shared equally between 7 employers, then you would pay no tax!
I'm not sure if it is still worked out in this way or not.
| Quote: |
The tax holidays this year are for people earning far less than teachers (I recall the number being in the single million digit range) and there is a tax holiday for SMEs (small medium enterprises). Finally, there is a tax holiday for households that let rooms to students or laborers. Nothing there for us rich folks Wink Could change though, so keep checking the papers.
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Could it be that everyone is exempt from tax in the lowest taxable bracket (4-9 million)? I haven't been able to find useful information further to the few newspaper articles in Vietnamese I found earlier.
250,000 extra a month could be worse!
Something else I saw in the PWC document is that PIT is exempt for 'Once per year home leave round trip airfare for expatriate employees;'
I suppose that this would need to be paid as a benefit by the employer. I'm wondering about my employer buying me an air ticket and deducting it from my taxable income? Any thoughts on this? |
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spycatcher reincarnated
Joined: 19 May 2005
Posts: 236
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| Posted: Thu Aug 25, 2011 4:16 am Post subject: |
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| Quote: |
| When I last really looked into tax back at the end of 2009, the rule was that tax would be worked out on a job by job basis, by that I mean if you earned 12,500,000 with one employer and 12,500,000 with another, you would pay less than 2,550,000. Or for an extreme example, if you earned 25million shared equally between 7 employers, then you would pay no tax! |
Not quite. In reality each employer has to tax you on the amount that you earned from them. If you received income from more than one source during the year then you have to make a tax declaration in February of the following year. If all your sources of income are using the same tax code for you then it is possible in theory for the tax department to calculate your total earnings.
You should inform the tax dpt of all your earnings and a tax reconcilliation will be preformed, where by you will be liable for correct taxes on your total earnings. IE. You should end up paying the same amount as you would have, if all your income had come from one employer. This is similar to the west.
Tax holidays:
No idea what is happening here at present.
http://www.auschamvn.org/description/news/latest-business-news/35A4EA28/
Flight
Yes, but your employer will need to be careful on this one.
Not sure, but this perk may need to be included in your employment contract/labour contract.
Tax dpt won't be pleased if they do reconcile and see your salary was reduced by the same amount as the flight ticket. In realities most companies in Vietnam are more concerned about keeping the tax department happy than paying correct taxes.
Believe flight receipt needs to be in company name and other documents may also be required. |
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Jbhughes
Joined: 01 Jul 2010
Posts: 254
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| Posted: Fri Aug 26, 2011 4:56 am Post subject: |
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| Quote: |
| Not quite. In reality each employer has to tax you on the amount that you earned from them. If you received income from more than one source during the year then you have to make a tax declaration in February of the following year. If all your sources of income are using the same tax code for you then it is possible in theory for the tax department to calculate your total earnings. |
Right, I see. Doesn't overly surprise me that something happened differently in practice compared to the rules. Nice to know what's correct though.
My reading of that link is that the first band of tax (5% on the first 5million of taxable income) is not going to be collected. And hence I'm sure for any foreigner reading that would mean the whole band - a saving of 250,000 a month. Do you agree?
A copy of some law in Vietnamese to put under accountants' noses would be nice.
I wonder in reality whether this will cost more money for tax departments or employers? 
| Quote: |
Flight
Tax dpt won't be pleased if they do reconcile and see your salary was reduced by the same amount as the flight ticket. In realities most companies in Vietnam are more concerned about keeping the tax department happy than paying correct taxes. |
My salary varies month on month, but I think you're right about wanting to keep the tax department happy. There's no real incentive for the school to do it either.
Thanks for the info Spycatcher - what about another economic prediction? The Dong sliding a little, inflation continuing seemingly unabated, $ looking wobbly, gold doing well - what do you recommend?  |
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CThomas
Joined: 21 Oct 2009
Posts: 380
Location: HCMC, Vietnam
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| Posted: Sat Aug 27, 2011 1:10 am Post subject: Tax Holiday is for those making >9M/month. |
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| As explained to me by our legal admin where I work, the tax holiday is limited to those who make >9M/month. |
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Jbhughes
Joined: 01 Jul 2010
Posts: 254
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| Posted: Sat Aug 27, 2011 6:21 am Post subject: |
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| Seems pretty unfair. Tax holidays only for the higher earners. Should mean we get the break though, that part is good at least. Hardly appropriate though. |
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CThomas
Joined: 21 Oct 2009
Posts: 380
Location: HCMC, Vietnam
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| Posted: Sat Aug 27, 2011 7:56 am Post subject: |
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| Jbhughes wrote: |
| Seems pretty unfair. Tax holidays only for the higher earners. Should mean we get the break though, that part is good at least. Hardly appropriate though. |
Sorry. My bad. It's for earners at or below 9M/month. Just the opposite.
Sometimes the government here does something really cool. This is one of those times |
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Jbhughes
Joined: 01 Jul 2010
Posts: 254
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| Posted: Sat Aug 27, 2011 12:37 pm Post subject: |
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ah, hieu. Easy mistake, the buttons are right next to each other.
In which case I'm definitely with you on that one. Overall better, shame about the quarter mil.. but definitely makes more sense. That much could make a good difference for some I would imagine. Will be weird for those that earn between 9 and 10 million a month though |
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