Jun-15 Q2 C Mr Tuy Nguyen

Capital investment a) Provisional personal income tax (PIT) from shares sale transaction
Capital transfer Sale on 1 Apr 2014
- Tax on capital investment income (for script dividend) (
- Tax on transfer of capital (18,000 x 150,000 shares x 0.

Sale on 20 Dec 2014

- Tax on capital investment income (for script dividend) (
- Tax on capital transfer (20,000 x 400,000 shares x 0.1%

Jun-15 Q6 Mr Kwon - SJCS

a) Taxable and non-taxable income in Vietnam for the year 2014

Mr Kwon
Salary (201,600 x 10/12)
Bonus (201,600/12 x 10/12)
School fee University fee for daughter (18,000 x 50%)
School fee for son (12,000 x 50%)
Airfare Airfares for family (1,500 x 3)
Airfares for himself
Performance bonus
Relocation Relocation cost
Total taxable income before housing
Housing (Gross salarAnnual taxable housing lower of
- 15% of gross taxable income from SJCS (237,100 x 15%)
- Actual housing (2,500 x 10)
Taxable housing allowance
Total taxable/ non-taxable income

b) PIT liability for the year 2014

Taxable income (262,100 x 21,500)

Self-deduction Self deduction ( 9 x 10 months)
Dependant deductioDependant deduction (3.6 x 2 x 10 months)

Total assessable income

Monthly assessable income (5,473 / 10)
Annual tax liability (547 x 0.35 - 9.85) * 10 months

Dec-15 Q2 Mr Nobi Takeshi - Ms Ngoc Le

a) PIT deductions from taxable income in 2014 - Mr Nobi Takeshi

Self-deduction Self-deduction (9 x 7 full months from Jan to Jul 2014)

Dependant deductDependant deduction
- His son (3.6 x 4 months from Jan to Apr 2014)
- Two sons of Ms Ngoc (3.6 x 2 x 6 months after marriage from Feb
Statutory contribuCompulsory ( 8 x 6.5 from Jan to 15 Jul 2014)
Donation to qualified centre for handicapped children
 b) PIT deductions from taxable income in 2014 - Ms Ngoc Le

Self-deduction Self-deduction (9 x 12 full months from Jan to Dec 2014)

Dependant deductDependant deduction
- Handicapped sister (3.6 x 12 months)
Voluntary insuran Insurance deduction (capped 1 million x 6.5 months from Jan to 15 J

Dec-15 Q6 Ms Dau Nguyen

a) Taxable income and non-taxable income for the year 2014

Income from HRD

Salary (30 x 12months)
Overtine Overtime (180 x 100/150 | 180 x 50 /150)
Cash support not useCash support

Income from ILO

Fixed wage (4 x 9 months)
Lecture fee (32 x 0.5 x 9months)

Compensation from iCompensation from insurer

Total taxable / non-taxable income

b) PIT liability for the year 2014

2 source of Income

Monthly taxable income (516 /12 months)

(180/9 months)
- Self deduction
- Dependant deduction
( 3.6 x 3 including 2 daughters and her husband)
- Compulsory insurance ( 23 x ( 8% + 1.5% + %))
Gross up Monthly assessable income
Monthly gross-up income (20.79-1.65)/0.8
(20-1.65)/0.8
Total assessable income (23.9 x 12 months + 22.9 x 9 months)
Monthly assessable income (493.5 /12 months - (9 + 10.8 + 2.4))
Annual tax liability ((18.9 x 0.2 - 1.65) x 12)
LT
Jun-16 Q2 Mr Hieu Minh
LT a) Tax treatment of voluntary insurance payments

Non-accumulated volFor non-accumulated voluntary insurance fees paid by an employe

even if the insurer is a foreign company allowed to operate in Vietn

Accumulated voluntaFor accumulated voluntary life insurance fees paid by an employer:

 – Where the insurer is a company incorporated in Vietnam
10% of the accumulated fee accrued to the employee

– Where the insurer is a foreign company (not incorporated in Vie

10% of the fee at the time of contribution

b) Taxable and nontaxable income for the year 2015

Salary (400 x 9 months)

13th month salary ( 400 x 9months / 12 months)
Rotation allowance
Medical insurance
Voluntary life insurance (taxable but not in 2015)
Car (15 x 9 months)
Uniform allowance
Two return airfared

Jun-16 Q5 Mr Minh Phu

a) PIT liability for the year 2015

From MNP Co
Monthly salary
Monthly allowance
Self-deduction
Dependant deducttion (3.6 x 2)
Compulsory insurance (23 x (8% + 1.5% + 1%)

Housing (Net salary Net income for grossing-up

Gross up First gross up without housing ((281.4 - 9.85)/0.65)

Housing Taxable income before housing (417.8 + 9 + 7.2 + 2.4)

Taxble housing - lower of
- 15% of gross income (436.4 x 15%) 65.5
- Actual housing 40.0

Net salary with housTaxable income with housing (281.4 + 40)

Second gross up (with housing) ((321.4 - 9.85)/0.65)

From HNP Co
Monthly net salary
Gross up ((60-5.85)/0.7)

Total annual gross income (479.3 x 12 + 77.4 x 6)

Monthly gross income
Annual PIT ((0.35 x 518 -9.85)) x12)

LT b) Tax treatment of remittance and inheritance/sale

 Remittances Remittances from overseas: such remittances are exempt from PIT i
recipient is resident or non-resident

Inheritance Inheritance of building:

– The building inherited from her aunt will be taxable in the hands o

– Tax is payable at the rate of 10% on taxable income of VND29,990

Sale of building Sale of the building: subject to PIT at 2% of the selling price (i.e. the
LT
Dec-16 Q2 Mr Nghia Phan
LT a) Tax treatment of share awards

Cashing shares awar ‘Cashing shares award’ scheme

This is effectively an employment-related performance incentive sin
The payment was made in cash, not by shares, thus the tax delay ap
So, the ‘cashing’ share award would be taxed in Mr Nghia’s hands on

Actual share award Actual ‘share award’ scheme

This award is also employment-based (additional bonus), thus the aw
However, any income received from the shares received after the aw
The award involves the issuance of shares to Mr Nghia, thus the inco

b) PIT liability for the year 2015

Salary (300 x 12 months)

Cashing shares award (1.5 x (20,000 - 12,000))
Special cash bonus
Total taxable income
Self-deduction (9 x 12 months)
Dependant deduction (3.6 x 3 x 12 months)
Compulsory insurance (23 x (8.5% + 1.5% + 1%) x 12 months)
Total assessable income
Monthly assessable income (20,133.4 / 12 months)
Annual tax liability ((0.35 x 20,176.6 -9.85) x 12months)

Dec-16 Q6 Mr Tommy Morning

a) i) Taxable and non-taxable income for the year 2015 (without hou

Annual salary (USD 300,000 x 22,000)

Performance bonus ((USD 300,000/12 months + USD 35,000) x 22,0
Tuition fees for Jennifer (USD 20,000 x 22,000)
Tuition fees for Lewis (USD 15,000 x 22,000)
Airfares for Tommy's one round trip (USD 3,000 x 22,000)
Airfares 1 trip for Tommy and 2 for his wife (USD 3,000 x 3 x 22,000
 Medical insurance
For Tommy (USD 1,000 x 12 x 22,000)
For Tommy's wife and son (USD 1,000 x 2 x 12 x 22,000)
Car (VND 20 million x 12)
Accumulated voluntaAccumulation insurance (USD 3,000 x 12 x 22,000)

ii) PIT liability for the year 2015

Taxable income before housing

Taxable housing, lower of
- 15% gross income (15% x 9,086) 1362.9
- Actual housing (USD 3,500 x 22,000 x 12 924

Total taxable income

Self-deduction (9 x 12)
Dependant deduction (3.6 x 12)

Annual assessable income

Monthly assessable income (9,859 /12 months)
PIT liability for the year 2015 ((0.35 x 822 - 9.85)x 12months)

LT b) Tax treatment of options

The current regulations are unclear regarding stock options. Howeve

from a bonus/incentive in the form of shares is when the shares are

Accordingly, the options would not be taxable neither at their grant

of the options vest (i.e. on 31 December 2015) since Mr Tommy doe
first acquisition of option shares only occurs on 2 January 2016
Jul-20 Q2 Mr Ha Nguyen
a) Transfer of securities and investment income

Capital transfer Tax on transfer of securities

Gross proceeds from sale of actual shared award (50,000 shares x 3
PIT liability (1,500 x 0.1%)
Net proceeds

Capital investment Tax on Investment income (securities)

Number of shares purchased by execising options (1498.5 million /1
Dividend received ((100,000 - 50,000 + 149,850) x 5,000)
PIT on casd dividends (999.25 x 5%)

b) Income from employment

Salary (100 million x 12months)

Capital transfer Income from sale of actual share award (50,000 x 25,000)
Cashing shares awarCashing award ((28,000 - 25,000) x 500,000)
Taxable income for the year 2019
 Self-deduction (9 x 12months)
Compulsory Insurance (12 x 29.8 x (8.5% + 1.5% + 1%))

Annual assessable income

Monthly assessable income
Annual PIT liability for the year 2019

Jul-20 Q6 Mr Bert Walsh - 1 Apr 2019

a) Taxable income, non-income items and non-taxable income in 20

Annual salary (25,000 x 9 months)

Incentives ( 25,000 x 2 x 9/12 months)
Incentive received in 2020
Tuition fee ((1,500 + 1,000) x 9)
School bus and meals (400 x 2 x 9)
Airfares
- 1 round trip for Bert
- 1 round trip for Bert, 2 round trip for his wife (3 x 3,500)
- 2 two round trip for his 2 granddaughters (4 x 3,500)
Medical insurance
- For Bert (1,000 x 9)
- For his family (3,000 x 9)
Utilies fee (2,000 x 9)

b) PIT liability in 2019

Taxable housing, lower of:

- 15% Gross taxable income (15% x 340,500)
- Actual housing ( 600,000/50/12 x 9 months)

Taxable income with housing (340,500 + 9,000)

Taxable income in VND (349,500 x 23,500)
Self-deduction (9 x 9 months)
Dependant deduction ( 3.6 x 2 x 9)
Annual assessable income
Monthly assessable income (8,067.5 /9 months)
Monthly PIT liability (896.5 x 0.35 -9.85)
PIT liability for the year 2019 (303.9 x 9)
 hares sale transactions
VND millionss
(for script dividend) (10,000 x 150,000 shares x 5%) 75
x 150,000 shares x 0.1%) 2.7

(for script dividend) (10,000 X 50,000 shares x 5%) 25

400,000 shares x 0.1%) 8

m for the year 2014

Taxable income Non-taxable income
USD USD
168,000
14,000
9,000
6,000
4,500
1,500
33,600
8,000
237,100 7,500

,100 x 15%) 35,565

25,000
25,000
262,100 7,500

VND millionss
5,635
90
72

5,473
547
1,816

4 - Mr Nobi Takeshi
VND millions
63.0

14.4
er marriage from Feb to Jul 2014) 43.2
52.0
50.0
4 - Ms Ngoc Le
VND millions
Dec 2014) 108.0

43.2
onths from Jan to 15 Jul 2014) 6.5

the year 2014

Taxable income Non-taxable income
VND millions VND millions

360.0
120.0 60.0
36.0
516.0 60.0

36.0
144.0
180.0
550.0
696.0 550.0

From HRD From ILO

VND millions VND millions
43.0
20.0
- 9.0
- 10.8

- 2.4
20.8 20.0
23.9 22.9

22.9 x 9 months) 493.5

- (9 + 10.8 + 2.4)) 18.9
25.6

es paid by an employer, such as medical insurance, the fee is not taxable in the hands of the employee,
ed to operate in Vietnam

paid by an employer:
ed in Vietnam: the insurer is required to withhold personal income tax (PIT) at the rate of
employee at the time of maturity of the insurance policy

ot incorporated in Vietnam): the employer is required to withhold PIT at the rate of

Taxable income Non-taxable income

VND millions VND millions
3,600
300
200
20
100
135
10 5
40

VND millions

250
50
-9
-7.2
-2.4

281.4
417.8

7.2 + 2.4) 436.4

40

321.4
479.3

60.0
77.4

6,215.6
518.0
2,057.2
 are exempt from PIT in Vietnam, regardless of whether the

axable in the hands of Mrs Phu (only not taxable if inherited from close family)

income of VND29,990 million (being the market value of VND30 billion – VND10 million)

e selling price (i.e. the contract price) or the price stated by the local People’s Committee, whichever is higher.

ormance incentive since the terms are stated in the labour contract. Therefore, it will be treated as employmen
, thus the tax delay applicable to a share-based bonus (Article 26, point 11 of Circular 111/2013) is not applicab
in Mr Nghia’s hands on payment.

nal bonus), thus the award would be employment income.

s received after the award (e.g. dividends) will be investment income.
Mr Nghia, thus the income would not be taxable upon receipt, but delayed until Mr Nghia sells the shares.

VND millions
3,600.0
12,000.0
4,800.0
20,400.0
- 108.0
- 129.6
1%) x 12 months) - 29.0
20,133.4
1,678
12months) 6,928.6

ear 2015 (without housing)

Taxable income Non-taxable income
VND millions VND millions
6,600
+ USD 35,000) x 22,000) 1,320
440
330
0 x 22,000) 66
SD 3,000 x 3 x 22,000) 198
 264
2 x 22,000) 528
240

9,086 660

VND milions
9,086
924

10,010
-108
-43.2

9,859
822
85)x 12months) 3,332

stock options. However, the trigger point for taxable income

s when the shares are sold

neither at their grant (i.e. on 1 January 2015) nor when 25%

) since Mr Tommy does not receive any shares in 2015. The
n 2 January 2016

VND millions

ard (50,000 shares x 30,000) 1,500.00

(1.50)
1,498.50

ons (1498.5 million /10) 149,850 shares

50) x 5,000) 999.25
49.96

1,200.00
0 x 25,000) 1,250.00
1,500.00
3,950.00
 (108.00)
5% + 1%)) (37.55)

3,804.45
317.0376666667

-taxable income in 2019

Taxable income Non-taxable income
USD USD
225,000
37,500
50,000
22,500

3,500
(3 x 3,500) 10,500

9,000
27,000
18,000
340,500 62,500

USD VND million

9,000
51,075
9,000

349,500
8,213.3
- 81.0
- 64.8
8,067.5
896.4
303.9
2,735.1
 23tr và rate % đề cho ở đầu

s of the employee,
ee, whichever is higher.

e treated as employment income, not investment income

111/2013) is not applicable.

a sells the shares.

10% of the fee at the time of contribution 792
Non-income items
USD

7,200

14,000

21,200