Bank Deposit Interest Free of Duty
03/03/2011 - 27 Lượt xem
The Ministry of Finance recently issued Circular 12/2011/TT-BTC amending and supplementing Circular 84/2008/TT-BTC dated September 30, 2008 (Circular 84 provides guidelines for implementing some provisions of the personal income tax law) and amending Circular 02/2010/TT-BTC dated January 11, 2010 (Circular 02 provides guidelines for supplementing Circular 84/2008/TT-BTC dated September 30, 2008).
Circular 12/2011/TT-BTC says that one does not have to pay personal income tax for interest that he or she earns from depositing money (Vietnamese dong or foreign currencies) and or gold in a bank or other credit institutions and interest that he or she earns from a life insurance contract.
Savings books, deposit certificates, bills of exchange, treasury bills and other documentation and life insurance contract interest payment documentation are something based on which related duty-free income is calculated.
According the circular, a person that already owns a house but signs a contract to transfer a would-be-formed house purchase and sale contract to another has to pay personal income tax for the transfer of this future property. In this regard, tax declaration profile consists of 1) a contract on transferring a house purchase and sale contract, 2) a house purchase and sale contract signed with the project developer or the project developer's real estate exchange, and 3) a personal income tax declaration form.
In cases where property prices stated in the transfer contract and tax declaration are not compliant with the market's prices at the concerned time, the related tax authority fixes the transfer price for tax calculation after learning about real estate prices through the project developer's real estate exchange or other real estate exchanges.
The above-mentioned changes will become effective on March 12, 2011, while personal income tax guidelines contrary to Circular 12/2011/TT-BTC are invalid.
Source: MOF
Source: MOF
