Ordinance No number

ORDINANCE AMENDING A NUMBER OF ARTICLES OF THE ORDINANCE ON INCOME TAX ON HIGH-INCOME EARNERS

Pursuant to Article 91 of the 1992 Constitution of the Socialist Republic of Vietnam;

Proceeding from the Resolution of the IXth National Assembly, 10th session, on the 1997 draft State budget;

This Ordinance amends a number of Articles of the Ordinance on Income Tax on High-Income Earners of May 19, 1994;

Article 1.-

The following amendments are made to the Ordinance on Income Tax on High-Income Earners:

1. Clause 2, Article 2 is amended as follows:

"2. Irregular incomes in the forms of:

- Gifts and presents in kind sent from abroad;

- Transfer of technology, copyright to inventions, trade marks, technical know-how, technical designs for construction, industrial designs and other services, except in cases where they are gifts or presents.

- Lottery prizes".

2. Article 9 is amended as follows:

"Article 9.-

The regular taxable income defined in Clause 1, Article 2 of this Ordinance is the total amount of money an individual earns on a monthly average in a year, over 2,000,000 VND for Vietnamese citizens and other individuals residing in Vietnam and over 5,000,000 VND for foreigners residing in Vietnam and Vietnamese citizens on mission or working abroad. For foreigners who are not considered to be residing in Vietnam, the regular taxable income is the total revenue generated by their work in Vietnam.

A foreigner is considered to be residing in Vietnam if he/she stays in Vietnam for 183 days or more over a period of 12 months from his/her arrival in Vietnam, and shall not be considered to be residing in Vietnam if he/she stays in Vietnam for less than 183 days."

3. Clause 1, Article 10 is amended as follows:

"1. For Vietnamese citizens and other individuals residing in Vietnam:

PARTIAL PROGRESSIONAL TAX BRACKET

Unit: 1,000 VND

Level Average monthly Tax rate income/ per capita (%)

1 Up to 2,000 0

2 Over 2,000 to 3,000 10

3 Over 3,000 to 4,000 20

4 Over 4,000 to 6,000 30

5 Over 6,000 to 8,000 40

6 Over 8,000 to 10,000 50

7 Over 10,000 60

After paying their income tax according to the above rates, those individuals who still have a remaining income of over 8,000,000 VND a month on average shall pay an additional tax of 30 % of the amount in excess of 8,000,000 VND.

Article 2.- This Ordinance takes effect from the date of its promulgation.

The earlier provisions which are contrary to this Ordinance are now annulled.

Article 3.- The Government shall detail the implementation of this Ordinance.

On behalf of the National Assembly Standing Committee

Chairman

NONG DUC MANH