When do income tax checks come in 2011

Close extra sharing options. Michael Cohn. Editor-in-chief, AccountingToday. For reprint and licensing requests for this article, click here. Tax practice Tax season. Tax-related court cases. Tax Fraud Blotter: Bad policies. By Jeff Stimpson. FASB eases discount rate guidance for nonpublic lessees. By Michael Cohn.

Taxpayer Advocate no longer helping with amended returns. In the case of a foreigner, a residential location for which permanent residence has been registered the registered place recorded in the resident card or temporary resident card issued by the authority under the Ministry of Public Security.

Is there a de minimus number of days rule when it comes to residency start and end date? Termination of residence Are there any tax compliance requirements when leaving Vietnam? What if the assignee comes back for a trip after residency has terminated? Communication between immigration and taxation authorities Do the immigration authorities in Vietnam provide information to the local taxation authorities regarding when a person enters or leaves Vietnam?

Economic employer approach Do the taxation authorities in Vietnam adopt the economic employer approach 1 to interpreting Article 15 of the Organisation for Economic Co-operation and Development OECD treaty? If no, are the taxation authorities in Vietnam considering the adoption of this interpretation of economic employer in the future?

De minimus number of days Are there a de minimus number of days 2 before the local taxation authorities will apply the economic employer approach? There is no de minimus number of days applied in Vietnam.

Types of taxable compensation What categories are subject to income tax in general situations? Intra-group statutory directors Will a non-resident of Vietnam who, as part of their employment within a group company, is also appointed as a statutory director i. Non-residents are taxed even in cases they are not present in Vietnam. Tax-exempt income Are there any areas of income that are exempt from taxation in Vietnam? If so, please provide a general definition of these areas. Expatriate concessions Are there any concessions made for expatriates in Vietnam?

Salary earned from working abroad Is salary earned from working abroad taxed in Vietnam? If so, how? Taxation of investment income and capital gains Are investment income and capital gains taxed in Vietnam? Dividend, interest, and rental income Under current regulations, dividends are treated as income from capital investments and taxed at a flat tax rate as mentioned above.

Interest income from banks and credit institutions is exempted from PIT. Other forms of interest are taxed as income from capital investment. Rental income is considered as business income and subject to tax as stated above. Principal residence gains and losses Principal residence gains and losses from individual having only one sole residential house or land are not subject to personal income tax.

Capital losses Capital losses are not deductible for personal income tax purposes in Vietnam. Personal use items Gains and losses on personal use items are not subject to personal income tax in Vietnam. Gifts Gifts from employers to employees will be regarded as employment income and subject to personal income tax at progressive tax rates.

If so, please discuss? No additional CGT issues for individuals. Are there capital gains tax exceptions in Vietnam? Pre-CGT assets Not applicable. Deemed disposal and acquisition Not applicable. General deductions from income What are the general deductions from income allowed in Vietnam?

For individual taxpayers: VND9 million per month. Donations to certain approved charities, human aid, and education funds. Payments for compulsory insurance contribution including social security contributions. Tax reimbursement methods What are the tax reimbursement methods generally used by employers in Vietnam? For expatriates in Vietnam, some employers apply tax equalization scheme.

Monthly provisional withholding and payments are applied which is similar to PAYE method. PAYG installments Not applicable for employees with local employers.

For example, a foreign tax credit FTC system, double taxation treaties, and so on? General tax credits What are the general tax credits that may be claimed in Vietnam? Income tax paid overseas may be credited in Vietnam. Sample tax calculation This calculation assumes a married taxpayer resident in Vietnam with two children whose 4 - year assignment begins 1 January and ends 31 December Other assumptions All earned income is attributable to local sources.

Bonuses are paid at the end of each tax year and accrue evenly throughout the year. Housing benefit is paid in cash to the assignee and no house leasing contract and invoices for rental are supported. The company car is used for business and private purposes and originally cost USD50,, but it is paid in cash to the assignee. The employee is deemed resident throughout the assignment.

Tax treaties and totalization agreements are ignored for the purpose of this calculation. Education fee is paid by the Company and supported with invoices of the school in Vietnam from primary school level to high school level.

Home leave is for one round home trip of the assignee provided with copies of air tickets and invoices. The remuneration is agreed on a gross basis. Two children qualify the statutory conditions for tax relief. Footnotes 1. Connect with us Find office locations kpmg.

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Equalization Levy Rules,