Illustration photo |
The circular also outlines ways to calculate personal income tax including income tax on real estate transactions.
Under the new circular, organizations and individuals paying commissions, salaries, wages and other service charges valued at more than VND 1 million per transaction will have the tax deducted before paying their general income tax. Deductions are applied at a rate of 10% for individuals who have tax file numbers and 20% for those without tax file numbers.
Purchasing contracts for houses or apartments signed before Decree 71/2010/ND-CP on the implementation of the Law on Housing came into effect on 23 June, 2010, have to pay 25% of their personal income tax.
For the transfer of purchasing contracts on housing to be built in the future, people making tax declarations will be subject to a tax of 25% on their income./.