Currently, in the tax system of developed countries, property tax is widely applied. The necessity and objectiveness of property tax stems from the following reasons:

 First, the taxation of property often comes from the principle of ability to pay taxes.

An important criterion to determine the ability to pay taxes is income. An entity's income comes from many activities, including activities in the field of capital and assets. In developing countries, capital gains are difficult to recognize, so taxation of capital gains is difficult to implement. In contrast, income from real estate activities is easy to determine. Thus, it is argued that property taxation is a form of income tax in addition to the taxation of capital gains.

Second, the property tax is derived from the requirement to implement the principle of fairness in the field of taxation.

This argument argues that inequality in the distribution of wealth is more noticeable to society than in the distribution of consumer goods. Therefore, the social consequences for the unequal distribution of wealth is always a matter of concern for countries to address.

Taxpayers: 

·         Enterprises established under Vietnamese law;

·         Enterprises established under foreign laws (below referred to as foreign enterprises) with or without Vietnam-based permanent establishments;

·         Organizations established under the Law on Cooperatives;

·         Non-business units established under Vietnamese law;

·         Other organizations engaged in income-generating production and business activities.

·         Enterprises established under Vietnamese law shall pay tax on taxable incomes generated in and outside Vietnam

·         Foreign enterprises with Vietnam-based permanent establishments shall pay tax on taxable incomes generated in Vietnam and taxable incomes generated outside Vietnam which are related to the operation of such establishments

·         Foreign enterprises with Vietnam-based permanent establishments shall pay tax on taxable incomes generated in Vietnam which are not related to the operation of such permanent establishments.

·         Foreign enterprises without Vietnam-based permanent establishments shall pay tax on taxable incomes generated in Vietnam.

 

 

 

Name: LAW ON PERSONAL INCOME TAX

Definition: This Law provides for personal income taxpayers, taxable incomes, incomes eligible for personal income tax exemption or reduction, and personal income tax bases.

Taxpayers: Personal income taxpayers include residents who earn taxable incomes specified in Article 3 of this Law inside and outside the Vietnamese territory and non-residents who earn taxable incomes specified in Article 3 of this Law inside the Vietnamese territory. Resident individuals present in Vietnam for 183 days or more and have a regular place of residence in Vietnam.

Taxable object: Income from production and trading of goods and services;

Incomes from independent practice activities of individuals who have licenses or practice certificates as prescribed by law;

Incomes from salaries and wages;

Income from capital investment, including: Interest on loans, dividends on shares...;

Income from transfer of capital, real estate.

Taxable objects:
1. Gasoline, oil, grease, including: Gasoline, excluding ethanol; Flight fuel; Diesel; Petroleum; Fuel oil; Lubricants; Grease.
2. Coal, including: Brown coal; Anthracite coal (anthracite); Grease coal; Other coal.
3. Hydro-chloro-fluoro-carbon (HCFC) solution.
4. Plastic bags are subject to tax.
5. Herbicides are of restricted use.
6. Termite insecticides are of limited use.
7. Preservative drugs for forest products are restricted from use.
8. Disinfectants are restricted from use.
9. If it is deemed necessary to add other taxable objects to suit each period, the National Assembly Standing Committee shall consider and prescribe.