Determining the reduction of personal income tax (PIT) for individuals working in the Economic Zone in 2018

24/06/2019 News VBP

On April 8th, 2019, General Department of Tax issued the Official Letter No.1285/TCT-DNNCN. Accordingly, the reduced PIT amount of individuals working in economic zones and border-gate economic zones when finalizing PIT in 2018 is determined by 50% of the total PIT payable in the year multiplied by the ratio between Taxable income occurred in economic zones which received from January 1st, 2018 to July 9th, 2018 and total taxable income in the tax year.

Specifically, the total PIT payable is determined on the basis of taxable income from wages and salaries arising in the tax year under law. The total taxable income in the tax year is the income from salaries and wages including incomes in economic zones and border-gate economic zones and incomes outside there (if any).