PIT- revision

1. In the year 2023, Mr Du, a 40-year-old Vietnamese citizen with three dependants, received a gross
monthly salary of VND60 million from his employer, plus a bonus worth two months’ salary. In
December 2023, he also received a long-service award of VND100 million in cash for his ten year
anniversary with the company.
Mr Du is responsible for his own social, health and unemployment insurance.
What is Mr Du’s annual personal income tax (PIT) liability from his employment income (rounded
to two decimals in the monthly PIT calculation ONLY) in the year 2023?
A. VND112.05 million
B. VND 87.06 million
C. VND 158.58 million
D. VND 128.59 million

2. In the calendar year 2023, Mr Tony Stack, a non-resident individual working part time in Vietnam,
earned a royalty of VND1,000 million from selling his software to a Vietnamese company.
In the month of July 2023, he purchased shares in Company A, a company listed on the Vietnamese
stock exchange, for VND2,000 million and received a dividend of VND50 million.
He sold all the shares he owned in Company A in October 2023 at the same price as when he
purchased them.
What is the total amount of personal income tax in VND million (rounded to one decimal place)
payable by Mr Tony Stack on the transactions detailed in the year 2023?
A. VND50.0 million
B. VND54.0 million
C. VND52.0 million
D. VND49.5 million

3. Ms Van, a Vietnamese resident and 30-year-old divorced, single mother of a daughter aged eight
years, worked for Company T. She married her second husband on 1 April 2023. He has two sons aged
ten years and seven years respectively. The couple agreed that Ms Van would claim deduction for all
children from the date of marriage.
On 1 November 2023, Ms Van decided to end her employment to take care of their three children,
with her husband claiming deduction for all children from November onwards.
What is the total amount of personal deductions in VND million (rounded to zero decimal places)
that Ms Van would be entitled to for personal income tax purposes in the year 2023?
A. VND 216 million
B. VND 246 million
C. VND 242 million
D. VND 238 million
4. LXC Mr Tieu, a Vietnamese resident, owns various parcels of real estate in various provinces.
In the year 2022, he purchased the land use right (LUR) for a parcel of land in Da Nang for VND10
million per square meter.
In the year 2023, he sold the LUR to another Vietnamese citizen for a contractual price of VND6,000
million, yielding a gain of VND3,500 million from his purchase price. The price for the same area of
land as determined by the Da Nang People’s Committee was VND40 million per square meter at the
time of the sale.
What is the total amount of personal income tax payable by Mr Tieu (in VND million) from the sale
of the land use right in the year 2023?
A. VND120 million
B. VND700 million
C. VND150 million
D. VND200 million

5. Ms Huong Nguyen is a 30-year-old Vietnamese citizen with no dependants. During the year 2023, she
received a gross monthly salary of VND40 million, plus the following: a bonus equal to two months’
salary in January 2023 for her work performance in 2022; and a bonus equal to one month’s salary in
July 2023 for her half-year performance in 2023.
In the year 2023, her employer also paid her a clothing allowance of VND20 million in cash. Ms Huong
is responsible for her own social, health and unemployment insurance.
What is Ms Huong’s annual personal income tax (PIT) liability (rounded to two decimals in the
monthly PIT calculation ONLY) in the year 2023?
A. VND73.61 million
B. VND53.29 million
C. VND72.36 million
D. VND70.41 million

6. Ms Cindy, an Australian citizen with two registered dependants, arrived in Vietnam (with both
dependants) for the first time on 15 July 2022, to commence work under an employment contract
Ms Cindy remained in Vietnam for the whole of the period from 15 July 2022 until 15 April 2023, when
her employment contract came to an end, at which point, she (and her dependants) departed from
Vietnam.
What is the total amount of personal deductions (rounded to 0 decimal places) that Ms Cindy would
be entitled to for personal income tax purposes throughout her period of employment in Vietnam?
A. VND 178 million
B. VND 110 million
C. VND 198 million
D. VND238 million

7. On 1 April 2023, Mr Alib, a non-tax resident individual in Vietnam, purchased 200,000 shares of a
company listed on the Vietnamese stock market for VND50,000 per share.
On 1 December 2023, he sold 60% of the shares for VND30,000 per share (making a loss of VND20,000
per share).
 On 31 December 2023, he received a dividend of VND8,000 per share on the remaining 80,000 shares
held.
In respect of the transactions described, what is the total amount of personal income tax payable
by Mr Alib (in VND million, rounded to one decimal) in the year 2023?
A. VND35.6 million
B. VND32 million
C. VND3.6 million
D. VND0

8. Ms Trang is a Vietnamese citizen who earned gross employment income of VND40 million per month.
She gave birth to her first child and registered them as a dependent in January 2023. She subsequently
took six months maternity leave from January to June 2023.
During the maternity period, her employer paid 80% of her monthly salary to her, in addition to the
official maternity payment she received from the Social Insurance Fund.
What is Ms Trang’s annual personal income tax (PIT) liability (rounded to one decimal in the
monthly PIT calculation ONLY) in the year 2023?
A. VND22.8 million
B. VND14.4 million
C. VND0
D. VND21.3 million

9. Ms Ann is a non-resident of Vietnam. On 31 March 2023, she purchased 200,000 shares of VRC JSC, a
company listed on the Vietnamese stock market, for VND180,000 per share. On 15 July 2023, she sold
a quarter of these shares for VND200,000 per share. On 30 November 2023, she received a cash
dividend of VND10,000 per share on the remaining shares still held.
What is the total amount of personal income tax in VND million payable by Ms Ann on the above
transactions in the year 2023?
A. VND 275 million
B. VND 85 million
C. VND 10 million
D. VND 200 million

10. Mr Truong is a Vietnamese citizen with no dependants. In December 2023, he completed a distance
learning master’s course with a university in Belgium. In the year 2023, Mr Truong had the following
income:

- a scholarship equivalent to VND470 million from the university (as above), according to its policy,
with sufficient entitlement documents;
- VND580 million interest from term deposits in Vietcombank, a commercial bank established in
Vietnam; and
- VND3,500 million, being the market value of an apartment that he inherited from his parent.
What is the amount of personal income tax (in VND million) payable by Mr Truong on the above
sources of income in the year 2023?
A. VND 29 million
 B. VND 99 million
C. VND 70 million
D. VND 0

11. Mr Quang is 40 years old and is a Vietnamese citizen. He is a single father of two children, aged 11
and 8. He married his second wife, Marie, a US citizen and a single mother of a 10-year-old boy, on 1
April 2023. They agreed from the date of marriage that Mr Quang can claim all regulatory
reliefs/deductions available with respect to all their children. The whole family migrated to the US on
15 September 2023 when Mr Quang ceased his Vietnamese citizenship.
What is the total amount of personal and dependant deductions (in VND million, rounded to 2
decimals) which Mr Quang can claim for Vietnam personal income tax purposes in the year 2023?
A. VND 192.50 million
B. VND 204.60 million
C. VND 178.20 million
D. VND 290.40 million
Answer:

1. A. VND112.05 million
Salary + bonus: (VND60 million * 14 months) = VND840 million
Taxable long-service award = VND100 million
Taxable income = VND840 million + VND100 million = VND940 million
Less deductions: (VND11 million + (VND4.4 million * 3 dependants) + (VND36 million * 10.5% SHUI))
* 12 months = VND335.76 million
Monthly taxable income: (VND940 million – VND335.76 million) / 12 months = VND50.35 million
Tax = (VND50.35 million * 25% – VND3.25 million) * 12 months = VND112.05 million
The long-service award in cash is an employment income and thus subject to tax.

2. B. VND54.0 million
(VND1,000 million – VND10 million) * 5% on royalty = VND49.5 million
VND2,000 million * 0.1% = VND2 million
VND50 million * 5% = VND2.5 million
Total PIT = VND49.5 million + VND2 million + VND2.5 million = VND54 million
For non-resident individuals, all the incomes described are taxable at a percentage as detailed in the
tax table.

3. D. VND238 million
(VND11 million * 12 months) + (VND4.4 million * 10 months for her own daughter) + (VND4.4 million
* 2 * 7 months for her husband's sons) = VND238 million
Calculated relief based on the months in which she claimed dependant relief for her daughter (10
months from January to October 2023) and for her stepsons (7 months from April to October 2023),
as well as a full year's personal deduction.

4. D. VND200 million
The historical cost = (contract price VND6,000 million – gain VND3,500 million) = VND2,500 million
The area of the land = VND2,500 million / VND10 million per m² = 250 m²
Tax using People Committee price = VND40 million * 250 m² (higher than contract price) * 2% =
VND200 million
According to the revised Article 12 of Circular 111/2013 as amended by Circular 92/2015 and various
other Circulars, if the contractual price of a real estate sale is lower than the price set by the People's
Committee, the latter would be used for PIT purpose.

5. D. VND70.41 million
Salary + bonus: (VND40 million * 15 months) = VND600 million
Taxable clothing allowance = (20 – 5) = VND15 million
Taxable income = 600 + 15 = VND615 million
Less deductions: (VND11 million + (VND36 million * 10·5%)) * 12 months = VND177.36 million
Monthly taxable income: (VND615 million – VND177.36 million)/12 = VND 36.47 million
Tax = (36.47 * 25% – 3·25) * 12 = VND70.41 million
6. C. VND198 million
(VND11 million + (VND 4·4 million * 2 persons)) * 10 months = VND198 million
Cindy was present in Vietnam for 10 months (note: she is entitled to a full month’s relief in the first
and last month despite not spending the full month in Vietnam).

7. A. VND35.6 million
Tax on sales of shares: 200,000 shares * 60% * VND30,000 per share * 0·1% = VND3.6 million
Tax on dividends: 80,000 remaining * VND8,000 per share * 5% = VND32 million
Total PIT = 32 + 3.6 = VND35·6 million
Tutorial notes:
– Non-residents are subject to 0·1% on sale proceeds of securities (despite the loss).
– Non-tax residents are subject to tax at 5% on dividends.

8. D. 21.3 million
Salary: (VND40 million * 6 months) + ((VND40 million * 6 months) * 80%) = VND432 million
Less deductions: ((VND11 million + VND4.4 million) + (VND36 million * 10.5%)) * 12 months =
VND230.16million
Tax calculation: ((((VND432 million – VND230.16 million) / 12 months) * 15%) – VND0.75 million) * 12
months = VND21.276 million

9. B. VND 85 million
PIT on sales of shares: (200,000 shares/4 =50,000 shares) * VND200,000 per share * 0·1% = VND10
million
PIT on dividend: 150,000 shares * VND10,000 per share * 5% = VND75 million
Total PIT = VND10 million + VND75 million = VND85 million

10. D. VND 0
According to Article 3 of Circular 111/2013 and amended Circulars, those incomes are all exempt from
PIT.

11. B. VND 204.60 million

Self-deduction VND11 million * 9 months + his children ((VND4·4 million * 2) * 9 months) + (Marie’s
child VND4·4 million * 6 months) = VND204·6 million
Mr Quang can claim a full month’s deduction for September 2023 (according to Article 9.1, point
c.1.2 of Circular 111/2013 and various amending Circulars)