Vietnamese and foreign nationals living in Vietnam...
Vietnamese and foreign nationals living in Vietnam will have to pay between 10% and 50% of their salaries in income taxes under the Communist country’s first such income tax law.
The law is aimed at boosting meager state revenue as the government shifts from a centrally planned to a market-oriented economy.
Vietnamese earning $54 or more per month and foreigners earning $110 or more must pay 10% of their income in taxes beginning April 1. Those earning less than the minimums will pay no tax.
The graduated tax reaches a maximum of 50% for Vietnamese making more than $410 per month and for foreigners earning more than $2,190 per month.
Although there has been no graduated income tax until now, government-owned businesses have been paying a portion of each of their employees’ salaries to the state as a way to fund “social welfare” programs.
Official newspapers said the income tax would help “achieve social justice and mobilize revenue from those with high income.”
The government estimates annual per capita income at between $200 and $210.
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