Savings deposit is a safe and stable investment channel that is often chosen by individuals and organizations when they want to make a profit from their idle money. So is saving money taxable? In this article, Pham Consult will answer for you!
1. Determination of personal income taxable income
Pursuant to the provisions of Clause 1, Article 4 of Circular 78/2014/TT-BTC, the taxable income for CIT in the tax period is determined by taxable income minus tax-free income and losses carried forward from the previous years as prescribed.
Taxable income is determined according to the following formula:
Taxable income = Taxable income – (Exempt income + Carry-forward losses in accordance with regulations)
In which, according to the provisions of Clause 2, Article 4 of Circular 78/2014/TT-BTC as amended by Article 2 of Circular 96/2015/TT-BTC, the taxable income in the tax period includes income from production and trading of goods and services and other incomes. Taxable income in the tax period is determined as follows:
Taxable income = Revenue – Deductible expenses + Other income
2. Is the bank interest subject to personal income tax?
Pursuant to the provisions of Clause 7 Article 7 of Circular 78/2014/TT-BTC, the income from deposit interest and capital loan interest includes interest on deferred payment, installment interest, credit guarantee fee and other related expenses. Other fees in capital loan contracts are incomes subject to CIT.
– In case the income from interest on deposits, interest on capital loans is higher than the payment of loan interest as prescribed, after clearing, the remaining difference shall be included in other income when determining the payable income. tax.
– In case the income from deposit interest and capital loan interest is lower than the prescribed loan interest payment, after clearing, the remaining difference will be deducted from the main production and business income when determine taxable income.
3. Incomes exempt from personal income tax Based on the provisions of the Law on Corporate Income Tax 2008 (amended and supplemented in 2013, 2014), incomes exempt from CIT include:
(1) Incomes from farming, animal husbandry, farming, processing of agricultural and aquatic products, and salt production by the cooperative; income of cooperatives operating in the fields of agriculture, forestry, fishery and salt production in areas with difficult socio-economic conditions or in areas with extremely difficult socio-economic conditions. towel; incomes of enterprises from cultivation, animal husbandry, farming and processing of agricultural and aquatic products in areas with extremely difficult socio-economic conditions; income from fishing activities.
(2) Income from performing technical services directly serving agriculture.
(3) Incomes from the performance of contracts for scientific research and technological development, products that are in the period of trial production, products made from new technologies applied for the first time in Vietnam.
(4) Incomes from production and business activities of goods and services of enterprises with 30% of the average number of employees in the year or more being disabled people, people after detoxification, people infected with viruses. acquired immunodeficiency syndrome (HIV/AIDS) and has an average number of employees in a year of twenty or more, excluding businesses operating in finance and real estate business.
(5) Incomes from vocational training activities exclusively for ethnic minorities, disabled people, children in extremely difficult circumstances, subjects of social evils.
(6) Income distributed from capital contribution, joint venture, association with domestic enterprises, after having paid corporate income tax as prescribed.
(7) The grant received is used for educational activities, scientific research, culture, art, charity, humanitarian and other social activities in Vietnam.
(8) Income from the transfer of emission reduction certificates (CERs) of enterprises granted emission reduction certificates.
(9) Income from performance of State-assigned tasks of Vietnam Development Bank in investment and development credit activities, export credit; income from credit activities for the poor and other policy beneficiaries of the Bank for Social Policies; income from state financial funds and other state funds operating for non-profit purposes as prescribed by law; income of organizations in which the State owns 100% of charter capital, established by the Government to handle bad debts of Vietnamese credit institutions.
(10) The undivided income of the establishment carrying out socialization in the fields of education – training, health care and other socialized fields shall be left to invest in the development of such establishments in accordance with the provisions of specialized law. education – training, health care and other socialization fields; part of income forming undivided assets of cooperatives established and operating in accordance with regulations.
(11) Income from technology transfer in the fields of priority transfer to organizations and individuals in areas with extremely difficult socio-economic conditions.
So when depositing personal savings will not have to pay tax. Hopefully Pham Consult has provided useful information to answer the question of whether saving money is taxable?