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From 2009, people must pay income tax depended on the total amount he/she earns. Income tax is the kind of progress tax, which applies higher tax rates to individuals posting higher earnings.Firstly, taxable income is identified. Taxable income is calculated by deducting total deduction (personal allowance and any deductible reliefs you are entitled to) from your total earnings.Here, five kinds of deductions:1. 4.000.000 VND per month for yourself 2. 1% of total amount for health insurance 3. 5% of total amount for pension contribution 4. 1.600.000 VND for each dependant under 18 age 5. any gift of charityThen, taxable income is multiplied by the tax rate of according brackets you belong in. Here, seven tax brackets: 1. taxable income of 5 millions VND or less attracts tax at 5% 2. taxable income of more than 5 millions and not more than 10 millions attracts tax at 10%.3. taxable income of more than 10 millions and not more than 18 millions attracts tax at 15%. 4. taxable income of more than 18 millions and not more than 32 millions attracts tax at 20%.5. taxable income of more than 32 millions and not more than 52 millions attracts tax at 25%. 6. taxable income of more than 52 millions and not more than 80 millions attracts tax at 30%. 7. taxable income of more than 80 attracts tax at 35%.
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