Vietnam's economy has been growing rapidly in recent years, with a GDP growth rate of 7.08% in 2019. This is one of the highest growth rates in the world, and it is expected to remain strong in 2020. The country has also seen a steady increase in foreign direct investment, reaching a record high of $14.5 billion in 2019. This has been driven by the country's strong economic fundamentals, including a young and growing population, a rapidly expanding middle class, and a favorable business environment. The country also has a strong manufacturing sector, which accounts for around 25% of GDP. Additionally, Vietnam has a thriving tourism industry, with over 15 million international visitors in 2019. This has helped to boost the country's economy, as well as create jobs and generate income for the country. Overall, Vietnam's economy is in a strong position and is expected to continue to grow in the coming years.
In Vietnam, both individuals and corporations are subject to taxation. Personal income tax is levied on the income of individuals, while corporate income tax is levied on the profits of companies.
For individuals, there are currently five tax brackets with rates ranging from 5% to 35%. The rates and brackets are adjusted periodically based on inflation. In general, Vietnamese residents are taxed on their worldwide income, while non-residents are taxed only on their Vietnam-sourced income.
For corporations, the standard corporate income tax rate is 20%, although there are certain industries that are subject to higher rates. Additionally, there are a variety of tax incentives available to encourage investment in certain industries or regions.
Taxpayers in Vietnam are required to file tax returns and pay taxes on a monthly or quarterly basis, depending on the type of tax. The tax year in Vietnam runs from January 1st to December 31st. Taxpayers are required to file an annual tax return by March 31st of the following year, although an extension can be granted in certain circumstances.
Tax payments are generally made by bank transfer or cash deposit at a designated bank. Taxpayers must obtain a tax code and register with the tax authorities in order to make tax payments. Failure to pay taxes on time can result in penalties and fines.
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