Question:
Is interest income from my bank deposits (including foreign currency deposits) subject to personal income tax?
Answer:
Pursuant to subclause g.1, point g, Clause 1, Article 3 of Circular No. 111/2013/TT-BTC, the following is stipulated:
Income exempt from tax
- Pursuant to the provisions of Article 4 of the Law on Personal Income Tax, and Article 4 of Decree No. 65/2013/ND-CP, income exempt from tax shall include:
...
- g) Income from interest on deposits at credit institutions and foreign bank branches; interest from life insurance contracts; income from interest on government bonds.
g.1) Interest on deposits exempt from tax as provided in this point refers to personal income received as interest from deposits of Vietnamese dong, gold, or foreign currency at credit institutions and foreign bank branches established and operating in accordance with the Law on Credit Institutions, in the forms of demand deposits, term deposits, savings deposits, deposit certificates, promissory notes, treasury bills, and other forms of deposit acceptance on the principle of full repayment of principal and interest to the depositor as agreed.
Accordingly, interest income from your bank deposits, including interest from foreign currency deposits at banks, is exempt from personal income tax.
