|
THE MINISTRY OF
FINANCE
--------
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------
|
|
No.
62/2009/TT-BTC
|
Hanoi, March 27,
2009
|
CIRCULAR
AMENDING
AND SUPPLEMENTING THE MINISTRY OF FINANCE'S CIRCULAR No. 84/2008/ TT-BTC OF
SEPTEMBER 30, 2008, GUIDING A NUMBER OF ARTICLES OF THE LAW ON PERSONAL INCOME
TAX AND GUIDING THE GOVERNMENT'S DECREE No. 100/2008/ND-CP OF SEPTEMBER 8,
2008, DETAILING A NUMBER OF ARTICLES OF THE LAW ON PERSONAL INCOME TAX
Pursuant to the Law on
Personal Income Tax and the Government's Decree No. 100/2008/ND-CP of September
8, 2008, detailing a number of articles of the Law on Personal Income Tax;
Pursuant to the Government's Decree No. 118/ 2008/ND-CP of November 27, 2008,
defining the functions, tasks, powers and organizational structure of the
Ministry of Finance;
Based on the Prime Minister's
directing opinions in Official Letters No. 502/VPCP-KTTH of January 20, 2009,
and No. 869/VPCP-KTTH of February 12, 2009, on persona! income tax guidance;
The Ministry of Finance amends
and supplements Circular No. 84/2008/TT-BTC of September 30, 2008, guiding a
number of articles of the Law on Personal Income Tax and guiding the
Government's Decree No. 100/2008/ND-CP of September 8, 2008, detailing a number
of articles of the Law on Personal Income Tax (below referred to as Circular
No. 84/2008/TT-BTC) as follows:
Article 1. To supplement
Clause 2, Section II, Part A of Circular No. 84/2(X)8AT-BTC as follows:
1. To add to Item 2.1.5 the
following non-taxable incomes from salaries and wages of resident individuals:
a/ One-off region transfer
allowances for foreigners coming to reside in Vietnam. The deductible allowance
level is based on labor contracts or agreements between employers and
employees.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
c/ Schooling fees or tuitions
for foreigners' children studying in Vietnam at general education schools paid
by employers for their employees, which are determined based on labor contracts
and school fee or tuition receipts.
2. To specifically guide Item
2.1.5 as follows:
Other benefits enjoyable by
employees shall be accounted as taxable incomes only when beneficiaries are
specified. These benefits will not be accounted as personal taxable incomes
when beneficiaries are unspecified. Following are some specific cases:
a/ House rents paid by employers
for their employees: These rents shall be accounted as taxable incomes
according to actually paid amounts but must not exceed 15% of total taxable
incomes (exclusive of house rents).
b/ Expenses for vehicles
transporting employees to and from working places will not be accounted as
taxable incomes of employees. For vehicles transporting separate individuals,
expenses therefor shall be accounted as taxable incomes of these individuals.
c/ For membership fees for golf
courses: tennis courts: cultural, art or sports and physical training clubs, if
membership cards specify the names of their holders, either individuals or
groups of individuals, these fees shall be accounted as taxable incomes of cardholders.
For common-use cards without specific names of any individuals or groups of
individuals, these fees will not be accounted as taxable incomes.
d/ Charges for other services
for individuals in healthcare, entertainment, sports, recreation and beauty
care activities, if users of these services are specified, shall be accounted
as taxable incomes of these individuals. If individual users of these services
are not specified and service charges are paid commonly for labor collectives,
these charges will not be accounted as taxable incomes.
e/ Expenses paid by employers
for their employees for skills training courses relevant to employees"
professions or under employers" plans will not be accounted as incomes of
employees. Expenses for training courses neither relevant to employees'
professional skills nor included in employers' plans shall be accounted as
taxable incomes of employees.
f/ Mid-shift meal allowance will
not be accounted as a taxable income of employees if employers directly cater
mid-shift meals for their employees.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Specific allowance levels
applicable to state enterprises and licensed business organizations and units
of administrative non-business agencies. Party organizations, mass
organizations and associations must not exceed the level specified by the
Ministry of Labor. War Invalids and Social Affairs. For non-state enterprises
and other organizations, applicable allowance levels may be decided by their
heads after reaching agreement with trade union leaders but must not exceed
that applicable to state enterprises.
g/ Presumptive expenditures for
stationery, working mission allowances, telephone charges and working outfits
shall not be accounted as taxable incomes if they are compliant with the
State's current regulations. Following are presumptive expenditure limits applicable
to some specific cases:
- For cadres, civil servants and
persons working in non-business and administrative agencies. Party
organizations, mass organizations and associations: Applicable presumptive
expenditure limits must comply with the guidance of the Ministry of Finance.
- For laborers working in
business organizations and representative offices: Applicable presumptive
expenditure limits must comply with levels for determining incomes liable to
enterprise income tax under documents guiding the implementation of the
Enterprise Income Tax.
- For laborers working in
international organizations and representative offices of foreign
organizations: Presumptive expenditure limits must comply with regulations of
these organizations and representative offices.
3. To add to Point 2.2 the
following allowances deductible upon determination of taxable incomes from
salaries and wages:
For working domains, professions
and occupations which are eligible for allowances as prescribed by the State,
these allowances will not be accounted as taxable incomes.
Article 2. To
additionally guide Point 3.1. Clause 3, Section I, Part B of Circular No.
84/2008/ TT-BTC on family circumstance-based reductions as follows:
1. To additionally guide Item
3.1.4 as follows:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1.2. Persons treated as
taxpayers' dependants under the guidance of Point 1.1 above and Items 3.1.4 and
3.1.5. Clause 3. Section I, Part B of Circular No. 84/2008/TT-BTC (except for
dependants being children) are specified as follows:
- Persons of the working age
must fully satisfy the following conditions to be treated as dependants:
+ Being disabled and incapable
of working:
+ Earning no income or an
average monthly income of VND 500,000 or less from all income sources.
- Persons beyond the working age
and earning no income or an average monthly income of VND
500,000 or less from all income
sources will be treated as dependants.
- Dependants being grandparents;
blood uncles and aunts; blood siblings; blood nephews and nieces and other
individuals must also satisfy the condition that they are helpless and directly
nurtured by taxpayers.
2. To additionally guide Item
3.1.7 as follows:
2.1. A dossier for a dependant
being a step mother or father comprises a copy of the birth certificate of the
taxpayer and a copy of the marriage certificate to prove that the dependant is
the step mother or father of the taxpayer or other relevant papers certifying
the taxpayer's step mother or father.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
a/ In case the dependant is
named in the household registration book of the taxpayer, certification by the
commune-level People's Committee is not required but only a copy of this
household book registration is required.
b/ In case the dependant is not
named in the household registration book of the taxpayer but actually lives
together with the taxpayer: A copy of the temporary residence registration
paper or self-declaration (made according to a form enclosed with this
Circular, not printed herein) with the certification by the commune-level
People's Committee in the locality where the taxpayer lives with the dependant.
c/ In case the dependant does
not live together with the taxpayer but the latter must directly nurture
him/her, he/she shall make a self-declaration (according to a form enclosed
with this Circular. not printed herein) and request the commune-level People's
Committee in the locality where the dependant is residing to certify that the
dependant is residing in the locality and helpless.
2.3. Additional guidance on
certification by commune-level People's Committees in case dependants are
disabled and incapable of working:
For disabled people who are
incapable of working and obtain no certification of a health establishment,
taxpayers shall make self-declarations (according to a set form provided
together with this Circular, not printed herein) and request commune-level
People's Committees in localities where these dependants are residing to
certify their specific disabilities, for example: certification of lack of a
limb, blindness, suffering from the down syndrome or deformities caused by
agent orange.
For dependants infected with
diseases which render them incapable of working (AIDS, cancer, chronic kidney
failure) with their case histories recorded by district- or higher-level health
establishments, only case history copies are required without certification of
commune-level People's Committees.
2.4. For employees of economic
organizations or non-business administrative agencies whose parents, spouses,
children or other persons are eligible for being treated as dependants who have
already been declared in these employees' curricula vitae, dossiers to evidence
these dependants may be made by either of the following methods as chosen by
these employees:
- Method 1: Only the declaration
for dependant registration is required to be made according to a form provided
together with Circular No. 84/2008/TT-BTC, with the certification by the head
of the employing unit on the left side. The head of the employing unit shall
take responsibility only for the following details: full name(s) of
dependant(s), year(s) of birth and their relations with the taxpayer. Taxpayers
shall take responsibility for the accuracy of other details declared by
themselves.
In case of a change in
dependants, taxpayers may request heads of their employing units to give
certification in adjusted declarations.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. To additionally guide Item
3.1.8 as follows:
In case taxpayers earn incomes
from salaries or wages on a regular and stable basis and paid by two or more
employers, or earn incomes from both business activities and regular and stable
salaries or wages, or earn incomes from regular and stable business activities
paid by two or more employers, they may choose places for registration of
family circumstance-based reductions, specifically as follows:
- Regarding reduction for
taxpayers themselves: A taxpayer may choose to make declaration for reduction
for himself/herself at a place where he/ she earns incomes, and concurrently
notify such to other income-paying units or tax offices (in localities where
he/she conducts other business activities) for the latter not to calculate
reduction anymore.
- Regarding reduction for
dependants: In case a taxpayer has more than one dependant eligible for
reduction in a place of earning incomes and reductions for them are larger than
his/her incomes earned at this place, the taxpayer may register his/ her
dependants for whom reductions cannot be given yet at other places of earning
incomes for reduction.
Article 3. To add a new
point (3.3) to Clause 3, Section I. Part B of Circular No. 84/2008/TT-BTC as
follows:
Compulsory insurance premiums
eligible for deduction when determining taxed incomes are those specified by
the Labor Code, the Social Insurance Law and the Health Insurance Law. such as
social insurance, health insurance, insurance for professional liability for
some professions subject to compulsory insurance and unemployment insurance.
Other insurance premiums are ineligible for deduction from taxable incomes.
Insurance premiums eligible for
deduction are based on the guidance of the Labor. War Invalids and Social
Affairs Ministry. In case individuals pay by themselves these insurance
premiums, the deduction levels shall be based on vouchers of insurers and insurance
premium percentages under the guidance of the Labor, War Invalids and Social
Affairs Ministry.
Article 4. To replace the
provisions at the 3rd em rule. Item 2.2.1 a, Point 2.2. Clause 2, Section II,
Part B of Circular No. 84/2008/TT-BTC with the following:
- For unlisted stocks which have
not yet been registered for trading at the Securities Trading Center, with
their issuing companies having or not having entrusted securities companies to
manage shareholder lists, their transfer prices to serve as a basis for tax
withholding shall be based on transfer contracts. In case transfer contracts
indicate no transfer price, the basis for tax withholding is transfer prices
declared by transferors themselves. Individuals who transfer stocks without
specifying transfer prices in transfer contracts and declare these prices by
themselves shall be held responsible for the accuracy of declared prices. In
case tax offices have grounds for determining that contractual prices or
self-declared prices are untruthful, they may assess transfer prices for
recalculation of payable tax amounts and concurrently impose fines for tax
fraud under the Law on Tax Administration.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Organizations and individuals
that pay commissions to goods sale agents; salaries, wages, remuneration or
other sums of money to individuals performing services of VND 500.000 or more
each lime or as the total value of commissions or service charges, shall
withhold personal income tax before paying incomes to these individuals under
the following guidance:
- Withholding tax at the single
rate of 10% of paid incomes, except for cases for which the Ministry of Finance
has given a written guidance on specific temporary withholding rates (for
insurance or lottery agency commission).
- In case individuals acting as
goods sale agents (including also insurance or lottery agents) or performing
services earn only incomes subject to tax withholding at the above rate but
their estimated total taxable incomes after deducting family circumstance-based
reductions are not high enough to be taxed (for example, an individual earns an
annual income of less than VND 48 million, for single ones, or less than VND 67.2
million, for those with one dependant, or less than VND 86.4 million, for those
with two dependants, will be entitled to reduction for full 12 months), these
individuals shall make written commitments (according to a form provided
together with this Circular, not printed herein) and send them to income payers
for use as a temporary basis for delay of 10% personal income tax withholding.
Based on commitments of income recipients, income payers shall temporarily
delay the tax withholding but shall still supply lists of these recipients to
tax offices at the end of the year. These individuals shall take responsibility
for their commitments. Any frauds in their commitments shall be handled under
the Law on Tax Administration.
- For organizations and individuals
that employ laborers under seasonal labor contracts of a term of between over 3
months and under 12 months, the tax withholding rate of 10% upon each time of
income payment or of the total income will not apply but temporary tax
withholding will be made on monthly incomes according to the Partially
Progressive Tariff.
Article 6. To supplement
Point 2.2. Clause 2. Section II. Part D of Circular No. 84/2008/TT-BTC on tax
declaration by resident individuals earning incomes from business activities as
follows:
1. For house and asset lease:
For individuals who lease houses
or assets before 2009. have collected rents for the whole lease term from 2009
onward, and declared and paid enterprise income tax for the whole previously
collected rent amount, from January 1. 2009. they may choose either to pay the
enterprise income tax at the rate at which they have paid enterprise income tax
amounts for their rents collected from 2009 onward or to pay income tax under
the Law on Personal Income Tax.
Individuals wishing to have
their payable tax amounts recalculated under the Law on Personal Income Tax
shall file written requests with tax offices that have colected enterprise
income tax on rent turnover. Such a request must clearly state the full names
of the lessor and lessee, previously collected rent amount, duration for which
the rent has been paid and enterprise income tax amount already paid for the
collected rent amount, and be enclosed with the lease contract and receipt of
the enterprise income tax amount paid for the rents collected from 2009. Based
on the requests of house or asset lessors, lease contracts and enterprise
income tax payment receipts, tax offices shall calculate payable personal
income tax amounts for rent amounts earned from 2009.
If payable personal income tax
amounts are lower than previously paid enterprise income tax amounts, tax
offices shall refund overpaid amounts to taxpayers or clear overpaid amounts
against payable tax amounts of the subsequent tax period. House or asset
lessors may request tax refund or clearing at their own will.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Regarding personal income tax
reduction for business individuals who pay personal income tax by the
presumptive method and have temporarily ceased their business activities:
In case in a year of presumptive
taxation, a business individual who ceases his/her business activities for one
full month (from the first day to the last day of a month) or longer will be
entitled to reduction of one-third of the quarterly payable tax amount.
Likewise, if a business individual ceases his/her business activities for two
full months or the whole quarter, he/she will be entitled to reduction of
two-thirds or the whole of the quarterly payable tax amount, respectively.
Example: Mr. A, a business
individual, has a payable presumptive tax amount of VND 12 million in 2009. In
the year, he ceases his business activities continuously from February 20 to
the end of June 20. Mr. A will be considered for tax reduction as follows:
- The number of months of Mr.
A's continuous business cessation is three (March, April and May);
- Mr. A's quarterly presumptive
tax amount is VND 12 million divided by 4 quarters = VND 3 million.
So, Mr. A's reduced tax amount
will be:
- In the first quarter: Mr. A
ceases his business activities continuously for one full month. So, he will be
entitled to reduction of one-third of the payable tax amount of the first
quarter (VND 1 million).
- In the second quarter: Mr. A
ceases his business activities continuously for two full months. So, he will be
entitled to reduction of two-thirds of the payable tax amount of the second
quarter (VND 2 million).
Individuals who temporarily
cease their business activities and eligible for tax reduction shall make
dossiers of request for tax reduction. Dossiers of request for tax reduction
must comply with the guidance at Point 3. Section II, Part E of the Ministry of
Finance's Circular No. 60/2007/ TT-BTC of June 14, 2007, guiding a number of
articles of the Law on Tax Administration and guiding the Government's Decree
No. 85/2007/ ND-CP of May 25, 2007, detailing the implementation of a number of
articles of the Law on Tax Administration.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. To add to Item 2.2.3 the
following guidance on tax declaration by business individuals and groups of
business individuals that stably pay presumptive tax: In a year of presumptive
taxation, if such an individual or group earns an actual business turnover
higher than the presumptive turnover, he/she/it shall make, at the end of the
year, a declaration for recalculation of the personal income tax amount payable
for the whole year.
4. To add the following guidance
on tax declaration and payment by individuals conducting mobile business
activities (shipment trading):
Individuals conducting mobile
business activities shall temporarily pay a personal income tax of 10% of
taxable income from each shipment.
Individuals conducting mobile
business activities shall temporarily pay personal income tax concurrently with
value-added tax upon each shipment.
5. To add the following guidance
on tax declaration and payment by business individuals who request issuance of
separate invoices:
- Business individuals (except
for house or asset lessors) or asset sellers who request tax offices to issue
separate invoices shall temporarily pay a personal income tax of 10% of taxable
income from the sale of a goods or assset lot.
Business individuals who request
tax offices to issue separate invoices shall temporarily pay personal income
tax concurrently with value-added tax upon the issuance of separate invoices.
If business individuals who are
issued separate invoices request tax refund (or clearing of overpaid tax
amounts against payable tax amounts of the subsequent period), they shall make,
at the end of the year, tax finalization in order to determine their total
taxable incomes, payable tax amounts, paid tax amounts and tax amounts
requested to be refunded or cleared against payable tax amounts of the
subsequent period.
6. To add the following guidance
on tax declaration and payment by a business individual or a group of business
individuals that has two or more places of business in different districts,
provinces or cities.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 7. To add the
following to the end of Clause 2. Section II, Part D of Circular No. 84/ 2008/TT-BTC
on tax declaration by individuals earning incomes from capital investment:
1. For individuals receiving
dividends in the form of stocks or bonus stocks:
Individuals receiving dividends
in the form of stocks or bonus stocks are not required to pay personal income
tax upon receipt of these stocks. When transferring these stocks, individuals
shall pay personal income tax for securities transfer and incomes from capital
investment.
- Bases for determining payable
personal income tax amounts on incomes from capital investment are book values
of dividends or actually received stock volumes multiplied (x) by stock par
value and the personal income tax rate applicable to incomes from capital
investment. In case of transfer of stocks received in substitution for
dividends or bonus stocks at a price lower than their par value, personal
income tax on incomes from capital investment shall be calculated based on the
market price at the time of transfer.
Individuals who transfer stock
volumes received as dividends or bonus stocks shall make by themselves
declarations (according to a form provided together with this Circular, not
printed herein) and pay personal income tax thereon at district-level Tax
Departments in localities where they reside.
- Bases for determining payable
personal income tax amounts for incomes from transfer of stocks received as
dividends or bonus stocks are actual prices at the time of transfer and the
personal income tax rate for incomes from securities transfer.
In case the actual stock
transfer price is lower than the stock par value, personal income tax is not
required to be paid on securities transfer activities.
In case the actual stock
transfer price is higher than the stock par value, individuals shall pay tax on
securities transfer at the rate of 0.1 % of the actual transfer price or 20% of
the difference between the actual stock transfer price and the par value or the
book value of dividends.
- After receiving dividends in
the form of stocks or bonus stocks, if individuals wish to transfer stocks of
the same type, they shall immediately declare and pay personal income tax on
dividends in the form of stocks or bonus stocks. In case the volume of stocks
transferred at the first time is smaller than that received as dividends or
that of bonus stocks, personal income tax shall be calculated and paid upon
subsequent transfers until the received stock volume is wholly transferred.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- After receiving dividends in
cash and record an increase in their investment capital, individuals who
withdraw their capital contributions from enterprises or transfer their capital
contributions shall immediately declare and pay personal income tax in
proportion to the received bonus stocks. In case the value of capital
contributions withdrawn from enterprises or transferred at the first time is
lower than that of received dividends, personal income tax shall be declared
and paid upon subsequent capital withdrawals or transfers until the capital is
wholly withdrawn or transferred.
Article 8. To supplement
and amend Point 2.8, Clause 2, Section II, Part D of Circular No. 84/
2008/TT-BTC:
The guidance at Point 2.8,
Clause 2, Section II, Part D of Circular No. 84/2008/TT-BTC is as follows:
"Based on these tax declaration dossiers, tax offices shall check and
calculate tax amounts payable by heirs or gift recipients into the state
budget. For incomes of under VND 10 million from inheritances or gifts"
The above guidance is amended as
follows: "Based on these tax declaration dossiers, tax offices shall check
and calculate tax amounts payable by heirs or gift recipients into the state
budget. For incomes of under VND 10 million from inheritances or gifts or are
exempt from tax. tax offices shall give certification in declarations."
Article 9. Replacement of
the tax return form for transfer of real estate or receipt of inheritance or
gifts being real estate
To provide the new personal
income tax return form applicable to individuals who earn incomes from real
estate transfer or receipt of real estate inheritance or gifts (Form No.
11/KK-TNCN enclosed with this Circular, not printed herein) to replace Form No.
11/KK-TNCN provided together with Circular No. 84/2008/TT-BTC.
Article 10. To add the
following provision on the deadline for payment of tax on transfer of real
estate, receipt of inheritance or gifts or transfer of capital contributions
The deadline for payment of
personal income tax on transfer of real estate, receipt of inheritance or
gifts, transfer of capital contributions or investment of capital (in case of
direct tax declaration to tax offices) is the date stated in tax payment
notices of tax offices, which must not be later than the 30th day from the date
of receipt of tax notices.
Article 11. To add the
following provision on personal income tax reduction for employees in economic
zones
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Pursuant to the above provision,
all individuals being Vietnamese or foreigners working in economic zones from
the effective date of the Government's Decree No. 29/2008/ND-CP of March 14.
2008. and after January 1,2009. will be entitled to 50% reduction of personal
income tax.
Article 12. Organization
of implementation
This Circular takes effect 45
days from the date of its signing and applies to incomes earned from January
1.2009. To annul all guidance on personal income tax in Circular No.
84/2008/TT-BTC of September 30. 2008. and other documents of the Ministry of
Finance which is contrary to this Circular's guidance.
Any problems arising in the
course of implementation should be reported to the Ministry of Finance for timely
settlement.
FOR THE MINISTER
OF FINANCE
VICE MINISTER
Do Hoang Anh Tuan