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MINISTRY OF FINANCE OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 68/VBHN-BTC
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Hanoi, December 19, 2019
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CIRCULAR 1
GUIDELINES FOR IMPLEMENTATION OF THE LAW ON PERSONAL INCOME
TAX, THE LAW ON AMENDMENTS TO THE LAW ON PERSONAL INCOME TAX, AND THE
GOVERNMENT'S DECREE NO. 65/2013/ND-CP ON ELABORATION OF SOME ARTICLES OF THE
LAW ON PERSONAL INCOME TAX AND THE LAW ON AMENDMENTS TO THE LAW ON PERSONAL
INCOME TAX
Circular No. 111/2013/TT-BTC
dated August 15, 2013 of the Minister of Finance on guidelines for the
implementation of the Law on Personal Income Tax, the Law on amendments to the
Law on Personal Income Tax, and the Government's Decree No. 65/2013/ND-CP on
elaboration of some Articles of the Law on Personal Income Tax and the Law on
amendments to the Law on Personal Income Tax, which comes into force from
October 01, 2013, is amended by:
1. Circular No.
119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance on amendments
to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013,
Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No.
219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated
January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No.
39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June
18, 2014 of the Ministry of Finance for reform and simplification of tax
formalities, which comes into force from September 01, 2014.
2. Circular No.
151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance on guidance
on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01,
2014 on amendments to Decrees on taxation, which comes into force from November
15, 2014.
3. Circular No.
92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance on guidelines for
VAT and personal income tax incurred by residents conducting business,
amendments to some Articles on personal income tax of the Law No. 71/2014/QH13
on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated
February 12, 2015 on guidelines for implementation of the Law on amendments to
Laws and Decrees on taxation, which comes into force from July 30, 2015.
4. Circular No.
25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance on guidelines
for the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 on
amendments to some Articles of the Circular No.78/2014/TT-BTC dated June 18,
2014 of the Ministry of Finance and Circular No.111/2013/TT-BTC dated August
15, 2013 of the Ministry of Finance, which comes into force from May 01, 2018.
Pursuant to the Law
No. 04/2007/QH12 dated November 21, 2007 on Personal Income Tax;
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Pursuant to the Law
No. 78/2006/QH11 on Tax Administration dated November 29, 2006;
Pursuant to the Law
No. 21/2012/QH13 dated November 20, 2012 on amendments to some Articles of the
Law on Tax Administration;
Pursuant to
Government’s Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of
implementation of some Articles of the Law on Personal Income Tax and the Law
on amendments to some Articles of the Law on Personal Income Tax;
Pursuant to
Government’s Decree No. 83/2013/ND-CP dated July 22, 2013 on elaboration of
implementation of some Articles of the Law on Tax Administration and the Law on
amendments to some Articles of the Law on Tax Administration;
Pursuant to
Government’s Decree No. 118/2008/ND-CP dated November 27, 2008 on functions,
tasks, powers and organizational structure of the Ministry of Finance;
At the request of the
Director of the General Department of Taxation;
The Minister of
Finance provides guidance on the implementation of some Articles of the Law on
Personal Income Tax, the Law on amendments to the Law on Personal Income Tax,
and the Government's Decree No. 65/2013/ND-CP dated June 27, 2013 on
elaboration of some Articles of the Law on Personal Income Tax and the Law on
the amendments to the Law on Personal income tax:2
Chapter
1
GENERAL
PROVISIONS
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Taxpayers are
residents and non-residents mentioned in Article 2 of the Law on Personal Income
Tax, Article 2 of the Government's Decree No. 65/2013/NĐ-CP dated June 27, 2013
on guidelines for the Law on Personal Income Tax and the Law on amendments to
the Law on Personal Income Tax (hereinafter referred to as “Decree No.
65/2013/ND-CP”) who earn taxable incomes as prescribed in Article 3 of the Law
on Personal Income Tax and Article 3 of Decree No. 65/2013/ND-CP. 3
Taxable income is
determined as follows:
Taxable income earned
by a resident is the income earned within and beyond Vietnam’s territory
regardless of the place where income is paid; 4
Any individual who is
a citizen of a country or territory that has entered into an agreement on
double taxation and prevention of tax avoidance with Vietnam, and also a
resident in Vietnam shall calculate personal income tax from the month that
individual arrives at Vietnam (if the individual goes to Vietnam for the first
time) to the month in which the labor contract expires and the individual
leaves Vietnam without following procedures for consular certification to avoid
double taxation according to the double taxation agreement between the two
countries. 5
Taxable income of a
non-resident is income earned in Vietnam, regardless of the place where income
is paid and received. 6
1. A resident is a person
that meets one of the conditions below:
a) He/she has been
present in Vietnam for at least 183 days in a calendar year or for 12
consecutive months from the first day of his/her presence in Vietnam (the date
of arrival and date of departure are considered as 01 day). The date of arrival
and date of departure depend on the certification of the immigration authority
on his/her passport (or laissez-passers) when that person enters and leaves
Vietnam. If the person enters and leaves Vietnam within one day, it will be
considered as a day of residence.
A person in Vietnam
defined in this Point is the presence of that person in Vietnam’s territory.
b) He/she has a regular
residence in Vietnam in one of the following cases:
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b.1.1) Regarding
Vietnamese citizens: a place where that person regularly, stably and
indefinitely lives, and which has been registered as a permanent residence as
prescribed by regulations of law on residence.
b.1.2) Regarding
foreigners: the permanent residence written in the permanent residence card or
the temporary residence when applying for the temporary residence card issued
by a competent authority affiliated to the Ministry of Public Security.
b.2) He/she rents a house
in Vietnam according to regulations of law on housing under a contract that has
a term of at least 183 days in the tax year. To be specific:
b.2.1) A person who has
no regular residence defined in Point b.1 Clause 1 of this Article will be considered
as a resident if he/she has a total house lease period of at least 183 days in
the tax year under various lease contracts, even if he/she rents houses in
different locations.
b.2.2) The rented houses
may be hotels, guesthouses, motels, offices, etc. whether they are rented by
the person or their employer.
If the person has a
regular residence in Vietnam according to this Clause but his/her actual
presence in Vietnam is shorter than 183 days in the tax year and he/she fails
to prove his/her residency in any country, that person will be considered as a
resident of Vietnam.
The residency in another
country shall be proved by the Certificate of residence. If the person is a
citizen of a country or territory that has signed a tax agreement with Vietnam
and does not issue the Certificate of residence, that person shall present a
photocopy of the passport to prove the period of residence.
2. A non-resident is a
person who fails to meet any of the conditions specified in Clause 1 of this
Article.
3. Taxpayers in some
specific cases are identified as follows:
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a.1) If only one person
is registered in the Certificate of Business Registration, the taxpayer is person
whose name is registered in the Certificate of Business Registration.
a.2) If multiple people
are registered in the Certificate of Business Registration and participate in
the business, taxpayers are the persons whose names are registered in the Certificate
of Business Registration.
a.3) If multiple members
of a household participate in the business but only one person is registered in
the Certificate of Business Registration, the taxpayer is the person whose name
is registered in the Certificate of Business Registration.
a.4) If the person or
household conducts business without the Certificate of Business Registration
(or practice certificate), the taxpayer is the person who is conducting
business.
a.5) When leasing a
house, the right to use land, water surface, and other property without
business registration, the taxpayer is the person that owns the house, the
right to use land, water surface and other property. If the house or the right
to use land, water surface, and other property is under the ownership of
multiple persons, the taxpayers are all the owners.
b) With regard to other
individuals that earn taxable incomes.
b.1) When transferring
real estate under a co-ownership, taxpayers are the co-owners of such real
estate.
b.2) If the person authorized
to manage real estate has the right to transfer real estate or rights similar
to those of the real estate owner according to law regulations, the taxpayer is
the authorizing person.
b.3) If the person that
transfers the ownership, the right to use protected entities according to the
Law on Intellectual Property and the Law on Technology Transfer is the co-owner
or co-author, the taxpayer is co-owner or co-author that earns income from such
transfer.
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4. Taxpayers defined in
Clause 1 and Clause 2 of this Article include:
a) Persons that hold
Vietnamese nationality, including persons appointed to work or study overseas,
and earn taxable incomes.
b) Persons that do not
hold Vietnamese nationality but earn taxable incomes, including foreigners
working in Vietnam, foreigners that are not present in Vietnam but earn taxable
incomes from Vietnam.
Article
2. Taxable incomes
According to Article 3 of
the Law on Personal Income Tax and Article 3 of the Decree No. 65/2013/ND-CP,
incomes subject to personal income tax (hereinafter referred to as “taxable
incomes”) include:
1. Incomes from business
Incomes from business are
incomes earned from the production and trade. To be specific:
a) Incomes from
production and trade in goods and services that belong to all industries
according to law regulations such as production, good sale, construction,
transport, restaurants, service provision, including lease of houses, right to
use land, water surface, and other property.
b) Incomes from freelance
works of individuals in the fields that are granted licenses or practice
certificates as prescribed by law.
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2. Incomes from wages and
remunerations
Incomes from wages and
remunerations (hereinafter referred to as “wages”) are incomes paid to
employees by employers, including:
a) Wages, remunerations,
and other amounts paid as wages or remunerations in cash or not in cash.
b) Allowances and
benefits, except for:
b.1) Monthly benefits and
allowances, lump-sum allowances according to regulations of law on incentives
for contributors.
b.2) Monthly allowances
and lump-sump allowances for persons that participate in the resistance
movements, national defense, fulfillment of international tasks, and discharged
volunteers.
b.3) Benefits for
national defense and security; subsidies for the armed forces.
b.4) Benefits for
dangerous or harmful works.
b.5) Benefits for
employees in disadvantaged areas.
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b.7) Benefits for
beneficiaries of social security according to law regulations.
b.8) Benefits for senior
officers.
b.9) 7 Lump-sum benefits for persons reassigned to areas
facing extreme economic and social difficulties, lump-sum supports for
officials working for sovereignty over sea and islands as prescribed by law.
Lump-sum moving allowances for foreigners that move and reside in Vietnam and
Vietnamese people that go to work abroad, and Vietnamese people that have
long-term residence overseas and then go back to work in Vietnam.
b.10) Benefits for
medical employees in villages.
b.11) Occupational
benefits.
The allowances and
benefits that are not included in taxable incomes according to guidance in
Point b Clause 2 of this Article shall be defined by competent authorities.
If the documents on allowances
and benefits are applicable to the public sector, other economic sectors and
business establishments shall calculate allowances and benefits according to
such documents.
If the actual benefits
and allowances received are in excess of those stated above, the excess shall
be included in taxable incomes.
Lump-sum moving
allowances for foreigners that reside in Vietnam and Vietnamese people working
overseas shall be deducted in accordance with the labor contract or collective
bargaining agreement.
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d) Payments for
participation in business associations, Boards of Directors, Control Boards,
project management boards, management councils, professional associations, and
other organizations.
dd) Other benefits in
cash or not in cash apart from wages paid to the taxpayer by the employer in
any shape or form:
dd.1) 8 Payments for
housing, electricity, water supply and associated services (if any), excluding
benefits in terms of housing, electricity, water supply, and associated
services (if any) of housing built by the employer for serving employees in
industrial parks free of charge; housing built by the employer in disadvantaged
areas and extremely disadvantaged areas that is provided free of charge for
employees working therein.
If the person stays at
the workplace, the taxable income depends on the house rent or depreciation
expense, payments for electricity, water supply, and other services according
to the ratio of area that person uses to the total area of the workplace.
The house rent,
payments for electricity and water supply, and payments for associated services
(if any) paid by the employer on behalf of the employee shall be included in
taxable income according to the actual amount paid on behalf of the employee.
Nevertheless, the amount must not exceed 15% of the total taxable income
(excluding house rent, payments for electricity, water supply, and associated
services (if any)) earned at the workplace regardless of income payer.”
dd.2) 9 Life insurance
premiums, premiums of other optional insurance with accrual of premiums,
voluntary pension insurance premiums or contributions to the voluntary pension
fund paid on the employee’s behalf.
If the employer buys
optional insurance without accrual of premiums for their employee (including
insurance of insurers that are not established under Vietnam’s law but
permitted to sell insurance in Vietnam), such premiums shall not be included in
taxable income of the employee. Optional insurance without accrual of premiums
are insurance products, including health insurance, death insurance (except for
death insurance with refund policy), etc. from which policyholders do not
receive the accrued amount of premiums apart from the insurance payout or
indemnities paid by the insurer under insurance policies.”
dd.3) Membership fees and
other expenses on services serving individuals, including healthcare,
entertainments, sports, recreation. To be specific:
dd.3.1) Membership fees
(such as membership card of golf course, tennis course, cultural, artistic,
sports clubs, etc.) in case where the card specifies the user or group of
users. If the card is shared without specific users, the fees shall not be
included in taxable incomes.
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dd.4) Flat expenditures
on stationery, business trips, phone calls, costumes, etc. that are in excess
of the limits prescribed by the State. Flat expenditures are not included in
taxable income in the following cases:
dd.4.1) With regard to
officials and employees in public service agencies, Communist Party’s agencies,
associations: the flat expenditure shall follow guiding documents promulgated
by the Ministry of Finance.
dd.4.2) With regard to
the employees working in business establishments and representative offices:
the flat expenditure shall conform to the income that incurs corporate income
tax and guiding documents of the Law on Enterprise Income Tax.
dd.4.3) With regard to
the employees in international organizations and representative offices of
foreign organizations: the flat expenditure shall comply with regulations of
such international organizations and representative offices of foreign
organizations.
dd.5) 10 The expenditure on shuttling employees is not
included in taxable incomes of employees according to rules and regulations of
the employer.”
dd.6) Payments for
refresher courses for employees, which suit their professions or accords with
plans of the employer, shall not be included in incomes earned by employees.
dd.7) Other benefits.
Other benefits paid to
employees by the employers, including payments during leave period or public
holidays; payments for counseling, tax declaration services for a particular
person or group of people; payments for domestic servants including driver,
cook, and other domestic servants that work under contracts, etc.
e) Rewards in cash or not
in cash in any shape or form, including rewards in the form of securities,
except for:
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e.1.1) Prize money
associated with honorary titles awarded by Ministries, central and provincial
agencies and associations, excellent employee titles
e.1.2) Prize money
associated with the awards.
e.1.3) Prize money
associated with the titles awarded by the State.
e.1.4) Prize money
associated with the awards presented by associations and organizations
belonging to central and local political organizations, socio-political
organizations, social organizations, professional-social organizations in
accordance with to their charters and the Law on Emulation and Commendation.
e.1.5) Prize money
associated with the Ho Chi Minh Prize and National Prize.
e.1.6) Prize money
associated with medals or badges.
e.1.7) Prize money
associated with certificates of merit.
The authority to decide
the commendation and prize money associated with the titles and awards above
shall be conformable with the Law on Emulation and Commendation.
e.2) Prize money
associated with national prizes and international prizes recognized by Vietnam.
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e.4) Rewards for
detecting and reporting violations against law to competent authorities.
g) Incomes below are not
included in taxable incomes:
g.1) Supports provided by
the employer for medical examination and treatment of fatal diseases suffered
by employees and their families.
g.1.1) Relative of the
employee in this case include children, legitimate adopted children,
illegitimate children, stepchildren, spouse, parents, parents-in-law;
stepparents, legitimate adoptive parents.
g.1.2) The support that
is not included in taxable income is the actual paid amount according to
hospital bills, but must not exceed the hospital fee paid by the employee and
his or her relative after the amount paid by the insurer is deducted.
g.1.3) The employer that
provide supports shall keep the copies of the hospital bills that are certified
by the employer (if the employee and his or her relative pay for the remaining
amount after the insurer directly pay the medical facility), the copies of the
health insurance payment certified by the employer (if the employee and his or
her family pay the entire hospital fee and then receive insurance money from
the insurer) together with the papers proving the provision of supports for
employees and their relatives who suffer from fatal diseases.
g.2) Amounts received
according to regulations on using vehicles of state agencies, public service
providers, Communist Party’s organizations, and associations.
g.3) Amounts received
according to regulations on public housing.
g.4) Other payments
received, apart from wages, for participation in consultation, appraisal, and
inspection of legislative documents, Resolutions, political reports,
inspectorates, serving votes, citizens; for costumes and other tasks directly
serving the operation of the Office of the National Assembly, the Ethnic
Communities Council, committees of the National Assembly, the delegations of
the National Assembly, the Central Office, the departments of the Communist
Party, City/Province Committees and their departments.
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If the employer pays cash
for their employees’ meals instead of providing mid-shift meals or lunch, such
money is not included in the taxable income if it is conformable with the
guidance of the Ministry of Labor, War Invalids and Social Affairs. If the
payment is higher than the limit imposed by the Ministry of Labor, War Invalids
and Social Affairs, the excess shall be included in taxable income.
Expenditures of
state-owned enterprises, public service agencies, Communist Party’s agencies,
associations shall not exceed the limits imposed by the Ministry of Labor, War
Invalids and Social Affairs. Regarding non-public enterprises and
organizations, the expenditures shall be decided by the head and the union
president, and shall not exceed the limits imposed on state-owned enterprises.
g.6) Payments for
round-trip air tickets made by the employer for foreign employees in Vietnam or
Vietnamese employees overseas to go home once a year.
The basis for
determination of the payment for air tickets is the labor contracts and the prices
of air tickets from Vietnam to the other country and vice versa.
g.7) Tuition fees for
children of foreign employees in Vietnam to study in Vietnam, for children of
Vietnamese employees overseas to study overseas from preschool to high school,
which are paid by the employer on their behalf.
g.8) Amounts received
from sponsors are not included in the taxable income if the sponsorship
beneficiary is a member of the sponsoring organization; the sponsorship is
funded by government budget or managed in accordance with regulations of the
State from composting literary and artistic works, scientific research,
accomplishment of political objectives of the State, or other activities that
conforms to their charters.
g.9) Payments paid by the
employer for dispatching or reassigning foreign employees in Vietnam in
accordance with labor contracts and international work schedules of some
industries such as petroleum, mineral extraction.
The basis of determination
is the labor contract and payments for air tickets from Vietnam to the home
country of the foreign employee and vice versa.
Example 1: Mr. X is a
foreigner dispatched by contractor Y to an oil rig on the continental shelf of
Vietnam. According to the labor contract, the work cycle of Mr. X on this oil
rig is 28 consecutive working days and 28 days off. The payments made by
contractor Y for the air tickets for Mr. X to fly from his country to Vietnam
and vice versa for every time of changing shift, the helicopter that take Mr. X
from the mainland to the oil rig and vice verse, the residence expense while
Mr. X is waiting for the helicopter shall not be included in the taxable income
of Mr. X.
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3. Incomes from capital investment
Incomes from capital
investment are personal incomes in the form of:
a) Interest on the loans
given to other organizations, enterprises, business households, business
individuals and groups of business individuals according to loan contracts or agreements,
except for the interests paid by credit institutions and foreign bank branches
according to Point g.1 Clause 1 Article 3 of this Circular.
b) Dividends earned from
capital contribution to purchase of shares.
c) 12 Profits from
capital contributions to limited liability companies, partnerships,
cooperatives, joint-ventures, business cooperation contracts, and other forms
of business under the Law on Enterprises and the Law on Cooperatives; profits
from capital contribution in establishment of credit institutions according to
the Law on Credit Institutions, capital contributions to securities investment
fund and other investment funds that are established and operate within the
law.
Profits from capital
investment of private companies and single-member limited liability companies
under the ownership of individuals shall not be included in taxable income.
d) The added value of
capital contribution received when the enterprise is dissolved, converted,
divided, split, merged, amalgamation, or upon capital withdrawal.
dd) Incomes from interest
on bonds, treasury bills, and other valuable papers issued by Vietnamese
organizations, except for the incomes defined in Point g.1 and g.3 Clause 1
Article 3 of this Circular.
e) Incomes from capital
investment in other forms, including capital contribution in kind, by
reputation, rights to use land, patents.
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4. Incomes from capital
transfer
Incomes from capital
transfer are personal incomes in the form of:
a) Profits from capital
contributions to limited liability companies (including single-member limited
liability companies), partnerships, cooperatives, business cooperation
contracts, people's credit funds, economic organizations, and other
organizations.
b) 13 Income from securities transfer, including income
from transfer of stocks, the right to buy stocks, bonds, treasury bills, fund
certificates and other securities according to Clause 1 Article 6 of the Law on
Securities. Income from transfer of stocks by individuals in a joint-stock
company is specified in Clause 2 Article 6 of the Law on Securities and Article
120 of the Law on Enterprises.
c) Incomes from other
forms of capital transfer.
5. Incomes from real
estate transfer
Incomes from real estate
transfer:
a) Incomes from
transferring rights to use land.
b) Incomes from
transferring rights to use land and property on the land. Property on the land
includes:
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b.2) Infrastructure and
constructions on the land, including off-the-plan constructions.
b.3) Other property on
land, including agriculture, forestry and fishery products (such as plants and
animals).
c) Incomes from
transferring ownership of houses, including off-the-plan houses.
d) Incomes from
transferring rights to use land, rights to rent water surface.
dd) Incomes from capital
investment by real estate for establishment of enterprises or increase in
capital of enterprises as prescribed by law.
e) Incomes from
delegating the management of real estate, in case the person delegated to
manage real estate has the right to transfer real estate or rights similar to
those of the real estate owner according to law regulations.
g) Other incomes from
real estate transfer in any form.
Regulations on
off-the-plan houses and constructions in Clause 5 of this Article shall comply
with regulations of law on real estate trading.
6. Incomes from winning
prizes
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a) Winning lottery prizes
presented by lottery companies.
b) Wining prizes from
promotion programs when buying products or services according to the Law on
Commerce.
c) Winning prizes from
the types of betting permitted by law.
d) 14 (Annulled)
dd) Winning prizes from
the games with prizes and the like held by economic organizations,
administrative agencies, associations, other organizations and individuals.
7. Incomes from copyright
Incomes from copyright are
incomes from the transfer of ownership, rights to use the subjects of
intellectual property rights according to the Law on Intellectual Property;
income from technology transfer according to the Law on Technology Transfer. To
be specific:
a) Subjects of
intellectual property rights are specified in Article 3 of the Law on
Intellectual Property and relevant guiding documents:
a.1) Subjects of
copyright, including literary, artistic, and scientific works; subjects of
rights relevant to copyright, including video recordings, sound recordings of
broadcasted programs, program-carrying satellite signals.
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a.3) Subjects of rights
to plant varieties that are propagating materials and harvested materials.
b) Subjects of technology
transfer are specified in Article 7 of the Law on Technology Transfer:
b.1) Transfer of
technical know-hows.
b.2) Transfer of
technological knowledge in forms of technological plans, technological
processes, technical solutions, formulae, specifications, drawings, technical
diagrams, computer programs, information.
b.3) Transfer of
solutions for production rationalization and technological innovation.
Incomes from transfer of
aforesaid subjects of intellectual property rights and technology transfer
(including re-transfer).
8. Incomes from franchise
Franchise is a commercial
operation in which the franchiser allows and requests the franchisee to sell
goods and services under the conditions set out by the franchiser in the
franchise contract.
Incomes from franchise
are incomes that the person earned from the aforesaid franchise contracts,
including re-franchise according to regulations of law on franchise.
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Incomes from inheritance
are incomes that the person receives under a will or in accordance with
regulations of law on inheritance. To be specific:
a) Inherited securities:
shares, call options on shares, bonds, treasury bills, fund certificates, and
other securities according to the Law on Securities; shares of the person in
the joint-stock company according to the Law on Enterprises.
b) Inherited capital in
economic organizations and business establishments: capital contribution to
limited liability companies, cooperatives, partnerships, business cooperation
contracts; capital in private enterprises and business establishment of the
person; capital in associations and funds established within the law, or the
entire business establishment in case the private enterprise or business
establishment is under the ownership of the person.
c) Inherited real estate:
rights to use land, rights to use land and property thereon; ownership of
houses, including off-the-plan houses, infrastructure and constructions on
land, including off-the-plan constructions; rights to rent land or water
surface; other incomes from inheritance being real estate in any shape or form,
except for incomes from the inherited real estate mentioned in Point d Clause 1
Article 3 of this Circular.
d) The ownership and
right to use other inherited assets (cars, motorbikes, ships, barges,
speedboats, towboats, yachts, airplanes, hunting guns, and sporting guns) shall
be registered with state agencies.
10. Incomes from receipt
of gifts
Incomes from receipt of
gifts are incomes that the person receives from organizations and individuals
at home and overseas. To be specific:
a) Gifts being securities:
shares, call options on shares, bonds, treasury bills, fund certificates, and
other securities according to the Law on Securities; shares of the person in
the joint-stock company according to the Law on Enterprises.
b) Gifts being capital in
economic organizations and business establishments: capital contribution to
limited liability companies, cooperatives, partnerships, business cooperation
contracts; capital in private enterprises and business establishments of the
person; capital in associations and funds established within the law, or the
entire business establishment in case the private enterprise or business
establishment is under the ownership of the person.
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d) The ownership of and
right to use gifts being other assets (cars, motorbikes, ships, barges,
speedboats, towboats, yachts, airplanes, hunting guns, sporting guns) shall be
registered with state agencies.
Article
3. Tax-free incomes
1. According to Article 4
of the Law on Personal Income Tax and Article 4 of the Decree No.
65/2013/ND-CP, tax-free incomes include:
a) Incomes from real
estate transfer (including off-the-plan houses and constructions according to
regulations of law on real estate trading) between husband and wife, parents
and children; adoptive parents and adopted children; parents-in-law and
children-in-law; grandparents and grand children, and among siblings.
The real estate
(including off-the-plan houses and constructions according to regulations of
law on real estate trading) that is established by either spouse during the
marriage, considered marital property, divided under agreements or judgment of
the court when they divorce shall be tax-free.
b) Income from transfer
of a person's only house or right to use residential land and property thereon
in Vietnam.
b.1) The person that
transfers the house and right to use land that are tax-free as prescribed in
Point b Clause 1 of this Article must meet all conditions below:
b.1.1) The transferor
owns only one house or right to use residential land plot (with or without
property thereon) at the time of transfer. To be specific:
b.1.1.1) The house ownership
and right to use land shall be determined based on the certificate of rights to
use land, ownership of house and other property on land.
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b.1.1.3) If the house
ownership or right to use land is the marital property and only property of the
husband and wife, the person that has no other private house or land is
eligible for tax exemption, the person that has another private house or land
is not eligible for tax exemption.
b.1.2) 15 The house
ownership or land use right has been possessed for at least 183 days before it
is transferred.
The time for
determination of the house ownership or land use right is the date of issuance
of the certificate of land use right, ownership of house and other property on
land. In case the certificate is reissued or replaced under regulations of law
land, the time for determination of the house ownership or land use right is
the date of issuance of the certificate of land use right, ownership of house
and other property on land before reissuance or replacement”
b.1.3) The entire house
or residential land is transferred.
If the individual has or
shares the ownership of the only house or land use right and transfers part of
it, the transferred part is not tax-free.
b.2) The only house and
residential land that is tax-free shall be declared by the person and he/she
shall be responsible for such declaration. If false declaration is discovered,
the person has to pay tax arrears and incur penalties for violations against
the laws on tax administration.
b.3) Transfer of
off-the-plan houses and constructions that are not exempt from personal income
tax shall follow guidance according to Point b Clause 1 of this Article.
c) Incomes from the
person’s rights to use land allocated by the State that is eligible for land
levy exemption or reduction.
The person that transfers
the area of land eligible for exemption or reduction in land levy shall declare
and pay tax on the income from real estate transfer according to Article 12 of
this Circular.
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dd) Incomes from
conversion of agricultural land, which is allocated by the State for
rationalization of agricultural production without change in land use purposes
of the household or person engaged in agricultural production.
e) Incomes of households
and persons engaged in agriculture, forestry, salt production and fishery with
fishery products that have not yet been processed or have been preliminarily
processed and have not yet been processed into other products.
Each household/person
engaged in production according to guidance in this Point shall:
e.1) Have legitimate
rights to use, lease land and water surface to engage in agriculture, forestry,
salt production, and fishery.
Present a lease contract
if the land or water surface is leased from another organization or person
(unless the household or person is assigned to plant, take care of, manage, and
protect forests by forestry companies). The household or person that does fishing
shall have the Certificate of ownership of ships or contract to rent ships used
for fishing and direct participation in fishing (except for fishing by trawling
nets and other methods of fishery prohibited by law).
e.2) Reside in the local
area where the agriculture, forestry, salt production or fishery takes place.
The aforesaid local area
is a district, town, or city affiliated to a province (hereinafter referred to
as “district”), or a district adjacent to the area where the production takes
place.
Incomes from fishing do
not depend on residence.
e.3) Raw agriculture,
forestry products, salt, and fishery products which have not yet been processed
into other products or have been preliminarily processed are products that are
just cleaned, dried, husked, cut, salted, frozen, and put into ordinary
storage.
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g.1) The tax-free
interest on deposits mentioned in this Point is the income from the interest on
deposits in VND, gold, or foreign currencies at credit institutions and
branches of foreign banks established and operating in accordance with the Law
on Credit Institutions in the form of demand deposits, term deposits, savings,
certificates of deposit, promissory notes, treasury bills, and other forms of
deposits that the depositor should receive both principal and interest.
Bases for identification
of tax-free incomes from deposits are the saving book (or saving card),
certificates of deposit, exchange bills, treasury bills, and other papers that
the depositor should receive both principal and interest.
g.2) Interest on life
insurance contract is the interest that the person receives under the life
insurance contract with the insurer.
The basis for
identification of tax-free income from interest on life insurance contract is
the note of interest payment from the insurance contract.
g.3) Interest on
Government bonds is the interest that the person receives from purchase of
Government bonds issued by the Ministry of Finance.
Bases for identification
of tax-free income from interest on Government bonds are face values, interest
rates, and terms on the Government bonds.
h) 16 Income from remittances is the amount of money the
person receives from their relatives being Vietnamese people residing abroad,
Vietnamese people that work or study abroad;
In case a person
receives a remittance from a foreign relative from abroad in accordance with
regulations on encouragement of remittance of money from abroad to Vietnam of
the State Bank of Vietnam, it will be exempt from tax as prescribed in this
Point.
Bases for
identification of tax-free incomes mentioned in this Point are papers proving
that those amounts are sent from abroad and payment notes issued by the
money-transferring organization (if any).
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i.1) Tax-free additional
payments for working at night or working overtime shall be identified according
to the actual total payment for working at night or overtime minus (-) the
payment for an ordinary working day.
Example 2: The wage of
Mr. A on an ordinary working day is 40.000 VND/hour.
- When working overtime
on a working day, he is paid 60.000 VND/hour, thus the tax-free income is:
60.000 VND/hour – 40.000
VND/ hour = 20.000 VND/ hour
- When working overtime
on a holiday, he is paid 80.000 VND/hour, thus the tax-free income is:
80.000 VND/hour – 40.000
VND/ hour = 40.000 VND/ hour
i.2) The organization or
person that pays incomes (hereinafter referred to as income payer) shall make a
table specifying the hours of night work, extra hours, additional payments for working
at nights and overtime. This table shall be kept and presented by the income
payer at the request of the tax authority.
k) Pensions paid by
Social Insurance Fund according to the Law on Social Insurance; monthly
pensions from the voluntary pension fund.
Pensions paid from abroad
to the people living and working in Vietnam are tax-free.
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m.1) Scholarships funded
by government budget, including scholarships given by the Ministry of Education
and Training, Services of Education and Training, public schools, and other
scholarships funded by government budget.
m.2) Scholarships given
by Vietnamese and foreign organizations (including payment for living
expenses).
The scholarship giver
shall keep the decisions to give scholarships and notes of scholarship
payments. Where the person directly receives scholarships from foreign
organizations, the person shall keep the documents proving the incomes from
such scholarships.
n) 17 Incomes from indemnities under the contract for life
insurance, non-life insurance, or health insurance; compensation for
occupational accidents; compensation and support according to regulations of
law on compensation, support, and relocation; compensations provided by the
State and other compensations prescribed by law. To be specific:
n.1) Incomes from
indemnities under the contract for life insurance, non-life insurance, or
health insurance are the money that the life insurer, non-life insurer, or health
insurer pays for the policyholders according to the concluded insurance
contracts Bases for identification of such indemnity are the written decision
on indemnity made by the insurer or the court and notes of indemnity payment.
n.2) The income from the
compensation for an occupational accident is the money that the employee
receives from his or her employer or the social insurance fund after suffering
from an accident at work. Bases for identification of such compensation are the
written decision on compensation made by the employer or the court and notes of
compensation payment.
n.3) Incomes from
compensations and supports according to law regulations on compensation,
support, and relocation are compensations and supports provided by the State
when withdrawing land, including incomes from the compensations and supports
provided by economic organizations as prescribed.
Bases for
identification of incomes from aforesaid compensations and supports are
decisions on land withdrawal, compensations, and relocation issued by competent
authorities, and notes of compensation payment.
n.4) Incomes from
compensations provided by the State and other compensations prescribed by
regulations of law on compensations provided by the State are compensations for
the wrongful decisions on penalties for administrative violations made by
competent persons or competent authorities which infringe the interests of the
person; incomes from compensation for the miscarriage of justice during
criminal proceedings. Bases for identification of such compensations are the
decision made by the competent authority which forces the organization or
individual making the wrongful decision to provide compensations and notes of
compensation payment.
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p) Incomes from
non-profit charitable trusts accredited by competent authorities, which aim for
charity, humanitarianism, and study encouragement.
These charitable trusts
must be established and operate in accordance with the Government's Decree No.
30/2012/ND-CP dated April 12, 2012 on organization and operation of social
trusts and charitable trusts.
Bases for identification
of tax-free incomes from such charitable trusts in this Point are written
decisions on giving money and notes of support in cash or in kind made by the
charitable trusts.
q) Incomes from foreign
aids for charitable and humanitarian purposes, whether governmental or
non-governmental, that are approved by competent authorities.
The basis for
identification of the tax-free income in this Point is written approval for
receipt of aids made by the competent authority.
r) 18 Incomes from wages and remunerations of Vietnamese
crewmembers from working for foreign shipping companies or Vietnamese shipping
companies that provide international transport services.
s) 19 Incomes of
individuals being ship owners or individuals having rights to use the ships
from provision of goods/services directly serving offshore fishing.
2. The procedure and
application for tax exemption in the cases in Points a, b, c, d, dd Clause 1 of
this Article shall comply with guiding documents on tax administration.
Article
4. Tax reduction
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1. Determination of
reduced tax:
a) Tax reduction shall be
considered in the tax year. The taxpayer shall receive tax reduction for the
tax year in which the taxpayer suffers from natural disaster, fire, accident,
or fatal disease.
b) The tax payable used for
calculating tax reduction is the total personal income tax payable in the tax
year, including:
b.1) Paid or deducted
personal income tax on incomes from capital investment, incomes from capital
transfer, incomes from real estate transfer, incomes from winning prizes,
incomes from royalties, incomes from franchise, incomes from inheritance, and
incomes from gifts.
b.2) Personal income tax
payable on incomes from business and incomes from wages, remunerations.
c) The basis for
calculation of the damage eligible for tax reduction is the total expenditure
for repairing damage minus the indemnities provided by insurers (if any) or
compensations provided by the organization or individual that caused the
accident (if any).
d) The reduced tax is
determined as follows:
d.1) If the tax payable
in the tax year is higher than the damage level, the reduced tax is equal to
the damage level.
d.2) If the tax payable
in the tax year is lower than the damage level, the reduced tax is equal to the
tax payable.
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Article
5. Converting taxable income into VND 20
1. Revenues and
incomes subject to PIT are expressed as VND.
Revenues and taxable incomes
received in foreign currencies shall be converted into VND at the buying rate
of the bank where the person opens the transaction account at the time incomes
are earned.
In case a taxpayer
does not have a transaction account in Vietnam, foreign currencies shall be
converted into VND at the buying rate of Vietcombank at the time incomes are
earned.
Foreign currencies
without rates of exchange into VND shall be converted into a foreign currency
that has a rate of exchange into VND.
2. Non-cash taxable incomes
shall be converted into VND at the market prices of such products/services or
the similar products/services when the incomes are earned.
Article
6. Tax period
1. Regarding residents:
a) Annual tax statement
is applicable to incomes from business and incomes from wages, remunerations.
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If the person has been
present in Vietnam for fewer than 183 days in a calendar year, but has been in
Vietnam for 183 days for 12 consecutive months from the date of arrival, the
first tax period is the 12 consecutive months from the date of arrival. In the
second year, the tax period is the calendar year.
Example 3: Mr. B is a
foreigner who first comes to Vietnam on April 20, 2014. In 2014 up to December
31, Mr. B has stayed in Vietnam for 130 days. In 2015 up to April 19, Mr. B has
stayed in Vietnam for 65 days. The first tax period of Mr. B begins on April
20, 2014 and ends on April 19, 2015. The second tax period begins on January
01, 2015 and ends on December 31, 2015.
b) Tax statement when an
income is earned is applicable to incomes from capital investment, incomes from
capital transfer, incomes from real estate transfer, incomes from winning
prizes, incomes from royalties, incomes from franchising, incomes from
inheritance, and incomes from gifts.
c) Tax on incomes from
transfer of securities shall be declared annually or when it is incurred.
2. Regarding
non-residents:
Each non-resident shall
declare tax whenever an income is earned.
Where the business person
does not have a fixed business location such as a shop or counter, the tax
period is similar to that applicable to the resident earning income from
business.
Chapter
2
BASES FOR
CALCULATION OF TAX INCURERD BY RESIDENTS
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Bases for calculation of
tax on incomes from 22 wages are the assessable income and tax rate. To be
specific:
1. Assessable income
equals taxable income according to guidance in Article 8 of this Circular minus
(-) the following deductions:
a) Personal deductions
according to guidance in Clause 1 Article 9 of this Circular.
b) Insurance premiums and
payment to the voluntary pension fund according to guidance in Clause 2 Article
9 of this Circular.
c) Charitable,
humanitarian, and study encouragement contributions (hereinafter referred to as
charitable donations) according to guidance in Clause 3 Article 9 of this
Circular.
2. Tax rate
The rate of personal
income tax on incomes from 23 wages shall apply the progressive tax table in
Article 22 of the Law on Personal Income Tax. To be specific:
Level
Assessable income/year (million VND)
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Tax rate (%)
1
Up to 60
Up to 5
5
2
Over 60 to 120
Over 5 to 10
10
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Over 120 to 216
Over 10 to 18
15
4
Over 216 to 384
Over 18 to 32
20
5
Over 384 to 624
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25
6
Over 624 to 960
Over 52 to 80
30
7
Over 960
Over 80
35
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Personal income tax on incomes
from 24 wages is the total tax on each level of income. The tax on each level
of income equals the assessable income of that level multiplied by (x) the
corresponding tax rate of that level.
For convenience, the
abridged method in Appendix 01/PL-TNCN to this Circular may be applied.
Example 4: Mrs. C earns
an income of 40 million VND from wages in the month, and pay 7% of wages for
social insurance premium, 1.5% of wages for health insurance premium. Mrs. C
has 2 children under the age of 18, and makes no charitable donations. The
preliminary personal income tax incurred by Mrs. C in the month is calculated
as follows:
- Taxable income of Mrs.
C is 40 million VND.
- Mrs. C is eligible for
the deductions below:
+ Personal deduction: 9
million VND
+ Deductions for 02
dependants (02 children):
3.6 million VND x 2 = 7.2
million VND
+ Social insurance,
health insurance:
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Total deduction:
9 million VND + 7,2
million VND + 3,4 million VND = 19, 6 million VND
- Assessable income of
Mrs. C:
40 million VND – 19,6
million VND = 20,4 million VND
- Tax payable:
Method 1: using the
progressive tax table:
+ Level 1: assessable
income up to 5 million VND, 5% tax:
5 million VND x 5% = 0,25
million VND
+ Level 2: assessable
income from over 5 million VND to 10 million VND, 10% tax:
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+ Level 3: assessable
income from over 10 million VND to 18 million VND, 15% tax:
(18 million VND -
10 million VND) x 15% = 1,2 million VND
+ Level 4: assessable
income from over 18 million VND to 32 million VND, 20% tax:
(20,4 million VND -
18 million VND) x 20% = 0,48 million VND
- Total preliminary tax
payable by Mrs. C in the month:
0,25 million VND + 0,5
million VND + 1,2 million VND + 0,48 million VND = 2,43 million VND
Method 2: Using the
abridged method:
The assessable income in
the month 20,4 million VND is the assessable income in level 4. The personal
income tax payable:
20,4 million VND x 20% -
1,65 million VND = 2,43 million VND
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If the wages paid to the
employee according to guidance in Clause 2 Article 2 of this Circular are
exclusive of tax, they must be converted into assessable income in accordance
with Appendix No. 02/PL-TNCN to this Circular. To be specific:
a) 25 The income converted into assessable income is the
actual income received (excluding tax-free incomes) plus (+) benefits paid by
the employer on behalf of the employee (if any) minus (-) the deductions.
If the employer applies “presumptive tax” or “presumptive house rent”, the
income to be converted into assessable income does not include such
“presumptive tax” and “presumptive house rent”. If the amounts paid on behalf
of the employees include the house rent, the actual house rent shall be
included in the converted income. Nevertheless, the house rent must not exceed
15% of the total taxable income incurred at the workplace regardless of income
payer (excluding actual house rent, costs for electricity, water and other
accompanying services and “presumptive house rent” (if any)).
Formula for
calculation of converted income:
Converted income
=
Actual income
+
Amounts paid on the employee’s behalf
-
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Where:
- Actual income is the
tax-exclusive wage that the employee receives every month (exclusive of
tax-free income).
- The amounts paid on
the employee’s behalf are the benefits in cash or in kind paid to the employee
by the employer as instructed in Point dd Clause 2 Article 2 of Circular No.
111/2013/TT-BTC, Clause 2, Clause 3 and Clause 4 Article 11 of Circular No.
92/2015/TT-BTC.
- Deductions include
personal deductions, insurance premiums, contributions to the voluntary pension
fund, and charitable donations according to guidance in Article 9 of Circular
No. 111/2013/TT-BTC and Circular No. 92/2015/TT-BTC.
b) If the person is
required to settle tax, the taxable income in the year is the sum of taxable
income of each month based on the converted assessable income. If the person earns
tax-exclusive incomes from multiple organizations, the taxable income in the
year is the sum of taxable income of each month paid by each organization in
the year.
Example 7. Mr. D in
example 6 above has a contract and earns an income of 12 million VND/month at
company Y from January 2014 to May 2014 apart from the income earned at company
X Company Y also pays personal income tax on behalf of Mr. D.
Final personal income tax
incurred by Mr. D in 2014:
- Taxable income in the
year earned by Mr. D at company X:
42,687 million VND x 12
months = 512,244 million VND
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+ Monthly assessable
income (converted in accordance with Appendix No. 02/PL-TNCN):
(12 million VND -
0,75 million VND) /0,85 = 13,235 million VND
+ Taxable income in the
year earned at company Y:
13,235 million VND x 5
months = 66,175 million VND
+ Total taxable income
earned by Mr. D in 2014:
512,244 million VND +
66,175 million VND = 578,419 million VND
- Monthly assessable
income:
(578,419 million VND
: 12 months) - (9 million VND + 1,5 million VND) = 37, 702 million VND
- Personal income tax
payable in the year:
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5. 26. (Annulled)
6. 27 The basis for
calculation of tax on accrued premiums of optional insurances is the accrued
premiums of life insurance (except voluntary pension insurance) and other
optional insurances paid by the employer on behalf of the employee with the
deduction rate of 10%.
In case the employer
buys life insurance (except voluntary pension insurance) and/or other optional
insurances with accrual of insurance premiums for the employee from the
insurer(s) established and operating under Vietnam’s law, the employee is not
required to include the accrued premiums to taxable income when the employer
buys the insurance(s). When the contract matures, the insurer shall deduct 10%
tax from the accrual of premiums paid by the employer for the employee from
July 01, 2013. In case the premium accrual is paid by installments, 10% tax
shall be deducted from each payment.
In case the employer
buys life insurance (except voluntary pension insurance) and/or other optional
insurances with accrual of insurance premiums for the employee from the
insurer(s) not established and operating under Vietnam’s law, the employer has
the responsibility to deduct 10% tax from the premiums before paying the
employee.
Insurers shall be
responsible for monitoring premiums of life insurance and other optional
insurances bought by employers for their employees in order to calculate PIT.”
Article
8. Calculation of taxable incomes from wages 28
1. 29 (Annulled)
2. Taxable income from
wages
a) The taxable income
from wages equals the sum of wages, remunerations and other incomes considered
as wages received by the taxpayer in the tax period according to guidance in
Clause 2 Article 2 of this Circular.
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Taxable income from wages
and remuneration shall be calculated when the income is paid to the taxpayer.
The taxable income from
accrued insurance premium guided in Point dd.2 Clause 2 Article 2 of this
Circular shall be calculated when the insurer 30 pays the insurance money.
33. 31 (Annulled)
Article
9. Deductions
Deductions under guidance
in this Article are amounts deducted from the taxable income of the person
before the taxable income from wages is calculated 32. To be specific:
1. Personal deductions
According to Article 19
of the Law on Personal Income Tax, Clause 4 Article 1 of the Law on amendments
to the Law on Personal Income Tax, and Article 12 of the Decree No.
65/2013/ND-CP:
a) Personal deduction is
the amount of money deducted from the taxable income before calculation of tax
on the income from wages 33 earned by the resident taxpayer.
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b.1) Deduction for the
taxpayer: 9 million VND/month, 108 million VND/year.
b.2) Deduction for each
dependant: 3,6 million VND/month
c) Principles of
calculating deductions
c.1) Personal deduction
for the taxpayer:
c.1.1) The taxpayer that
has multiple sources of income from wages 35 shall calculate the personal
deduction for himself/herself in a place at a time (considered a full month).
c.1.2) The foreigner being
a resident in Vietnam shall make personal deduction from January (or the month
of arrival if the person comes to Vietnam for the first time) until the month
in which the labor contract expires and that person leaves Vietnam in the tax
year (considered a full month).
Example 8: Mr. E is a
foreigner that comes to work in Vietnam continuously from March 01, 2014. On
November 15, 2014, the labor contract expires and Mr. E goes home. Mr. E is
present in Vietnam for 183 days from March 01, 2014 until the date of
departure. Thus in 2014, Mr. E is a resident and may make a personal deduction
from January until the end of November 2014.
Example 9: Mrs. G is a
foreigner who comes to Vietnam for the first time on September 21, 2013. On
June 15, 2014, the labor contract expires and Mrs. G leaves Vietnam. Mrs. G is
present in Vietnam for 187 days during the period from September 21, 2013 to
June 15, 2014. Thus in the first tax year (from September 21, 2013 to September
20, 2014), Mrs. G is considered a resident in Vietnam and may make a personal
deduction from September 2013 until the end of June 2014.
c.1.3) If the person has
not made personal deduction or the deduction does not cover 12 months in the
tax year, the person may make deduction for 12 months before settling tax
according to regulations.
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c.2.1) The taxpayer may
make deductions for his or her dependants if the taxpayer has applied for tax
registration and been issued with the tax identification number.
c.2.2) When registering
deductions for dependants, the taxpayer shall be issued with tax identification
numbers for dependants by the tax authority and make preliminary deductions in
the year from the registration date Dependants that are registered before the
effective date of this Circular are still eligible for deductions until they
are issued with tax identification numbers.
c.2.3) If the taxpayer
has not made deductions for dependants in the tax year, the deductions for
dependants shall be made from the month in which the custody is given when the
taxpayer settles tax and registers deductions for dependants. Deductions for
other dependants, who are defined in Point d.4 Clause 1 of this Article, shall
be registered by December 31 of the tax year, otherwise the deduction for the
whole tax year shall not be made.
c.2.4) The deduction for
a dependant shall apply to only one taxpayer in the tax year. Where multiple
taxpayers have the same dependant, they shall reach an agreement on the person
that makes the deduction for such dependant.
d) Dependants include:
d.1) Children, legitimate
adopted children, illegitimate children, stepchildren. To be specific:
d.1.1) Children under 18
years of age.
Example 10: A child of
Mr. H born on July 25, 2014 is considered a dependant from July 2014.
d.1.2) Children from 18
years of age and over that are disabled and incapable of work.
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d.2) Taxpayer's spouse
that meets the conditions in Point dd Clause 1 of this Article.
d.3) Taxpayer’s parents,
parents-in-law, stepparents, legitimate adoptive parents that meet the
conditions in Point dd Clause 1 of this Article.
d.4) Other dependants that
the taxpayer has to provide for, who meet the conditions in Point dd Clause 1
of this Article, including:
d.4.1) Taxpayer’s
brothers and sisters.
d.4.2) Taxpayer’s
grandparents, aunts, uncles.
d.4.3) Taxpayer’s nieces
and nephews.
d.4.4) Other people as
prescribed by law.
dd) A person that meets
the conditions below shall be considered a dependant mentioned in Point d.2,
d.3, d.4 Clause 1 of this Article:
dd.1) The person of
working age shall meet all conditions below:
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dd.1.2) The person has no
income or his average monthly income from all sources does not exceed 1.000.000
VND.
dd.2) The people outside
working age shall have no income or their average monthly income from all
sources shall not exceed 1.000.000 VND.
e) The disabled that are
incapable of work mentioned in Point dd.1.1 Clause 1of this Article are people
regulated by regulations of law on the disabled and ill people incapable of
works (sufferers from AIDS, cancer, chronic kidney failure, etc.)
g) Documents proving
dependants
g.1) Children:
g.1.1) For children under
18 years of age: photocopies of the Certificates of birth and ID cards (if
any).
g.1.2) For children from
18 years of age and over that are disabled and incapable of work:
g.1.2.1) Photocopies of
the Certificates of birth and ID cards (if any).
g.1.2.2) Photocopies of
Certificates of disability according to regulations of law on the disabled.
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g.1.3.1) Photocopies of
the Certificates of birth.
g.1.3.2) Photocopies of
students’ cards or declarations certified by the schools, or other papers
proving the study at such schools.
g.1.4) For adopted
children, illegitimate children, stepchildren: apart from the aforesaid papers,
other papers proving the relationship are required, such as photocopies of
decisions on certification of adoption made by competent authorities.
g.2) For spouse:
- A photocopy of the ID
card
- A photocopy of the
household book (which proves the husband and wife relationship) or a photocopy
of the Certificate of marriage.
If the spouse is of
working age, other papers proving the dependant’s incapability of work are
required, apart from the aforesaid papers, such as the Certificate of
disability according to regulations of law on the disabled that are incapable
of works, a photocopy of the medical record of the ill person incapable of work
(sufferer from AIDS, cancer, chronic kidney failure, etc.)
g.3) For parents,
parents-in-law, stepparents, legitimate adoptive parents:
- Photocopies of ID
cards.
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If they are of working
age, other papers proving the dependants’ incapability of work are required,
apart from the aforesaid papers, such as Certificates of disability according
to regulations of law on the disabled that are incapable of works, photocopies
of the medical records of ill persons incapable of work (sufferers from AIDS,
cancer, chronic kidney failure, etc.).
g.4) For other people
mentioned in Point d.4 Clause 1 of this Article, proving documents include:
g.4.1) Photocopies of
Certificates of birth or ID cards.
g.4.2) Other legitimate
papers for determination of the custody as prescribed by law.
If the dependants are of
working age, other papers proving dependants’ incapability of work are
required, apart from the aforesaid papers, such as the Certificate of
disability according to regulations of law on the disabled that are incapable
of works, photocopies of medical records of ill persons incapable of work
(sufferers from AIDS, cancer, chronic kidney failure, etc.).
Legitimate papers
mentioned in Point g.4.2 Clause 1 of this Article are any legal document that
proves the relationship between the taxpayer and the dependant, including:
- Photocopies of papers
proving the custody (if any).
- A photocopy of the
household book (if their names are in the same household book).
- A photocopy of the
certificate of temporary residence of the dependent (if their names are not in
the same household book).
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- A declaration that the
dependant is residing in the commune and living alone, which is made by the
taxpayer according to the form provided in documents on tax administration and
certified by the People’s Committee of the commune where the taxpayer resides.
g.5) If the resident is a
foreigner, legal documents proving the dependant, which are equivalent to the
aforesaid documents are required.
g.6) Where the taxpayer
working in an economic organization, a public service provider has specified
his/her dependants being his/her parents, spouse, children, and other
dependants in his or her résumé, the documents proving the dependants are the
documents mentioned in Point g.1, g.2, g.3, g.4, g.5 Clause 1 of this Article,
or only the dependant registration form certified by the head of the unit on
the left is required.
The head of the unit is
only responsible for full names of dependants, their years of birth and
relationship with the taxpayer. The taxpayer is responsible for other
information.
h) Declaration of
deduction for dependants
h.1) The taxpayer that
earns 09 million VND/month or less from wages 36 is not required to register
dependants.
h.2) The taxpayer that
earns over 09 million VND/month from wages 37 shall follow the procedure below
to make deductions for dependants:
h.2.1) For taxpayers that
earn incomes from wages
h.2.1.1) Registration of
dependants
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The taxpayer that earns
income from wages shall submit 02 applications for dependant registration (using
the form provided in guiding documents on tax administration) to the income
payer as the basis for calculation of deductions for dependants.
The income payer shall
keep 01 application and submit 01 application to the local tax authority when
submitting the personal income tax declaration of that person in accordance
with the Law on Tax Administration.
The person that directly
declares tax at the tax authority shall submit 01 application for dependant
registration (using the form provided in guiding documents on tax
administration) to the tax authority that monitors the income payer when
submitting his declaration of personal income tax in accordance with the Law on
Tax Administration.
h.2.1.1.2) Registration
in case of changes of dependants:
When the number of
dependants are changed (increased or decreased), the taxpayer shall make an
additional declaration using the form provided in guiding documents on tax
administration, and submit it to the income payer (or to the tax authority if
the taxpayer declares tax directly at the tax authority).
h.2.1.2) Location and
deadline for submission of documents proving the dependants:
- The location for
submission of documents proving the dependants is a place where the taxpayer
submits the application for dependant registration
The income payer shall
keep the documents proving the dependants and present them when the tax
authority carries out tax inspection.
- The documents proving
the dependants shall be submitted within 03 months from the day on which the
application for dependant registration is submitted (including the registration
of change of dependants).
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h.2.2) 38
(Annulled)
i) The taxpayer shall
register and submit proving documents for a dependant once throughout the
deduction period. Where the taxpayer changes the workplace 39, the application
for dependant registration and proving documents shall be similarly submitted
according to guidance in Point h.2.1.1.1 Clause 1 of this Article.
2. Deductions for
insurance premiums and contributions to the voluntary pension fund
a) Insurance premiums
include premiums for social insurance, health insurance, unemployment insurance
and professional liability insurance which is compulsory for some professions.
b) 40 Contributions to the voluntary pension fund and
payment for voluntary pension insurance
Contributions to the
voluntary pension fund and payment for voluntary pension insurance are deducted
from the taxable income. Nevertheless, the deduction shall not exceed VND 01
million/month if the employee participates in voluntary pension products as
instructed by the Ministry of Finance, including the amounts paid by the
employer on behalf of the employee and the amounts paid by the employee
himself/herself, even if the employee participates in multiple pension funds.
The basis for determination of deductible income is a photocopy of receipt for
payments issued by the voluntary pension fund or the insurer.
c) Where the foreigner
being a resident in Vietnam, or the Vietnamese person being a resident but
working overseas earns incomes from wages 41 overseas and pays compulsory
insurance premiums required by the country where the person holds the
nationality or works that are similar to those in Vietnam such as social
insurance, health insurance, unemployment insurance, professional liability
insurance, and other compulsory insurance, such insurance premiums may be
deducted from the taxable income from wages 42 when the personal income tax is
calculated.
Foreigners and Vietnamese
people who pay the aforesaid insurance premiums overseas shall have them
provisionally deducted from the income in the year (if supporting documents are
provided). Deductions shall be officially made when they settle tax according
to regulations. If no supporting documents are provided for immediate
deduction, a lump-sum deduction shall be made when settling tax.
d) Insurance premiums and
contributions to the voluntary pension fund in the year shall be deducted from
the taxable income earned in that year.
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3. Deductible charitable
donations.
a) Charitable donations
shall be deducted from the taxable income from wages 43 before the tax incurred
by a resident taxpayer is calculated. To be specific:
a.1) Donations to the
establishments that take care of disadvantaged children, the disabled, and the
homeless elderly people.
Establishments that take care
of disadvantaged children, the disabled, and the homeless elderly people shall
be established and operate in accordance with the Government's Decree No.
68/2008/ND-CP dated May 30, 2008 on conditions and procedure for establishment,
organization, operation, and dissolution of social protection organizations,
the Government's Decree No. 81/2012/ND-CP dated October 08, 2012 on amendments
to the Government's Decree No. 68/2008/ND-CP dated May 30, 2008 on conditions
and procedure for establishment, organization, operation, and dissolution of
social protection organizations, and the Government's Decree No. 109/2002/ND-CP
dated December 27, 2002 on amendments to the Government's Decree No. 195/CP
dated December 31, 1994 on elaboration and provision of guidance on the
implementation of a number of Articles the Labor Code on hours for work and
rest.
Documents proving the
donations to the establishments that take care of disadvantaged children, the
disabled, and the homeless elderly people are valid notes of receipts of such
establishments.
a.2) Contributions to
charitable, humanitarian and study encouragement funds established and
operating in accordance with the Government's Decree No. 30/2012/ND-CP dated
April 12, 2012 on the organization and operation of non-profit social funds,
charitable funds, and other documents related to the management and use of
sponsorships.
Documents proving
charitable donations are valid notes of receipt made by central or provincial
organizations and funds.
b) Charitable donations
made in a tax year shall be deducted from the taxable income earned in that tax
year. The donations that are not completely deducted shall be deducted from the
taxable income earned in the next tax year. The maximum deduction shall not
exceed the assessable income from wages 44 earned in the tax year in which the
charitable donations are made.
Article
10. Bases for calculation of tax on incomes from capital investment.
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1. Assessable income
The assessable income
from capital investment is the taxable income earned by the individual
according to Clause 3 Article 2 of this Circular.
2. The tax rate on the
income from capital investment is 5% according to the whole income tax table.
3. Time to calculate the
assessable income
The assessable income
from capital investment shall be calculated when the taxpayer is paid by the
income payer.
Times to calculate
assessable income in some cases:
a) The income from additional
value of capital contribution according to guidance in Point d Clause 3 Article
2 of this Circular shall be calculated when the person actually receives the
income in case when the enterprise is dissolved, converted, divided, merged,
amalgamated, or when the capital is withdrawn.
b) The income from
reinvested profit according to guidance in Point g Clause 3 Article 2 of this
Circular shall be calculated when the person transfers or withdraws capital.
c) The income from
dividend in shares according to guidance in Point g Clause 3 Article 2 of this
Circular shall be calculated when the person transfers his shares.
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4. Tax calculation
Personal income tax payable = Assessable income x 5% tax
Article
11. Bases for calculation of tax on incomes from capital transfer.
1. Regarding income from
transfer of contributed capital
Bases for calculation of
tax on incomes from transfer of contributed capital are assessable income and
the tax rate.
a) The assessable income
from transfer of contributed capital equals the transfer price minus the
purchase price of the transferred capital and rational expenses related to the
generation of the income from capital transfer.
Where the enterprise does
bookkeeping in foreign currencies and the contributed capital is transferred in
foreign currencies, the transfer price and purchase price of the capital are
also expressed as foreign currencies. Where the enterprise does bookkeeping in
VND and the contributed capital is transferred in foreign currencies, the
transfer price shall be expressed VND according to the average exchange rate on
the inter-bank foreign exchange market announced by the State Bank of Vietnam
when the transfer is made.
a.1) Transfer price
Transfer price is the
amount of money that the individual receives under the capital transfer
contract.
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a.2) Purchase price
The purchase price of the
transferred capital is the value of contributed capital when the transfer is
made.
The value of contributed
capital at that time includes the value of the capital contributed to the
establishment of the enterprise, value of additional contributions, value of
purchased capital, and value of capital from reinvested profit. To be specific:
a.2.1) For capital
contributed to the establishment of the enterprise, it is the value of capital
when the contribution is made. The value of contributed capital is determined
based on accounting books and invoices.
a.2.2) For additional
capital contribution, it is the value of the additional capital contribution
when the additional contribution is made. The value of additional capital
contribution is determined based on accounting books and invoices.
a.2.3) For purchased
capital, it is its value when the purchase is made. The purchase price is
determined based on the contract to purchase capital contribution. If the
contract to purchase capital contribution does not specify the price or the
price stated in the contract is not conformable with the market price, the tax
authority may impose a purchase price in accordance with regulations of law on
tax administration.
a.2.4) For the capital
from reinvested profit, it is the value of the reinvested profit.
a.3) Deductible expenses
when calculating taxable income from capital transfer are rational expenses
that are related to the generation of income from capital transfer with valid
invoices as prescribed. To be specific:
a.3.1) Expenses on legal
procedures necessary for the transfer.
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a.3.3) Other expenses
related to the capital transfer.
b) Tax rate
The rate of personal
income tax on the income from transfer of contributed capital is 20% according
to the whole income tax table.
c) Time to calculate the
assessable income
The assessable income
shall be calculated when the capital transfer contract takes effect. Where
making contribution from another capital contribution, the assessable income
from capital transfer shall be calculated when the person transfers or
withdraws capital.
d) Tax calculation
Personal income tax payable = Assessable income x 20% tax
2. Regarding income from
transfer of securities
Bases for calculation of
tax on incomes from transfer of securities are assessable income and the tax
rate.
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The assessable income
from transfer of securities is the price of each transfer.
a.1) Securities
transfer price is determined as follows:
a.1.1) The transfer
price of securities of a public company traded at the Stock Exchange is the
transaction price at the Stock Exchange. The executed price is the price of
securities according to the order-matching result or the price from
transactions at the Stock Exchange.
a.1.2) The transfer
price of securities in cases other than the above case is the price written on
the transfer contract or the actual transfer price or the price in the
accounting book of the transferor when the latest financial statement is made
before the time of transfer according to regulations of law on accounting.
b) 46 Tax rate and tax
calculation:
Securities transferee
shall pay 0.1% tax on the price of each transfer.
Tax calculation
PIT payable = Price of each transfer x 0,1% tax
c) Time to calculate the
assessable income
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c.1) For securities of a
public company that are traded at the Stock Exchange, it is the time when the taxpayer
receives the income from securities transfer.
c.2) For securities of a
public company that are not traded at the Stock Exchange but only transferred
via the system of the Vietnam Securities Depository, it is the time the
ownership is transferred at the Vietnam Securities Depository.
c.3) For the securities
that do not fall into the cases above, it is the time the securities transfer
contract takes effect.
c.4) In case the capital
contribution is made by securities without paying tax when making capital
contribution, the time to calculate income from securities transfer to make
capital contribution is the time the person transfers/withdraws capital.
d) Receipt of shares paid
as dividend.
In case of receipt of
shares paid as dividend, the person may delay paying personal income tax when
receiving shares. When transferring such shares, the person shall pay personal
income tax on the income from capital investment and the income from transfer
of securities. To be specific:
d.1) The basis for
determination of the personal income tax payable on the income from capital
investment is the value of dividend in the accounting book or the quantity of
actual shares received multiplied by (x) the face value of such shares and the
rate of personal income tax on the income from capital investment.
If the transfer price of
the shares paid as dividend is lower than the nominal price, the personal
income tax on capital investment shall be calculated at the market price when
the transfer is made.
If the person transfers the
same type of securities after receiving shares paid as dividend, the person
shall declare and pay personal income tax on the all the shares paid as
dividends.
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Example 12: Mr. K is a
shareholder of joint-stock company X (listed at the Stock Exchange). In 2011,
Mr. K receives 5.000 shares paid as dividend by company X (the face value of a
share is 10.000 VND). In February 2014, Mr. K transfers 2.000 shares of company
X at a price of 30.000 VND per share. In August 2014, Mr. K transfers 7.000
shares at a price of 20.000 VND per share.
When making the transfer,
Mr. K has to pay personal income tax on the income from capital investment and
the income from transfer of securities. To be specific:
* For the transfer in
February 2014
- Personal income tax on
the income from capital investment:
(2.000 shares x
10.000 VND) x 5% = 1.000.000 VND
- Personal income tax
(preliminary) on income from transfer of securities:
(2.000 shares x
30.000 VND) x 0,1% = 60.000 VND
* For the transfer in
August 2014:
- Personal income tax on
the income from capital investment:
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- Personal income tax
(preliminary) on income from transfer of securities:
(7.000 shares x
20.000 VND) x 0,1% = 140.000 VND
Article
12. Bases for calculation of tax on incomes from capital transfer real estate
transfer 47
Bases for calculation
of tax on incomes from real estate transfer are the price of each transfer and
tax rate.
1. Transfer price
a) The price of
transfer of right to use land without constructions thereon is the price
written on the transfer contract at the time of transfer.
If the transfer
contract does not specify the price or the price written on the transfer
contract is lower than the land price imposed by the People’s Committee of the
province at that time, the land price imposed by the People’s Committee of the province
at that time shall apply.
b) The price of
transfer of right to use land with constructions thereon, including
off-the-plan houses and constructions, is the price written on the transfer
contract at the time of transfer.
If the transfer
contract does not specify the land price or the land price written on the
transfer contract is lower than the land price imposed by the People’s
Committee of the province at that time, the land price imposed by the People’s
Committee of the province at that time shall apply according to the land law.
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Regarding off-the-plan
houses and constructions, if the contract does not specify the transfer price
of the transfer price is lower than the ratio of capital contribution to total
contract value multiplied by (x) land price and the price for calculation of
registration fee imposed by the People’s Committee of the province, the
transfer price shall equal the price imposed by the People’s Committee of the
province multiplied by (x) ratio of capital contribution to total contract
value. If the People’s Committee of the province has not imposed the unit
price, the rate of construction investment announced by the Ministry of
Construction which is applicable when the transfer is made shall apply.
c) The price of
transfer of right to lease land/water surface is the price written on the
transfer contract at the time of transfer.
If the unit price for
sublease written on the contract is lower than the price imposed by the
People’s Committee of the province when the sublease is taken, the sublease
price shall be determined according to the price list compiled by the People’s
Committee of the province.
2. Tax rate
Tax on real estate
transfer is 2% of the transfer price or sublease price.
3. Time for taxing
real estate transfer is determined as follows:
- If the transfer
contract does not require the buyer to pay tax on behalf of the seller, the
taxing time is the effective date of the transfer contract as prescribed by
law;
- If the transfer
contract requires the buyer to pay tax on behalf of the seller, the taxing time
is time of registration of the right to own or right to use the real estate.
In case the person
receives an off-the-plan house or right to use land associated with
off-the-plan constructions, the taxing time is the time when the person submits
tax declaration documents to the tax authority.
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PIT on income from
real estate transfer is calculated as follows:
PIT payable = Transfer price x 2% tax
b) In case the
transferred real estate in under a co-ownership, the tax liability incurred by
each taxpayer is proportional to their portions of real estate ownership. Bases
for determination of the portion of ownership are legal documents, including
initial capital contribution agreements, the testament, or the decision on
division made by the court, etc. If no legitimate documents are provided, the
tax liability incurred by each taxpayer shall be evenly divided.
Article
13. Bases for calculation of tax on incomes from royalties.
Bases for calculation of
tax on incomes from royalties are the assessable income and tax rate.
1. Assessable income
The assessable income
from royalties is the excess over 10 million VND of income according to the
transfer contract, regardless of the number of payments or times the taxpayer
receives money when transferring subjects of intellectual property right or
technology transfer.
If the transfer of the
same subject of intellectual property right or technology transfer to a
transferee is made into multiple contracts, the assessable income is excess
over 10 million VND of incomes from all transfer contracts.
If the subject of
transfer is under a co-ownership, the assessable income shall be divided among
the co-owners. The division ratio depends on the Certificate of ownership or
rights to use issued by the competent authority.
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3. Time to calculate the
assessable income
The assessable income
shall be calculated when the royalty is paid.
4. Tax calculation
Personal income tax payable = Assessable income x 5% tax
Article
14. Bases for calculation of tax on incomes from franchise.
Bases for calculation of
tax on incomes from franchise are the assessable income and tax rate.
1. Assessable income
The assessable income
from franchise is the excess over 10 million VND of income according to the
transfer contract, regardless of the number of payments or times the taxpayer
receives money.
If the franchise for the
same subject is made into multiple contracts, the assessable income is the
excess over 10 million VND of all franchise contracts.
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The rate of personal
income tax on the income from franchise is 5% according to the whole income tax
table.
3. Time to calculate the
assessable income
The assessable income
from franchise shall be calculated when the payment for franchise is made
between the franchiser and franchisee.
4. Tax calculation
Personal income tax payable = Assessable income x 5% tax
Article
15. Bases for calculation of tax on incomes from winning prizes.
Bases for calculation of
tax on incomes from winning prizes are the assessable income and tax rate.
1. Assessable income
The assessable income
from a prize is the excess over 10 million VND of the prize the taxpayer
receives, regardless of the number of times of prize money receipt.
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Assessable income from
some games of chance:
a) The assessable income
from a lottery prize is the excess over 10 million VND of 01 lottery prize
without any deduction.
b) The assessable income
from promotion prize in kind is the excess over 10 million VND of the prize
that is converted into cash at the market price when the prize is given without
any deduction.
c)48 The assessable
income from betting is the amount of prize in excess of VND 10 million received
by the player without any deductions.
2. The rate of personal
income tax on the income from wining prizes is 10% according to the whole income
tax table.
3. Time to calculate the
assessable income
The assessable income
from prizes shall be calculated when the prizewinner receives the prize.
4. Tax calculation
Personal income tax payable = Assessable income x 10% tax
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Bases for calculation of
tax on incomes from inheritance and gifts are the assessable income and tax
rate.
1. Assessable income
The assessable income from
inheritance and gifts is the excess over 10 million VND of the inheritance or
gifts received. The value of inheritance and gifts is determined as follows:
a) 49 The value of inheritance and gifts that are
securities is the value of securities at the time of registration of ownership
transfer. The assessable income from an inheritance or gift being securities is
the value of the inheritance or gift in excess of VND 10 million regardless of
ticker symbols without any deductions at the time of registration of securities
ownership transfer To be specific:
a.1) The value of
securities traded at the Stock Exchange is based on the reference price at the
Stock Exchange at the time of registration of securities ownership.
a.2) The value of
securities in cases other than the above case is based on the book value
provided by the corresponding issuer at the time of making the latest financial
statement according to the law on accounting before the time of registration of
securities ownership.
b) The assessable income
from the inheritance and gifts that are capital contributions to economic
organizations or business establishments is the value of the contributions
based on their latest book values of the companies before the contribution
ownership is registered.
c) The value of
inheritance and gifts being real estate is determined as follows:
c.1) The value of right
to use land is based on the land price list made by the People’s Committee of
the province before the person registers the right to use real estate.
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If the value is not
identifiable, the price for calculation of registration fee imposed by the
People’s Committee of the province shall apply.
d) 50 Regarding
inheritance and gifts being other assets of which the right to ownership or right
to use shall be registered with the regulatory agency: the value of assets is
based on the price for calculation of registration fee imposed by the People’s
Committee of the province at the time the person registers the right to
ownership or right to use of inheritance and gifts.
If the person who
receives the inheritance or gift being imported goods has to pay taxes on the
import of such goods, the property value subject to PIT is the registration fee
calculation price imposed by the People’s Committee of the province at the time
of registration of right to ownership or right to use of the property minus (-)
taxes paid by the person during the import stage.”
2. The rate of personal
income tax on the income from inheritance and gifts is 10% according to the
whole income tax table.
3. Time to calculate the
assessable income
The assessable income
from inheritance and gifts is calculated when the person registers the
ownership or right to use of inheritance and gift.
4. Tax payable
Personal income tax payable = Assessable income x 10% tax
Chapter
3
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Article
17. Income from business
The rate of personal
income tax on income from business earned by a non-resident equals the revenue
from business multiplied by (x) the tax rate.
1. Revenue:
The revenue from business
earned by a non-resident is determined similarly to the revenue used to
calculate tax on income earned by a president from business according to
guidance in Clause 1 Article 8 of this Circular.
2. Tax rate
Rate of personal income
tax on income from business earned by a non-resident in each field and
industry:
a) 1% for goods sale.
b) 5% for service
provision.
c) 2% for production,
construction, construction, and other businesses.
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Article
18. Income from wages
1. The rate of personal income
tax on income from wages earned by a non-resident equals the taxable income
from wages multiplied by (x) 20% tax.
2. The taxable income
from wages earned by a non-resident is similar to that earned by a resident
according to guidance in Clause 2 Article 8 of this Circular.
The taxable income from
wages earned in by a non-resident that works both in Vietnam and a foreign
country without being able to separate the income earned in Vietnam shall be
calculated as follows:
a) Where the foreigner is
not present in Vietnam:
Total income earned in Vietnam
=
Number of working days in Vietnam
X
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+
Other pre-tax taxable income earned in Vietnam
Number of working days in the year
Where: the number of working
days in the year is calculated in accordance with the Labor Code of Vietnam.
b) Where the foreigner is
present in Vietnam:
Total income earned in Vietnam
=
Number of days in Vietnam
X
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+
Other pre-tax taxable income earned in Vietnam
365 days
Other pre-tax taxable
incomes earned in Vietnam mentioned in Point a and Point b above are other
benefits in cash or not in cash apart from wages that are provided for the
employee or paid on the employee’s behalf by the employer.
Article
19. Income from capital investment
The personal income tax
on income from capital investment earned by a non-resident equals the total
taxable income earned by the non-resident from capital investment in another organization/individual
in Vietnam multiplied by (x) 5% tax
The assessable income and
time to calculate assessable income from capital investment earned by the
non-resident are similar to those of a resident according to guidance in Clause
1 and Clause 3 Article 10 of this Circular.
Article
20. Income from capital transfer.
1. The personal income
tax on the income from capital transfer earned by a non-resident equals the
total amount of money the non-resident receives from the transfer of capital invested
in organizations and individuals in Vietnam multiplied by (x) 0,1% tax, whether
the transfer is made in Vietnam or overseas.
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2. Transfer price in some
cases:
a. When transferring
contributed capital, the transfer price is similar to that of a resident
according to guidance in Point a.1 Clause 1 Article 11 of this Circular.
b. When transferring
securities, the transfer price is similar to that of a resident according to
guidance in Point a.1 Clause 2 Article 11 of this Circular.
3. Time to calculate the
assessable income:
a) The assessable income
from transfer of contributed capital earned by a non-resident shall be
calculated when the capital transfer contract takes effect.
b) The time to calculate
the assessable income from transfer of securities earned by a non-resident is
similar to that earned by a resident according to guidance in Point c Clause 2
Article 11 of this Circular
Article
21. Income from real estate transfer
1. The personal income
tax on the income from real estate transfer earned by a non-resident equals the
transfer price multiplied by (x) 2% tax.
The aforesaid transfer
price is the total amount the non-resident receives from the real estate
transfer without any deductions, including the cost price.
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3. The income from real
estate transfer shall be calculated when the non-resident carries out the
procedure for real estate transfer as prescribed by law.
Article
22. Incomes from royalties and franchise
1. Tax on income from
royalties
a) The tax on income from
royalties earned by a non-resident equals excess over 10 million VND of income
from each contract to transfer the subjects of intellectual property right,
technology transfer in Vietnam multiplied by 5% tax.
The determination of
income from royalties shall comply with Clause 1 Article 13 of this Circular.
b) The income from
royalties shall be calculated when the non-resident receives the royalties from
the payer.
2. Income from franchise
The tax on income from
franchise earned by a non-resident equals the excess over 10 million VND of
income from each franchise contract in Vietnam multiplied by 5% tax.
The determination of
income from franchise shall comply with Clause 1 Article 14 of this Circular.
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Article
23. Incomes from prizes, inheritance, and gifts
1. The personal income
tax on incomes from prizes, inheritance, or gifts earned by a non-resident
equals the assessable income calculated according to guidance in Clause 2 of
this Article multiplied by (x) 10% tax.
2. Assessable income
a) The assessable income from
winning a prize earned by a non-resident is the excess over 10 million VND of
the prize won in Vietnam.
The income from winning
prizes earned by a non-resident is similar to that earned by a resident
according to guidance in Clause 1 Article 15 of this Circular.
b) The taxable income
from inheritance and gifts earned by a non-resident is the excess over 10
million VND of the inheritance or gift received in Vietnam.
The income from
inheritance and gifts earned by a non-resident is similar to that earned by a
resident according to guidance in Clause 1 Article 16 of this Circular.
3. Time to calculate the
assessable income
a) The assessable income
from prizes shall be calculated when the organization or person in Vietnam pays
the prize money to the non-resident.
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c) The assessable income
from gift is calculated when the person registers the ownership or rights to
use the assets in Vietnam.
Chapter
4
TAX
REGISTRATION, TAX DEDUCTION, TAX DECLARATION, TAX SETTLEMENT, TAX REFUND
Article
24. Tax registration
1. Entities that must
apply for tax registration
According to Article 27
of the Decree No. 65/2013/ND-CP, entities that are required to apply for
personal income tax registration are:
a) Income payers,
including:
a.1) Business
organizations and individuals, including their branches, dependent units,
affiliates that do bookkeeping separately and have separate legal status.
a.2) State administrative
agencies.
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a.4) Public service
providers.
a.5) International
organizations and foreign organizations.
a.6) Project management boards,
representative offices of foreign organizations.
a.7) Other income payers.
b) Persons that earn
taxable incomes, including:
b.1) Persons that earn
incomes from production or business, including freelancers; persons and
households engaged in agricultural production that are not exempt from personal
income tax. Persons earning incomes from production or business who apply for
the registration of personal income tax together with other taxes.
b.2) Wage earners,
including foreigners working for foreign contractors and foreign
sub-contractors in Vietnam.
b.3) Persons that
transfer real estate.
b.4) Persons that earn
other taxable incomes (if required).
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Entities mentioned in
Point a, Point b and Point c Clause 1 of this Article are not required to apply
for new tax registration if tax registration has been obtained and tax
identification number have been issued. The person that earns multiple taxable
incomes shall apply for tax registration once. The tax identification number
shall be used to make declare all kinds of incomes.
2. Application for tax
The tax registration
procedure and application are specified in guiding documents on tax
administration.
3. Places where
applications for tax are submitted
a) Places where
applications for tax are submitted are specified in guiding documents on tax
administration.
b) Places where
applications for tax are submitted in some particular cases:
b.1) The person that
earns income from wages shall submit the application for tax to the income
player or the local tax authority that directly monitors the income payer. The
income payer shall consolidate and submit applications for tax to the local tax
authority.
b.2) The person that
earns income from multiple sources, including business, wages, other taxable
incomes may submit the application for tax to the income payer or the local
Sub-department of taxation.
b.3) The person that
earns other taxable incomes may submit the application for tax at any tax
authority.
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a) The representative of
the group of business persons shall apply for tax registration according to
guidance in order to obtain the personal tax identification number. The tax
identification number of the representative of the group of business persons
shall be used to declare tax, pay VAT, excise duty, license tax, etc. incurred
by the whole group, and used to declare personal income tax incurred by the
representative himself. Other capital contributors in the group shall apply for
tax registration in order to obtain separate tax identification numbers in the
same way a business person does.
b) If the person that
transfers real estate has not had a tax identification number, the tax
authority shall automatically issue a tax identification number to the person
according to the personal information in the real estate transfer dossier.
c) If a dependant for
whom the taxpayer applies for a deduction has not had a tax identification
number, the tax authority shall automatically issue the tax identification
number to the dependant according to the dependant’s information in the
application for deduction (the form is provided in guiding documents on tax
administration) made by the taxpayer.
Article
25. Tax deduction and certificate of tax deduction
1. Tax deduction
The tax deduction is an
act of calculating and deducting the tax payable from the taxpayer’s income by
the income payer before the income is paid to the tax payer. To be specific:
a) Incomes earned by
non-residents
The organization or
individual that pays taxable incomes to the non-resident shall deduct the
personal income tax from the income before it is paid. The determination of tax
to be deducted shall comply with Chapter III (from Article 17 to Article 23) of
this Circular.
b) Income from wages
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b.2) The income payer
shall still deduct tax from incomes earned residents that sign labor contracts
for 03 months but resign before such labor contracts expire according to the
progressive tax table.
b.3) The income payer
shall deduct tax from incomes earned by the foreigners working in Vietnam based
on the duration of work in Vietnam written in the contract or letter of
introduction according to the progressive tax table (if the person has worked
in Vietnam for at least 183 days in the tax year) or the whole income tax table
(if the person has worked in Vietnam for fewer than 183 days in the tax year).
b.4) 51 The insurer shall be responsible for deducting tax
on accrual of life insurance premiums paid by the employer on behalf of the
employee (except voluntary pension insurance) or other optional insurances with
accrual of premiums provided by the insurer established and operating under
Vietnam’s law. The amount of tax deducted is specified in Clause 2 Article 14
of Circular No. 92/2015/TT-BTC.
Before paying the
employee, the income payer has the responsibility to deduct tax from the
premiums of life insurance or other optional insurances with accrual of
insurance bought by the income payer for the employee from the insurer not
established and operating under Vietnam’s law but permitted to sell insurance
in Vietnam. The amount of tax deducted is specified in Clause 2 Article 14 of
Circular No. 92/2015/TT-BTC.
b.5) The determination of
tax deducted from incomes from wages earned by residents shall comply with
Article 7 of this Circular; the determination of tax withheld from incomes from
wages earned by non-residents shall comply with Article 18 of this Circular.
c) 52 Incomes from
operation of insurance agents, lottery agents, and network marketing agents; incomes
from lease of property to enterprises and/or business organizations.
Lottery companies,
insurers and network marketing companies shall be responsible for deducting PIT
before paying agents whose commission is over VND 100 million/year. The amount
of tax deducted is specified in Clause 2 Article 9 of Circular No.
92/2015/TT-BTC.
The enterprise or
business organization who leases property from a person has the responsibility
to deduct VAT and PIT before paying the lessor if the amount paid to the lessor
is over VND 100 million/year and the lease contract stipulates that the lessee
pays tax on behalf of the lessor. The amount of tax deducted is specified in
Clause 2 Article 8 of Circular No. 92/2015/TT-BTC.
d) Income from capital
investment
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dd) Income from transfer
of securities
0,1% tax on the transfer
price shall be deducted from every income from securities transfer before the income
is paid to the transferor. Tax shall be deducted as follows:
dd.1) Regarding
securities traded at the Stock Exchange:
dd.1.1) The securities
company or commercial bank where the person opens the depository account shall
deduct 0.1% personal income tax on the transfer price before the income is paid
to the person. The determination of tax to be deducted shall comply with Point
b.2 Clause 2 Article 11 of this Circular.
dd.1.2) The asset
management company to which the person entrusts the management of securities
investment portfolio shall deduct 0.1% personal income tax on the transfer
price of the entrusting person according to the distribution table sent to the
depository bank where the company opens its depository account.
dd.2) Regarding
securities transfer without the transaction system of the Stock Exchange:
dd.2.1) For securities of
a public company that has applied for securities registration at the Vietnam
Securities Depository:
The securities company, commercial
bank where the person opens the depository account shall deduct 0,1% personal
income tax on the transfer price before carrying out the procedure for transfer
of the securities ownership at the Vietnam Securities Depository.
dd.2.2) For securities of
a joint-stock company that is not a public company, issues securities and
authorizes a securities company to manage the list of shareholders:
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The person that transfers
securities shall present the transfer contract to the securities company when
carrying out the procedure for transfer of securities ownership.
e) Incomes earned by
non-residents from transfer of contributed capital
The organization or
person that receives capital contribution from a non-resident shall deduct 0.1%
personal income tax on the transfer price.
g) Income from winning
prizes
The prize provider shall
deduct personal income tax before providing prizes to the prizewinner. The
determination of tax to be deducted shall comply with Article 15 of this
Circular.
h) Incomes from royalties
and franchise
The organization or
person that pays income from royalties or franchise shall deduct personal
income tax before the income is paid to the person. The deducted tax equals the
excess over 10 million VND of the income according to the transfer contract
multiplied by (x) 5% tax. If the contract has a high value and the payment is
made in installments, when paying the first installment, the organization or
person that pays income shall subtract 10 million VND from the payment, then
withhold the amount that equals the remaining amount multiplied by 5% tax.
Income tax on the next installments shall be deducted from each installment.
i) Tax deduction in other
cases
The organization or
person that pays a total income from 2 million VND to a resident that does not
sign a labor contract (according to guidance in Point c and Point d Clause 2
Article 2 of this Circular) or that signs a labor contract for less than 03
months shall deduct 10% tax on the income before the income is paid to the
person.
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According to the
commitment made by the income earner, the income payer shall not deduct tax. At
the end of the tax year, the income payer shall make a list of persons that
earn incomes below that taxable level (the form is provided in guiding
documents on tax administration) and send it to the tax authority. Each person
shall be responsible for his/her commitment. Any deceit discovered shall be
penalized in accordance with the Law on Tax Administration.
Persons that make
commitments according to guidance in this Point shall obtain tax registration
and have tax identification numbers when such commitments are made.
2. Tax deduction
certificate
a) After deducting tax
according to guidance in Clause 1 of this Article, the income payer shall issue
tax deduction certificates at the request of persons that have tax deducted.
The tax deduction certificate shall not be issued if the person delegates the
tax settlement.
b) Issuance of tax
deduction certificates in some particular cases:
b.1) If the person does
not sign a labor contract or signs a labor contract for less than 03 months,
the person is entitled to request the income payer to issue the tax deduction
certificate every time tax is deducted, or issue a single certificate of tax
deduction for multiple deductions in the same tax period.
Example 15: Mr. Q signs a
service contract with company X to cultivate ornamental plants on the company’s
premises once per month from September 2013 to April 2014. Company X pays an
income of 03 million VND per month to Mr. Q. In this case, Mr. Q may request
company X to issue a tax deduction certificate every month or one certificate
which reflects the deducted tax over the period from September 2013 to December
2013, and one tax deduction certificate over the period from January 2014 to
April 2014.
b.2) If the person signs
a labor contract for more than 03 months, the income payer shall issue only one
certificate of tax deduction in a tax period.
Example 16: Mr. R signs a
long-term labor contract (from September 2013 till the end of August 2014) with
company Y. In this case, if Mr. R is required to settle tax at the tax
authority and requests company Y to issue the certificate of tax deduction,
company Y shall issue 01 certificate which reflects the deducted tax from
September 2013 till the end of December 2013, and 01 certificate for the period
from January 2014 till the end of August 2014.
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The payer of taxable incomes
and the person that earns taxable incomes shall declare tax and settle tax in
accordance with the procedure provided in guiding documents on tax
administration. Rules for declaration of tax in some cases:
1. Tax declaration made
by the payer of taxable income.
a) The income payer that
deducts personal income tax shall declare tax monthly or quarterly. The income
payer is not required to declare tax if no personal income tax is deducted in
the month or in the quarter.
b) The monthly or
quarterly tax declaration shall be made from the first month in which tax is
deducted, and is applicable to the whole tax year. To be specific:
b.1) The income payer
that deducts personal income tax on 50 million VND or more in a month in at
least one declaration of shall declare tax monthly, unless the income payer is
required to declare tax quarterly.
b.2) Income payers that
are not required to declare tax monthly according to the above guidance shall
declare tax quarterly.
c) The payer of taxable
income shall declare and settle tax on behalf of the authorizing person,
whether or not tax is deducted.
2. Tax declaration made
by residents that earn incomes from wages and business
a) Residents that earn
incomes from wages shall directly declare tax at tax authorities. To be
specific:
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a.2) Residents that earn
incomes from wages paid by overseas organizations and individuals shall
directly declare tax quarterly at tax authorities.
b) Residents, groups of
residents that earn incomes from business shall directly declare tax at tax
authorities. To be specific:
b.1) Business persons, groups
of business persons that pay tax according to tax declaration method are
business persons, groups of business persons that comply with regulations of
law on accounting and invoices and business persons, groups of business persons
that fail to separate expense from revenue. They shall declare tax quarterly.
b.2) Business persons,
groups of business persons that pay flat tax are business persons, groups of
business persons that do not comply with the regulations of law on accounting
and invoices and fail to determine revenue, expense, and taxable income. They
shall declare tax annually.
b.3) Each nomadic
business person shall declare personal income tax every time it is incurred.
b.4) Each business person
that uses invoice sold separately by the tax authority shall declare personal
income tax every time the revenue is earned.
b.5) Each non-business
person that sells goods and services and needs to issue invoices to their
customers shall declare tax when it is incurred.
b.6) Each person or group
of persons that earns income from lease of houses, rights to use land, water
surface and other property shall declare tax quarterly or every time it is
incurred.
c) 53 A resident earns
an income from his salaries, wages, or business shall make a tax declaration
and settlement if there are additional taxes payable or overpaid taxes which
claim the tax refund or offset against the tax in the next tax period, except
for the following case:
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c.2) A person or a
business household earns an income from their business and has paid taxes by
the flat tax method.
c.3) A person or a
business household only earns an income from lease of their houses or rights to
use land paid taxes according to their declaration at their leasing houses or
lands.
c.4) A person who
earns both an income from their salaries or wages from an at least 3-month
labor contract with a company and other incomes at other companies provided
that it is not more than VND 10 million and his income has been withheld at 10%
by his employer, he is only required to settle tax on that income on request.
c.5) A person who earns
both an income from their salaries or wages from an at least 3-month labor
contract and other incomes from lease of his houses or lands provided that his
average revenue in a year is not more than VND 10 million paid taxes at his
leasing houses or lands, he is only required to settle tax on that income on
request.
c.6) A person who is
an insurance agent, a lottery agent, or a multi-level marketing agent whose
personal income tax has been deducted by the income payer shall not settle tax
on that income.
d) The wage earner shall
request the income payer to settle tax on their behalf in the following cases:
d.1) The person that only
earns income from wages signs a labor contract for 03 months or more in a unit
and is actually working at that unit when delegating tax settlement, even he
has not worked for 12 months in the year.
d.2) The wage earner
signs a labor contract for 03 months or more and earns other incomes according
to guidance in Point c.4 and Point c.5 Clause 2 of this Article.
dd) The income payer
shall only settle tax on the income that it pays on the person’s behalf.
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e.1) The resident that
earns an income overseas and has paid personal income tax on that income
overseas shall have the tax paid overseas deducted. The amount of tax deducted
shall not exceed the tax payable on the income earned overseas according to
Vietnam’s tax table. The ratio is based on the ratio of income earned overseas
to the total taxable income.
e.2) If the person earns
incomes from business and wages and has been present in Vietnam in the first
calendar year for fewer than 183 days, but has been present in Vietnam for 183
days or more within 12 consecutive months from the date of arrival.
- In the first tax year:
he/she shall make tax declaration and submit the tax settlement dossier by the
90th day from the end of the 12 consecutive months.
- From the second tax
year: he/she shall make tax declaration and submit the tax settlement dossier
by the 90th day from the end of the calendar year. The remaining tax
payable in the second tax year is calculated as follows:
Remaining tax payable in the second tax year
=
Tax payable in the second tax year
-
Deductible duplicated tax
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Tax payable in the second tax year
=
Assessable income in the second tax yea
X
Personal income tax rate according to the progressive tax
table
Deductible duplicated tax
=
Tax payable in the first tax year
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Number of months in which tax is duplicated
12
Example 17: Mr. S is a foreign
who first comes to Vietnam and works under a labor contract from June 01, 2014
to May 31, 2016. In 2014, Mr. S has been present in Vietnam for 80 days and
earned 134 million VND in wages. In 2015, Mr. S is present in Vietnam for 110
days during the period from January 01, 2015 until the end of May 31, 2015, and
earns 106 million VND in wages. From June 01, 2015 to December 31, 2015, Mr. S
has been in Vietnam for 105 days and earned 122 million VND in wages. Mr. S
does not apply for deductions for dependants and does not pay insurance
premiums or make charitable donations.
The personal income tax
payable by Mr. S is calculated as follows:
+ In 2014, Mr. S is a
non-resident, but for the period of 12 consecutive months from June 01, 2014 to
the end of May 31, 2015, Mr. S has been present in Vietnam for totally 190 days
(80 days + 110 days). Thus Mr. S is a resident in Vietnam.
+ In the first tax year
from June 01, 2014 to May 31, 2015):
- Total taxable income in
the first tax year:
134 million VND + 106
million VND = 240 million VND
- Personal deduction: 9
million VND x 12 = 108 million VND
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- Personal income tax
payable in the first tax year: 60 million VND x 5% + (120 million VND - 60
million VND) x 10% + (132 million VND - 120 million VND) x 15% = 10,8 million
VND
+ In the second tax year
(from January 01, 2015 to the end of December 31, 2015), Mr. S has been present
in Vietnam for 215 days (110 days + 105 days) and is considered a resident in
Vietnam.
- Taxable income earned
in 2015:
106 million VND + 122
million VND = 228 million VND
- Personal deduction: 9
million VND x 12 = 108 million VND
- Assessable income in
2015:
228 million VND – 108
million VND = 120 million VND
- Personal income tax
payable in the 2015:
(60 million VND x
5%) + (120 million VND – 60 million VND) x 10% = 9 million VND
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- Deductible duplicated
tax:
(10.8 million
VND/12 months) x 5 months = 4,5 million VND.
- Personal income tax
payable in the 2015:
9 million VND – 4,5
million VND = 4,5 million VND
e.3) The resident that is
a foreigner and terminates the labor contract in Vietnam shall settle tax at
the tax authority before departure.
e.4) The person that
leases out houses, rights to use land, water surface and other property shall
settle personal income tax, except for the cases in which tax settlement is
exempt according to guidance in Point c.3 and Point c.5 Clause 2 of this
Article. To be specific:
e.4.1) The person that
declares tax quarterly or when it is incurred under a contract that is due
within 01 year shall settle tax in the same way the person that pays tax
according to declaration does.
e.4.2) Where the person
declares tax when it is incurred under a contract that is due after 01 year and
receives a deposit for a lease period, the person shall settle tax in one of
the following methods: if tax is completely settled in the first year, the
revenue is the lump-sum payment and personal deductions shall be made for a
year, not the next; if tax is settled annually, the income from the lump-sum
payment shall be provisionally declared and personal deductions shall be made
for the first year, the revenue from lease of property shall be redistributed
in the next years and personal deductions shall be calculated when they arise.
e.5) Persons that earn
incomes from the insurance agents, lottery agents, or network marketing shall
directly settle tax at tax authorities if required.
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e.7) Non-resident
business persons, groups of business persons that have fixed business locations
in Vietnam shall declare and settle tax in the same way residents do.
3. Declaration of tax on
income from real estate transfer
a) Persons that earn
incomes from real estate transfer shall declare tax when it is incurred,
including persons eligible for tax exemption. Declaration of tax in some cases:
a.1) If the person puts
up his/her rights to use land or house ownership as collateral loans or for
payment at the credit institution, the branch of foreign bank and fails to pay
debts when they are due, the branch of foreign bank and the credit institution
shall liquidate, sell such real estate, declare and pay personal income tax on
the person’s behalf before setting the person’s debts.
a.2) If the person
mortgages his rights to use land or house ownership to take loans or make
payment with other organizations or persons, then transfers the whole or part
of such real estate to pay debts, the person that has the rights to use land or
house ownership shall declare and pay personal income tax, or the
organization/person conducting transfer procedures on the person’s behalf shall
declare and pay personal income tax on the person’s behalf before settling the
debts.
a.3) Where a person
transfers the real estate to another organization or person under a court’s
decision, the transferor shall declare and pay personal income tax, or the
organization/person holding the auction shall declare and pay personal income
tax on behalf of the transferor. The real estate that is confiscated and put up
for auction by the competent authority, personal income tax is not required to
be paid.
a.4) If every person
transfers land and houses that do not fall into the case in which agricultural
land is converted to serve production, which is eligible for exemption of
personal income tax according to guidance in Point dd Clause 1 Article 3 of
this Circular, each person who transfers land and houses shall declare and pay
personal income tax.
a.5) If an
organization/person declares personal income tax on real estate transfer on
behalf of another person, such organization/person shall state “On behalf of
the taxpayer or the taxpayer's legal representative”, sign, write the full
name, and append the organization’s seal (if any). The taxpayer in tax return
and tax receipts is still the person that transfers real estate.
b) The real estate
authority shall only conduct the procedure for transfer of the ownership of,
rights to use real estate after personal income tax invoices are presented, or
the tax authority certifies that the income from real estate transfer is
eligible for tax exemption or deferred tax collection.
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a) The person that
transfers contributed capital shall declare tax when a transfer is made,
whether or not incomes are earned.
b) The person that earns
income from transfer of contributed capital in Vietnam is not required to directly
declare tax at the tax authority. The transferee shall deduct tax according to
guidance in Point e Clause 1 Article 25 of this Circular and declare tax when
it is incurred.
c) If the company changes
the list of capital contributors when transferring capital without documents
proving that the capital transferor has fulfilled the tax obligations, the
transferee company shall declare and pay tax on the person’s behalf.
The transferee company
that pays tax on the person’s behalf shall also declare personal income tax on
the person’s behalf. Such company shall state “On behalf of the taxpayer or the
taxpayer's legal representative”, sign, write the full name, and append the
company’s seal (if any). The taxpayer on tax return and tax receipts is the transferor
(when transferring a resident’s capital) or the transferee (when transferring a
non-resident’s capital).
5. Declaration of tax on
income from transfer of securities
a) The person that
transfers securities of a public company at the Stock Exchange is not required
to declare tax directly at the tax authority. The account owner, commercial
bank where the person opens his depository account, the asset management
company where the person entrusts the management of the investment portfolio
shall declare tax according to guidance in Clause 1 Article 26 of this
Circular.
b) Where the person
transfers securities without the transaction system of the Stock Exchange:
b.1) The person that
transfers securities of a public company registered at the Vietnam Securities
Depository is not required to declare tax directly at the tax authority. The
securities company, commercial bank where the person opens his depository
account shall deduct and declare tax according to guidance in Clause 1 Article
26 of this Circular.
b.2) The person that
transfers securities of a joint-stock company that is not public company but
issues securities and authorizes a securities company to manage shareholder
list is not required to declare tax directly at the tax authority. The
securities company authorized to manage shareholder list shall deduct and
declare tax according to guidance in Clause 1 Article 26 of this Circular.
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d) If the company changes
the list of shareholders when transferring securities without documents proving
that the transferor has fulfilled tax obligations, the transferee company shall
declare and pay tax on the transferor’s behalf.
If the transferee company
that declares tax on the transferor’s behalf, the transferor company shall also
declare personal income tax on the person’s behalf. Such company shall state
“On behalf of the taxpayer or the taxpayer's legal representative”, sign, write
the full name, and append the company’s seal (if any). The taxpayer in tax
return and tax receipts is the securities transferor.
dd) The securities
transferor shall directly declare and settle tax at the tax authority at the
year’s end if he wishes to settle tax.
6. Declaration of tax on
incomes from inheritance and gifts
a) The person that earns
income from inheritance or gifts shall declare tax when it is incurred
(including persons eligible for tax exemption).
b) Relevant state
agencies and organizations shall only carry out the procedure for transfer of
the ownership or rights to use real estate, securities, contributed capital,
and other assets, the ownership or right to use of which must be registered, to
the inheritor or recipient after having the tax receipt or obtaining
certification that incomes from inheritance or gifts being real estate are
tax-free.
7. Declaration of tax on
overseas incomes earned by residents
The resident that earns
income overseas shall declare tax when it is incurred. The resident that earns
income from wages overseas shall declare tax quarterly.
8. Declaration of tax on
incomes earned in Vietnam but received overseas by non-residents
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b) The non-resident that
earns income from real estate or capital transfer (including securities
transfer) in Vietnam but receives such income overseas shall declare tax when
it is incurred according to guidance in Clause 3, Clause 4 and Clause 5 of this
Article.
9. Declaration of tax on
income from capital investment in case of receipt of shares as dividends or
reinvested profits.
The person that receives
shares as dividends or reinvested profits is not required to declare and pay
tax upon receipt. When transferring capital, withdrawing capital, or dissolving
the enterprise, the person shall declare and pay tax on the income from capital
transfer and capital investment.
10. Declaration of tax on
income from transfer of capital, securities, real estate in case of capital
contribution by contributed capital, securities, or real estate.
The person that contributes
capital by contributed capital, securities, or real estate is not required to
declare and pay tax when making the contribution. When transferring capital,
withdrawing capital, or dissolving the enterprise, the person shall declare and
pay tax on the income from transfer of capital, real estate when contributing
capital and carrying out transfer.
11. Declaration of tax on
income from bonus shares
The person is not
required to pay tax on wages when receiving bonus shares from the employer. The
person shall declare tax on incomes from transfer of shares and wages when
transferring bonus shares.
Article
27. Responsibilities of Vietnamese organizations that sign service contracts
with foreign contractors that do not operate in Vietnam
When an organization
established and operating within Vietnam’s law (hereinafter referred to as
“Vietnamese party”) signs a contract to purchase services of a foreign
contractor that signs labor contracts with foreign employees in Vietnam, the
Vietnamese party shall notify the foreign contractor of obligations to pay
personal income tax incurred by the foreign employees, obligations to provide
information about the foreign employees, including their names, nationalities,
passport numbers, working duration, positions, and incomes for the Vietnamese
party. The Vietnamese party shall provide such information for the tax
authority at least 07 days before such foreign employees start to work in
Vietnam.
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1. The refund of personal
income tax applies to persons that have registered and obtain tax
identification numbers when they submit the tax settlement dossier.
2. If the person has
authorized the income payer to settle tax, tax refund shall be made via the
income payer. The income payer shall offset the overpaid and underpaid tax.
After being offset, the overpaid tax shall be offset against the tax in the
next period or refunded on request.
3. The person that
declares tax directly may choose to claim a tax refund or offset it against the
tax in the next period at the same tax authority.
4. The person that is
eligible for the refund of personal income tax and submits the tax settlement
behind schedule is exempt from fines for overdue tax statement.
Chapter
5
IMPLEMENTATION
PROVISIONS
Article
29. Entry into force 54
1. This Circular comes
into force from October 01, 2013.
Regulations on personal
income tax policies in the Law on amendments to the Law on Personal Income Tax,
and the Decree No. 65/2013/ND-CP will come into force from the effective date
of the Law and Decree (July 01, 2013).
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2. Guidelines on personal
income tax that are provided by the Ministry of Finance before the effective
date of this Circular and are not conformable with those in this Circular are
abolished.
Article
30. Implementation responsibilities
55
1. The Law on Tax
Administration and its guiding documents shall apply to contents related to tax
administration other than those under guidance in this Circular.
2. The settlement of
issues and difficulties related personal income tax that arise before January
01, 2013 shall continue to comply with guiding documents that are effective at
that time.
3. The taxable income
rate shall be uniformly applied to business persons according to guidance in
Article 8 of this Circular from January 1, 2014.
4. Regarding contracts to
sell floors and contribute capital to obtain the right to buy floors, houses,
and apartments that are signed before the effective date of the Government's
Decree No. 71/2010/ND-CP dated June 23, 2010 on elaboration of the Law on
Housing, and allowed to be transferred by the investor, tax shall be declared
and paid according to guidance similar to that on transfer of off-the-plan
houses.
5. 56 With
regard to a person using a transferred real estate during the period from July
1, 1994 to before January 1, 2009, if he/she is granted a Certificate of land
use right, house ownership and other property thereon by the regulatory agencies
according to his application submitted from January 1, 2009, he/she shall only
pay personal income tax once. If a person uses a transferred real estate before
July 1, 1994, he is eligible for exemption from personal income tax.
From January 1, 2009
(implementation of the Law on Personal Income Tax), every person that transfers
real estate, whether under a notarized contract, a handwritten document, or no
contract at all, shall pay personal income tax on every transfer.”
6. Persons eligible for
personal income tax incentives before the effective date of the Law on
amendments to the Law on Personal Income Tax are still eligible for such
incentives for the remaining period.
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Any difficulties that
arise during the implementation should be reported to the Ministry of Finance
(the General Department of Taxation) for consideration and settlement./.
CERTIFIED BY
PP. MINISTER
DEPUTY MINISTER
Tran Xuan Ha
APPENDIX: 01/PL-TNCN
(Issued together with Circular. 111/2013/TT-BTC dated
August 15, 2013 of the Ministry of Finance)
APPENDIX
GUIDANCE ON TAX
CALCULATION ACCORDING TO THE PROGRESSIVE TAX TABLE
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The progressive method
for calculating tax is abridged as follows:
Level
Assessable income/month
Tax rate
Tax payable
Method 1
Method 2
1
Up to 5 million VND
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0 million VND + 5% of assessable income
5% of assessable income
2
From over 5 million VND to 10 million VND
10%
0,25 million VND + 10 % of assessable income in excess of
5 million VND
10% of assessable income – 0,25 million VND
3
From over 10 million VND to 18 million VND
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0,75 million VND + 15 % of assessable income in excess of
10 million VND
15% of assessable income – 0,75 million VND
4
From over 18 million VND to 32 million VND
20%
1,95 million VND + 20 % of assessable income in excess of
18 million VND
20% of assessable income – 1,65 million VND
5
From over 32 million VND to 52 million VND
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4,75 million VND + 25 % of assessable income in excess of
32 million VND
25% of assessable income – 3,25 million VND
6
From over 52 million VND to 80 million VND
30%
9.75 million VND + 30 % of assessable income in excess of
52 million VND
30% of assessable income – 5,85 million VND
7
From over 80 million VND
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18,15 million VND + 35 % of assessable income in excess of
80 million VND
35% of assessable income – 9,85 million VND
APPENDIX: 02/PL-TNCN
(Issued together with Circular. 111/2013/TT-BTC dated
August 15, 2013 of the Ministry of Finance)
APPENDIX
CONVERSION OF
TAX-EXCLUSIVE INCOMES TO ASSESSABLE INCOMES
(for income from wages)
NO.
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Assessable income
1
Up to 4,75 million VND
Converted income/0,95
2
From over 4,75 million VND to 9,25trđ million VND
(converted income – 0,25 million VND)/0,9
3
From over 9,25 million VND to 16,05trđ million VND
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4
From over 16,05 million VND to 27,25 million VND
(converted income – 1,65 million VND)/0,8
5
From over 27,25 million VND to 42,25 million VND
(converted income – 3,25 million VND)/0,75
6
From over 42,25 million VND to 61,85 million VND
(converted income – 5,85 million VND)/0,7
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From over 61,85 million VND
(converted income – 9,85 million VND)/0,65
1This Circular is consolidated from the following 05
Circulars:
- Circular No.
111/2013/TT-BTC dated August 15, 2013 of the Minister of Finance on guidelines for
the implementation of the Law on Personal Income Tax, the Law on amendments to
the Law on Personal Income Tax, and the Government's Decree No. 65/2013/ND-CP
on elaboration of some Articles of the Law on Personal Income Tax and the Law
on amendments to the Law on Personal Income Tax, which comes into force from
October 01, 2013;
- Circular No.
119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance on amendments
to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013,
Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No.
219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated
January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No.
39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June
18, 2014 of the Ministry of Finance for reform and simplification of tax
formalities, which comes into force from September 01, 2014;
- Circular No.
151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance on guidance
on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01,
2014 on amendments to Decrees on taxation, which comes into force from November
15, 2014;
- Circular No.
92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance on guidelines for
VAT and personal income tax incurred by residents conducting business,
amendments to some Articles on personal income tax of the Law No. 71/2014/QH13
on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated
February 12, 2015 on guidelines for implementation of the Law on amendments to
Laws and Decrees on taxation, which comes into force from July 30, 2015.
- Circular No.
25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance on guidelines
for the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 on
amendments to some Articles of the Circular No.78/2014/TT-BTC dated June 18,
2014 of the Ministry of Finance and Circular No.111/2013/TT-BTC dated August
15, 2013 of the Ministry of Finance, which comes into force from May 01, 2018.
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2 Circular No. 119/2014/TT-BTC on amendments to some
Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No.
111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated
December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular
No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March
31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry
of Finance for reform and simplification of tax formalities is promulgated
pursuant to:
“The Law on Tax Administration No. 78/2006/QH11 dated
November 29, 2006 and the Law No. 21/2012/QH13 dated November 20, 2012 on
amendments to the Law on Tax Administration;
The Law on Value-added
Tax No. 13/2008/QH12 dated June 03, 2008 and the Law No. 31/2013/QH13 dated
June 19, 2013 on amendments to the Law on Value-added Tax;
The Government’s
Decree No. 83/2013/ND-CP dated July 22, 2013 on elaboration of implementation
of some Articles of the Law on Tax Administration and the Law on amendments to
some Articles of the Law on Tax Administration;
The Government's
Decree No. 209/2013/ND-CP dated December 18, 2013 on guidelines for the Law on
Value-added Tax;
The Government's
Decree No. 51/2010/ND-CP dated May 14, 2010 on service supply and sale invoices
and the Government's Decree No. 04/2014/ND-CP dated January 17, 2014 on
amendments to Decree No. 51/2010/ND-CP dated May 14, 2010;
The Government's
Decree No. 218/2013/ND-CP dated December 26, 2013 on guidelines for the Law on
Corporate Income Tax;
The Government's
Decree No. 215/2013/ND-CP dated December 23, 2013 on functions, tasks,
entitlements and organizational structure of the Ministry of Finance;
At the request of the
Director of the General Department of Taxation,
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- Circular No.
151/2014/TT-BTC on guidance on implementation of Government’s Decree No.
91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation is
promulgated pursuant to:
“The Law on Tax
Administration No. 78/2006/QH11 and Law No. 21/2012/QH13 on amendments to the
Law on Tax Administration;
The Law on Personal
Income Tax No. 04/2007/QH12 and Law No. 26/2012/QH13 on amendments to the Law
on Personal Income Tax;
The Law on Value-added
Tax No. 13/2008/QH12 and the Law No. 31/2013/QH13 on amendments to the Law on
Value-added Tax;
The Law on Corporate Income
Tax No. 14/2008/QH12 and Law No. 32/2013/QH13 on amendments to the Law on
Corporate Income Tax;
The Government’s
Decree No. 83/2013/ND-CP dated July 22, 2013 on elaboration of implementation
of some Articles of the Law on Tax Administration and the Law on amendments to
some Articles of the Law on Tax Administration;
The Government’s
Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of implementation
of some Articles of the Law on Personal Income Tax and the Law on amendments to
some Articles of the Law on Personal Income Tax;
The Government’s
Decree No. 209/2013/ND-CP dated December 18, 2013 on guidance on the
implementation of the Law on Value-added Tax;
The Government’s
Decree No. 218/2013/ND-CP dated December 26, 2013 on guidance on the
implementation of the Law on Corporate Income Tax;
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The Government's
Decree No. 215/2013/ND-CP dated December 23, 2013 on functions, tasks,
entitlements and organizational structure of the Ministry of Finance;
At the request of the
Director of the General Department of Taxation,
The Minister of
Finance provides guidance on implementation of Decree No. 91/2014/ND-CP dated
October 01, 2014 of the Government on amendments to Decrees on taxation as
follows:”
- Circular No.
92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation is
promulgated pursuant to:
“The Law on
Personal Income Tax No. 04/2007/QH12 dated November 21, 2007 and the Law No.
26/2012/QH13 dated November 22, 2012 on amendments to the Law on Personal
Income Tax;
The Law on Tax
Administration No. 78/2006/QH11 dated November 29, 2006 and the Law No.
21/2012/QH13 dated November 20, 2012 on amendments to the Law on Tax
Administration;
The Law No.
71/2014/QH13 dated November 26, 2014 on amendments to tax laws;
The Law on Value-added
Tax No. 13/2008/QH12 dated June 03, 2008 amended by the Law No. 31/2013/QH13
dated June 19, 2013;
The Government’s
Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of some Articles of
the Law on Personal Income Tax and the Law on amendments to some Articles of
the Law on Personal Income Tax;
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The Government’s
Decree No. 12/2015/ND-CP dated February 12, 2015 on elaboration of some
Articles of the Law on Tax Administration and the Law on amendments to some
Articles of Laws and Decrees on taxation;
The Government's
Decree No. 209/2013/ND-CP dated December 18, 2013 on guidelines for the Law on
Value-added Tax;
The Government’s
Decree No. 215/2013/ND-CP dated December 23, 2013 on functions, tasks, powers
and organizational structure of the Ministry of Finance;
At the request of the
Director of the General Department of Taxation;
The Minister of
Finance provides the below guidelines:”
- Government’s Circular No.
25/2018/TT-BTC on guidelines for the Government’s Decree No. 146/2017/ND-CP
dated December 15, 2017 on amendments to some Articles of the Circular
No.78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and Circular
No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance is
promulgated pursuant to:
“The Law on
Securities No. 70/2006/QH11 dated June 29, 2006 and Law No. 62/2010/QH12 on
amendments to some articles of the Law on Securities dated November 24, 2010;
“The Law on
Personal Income Tax No. 04/2007/QH12 dated November 21, 2007 and the Law No.
26/2012/QH13 dated November 22, 2012 on amendments to the Law on Personal
Income Tax;
The Law on Enterprises
No. 68/2014/QH13 dated November 26, 2014;
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The Law No.
106/2016/QH13 dated April 06, 2016 on amendments to some Articles of the Law on
Value Added Tax, Law on Special Excise Tax and Law on Tax Administration;
The Government’s
Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of some Articles of
the Law on Personal Income Tax and the Law on amendments to some Articles of
the Law on Personal Income Tax;
The Government’s Decree
No. 12/2015/ND-CP dated February 12, 2015 on elaboration of some Articles of
the Law on Tax Administration and the Law on amendments to some Articles of
Laws and Decrees on taxation;
The Government’s
Decree No. 100/2016/ND-CP dated July 01, 2016 on guidelines for the Law on
amendments to certain articles of the Law on Value Added Tax, Law on Special
Excise Tax and Law on Tax Administration;
The Government’s
Decree No. 146/2017/ND-CP dated December 15, 2017 on amendments to some
articles of the Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 and
Government’s Decree No. 12/2015/ND-CP dated February 12, 2015;
The Government’s
Decree No. 87/2017/ND-CP dated July 26, 2017 on functions, tasks, entitlements
and organizational structure of the Ministry of Finance;
At the request of the
Director of the General Department of Taxation,
The Minister of
Finance hereby promulgates a Circular on guidelines for the Government’s Decree
No. 146/2017/ND-CP dated December 12, 2017 on amendments to some articles of
the Circular No.78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance
and Circular No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of
Finance. To be specific:”
3 This paragraph is amended by Article 2 of Circular No.
119/2014/TT-BTC on amendments to some Articles of Circular No. 156/2013/TT-BTC
dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013,
Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No.
08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June
17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No.
78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and
simplification of tax formalities, which comes into force from September 01,
2014;
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5 This paragraph is amended by Article 2 of Circular No.
119/2014/TT-BTC on amendments to some Articles of Circular No. 156/2013/TT-BTC
dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013,
Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No.
08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June
17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No.
78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and
simplification of tax formalities, which comes into force from September 01,
2014;
6 This paragraph is amended by Article 2 of Circular No.
119/2014/TT-BTC on amendments to some Articles of Circular No. 156/2013/TT-BTC
dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013,
Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No.
08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June
17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No.
78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and
simplification of tax formalities, which comes into force from September 01, 2014;
7 This sub-point is amended by Clause 1 Article 11 of
Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax
incurred by residents conducting business, amendments to some Articles on
personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and
the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines
for implementation of the Law on amendments to Laws and Decrees on taxation,
which comes into force from July 30, 2015.
8 This sub-point is amended by Clause 2 Article 11 of
Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax
incurred by residents conducting business, amendments to some Articles on
personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the
Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
This sub-point is amended
by Article 11 of Circular No. 151/2014/TT-BTC on guidance on implementation of
Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to
Decrees on taxation, which comes into force from November 15, 2014;
9 This sub-point is amended by Clause 3 Article 11 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
10 This sub-point is amended by Clause 4 Article 11 of
Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax
incurred by residents conducting business, amendments to some Articles on
personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and
the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines
for implementation of the Law on amendments to Laws and Decrees on taxation,
which comes into force from July 30, 2015.
11 This sub-point is amended by Clause 5 Article 11 of
Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax
incurred by residents conducting business, amendments to some Articles on
personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and
the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines
for implementation of the Law on amendments to Laws and Decrees on taxation,
which comes into force from July 30, 2015.
12 This sub-point is amended by Clause 6 Article 11 of
Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax
incurred by residents conducting business, amendments to some Articles on
personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and
the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines
for implementation of the Law on amendments to Laws and Decrees on taxation,
which comes into force from July 30, 2015.
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14 This Point is annulled by Clause 7 Article 25 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
15 This sub-point is amended by Clause 1 Article 12 of
Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax
incurred by residents conducting business, amendments to some Articles on
personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and
the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines
for implementation of the Law on amendments to Laws and Decrees on taxation,
which comes into force from July 30, 2015.
16 This Point is amended by Clause 2 Article 12 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation
of the Law on amendments to Laws and Decrees on taxation, which comes into
force from July 30, 2015.
17 This Point is amended by Clause 3 Article 12 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
18 This Point is amended by Clause 4 Article 12 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
19 This Point is amended by Clause 5 Article 12 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
20 This Article is amended by Article 13 of Circular No.
92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
21 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
22 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
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24 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
25 This Point is amended by Clause 1 Article 14 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents
conducting business, amendments to some Articles on personal income tax of the
Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
26 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
27 This Clause is amended by Clause 2 Article 14 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
28 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
29 Regulations on PIT incurred by businesspeople in this
Clause are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
30 The phrase “công ty quản lý hưu trí tự nguyện” (the
voluntary pension fund-managing company) is annulled by Article 15 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
31 Regulations on PIT incurred by businesspeople in this
Clause are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP
dated February 12, 2015 on guidelines for implementation of the Law on
amendments to Laws and Decrees on taxation, which comes into force from July
30, 2015.
32 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
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34 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
35 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13
on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated
February 12, 2015 on guidelines for implementation of the Law on amendments to
Laws and Decrees on taxation, which comes into force from July 30, 2015.
36 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
37 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
38 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
39 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting business,
amendments to some Articles on personal income tax of the Law No. 71/2014/QH13
on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated
February 12, 2015 on guidelines for implementation of the Law on amendments to
Laws and Decrees on taxation, which comes into force from July 30, 2015.
40 This Point is amended by Article 15 of Circular No.
92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
41 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
42 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the
Law on amendments to Laws and Decrees on taxation, which comes into force from
July 30, 2015.
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44 Regulations on PIT incurred by businesspeople in this
Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on
guidelines for VAT and personal income tax incurred by residents conducting
business, amendments to some Articles on personal income tax of the Law No.
71/2014/QH13 on amendments to tax laws and the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law
on amendments to Laws and Decrees on taxation, which comes into force from July
30, 2015.
45 This Point is amended by Article 16 of Circular No.
92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
46 This Point is amended by Article 16 of Circular No.
92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
47 This Article is amended by Article 17 of Circular No.
92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
48 This Point is amended by Article 18 of Circular No.
92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
49 This Point is amended by Clause 1 Article 19 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
50 This Point is amended by Clause 2 Article 19 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation
of the Law on amendments to Laws and Decrees on taxation, which comes into
force from July 30, 2015.
51 This sub-point is amended by Clause 1 Article 20 of
Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax
incurred by residents conducting business, amendments to some Articles on
personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and
the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines
for implementation of the Law on amendments to Laws and Decrees on taxation,
which comes into force from July 30, 2015.
52 This Point is amended by Clause 2 Article 20 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015.
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54 Article 7 of Circular No. 119/2014/TT-BTC on amendments to
some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular
No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated
December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular
No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March
31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry
of Finance for reform and simplification of tax formalities, which comes into
force from September 01, 2014 stipulates that:
“Article 7.
Entry into force
1. This Circular comes
into force from September 01, 2014.
When an enterprise
needs time to prepare for the procedures and make the forms provided in
Circulars mentioned in Clause 2 of this Article, it may choose procedures and
forms according to applicable regulations and amended regulations until the end
of October 31, 2014 without notification and registration with the tax
authority. The General Department of Taxation shall provide instructions on the
implementation of these regulations.
2. Instructions and
forms provided in the Circular No. 156/2013/TT-BTC dated November 06, 2013,
Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No.
219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated
January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No.
39/2014/TT-BTC dated March 31, 2014 and Circular No. 78/2014/TT-BTC dated June
18, 2014 of the Ministry of Finance amended, replaced or annulled by this
Circular are invalidated.
3. Other
administrative procedures for taxation that are not mentioned in this Circular
shall be implemented according to applicable regulations of law.
Any difficulties that
arise during the implementation should be reported to the Ministry of Finance
for consideration and settlement./.”
- Article 22 of Circular
No. 151/2014/TT-BTC on guidance on implementation of Government’s Decree No.
91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation,
which comes into force from November 15, 2014 stipulates that:
“Article 22.
Entry into force
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Regulations in Chapter
I of this Circular shall be applied to the corporate income tax from 2014.”
- Article 25 of Circular
No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by
residents conducting business, amendments to some Articles on personal income
tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on amendments to Laws and Decrees on taxation, which
comes into force from July 30, 2015 stipulates that:
“Article 25.
Entry into force
1. This Circular comes
into force from July 30, 2015 and is applied to the tax period 2015 onwards.
Regulations on
businesspeople paying flat tax with invoices of tax authorities shall apply to
tax periods from January 01, 2016.
2. Persons who have
lease contracts for many years and have declared and paid tax according to
previous regulations are not required to adjust the amount of tax declared and
paid.
3. Persons who
transfer real estate and have applied for registration of right to ownership or
right to use of real estate, or have submitted tax declaration documents before
January 2015 to which 25% tax is applied may apply 2% tax if they have not
received any tax notice from the tax authority by December 31, 2014.
4. Points b.2.2,
b.2.3, and b.2.4 Clause 1 of Article 16, Article 22 of Circular No.
156/2013/TT-BTC are annulled.
5. Regulations on VAT
and PIT incurred by businesspeople in Article 16 and Article 21 of Circular No.
156/2013/TT-BTC are annulled.
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7. Point d Clause 6
Article 2 on PIT on casino prizes of Circular No. 111/2013/TT-BTC is annulled.
8. Sub-departments of
taxation of districts shall send the lists of business households exempt from
VAT and/or PIT and the lists of business households paying flat tax to the
People’s Councils and Fatherland Front Agencies of districts and communes by
August 30, 2015. The lists shall also be publicly posted at Sub-departments of
taxation and the People’s Committees of districts, at the gates or suitable
locations of the People’s Committees of communes, offices of tax collector
teams, management boards of markets, and at the same time the list using Form
No. 01/CKTT-CNKD issued together with
this Circular shall be publicly sent to each businessperson. The list using
Form No. 01/CKTT-CNKD shall be made according to guidance in Point a.1 Clause 9
Article 6 of this Circular.
Any difficulties that
arise during the implementation should be reported to the Ministry of Finance
(the General Department of Taxation) for consideration and settlement./.
- Article 5 of
Government’s Circular No. 25/2018/TT-BTC on guidelines for the Government’s
Decree No. 146/2017/ND-CP dated December 15, 2017 on amendments to some
Articles of the Circular No.78/2014/TT-BTC dated June 18, 2014 of the Ministry
of Finance and Circular No.111/2013/TT-BTC dated August 15, 2013 of the
Ministry of Finance, which comes into force from May 01, 2018 stipulates that:
“Article 5.
Entry into force
1. This Circular comes
into force from May 01, 2018.
2. Cases that arise
from February 01, 2018 and are covered the Decree No. 146/2017/ND-CP shall
comply with the Decree No. 146/2017/ND-CP and Article 1, Article 2 and Clauses
2, 3 and 4 Article 3 of this Circular.
3. Any difficulties
that arise during the implementation should be reported to the Ministry of
Finance for consideration and settlement./.”
55 Article 25 of Circular No. 151/2014/TT-BTC on guidance on
implementation of Government’s Decree No. 91/2014/ND-CP dated October 01, 2014
on amendments to Decrees on taxation, which comes into force from November 15,
2014 stipulates that:
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1. People’s Committees
of provinces and central-affiliated cities shall direct regulatory agencies to
comply with regulations of the Government and guidance of the Ministry of
Finance.
2. Tax authorities are
responsible for providing guidance for organizations or individuals to comply
with regulations of this Circular.
3. Regulated entities
of this Circular shall comply with regulations of this Circular.
Any difficulties that
arise during the implementation should be reported to the Ministry of Finance
for consideration and settlement./.”
56 This Clause is amended by Article 11 of Circular No.
151/2014/TT-BTC on guidance on implementation of Government’s Decree No.
91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation,
which comes into force from November 15, 2014;