THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
41/2006/TT-BTC
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Hanoi,
May 12, 2006
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CIRCULAR
GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER’S DECISION
No. 161/2005/QD-TTg OF JUNE 30, 2005, ON EXPANDING THE PILOT SELF-ASSESSMENT
AND SELF-PAYMENT OF HOUSE AND LAND TAX, INCOME TAX ON HIGH-INCOME EARNERS AND
LICENSE TAX BY PRODUCTION AND BUSINESS ESTABLISHMENTS
Pursuant to the 1992
Ordinance on House and Land Tax, the 1994 Ordinance Amending and Supplementing
a Number of Articles of the Ordinance on House and Land Tax and the
Government’s Decree No. 94/CP of August 25, 1994, detailing the implementation
of the Ordinance on House and Land Tax and the Ordinance Amending and
Supplementing a Number of Articles of the Ordinance on House and Land Tax;
Pursuant to May 19, 2001 Ordinance No. 35/2001/PL-UBTVQH10 on Income Tax on
High-Income Earners, March 24, 2004 Ordinance Amending and Supplementing a
Number of Articles of the Ordinance on Income Tax on High-Income Earners, and
the Government’s Decree No. 147/2004/ND-CP of July 23, 2004, detailing the
implementation of the Ordinance on Income Tax on High-Income Earners;
Pursuant to the Government’s Decree No. 75/2002/ND-CP of August 30, 2002, on
adjusting license tax rates;
Pursuant to the Prime Minister’s Decision No. 197/2003/QD-TTg of September 23,
2003, on the pilot implementation of the mechanism of tax self-assessment and
self-payment by production and business establishments;
Pursuant to the Prime Minister’s Decision No. 161/2005/QD-TTg of June 30, 2005,
on expanding the pilot self-assessment and self-payment of special consumption
tax at the stage of domestic production; natural resource tax; house and land
tax; income tax on high-income earners; and license tax by production and
business establishments;
The Ministry of Finance hereby guides the implementation as follows:
I. SUBJECTS
OF APPLICATION:
Taxpayers governed by Decision
No. 161/2005/QD-TTg as guided in this Circular are production, business and
service establishments (hereinafter collectively referred to as business
establishments) which are specified in Clause 2, Article 1 of the Prime
Minister’s Decision No. 197/2003/QD-TTg of September 23, 2003, and guiding
documents issued by the Ministry of Finance.
II. TAX
REGISTRATION:
Business establishments
implementing on a pilot basis the mechanism of self-assessment and self-payment
of house and land tax, income tax on high-income earners and license tax shall
continue using their tax identification numbers already granted by tax offices,
without having to re-register their tax identification numbers with tax
offices.
III. TAX
DECLARATION AND PAYMENT:
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1.1. Declaration of house and
land tax:
Business establishments shall
declare house and land tax according to a declaration form issued together with
this Circular (form No. 01-06/TND, not printed herein) and submit their
declaration forms no later than January 31 every year (calendar year) to the
Sub-Department of Tax of the locality where the land liable to house and land
tax is located. Some items in the house and land tax declaration form are
explained as follows:
a/ Land area liable to house and
land tax is the whole land area liable to house and land tax actually managed
and used by the business establishment (including land areas currently used by
other organizations and individuals).
In case business establishments
have been granted land-use right certificates or land assignment decisions by
competent state agencies for their land areas, land areas liable to house and
land tax are the whole land areas liable to house and land tax written in such
land-use right certificates or land assignment decisions. If business
establishments have not yet been granted land-use right certificates or land
assignment decisions for their land areas, they shall declare those land areas
actually in use.
b/ The land grade used for the
determination of the number by which agricultural land use tax will be
multiplied to calculate the house and land tax shall follow the guidance in
Clauses 1, 2 and 3, Section II of the Finance Ministry’s Circular No. 83-TC/TCT
of October 7, 1994, guiding the implementation of the Government’s Decree No.
94/CP of August 25, 1994, detailing the implementation of the Ordinance on
House and Land Tax (or be notified by the tax office in case the business
establishments fail to determine such number).
c/ The paddy price used for the
calculation of house and land tax shall be that used for the calculation of
agricultural land use tax in the year-end crop of the year preceding the year
of collection of house and land tax as announced by provincial/municipal
People’s Committees.
1.2. Payment of house and land
tax:
Production and business
establishments shall pay house and land tax into the state budget according to
the declared tax amounts.
House and land tax shall be paid
twice a year, half of the total payable tax amount each time. The first payment
shall be made no later than April 30 while the second payment no later than
October 31 every year. If taxpayers wish to pay the whole payable house and
land tax amount once, they shall pay it according to the deadline for the first
payment.
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In case a business establishment
pays both the payable tax amount and fine arising in the current period and the
tax amount and fine owed from a previous period which is, however, not
specified, the tax office shall offset them first against the tax amount and
fine still owed from the previous period, then against the tax amount and fine
payable in the current period.
House and land tax shall be paid
by business establishment to the state treasuries of districts where the
taxable land is located and be recorded according to regulations on the budget
index.
If a business establishment
undergoes merger, consolidation, separation, split-up, dissolution, bankruptcy,
ownership transformation, relocation to another province or city, state
enterprise assignment, sale, contracting or lease, it shall have to remit all
house and land tax arrears into the state budget before such change. If a
business establishment has any overpaid house and land tax amount, the tax
office shall refund it such amount according to current regulations.
2. Income tax on high-income
earners (called personal income tax for short):
The declaration, payment and
finalization of personal income tax shall comply with the provisions of the
Ordinance on Income Tax on High-Income Earners and guiding documents currently
in force.
2.1. Declaration of personal
income tax:
For regular incomes being
salaries and wages paid under labor contracts, business establishments shall
withhold, declare and temporarily pay personal income tax on a monthly basis.
Business establishments implementing the mechanism of self-assessment and
self-payment on a pilot basis shall make full and accurate declaration according
to form No. 03a/TNTX, issued together with this Circular (not printed herein).
If the tax amount withheld each month is less than VND 5 million, declaration
can be made in form No. 03a/TNTX on a quarterly basis but the tax money is
still withheld every month. Whether or not tax declaration can be made on a
quarterly basis shall be determined every year, depending on the total income
tax amount withheld in the first month of the year.
Tax declaration forms shall be
submitted to tax offices no later than the 25th of the month
following the month of arising incomes. The deadline for submission of
quarterly tax declaration forms is the 25th of the first month of
the subsequent quarter.
In case a business establishment
makes incomplete or improper declaration according to the set form or fails to
certify the legal validity of the declaration (signature and stamp), it shall
be regarded as not having submitted the declaration to the tax office.
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2.2. Payment of personal income
tax:
Monthly, business establishments
shall remit personal income tax into the state budget according to the declared
tax amounts. The deadline for personal income tax payment is the 25th
of the month following the month of arising tax amounts. In case of quarterly
payment, the deadline is the 25th of the first month of the
subsequent quarter. For business establishments paying personal income tax by
account transfer through a bank or credit institution, the day of remittance
into the state budget shall be identified as the date such bank or credit
institution deducts and transfers money to the state treasury according to the
papers of state budget remittance issued by business establishments; for
business establishments paying personal income tax in cash, the date of
remittance into the state budget shall be the date the treasury or tax office
receives the tax money.
Business establishments shall
completely fill in the paper of remittance as instructed by the tax office and
state treasury office. On such paper, business establishments shall indicate
the personal income tax amount and related fine (if any) payable in each tax
period. In case a business establishment fails to indicate the period for which
the tax amount and fine are paid, the tax office shall offset them first
against the tax amount and fine still owed then against the tax amount and fine
payable in the period.
If a business establishment
undergoes transformation of type of enterprise and form of ownership such as
merger, consolidation, separation, split-up, dissolution, bankruptcy, ownership
transformation, relocation to another province or city, state enterprise
assignment, sale, contracting or lease, it shall have to declare the tax amount
arising by the time of merger, consolidation, separation, split-up,
dissolution, bankruptcy, ownership transformation, relocation to another
province or city, state enterprise assignment, sale, contracting or lease (also
declaring adjustments to previous periods’ erroneous data, if detected). It
shall submit the tax declaration and remit all personal income tax arrears into
the state budget within 30 days after the date of issuance of the decision on
merger, consolidation, separation, split, dissolution, bankruptcy, ownership
transformation, relocation to another province or city, state enterprise
assignment, sale, contracting or lease. If a business establishment has any
overpaid or insufficiently withheld personal income tax amount, the tax office
shall refund it such amount according to current regulations.
2.3. Replacement of personal
income tax declaration forms and receipts:
- Form No. 03a/TNTX and form No.
10/TNTX issued together with the Finance Ministry’s Circular No. 12/2005/TT-BTC
of February 4, 2005, are replaced with form No. 03a/TNTX and form No. 10/TNTX
issued together with this Circular (not printed herein).
- Form No. 08/TNTX issued
together with the Finance Ministry’s Circular No. 12/2005/TT-BTC of February 4,
2005, is replaced with form No. 08a/TNTX and form No. 08b/TNTX issued together
with this Circular (not printed herein), including:
+ Form No. 08a/TNTX is a simple
form applicable to individuals having taxable incomes in Vietnam only,
excluding professional singers, circus artists, dancers, football players,
athletes.
+ Form No. 08b/TNTX is a
complicated form applicable to foreign and Vietnamese individuals having
taxable incomes in Vietnam and abroad, and professional singers, circus
artists, dancers, football players, athletes.
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Form CTT 10B (income tax
receipt) issued together with the Finance Ministry’s Circular No.
81/2004/TT-BTC of August 13, 2004, is replaced with form CTT 10B (income tax
receipt) issued together with this Circular (not printed herein).
Modified income tax declaration
forms and receipts mentioned herein shall also apply to individuals and
taxpayers not implementing the mechanism of tax self-assessment and
self-payment on a pilot basis.
3. License tax:
3.1. License tax rates:
Business establishments
implementing the mechanism of tax self-assessment and self-payment on a pilot
basis shall determine by themselves license tax rates under the guidance at
Points 1 and 2 of the Finance Ministry’s Circular No. 42/2003/TT-BTC of May 7,
2003, guiding supplements and amendments to the Finance Ministry’s Circular No.
96/2002/TT-BTC of October 24, 2002, guiding the implementation of the
Government’s Decree No. 75/2002/ND-CP of August 30, 2002, on adjusting license
tax rates.
3.2. Declaration and payment of
license tax:
Business establishments shall
make self-assessment and submit their declarations made according to forms No.
04-06/MB issued together with this Circular (not printed herein), and pay by
themselves license tax into the state budget.
For business establishments that
have branches, factories, manufacture workshops, shops, places of service
provision, etc., practicing dependent cost-accounting and located in the same
locality (province or centrally run city), they (head offices) shall declare
and pay license tax for their head offices and such branches, factories,
manufacture workshops, shops, places of service provision. Those branches,
factories, manufacture workshops, shops, places of service provision, etc.,
which practice dependent cost-accounting and located in other localities
(provinces or centrally-run cities) shall declare and pay license tax in such
localities.
The time of declaration and
payment of license tax for each specific case is as follows:
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a/ Declaration and submission of
license tax declaration forms:
Business establishments shall
declare license tax according to forms No. 04-06/MB issued together with this
Circular (not printed herein) and submit such declaration forms annually.
The deadline for submission of
license tax declaration forms to managing tax offices is January 31 of the
calendar year. Bases for the determination of license tax rates and levels are
stated in Section 3.1 of Section III above.
b/ Payment of license tax:
Business establishments shall
remit license tax into the state budget according to the tax amounts already
declared to tax offices no later than January 31 of the calendar year.
Business establishments shall
completely fill in all items on the paper of remittance as instructed by the
tax office and treasury office. If business establishments pay license tax by
account transfer through a bank or credit institution, the date of remittance
of tax money into the state budget shall be identified as the date the bank or
credit institution deducts and transfers the tax money to the state treasury;
if business establishments pay license tax in cash, the date of remittance of
tax money into the state budget shall be identified as the date the treasury
office or tax office receives the tax money.
3.2.2. For newly established
business establishments:
After being established and
granted the business registration certificates, business establishments shall
fill in license tax declaration forms, submit them and pay license tax within
30 days after the date they are granted the tax registration certificates (tax
identification numbers). For business establishments set up and granted the tax
registration certificates during the first half of a year, they shall pay
license tax for the whole year. For business establishments set up and granted
the tax registration certificates during the second half of a year, they shall
pay 50% of license tax for the whole year.
If an operating business
establishment sets up other dependent cost-accounting business units in the
same locality (province or centrally run city), it (head office) shall declare
and pay additional license tax for such dependent units according to the time
limit and ways of determination of payable license tax amounts applicable to
newly set-up establishments mentioned above.
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4.1. For house and land tax and
personal income tax:
After submitting declaration forms
to the tax office, if business establishments find any mistakes in the declared
data (detected by business establishments themselves or notified by the tax
office), they shall declare adjustments to the tax office as follows:
- If the time limit for declaration
has not yet expired, business establishments shall fill in and submit new
declaration forms in replacement of the ones already submitted to the tax
office. In these new declaration forms, business establishments must indicate
the date of submission of the substituted declaration forms to the tax office.
- If the time limit for
declaration has expired, business establishments shall be only allowed to
declare adjustments to mistakenly declared data on the declaration forms
already submitted to the tax office. Once the tax office has issued decisions
on inspection of tax finalization, no adjustment shall be accepted.
4.2. For license tax:
- Within five years counting
from the date of submission of license tax declaration forms to the tax office,
if finding any mistakes in the declared data (detected by business
establishments themselves or notified by the tax office) or setting up new
branches, shops, etc., in the same locality, business establishments shall
declare adjustments to replace the declaration forms already submitted to the
tax office. In the adjustment declaration forms, business establishments must
indicate the date of submission of the substituted declaration forms, the
increased or reduced tax amounts and the reason therefor.
- In case a business
establishment has paid the license tax money to the tax office and the
adjustment gives rise to a tax difference, it shall have to pay the license tax
arrears, if such tax difference is positive or to make deductions from the
following year’s payable license tax amount, if such tax difference is
negative.
- In case the tax office has
issued decisions on inspection of tax finalization, no adjustment shall be
accepted.
IV. TASKS,
POWERS AND RESPONSIBILITIES OF TAX OFFICES:
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1. Disseminating and
popularizing among business establishments and responding to their inquiries on
tax policies and self-assessment and self-payment procedures so that business
establishments understand and comply with the provisions of law on taxes and
the tax self-assessment and self-payment mechanism.
2. Monitoring business
establishments in performing tax self-assessment and self-payment obligations:
- If beyond the deadline for
submission of declaration forms business establishments still fail to send
their declaration forms to tax offices according to regulations, tax offices
shall send notices reminding the submission of tax declaration forms and impose
administrative sanctions according to current regulations. In case a business
establishment still fails to submit the declaration form after receiving the
tax notice and being administratively sanctioned, the tax office shall fix a
tax amount for temporary payment according to the provisions of law on house
and land tax, personal income tax and license tax.
- Beyond the prescribed tax
payment deadline, tax offices shall send notices reminding business
establishments to pay tax and impose fines for late payment of tax amounts
still owed to the state budget according to regulations.
3. Supervising and inspecting
regularly or irregularly production and business establishments in their
implementation of the mechanism of self-assessment and self-payment of house
and land tax, personal income tax and license tax.
4. Applying measures to force
business establishments to pay tax arrears and fines according to the
provisions of law.
5. Keeping confidential supplied
information on production and business establishments according to
regulations.
V.
ORGANIZATION OF IMPLEMENTATION:
1. This Circular takes effect 15
days after its publication in “CONG BAO”. Other matters not guided in this
Circular shall still comply with the guidance in the Finance Ministry’s
Circular No. 83-TC/TCT of October 7, 1994, and Circular No. 71/2002/TT-BTC of
August 19, 2002, guiding the implementation of the Government’s Decree No.
94/CP of August 25, 1994, detailing the implementation of the Ordinance on
House and Land Tax, the Finance Ministry’s Circular No. 81/2004/TT-BTC of
August 13, 2004, and Circular No. 12/2005/TT-BTC of February 4, 2005, guiding
the implementation of the Government’s Decree No. 147/2004/ND-CP of July 23,
2004, detailing the implementation of the Ordinance on Income Tax on
High-Income Earners, and current regulations on license tax.
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3. In the course of
implementation, if facing any problems, branches, localities and production and
business establishments should promptly report them to the Ministry of Finance
for study and additional guidance.
FOR
THE MINISTER OF FINANCE
VICE MINISTER
Truong Chi Trung