Nội dung toàn văn Official Dispatch No. 230/TCT-TNCN on guiding settlement of personal income tax
MINISTRY OF FINANCE | OF |
No.: 230/TCT-TNCN | , January 17, 2012 |
To: Tax Departments of provinces and centrally-run cities
The implementation of the settlement of the personal income tax has been provided in the Personal Income Tax Law, Decree No.100/2008/ND-CP dated 08/09/2008 of the Government detailing some Articles of the Law on Personal Income Tax, Circular No.84/2008/TT-BTC dated 30/9/2008 of the Finance Ministry, Circular No.62/2009/TT-BTC dated 27/03/2009 of the Ministry of Finance, Circular No.02/2010/TT-BTC dated 11/01/2010 of the Ministry of Finance and Circular No.154/2011/TT-BTC dated 11/11/2011 of the Ministry of Finance and the guiding documents of the General Department of Taxation. Now, to ensure uniform implementation, the General Department of Taxation gives some further guidance of settlement of personal income tax in 2011 as follows:
On Subjects to declaration for tax settlement:
1. Organizations and individuals paying income required to deduct tax regardless of whether incurred tax deduction or not.
2. Residents with income from salary, wages, and income from business required to settle the personal income tax:
- With the payable amount of tax more than the tax withheld or temporarily paid;
- With request for a refund of overpaid tax or offset in the subsequent period.
3. Individuals with income from securities transfer registered to pay personal income tax by tax rate of 20% on taxable income with tax authorities must make tax settlements in the following cases:
- The payable tax calculated on the tax rate 20% more than the total number of temporarily withheld tax at the tax rate of 0.1% in the early 7 months of year, and 0.05% in 5 ending months of 2011;
- With request for a refund of overpaid tax.
4. Residents who are foreigners, upon ending working contracts in before exiting must make tax settlements.
II. Determination of income subject to personal income tax from salary or wages
1. Taxable income from salaries, wages are determined by the total salaries, wages, remuneration and other income as directed in clause 2, Section II, Part A of Circular No.84/2008/TT-BTC dated 30/9/2008; Article 1 of Circular No.62/2009/TT-BTC dated 27/03/2009; and Article 1 of Circular No.02/2010/TT-BTC dated 11/01/2010 of the Ministry of Finance that the taxpayers were received in 2011.
Where organizations and individuals pay mid-shift meals for each employee, the mid-shift meal money is not included in taxable income but not exceeding the maximum level for mid-shift meal money prescribed in Clause 3, Article 5 of Circular No.12/2011/TT-BLDTBXH on 26/04/2011 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of the common minimum wage for one member limited liability companies owned by the State.
The time for determining taxable income is the time when organizations and individuals pay income from salary or wages for the individuals. In case of the salary of 12/2010, organizations and individuals paid taxable income to taxpayers in 01/2011 is included in taxable income of 2011 for making tax settlement in 2011.
2 For income from securities transfer
Taxable income from transfer of securities is determined by the stock selling price minus the purchase price and expenses related to the transfer.
The purchase price of stocks is determined as follows:
The purchase price of securities sold | = | Prime cost at beginning of period + Prime cost within period | x Number sold out | ||
Number of securities remained at beginning of period | + | Number bought in the period | |||
Prime cost within period = Purchase price + purchase cost
III. Family condition allowances
On the subjects of family condition allowances and amounts deducted to determine taxable income are provided in Section I, Part B of Circular No.84/2008/TT-BTC dated 30/9/2009; Article 2, Article 3 Circular No.62/2009/TT-BTC dated 27/3/2009.
Individuals are reduced for dependents from the month they are obliged to raise. For foreigners residing in , they are calculated for family condition allowances for themselves from the arrival month to the month they leave .
Example 1: Mr. A has a child who was born on 31/10/2011, and then Mr. A is calculated for family condition allowances from 10/2011 with the amount deducted < span="">.
Example 2: Mr. B is a foreigner arrived in on 15/01/2011 and left on 03/9/< p="">
IV. Determination for the payable tax
1.
Total tax payable = Taxable income Tax rate x average monthly according to the partially progressive tariff month x 12 months
Total tax payable | = | Average monthly taxable income | x | Tax rate according to the monthly partially progressive tax schedule | x | 12 months |
2. For individuals with taxable incomes from salaries, wages and business income to the extent of subject to personal income tax in step 1 of the partially progressive tax schedule (less than or equal to 5 million VND/month ) shall be exempted from tax for 5 ending months of 2011
The tax amount exempted | = | tax payable in 2011 x 5 months |
12 months |
Individuals who declare personal income tax after deducting tax amount exempted in the criteria No.[32] (tax incurred in the period) of the settlement Statement of Personal Income Tax, Form No.09/KK-TNCN issued together with Circular No.28/2011/TT-BTC dated 28/02/2011 of the Ministry of Finance.
Example 3: Mr. A has taxable income from salary, wages in 2011 as 197.2 million VND.
In 2011, Mr. A has the following deductions:
- Reduction for himself as 48 million VND (4 million VND x 12 months)
- Reduction for one dependent person as 19.2 million VND (1.6 million VND x 12 months)
- Social insurance and health insurance as 10 million VND.
Taxable income of Mr. A in 2011 is 197.2 million VND - (48 million VND + 19.2 million VND + 10 million VND) = 120 million VND.
Taxable income per month = 120 million VND: 12 months = 10 million VND/month
Average payable tax per month = (5 million VND x 5%) + (5 million VND x 10%) = 0.75 million VND
Tax of the whole year = 0.75 VND x 12 months = 9 million VND
Example 4: Taxable income from wages, salaries of Mr. B in 2011 was 36 million VND.
- Average taxable income per month of Mr. B is: 36 million VND: 12 months = 3 million VND.
- The income tax payable = (3 million VND x 5%) x 12 months = 1.8 million VND
- The income tax exempted | = | 1,8 million VND | x | 5 months | = | 0.75 million VND |
12 months |
- Personal income tax payable after exempted = 1.8 million VND - 0.75 million VND = 1.05 million VND.
Example 5:
Mr. X has taxable income from salary, wages in 2011 as 78 million VND of which:Taxable income of the 7 early months of 2011 was 56 million VND and the paying unit temporarily withheld personal income tax of Mr. X according to the partially progressive tax schedule for each month. Total tax the paying units temporarily withheld of Mr.X in the 7 early months was 4.5 million VND.
Taxable income of the 5 ending months of 2011 was 22 million VND, in the 5 ending months of the year, there is no month that Mr. X’s taxable income was over 5 million VND,
When making the 2011 tax settlement, the personal income tax payable of Mr. X is defined as follows:
Average taxable income per month: 78 million VND: 12 months = 6.5 million VND
Average monthly payable tax: (5 million VND x 5%) + (6.5 million VND - 5 million VND) x 10% = 0.4 million VND
Taxes payable in 2011: 0.4 million VND x 12 months = 4.8 million VND
Total tax deducted of 12 months is 4.5 million VND
The tax required to pay further: 4.8 million VND - 4.5 million VND = 0.3 million VND
3. Where individuals in the first calendar year arriving Vietnam are determined as residents and stay in Vietnam till 31/12 shall be declared taxable income arising globally from 1/1 till the end of 31/12; are calculated for family condition allowances for 12 months and when calculating tax, they shall be deducted the personal income tax amount payable in foreign countries.
Example 6:
Where Mr. C is single foreigner working in Vietnam from 12/03/2011, in 2011 (from 12/03/2011 till the end of 31/12/2011) he has been in Vietnam for 185 days , income from salaries, wages incurred of Mr. C during this period was 100 million VND, taxable income arising in foreign countries declared by Mr. C in 2011 was 50 million VND, personal income tax payable abroad was 5 million VND, the personal income tax of Mr. C is defined as follows:
Total taxable income incurred in 2011: 50 million VND + 100 million VND = 150 million VND
Family condition allowances for himself: 4 million VND x 12 months = 48 million VND
Taxable income in 2011: 150 million VND - 48 million VND = 102 million VND
Average taxable income per month: 102 million VND: 12 months = 8.5 million VND
Average personal income tax payable per month: (5 million VND x 5%) + (8.5 million VND - 5 million VND) x 10% = 0.6 million VND
Personal income tax payable for the whole year: 0.6 million VND x 12 months = 7.2 million VND
Personal income tax paid in foreign countries deducted: 7.2 million VND x 50/150 = 2.4 million VND
Personal income tax amount remained to pay: 7.2 million VND - 2.4 million VND = 4.8 million VND
4. Where individuals in the calendar year are identified as residents and left Vietnam before 31/12, they shall declare the taxable income arising globally from 1/1 until the date they leave Vietnam; are calculated family condition allowance from January until the month they leave Vietnam and when calculating tax, they shall be deducted the personal income tax amount payable in foreign countries.
Example 7:
Where Mr. E left Vietnam on 12/10/2011 in 2011 (not returning Vietnam in 2011), the number of days he was available in Vietnam from 01/01/2011 till the end of the date 12/10/2011 (they left Vietnam) is 190 days, the taxable income incurred in this period was 100 million VND, Mr. E does not have income arising in foreign countries, Mr. E must make tax settlement till the time he left Vietnam (10/2011) as follows:
Family condition allowances for himself in 2011 as: 4 million VND x 10 months (from 1/2011 till the end of 10/2011) = 40 million VND
Taxable income of Mr. E (10 months) in 2011: 100 million VND - 40 million VND = 60 million VND
Average taxable income per month in 2011: 60 million VND: 10 months = 6 million VND
Average personal income tax payable per month: (5 million VND x 5%) + (1 million VND x 10%) = 0.35 million VND
The personal income tax payable in 2011till the time he left : 0.35 million VND x 10 months = 3.5 million VND
5. Where in the first calendar year, individuals who are in less than 183 days, but calculated for 12 consecutive months from the month arriving have been in for 183 days or more, the personal income tax is settled as follows:
- The first tax year from the first month arriving to full 12 consecutive months.
- The second tax year from 1/1 to 31/12 of that year.
The tax amount payable in the second year will be deducted for the tax paid in the first tax year corresponding to the doubly calculated time with the second tax year.
The doubly calculated tax amount is deducted into the second tax year is defined as follows:
Doubly calculated tax amount deducted | = | The tax amount payable in the first tax year | x | Number of months doubly calculated |
12 |
Where Mr. D is single foreigner working in Vietnam from 12/05/2010, in 2010 (from 12/05/2010 till the end of 31/12/2010) he has been in Vietnam for 80 days, income from salaries, wages earned was 50 million VND, from 01/01/2011 till the end of 30/04/2011 he has been in Vietnam for 110 days, income from salaries, wages earned during this period was 100 million VND, from 01/05/2011 till the end of 2011, number of days that Mr. D resided in Vietnam was 100 days, income earned during this period was 100 million VND, personal income tax payable by Mr. D is defined as follows:
If calculated according to 2010 calendar year, Mr. D is a non-resident individuals, but by 12 consecutive months from 5/2010 to end of 4/2011, he was resident in Vietnam (He has been in Vietnam for 80 days + 110 days = 190 days)
- The first tax year (from 5/2010 to 4/2011):
Total taxable income in the first tax year: 50 million VND + 100 million VND = 150 million VND
Family condition allowances: 4 million VND x 12 = 48 million VND
Taxable income: 150 million VND - 48 million VND = 102 million VND
Average taxable income per month: 102 million VND: 12 months = 8.5 million VND
Average personal income tax payable per month: (5 million VND x 5%) + (8.5 million VND - 5 million VND) x 10% = 0.6 million VND
Personal income tax payable of the first tax year: 0.6 million VND x 12 months = 7.2 million VND
- The second tax year (from 1/1/2011 till the end of 31/12/2011): Mr D has been in Vietnam for 210 days (110 days + 100 days) so he is an individual residing in Vietnam Taxable income generated in 2011: 100 million VND + 100 million VND = 200 million VND
Family condition allowances: 4 million VND x 12 = 48 million VND
Taxable income in 2011: 200 million VND - 48 million VND = 152 million VND
Average taxable income per month: 152 million VND: 12 months = 12.67 million VND
Average personal income tax payable per month: (5 million VND x 5%) + (5 million VND x 10%) + (12.67 million VND - 10 million VND) x 15% = 1.15 million VND
Personal income tax payable in 2011: 1.15 million VND x 12 months = 13.8 million VND
Tax settlement in 2011 with 4 months doubly calculated with tax settlement of the first year: from 01/2011 to 04/2011
Doubly calculated tax amount deducted: 7.2 million VND/12 months x 4 months = 2.4 million VND.
Mr. D declares the doubly calculated tax amount deducted into the criterion [37] (total personal income tax amount to be reduced in the period) on the settlement Statement of personal income tax, Form No.09/KK-TNCN issued together with Circular No.28/2011/TT-BTC dated 28/02/2011 of the Ministry of Finance.
Personal income tax remained to pay in 2011 as: 13.8 million VND - 2.4 million VND = 11.4 million VND
6.
- Personal income tax amount payable for the whole year | = | Taxable income | x | 20% |
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- Personal income tax amount deducted | = | Personal income tax amount payable for the whole year | x | 5 months | x 50% | ||||||||||||
12 | |||||||||||||||||
- Number of tax remained to pay or overpaid after deducted | = | tax amount payable for the whole year | - | income tax amount reduced | + | tax withheld |
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Individuals declare personal income tax amount after deducting the tax amount reduced into the criteria No.[26] (Tax amount payable in the period) of the settlement declaration of personal income tax Form No.13/KK-TNCN issued together with Circular No.28/2011/TT-BTC dated 28/02/2011 of Ministry of Finance.
V. Procedures for PIT settlement declaration
1. Declaration and settlement of tax of organizations and individuals paying income:
1.1. Dossier for declaration and settlement of tax:
As stipulated in Point c.1, clause 4, Article 14 of Circular No.28/TT-BTC dated 28/02/2011 of the Ministry of Finance and Appendix on exemption from personal income tax under Resolution No.08/2011/QH13 Form No.25/MGT-TNCN issued together with Circular No.154/2011/TT-BTC dated 11/11/2011 of the Ministry of Finance guiding Decree No.101/2011/ND-CP dated 04/11/2011 of the Government (if any).
1.2. Place of filing settlement:
As stipulated in Point d, Clause 4, Article 14 Circular No.28/TT-BTC on 28/02/2011of Ministry of Finance.
1.3. The time limit for filing tax settlement is no later than 90 days after the end of 2011.
2. Tax settlement declaration for individuals, groups of individuals doing business submitted by declaration.
2.1. For individual doing business
2.1.1. Dossier for tax settlement with individuals doing business:
As stipulated in Point a.2, clause 5, Article 14 of Circular No.28/TT-BTC dated 28/02/2011 of the Ministry of Finance and Appendix on exemption from personal income tax under Resolution No.08/2011/QH13, Form No.25/MGT-TNCN issued together with Circular No.154/2011/TT-BTC dated 11/11/2011 of the Ministry of Finance guiding Decree No.101/2011/ND-CP dated 04/11/2011 of the Government (if any).
2.1.2. Place to file dossier of settlement: Tax Branches of direct management.
For individuals who have business activities in many places, it shall file at the Tax Branches managing headquarters with the tax code of 10 digits.
Where headquarters with the tax code of 10 digits terminate their operation, individuals file dossier of tax settlement at tax offices where individuals registered for family condition allowances.
For individuals who have not yet registered for family condition allowances at any place then file dossier of tax settlement at tax offices where individuals reside (place where registered for permanent or temporary residence).
Where individuals doing as insurance agents, lottery agents, place to file dossier of tax settlement is the tax offices where manage the organizations paying income or Tax Branches Department where the individuals reside (place where registered for permanent or temporary residence)
2.1.3. The time limit for filing the dossier of settlement is no later than 90 days after the end of 2011.
2.2. For groups of individuals doing business.
2.2.1. Dossier for settlement of tax
- An individual whose name represents group of individuals doing business shall make dossier for tax settlement by Form No.08B/KK-TNCN to determine the general taxable income of the whole group and separate income of each individual in the business group.
- Each individual in the business group shall be received 01 original of the declaration of tax settlement of group - Form No.08B/KK-TNCN and implement the settlement declaration of personal income tax as guided for individuals doing business in Point 2.1 above and dossier of tax settlement is submitted additionally the declaration according to the Form No.08B/KK-TNCN.
3. Declaration of tax settlement for residents with incomes from salaries or wages.
3.1. Dossier for settlement declaration of tax
As stipulated in Point b.2, clause 6, Article 14 of Circular No.28/TT-BTC dated 28/02/2011 of the Ministry of Finance and add Appendix on exemption from personal income tax under Resolution No.08/2011/QH13, Form No.25/MGT-TNCN issued together with Circular No.154/2011/TT-BTC dated 11/11/2011 of the Ministry of Finance guiding Decree No.101/2011/ND-CP dated 04/11/2011 of the Government (if any).
3.2. Place to file dossier of settlement: To follow the guidance at Point b.3, Clause 6, Article 14 of Circular No.28/2011/TT-BTC dated 28/02/2011 of the Ministry of Finance and note the following points:
- If an individual makes tax settlement in the residence, the residence is Tax Branch where individual registered for permanent residence or temporary residence.
- In case of changing the working unit in year, dossier shall be filed at the tax office managing the unit of last payment.
3.3. Where individuals have only one source of income from salaries, wages in an organization paying income in 2011, they may authorize the settlement of personal income tax for organizations and individuals paying income. Individuals authorizing the settlement through the organizations paying income must hand in to the organization paying income the following papers:
- The written authorization for the settlement of personal income tax by Form 04-2/TNCN issued Circular No.28/2011/TT-BTC dated 28/02/2011 of the Ministry of Finance.
- The invoices, documents proving deductions such as documents of charitable contributions, contributions of humanitarian, study promotion. Documents contributing to compulsory insurance in accordance with provisions (self-paid by individual< span="">
Where individuals who were issued documents of tax withholding by organizations, individuals paying income, they shall not be authorized the tax settlement for organizations, individuals paying income (except for organizations and individuals paying income revoked and destroyed documents issued to individuals).
4. Tax settlement declaration for individuals who have income from salary, wages, and income from business.
4.1. Dossier for settlement declaration of tax:
As stipulated in Point b.1, clause 7, Article 14 of Circular No.28/TT-BTC on 28/02/2011 of the Ministry of Finance and add Appendix on exemption from personal income tax under Resolution No.08/2011/QH13, Form No.25/MGT-TNCN issued together with Circular No.154/2011/TT-BTC dated 11/11/2011 of the Ministry of Finance guiding Decree No.101/2011/ND-CP dated 04/11/2011 of the Government (if any).
4.2. Place to file dossier of settlement:
Place to file dossier of settlement is the Tax Branches where individuals do business. For individuals who have business activities in many places, it shall file at the Tax Branches managing headquarters with the tax code of 10 digits.
Where headquarters with the tax code of 10 digits terminate their operation, individuals file dossier of tax settlement at tax offices where individuals registered for family condition allowances.
For individuals who have not yet registered for family condition allowances at any place then file dossier of tax settlement at Tax branches where individuals reside (place where registered for permanent or temporary residence)
Where individuals doing as insurance agents, lottery agents, place to file dossier of tax settlement is the tax offices where manage the organizations paying income or Tax Branches Department where the individuals reside (place where registered for permanent or temporary residence
5. Tax settlement for individuals earned income from transfer of securities.
5.1. Dossier for settlement declaration of tax.
As stipulated in Point b, clause 10, Article 14 of Circular No.28/TT-BTC on 28/02/2011 of the Ministry of Finance and add Appendix on exemption from personal income tax under Resolution No.08/2011/QH13, Form No.25/MGT-TNCN issued together with Circular No.154/2011/TT-BTC dated 11/11/2011 of the Ministry of Finance guiding Decree No.101/2011/ND-CP dated 04/11/2011 of the Government (if any).
5.2. Place to file dossier of settlement: As stipulated in Point c, Clause 10, Article 14 of Circular No.28/TT-BTC on 28/02/2011 of the Ministry of Finance.
5.3. The time limit for filing dossier is not later than 90 days from the end of the year.
VI. Tax refund
The personal income tax refund is made under the guidance in Article 46 of Circular No.28/2011/TT-BTC dated 28/02/2011of the Ministry of Finance.
VII. Information technology applications for settlement of the personal income tax.
General Department of Taxation shall not upgrade the applications of Tax Administration of its branch (QLT, QCT, VATWIN, QLT- TNCN) to supplement Appendix of reduction and exemption from personal income tax under Resolution No.08/2011/QH13, Form No.25/MGT- TNCN issued together with Circular No.154/2011/TT-BTC dated 11/11/2011 of the Ministry of Finance because this Appendix is valid only in the settlement period of 2011. General Department of Taxation will complement this Form of Appendix on the applications that support enterprises to declare tax (HTKK, iHTKK, QTT_TNCN, ...) for the Tax Departments enable to look up, update the data of reduction and exemption from personal income tax into excel file to monitor externally for the synthesis, analysis and reporting.
General Department of Taxation requires Departments of Tax to be based on documents guiding the implementation of laws and guidance in this document to implement the settlement of the personal income tax in the areas.
| FOR GENERAL DIRECTOR |
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