Thông tư 37/2010/TT-BTC

CIRCULAR

GUIDING THE ISSUANCE, USE AND MANAGEMENT OF CERTIFICATES OF PERSONAL INCOME TAX WITHHOLDING PRINTED OUT FROM COMPUTERS BY INCOME PAYERS

Pursuant to November 21, 2007 Law No. 04/2007/QH12 on Personal Income Tax, and guiding documents;
Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration, and guiding documents;
Pursuant to the Government’s Decree No. 100/2008/ND-CP of September 8, 2008, detailing a number of articles of the Law on Personal Income Tax;
Pursuant to the Government’s Decree No. 89/2002/ND-CP of November 7, 2002, stipulating the printing, issuance, use and management of invoices;
Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance specifically guides the issuance, use and management of certificates of personal income tax withholding printed out from computers by income payers (below construed as withholding certificates) as follows:

Part A: GENERAL PROVISIONS

Article 1. Subjects and conditions of application

An organization that pays incomes liable to personal income tax, withholds personal income tax and fully meets the following conditions may itself print withholding certificates for issuance to individuals subject to tax withholding:

- Having the legal entity status as prescribed by law;

- Having made tax registration and a tax identification number;

- Being furnished with computers and protection software;

- Not being sanctioned for tax law violations more than one time in the proceeding year.

Article 2. Form of self-printed withholding certificate

- A withholding certificate must have all the criteria specified in the standard withholding certificate form enclosed with this Circular.

- A withholding certificate must bear a sign consisting of any 2 of 20 Vietnamese letters in the upper case (A, B, C, D, E, G, H, K, L, M, N, P, Q, R, S, T, U, V, X, Y) and the year of printing and issuance and the letter T (For example: AB/2010/T, in which AB is the sign; 2010 is the year of issuance; T denotes “tu in” (document printed by the income payer).

- Withholding certificates shall be given continuous ordinal numbers with not more than 7 numerals in a sign.

- A withholding certificate is made in two originals:

Original 1: to be kept at the income-paying organization.

Original 2: to be handed to the person subject to tax withholding.

- Peculiar items and the logo of the income payer may be included in the withholding certificate form. In case income payers need to use bilingual withholding certificates, they shall print items in Vietnamese before those in a foreign language.

Part B: PROVISIONS ON ISSUANCE, USE AND MANAGEMENT OF WITHHOLDING CERTIFICATES PRINTED OUT FROM COMPUTERS

Article 3. Procedures for registering for the use and circulation of self-printed withholding certificates

1. Procedures for registering forms of self-printed withholding certificates

a/ An income-paying organization wishing to use self-printed withholding certificates shall submit a dossier to the provincial-level Tax Department of the locality where it is headquartered. Such a dossier comprises the following papers:

- A written request for registration for the use of self-printed withholding certificates (according to a form enclosed with this Circular).

- The sample form of self-printed withholding certificate under the guidance in Article 2 of this Circular.

- A copy of the tax registration certificate certified as a true copy of the original by the income-paying organization;

- Technical solution for printing withholding certificates from computers.

b/ Within 5 working days after receiving a valid dossier for registration for the use of self-printed certificates of an income-paying organization, the tax office shall examine the dossier and inspect information declared therein against the actual implementation of the personal income tax regulations by the organization, and issue a notice of registration acceptance. In case the registration conditions are not fully met, the tax office shall clearly notify the reason for non-acceptance to the income-paying organization.

2. Notification of circulation of withholding certificates

Within 5 working days after receiving a notice of registration acceptance from the provincial-level Tax Department, the income-paying organization shall notify the issuance of withholding certificates at its working office. Such a notice of withholding certificate issuance must clearly indicate the format, size and logo of the withholding certificate form.

Article 4. Use of self-printed withholding certificates

1. Income-paying organizations shall withhold personal income tax of income earners in their payroll according to regulations and issue withholding certificates to these income earners.

2. Withholding certificates shall be used with continuous ordinal numbers (from those dated January 1 to those dated December 31 of the calendar year) without skipping any number and having identical data and signs.

3. Certificates improperly made but not yet handed to taxpayers shall be crossed out for cancellation and their originals properly kept.

4. Cases of remaking withholding certificates

In case a withholding certificate has been made and handed to the taxpayer but later it is detected to be erroneous and must therefore be remade, the income-paying organization shall make a written record clearly indicating the error, number and date of the erroneous certificate, have it signed by the income earner for verification, and concurrently request the income earner to return the original of the erroneous certificate (the original already handed to the income earner) to the income-paying organization for keeping together with the written record. After recalling the erroneous withholding certificate, the income-paying organization shall make and hand a new one to the taxpayer, and take responsibility before law for the cancelled withholding certificates.

Article 5. Reports on the use of self-printed withholding certificates

An income-paying organization using withholding certificates printed out of computers by itself shall report on the use of these certificates as follows:

1. To make and send quarterly reports on the use of withholding certificates (according to a form provided in an appendix to this Circular) not later than the 30th of the first month of the subsequent quarter.

2. To make a report on the use of issued withholding certificates to the tax office where is has registered for the use of withholding certificates within 5 working days after the issuance of a decision on its merger, consolidation, dissolution, ownership transformation, bankruptcy or operation termination.

Article 6. Responsibilities of income-paying organizations permitted to use self-printed withholding certificates

1. To notify provincial-level Tax Departments with which they have registered for the use of withholding certificates and tax offices directly administrating them of the new withholding certificate forms in case of change of self-printed withholding certificate formats.

2. To keep books for monitoring and preservation the withholding certificates already printed and used under the tax and accounting-statistic laws.

3. To produce the issued withholding certificates to tax offices and competent state agencies upon examination.

4. To report on the use of withholding certificates under regulations.

5. To keep data on withholding certificates under the Law on E-Transactions and the Law on Accounting.

Article 7. Responsibilities of tax offices

Tax offices at all levels shall monitor and administer the income-paying organizations in using self-printed withholding certificates:

1. Dossier preservation: Registrations for the self-printing of withholding certificates made by income-paying organizations; and tax offices’ written approvals of these registrations.

2. Invalidation of approvals of the use of withholding certificates upon detection of violations of income-paying organizations in using these certificates.

3. Checking and comparison of withheld tax amounts indicated in tax withholding certificates supplied by taxpayers against data shown in tax withholding declarations and reports on the use of withholding certificates of income-paying organizations.

Part C: ORGANIZATION OF IMPLEMENTATION

Article 8. Implementation provisions

1. This Circular takes effect 45 days from the date of its signing.

2. Income-paying organizations should promptly report any problems arising in the course of implementation to the Ministry of Finance (the General Department of Taxation) for consideration and settlement.