Công văn 2364/TCT-TNCN

To: Representative Office in Ho Chi Minh City of Wakomas Chemical Sdn.Bhd.
(Address: Room 714 Campus 06, 7^th Floor, Me Linh Point Tower, No. 2 Ngo Duc Ke Str., Ben Nghe Ward, District 1, Ho Chi Minh City)

Below is response of General Department of Taxation (GDT) to Official Dispatch No. 4612/VPCP-DMDN dated 17/5/2018 of the Government Office forwarding the proposal of Representative Office in Ho Chi Minh City of Wakomas Chemical Sdn.Bhd (hereinafter referred to as “Representative Office of Wakomas”) requesting instructions on declaration of personal income tax of its Manager:

Points a.1, b.1, b.2.1 of Clause 1; Point a.1, b.1.1, b.2.1 of Clause 2, Points b of Clause 7 Article 16 of Circular No. 156/2013/TT-BTC of the Ministry of Finance:

“1. Tax declaration and payment by payers of taxable incomes:

a) Rules for declaring tax:

a.1) The income payers that deduct 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 quarter.

…..

b.1) Monthly and quarterly declaration:

- - The income payer shall deduct tax from salaries and wages in accordance with form 02/KK-TNCN enclosed herewith.

…..

b.2.1) Wage payers shall declare tax using the forms below, whether tax is deducted or not:

- - Form No. 05-2/BK-TNCN enclosed herewith...”

“2. Tax declaration by residents earning incomes from wages or business that are residents:

a) Rules for declaring tax:

a.1) Residents earning incomes from wages or business shall declare tax directly at tax authorities as follows:

…..

- Residents whose wages are paid by overseas organizations and individuals shall declare tax quarterly.

…..

b.1.1) The resident that earns income from wages shall directly submit tax declarations (form 07/KK-TNCN enclose herewith) to tax authorities.

…..

b.2.1) The individuals earning income from wages, from insurance agents, lottery agents, or multi-level marketing that directly submit the terminal declarations shall use the forms below:

- - Terminal declaration form 09/KK-TNCN enclosed herewith...”

“7. Tax declaration by residents earning income overseas

a) Rules for declaring tax:

The residents that earn income overseas shall declare tax whenever an income is earned. The residents that earn income from wages overseas shall declare tax quarterly.

b) Tax documents

- - The residents that earn income from wages overseas shall declare tax using form 07/KK-TNCN enclosed herewith.

…..”

Clause 1 and Clause 6 Article 24 of Circular No. 92/2015/TT-BTC dated 15/6/2015 of the Ministry of Finance:

“1. This Circular comes into force from July 30, 2015 and is applied to the tax period 2015 onwards.

…

6. Forms No. 05/KK-TNCN, 05-1/BK-TNCN, 05-2/BK-TNCN, 05-3/BK-TNCN, 02/KK-TNCN, 11/KK-TNCN, 11-1/TB-TNCN, 04-2/KK-TNCN, 07/KK-TNCN, 09/KK-TNCN, 03/KK-TNCN enclosed with Circular No. 156/2013/TT-BTC are respectively replaced with forms No. 05/QTT-TNCN, 05-1/BK-TNCN, 05-2/BK-TNCN, 05-3/BK-TNCN, 05/KK-TNCN, 03/BDS-TNCN, 03/TBT-BDS-TNCN, 04/UQ-QTT-TNCN, 02/KK-TNCN, 02/QT-TNCN, 06/TNCN enclosed with this Circular.”

Pursuant to the regulations above:

+ The Manager of Representative Office of Wakomas shall directly declare personal income tax to the tax authority using Form No. 02/KK-TNCN and Form No 02/QTT-TNCN enclosed with Circular No. 92/2015/TT-BTC if he/she is a Vietnamese resident and earns income overseas.

_ The Representative Office shall deduct the Manager’s personal income tax and declare tax with the tax authority using Form No. 05/KK-TNCN and Form No. 05/QTT-TNCN enclosed with Circular No. 92/2015/TT-BTC if the Manager's wages are paid by the Representative Office in Vietnam and he/she authorizes the Representative Office to finalize his/her personal income tax.

For your information./.