Công văn 1845/BTC-TCT

To: Provincial-level Tax Offices

In implementing the Government’s urgent solutions aiming at preventing economic downturn, sustaining economic growth and ensuring social security, the Ministry of Finance issued Official Letter No. 16181/BTC-TCT of December 31, 2008, guiding PIT policies applicable to some taxable income items arisen in 2008 and before. Upon the request of some Provincial-level Tax Offices, income paying agencies and taxpayers during the course of implementation, after reporting to the Prime Minister and obtaining his consent as stated in the Government Office’s Official Letter No. 657/VPCP-KTTH of January 3, 2009, the Ministry of Finance guides the settlement of some problems arising as follows:

1. For income from salaries or wages:

For income from salaries, wages and bonuses originated from production and business results in 2008 but paid after January 1, 2009, tax will be calculated and paid under the Law on PIT. Income paying agencies shall be responsible for calculating PIT amounts to be withheld, simultaneously implementing the delay for tax payment from January 1, 2009, through May 31, 2009, under the guidance in Clause 1, Article 2 of the Ministry of Finance’s Circular No. 27/2009/TT-BTC of February 6, 2009, guiding the extension of the time for PIT payment.

If income paying agencies have calculated and withheld tax under the Ordinance on Income Tax on High-Income Earners in 2008 before the date of issuance of this document, they shall make adjustments under the guidance in this document for taxpayers to enjoy tax payment extension.

If income paying agencies have withheld tax amounts but not yet paid them into the state budget or have paid them into the state budget, income paying agencies and tax authorities shall refund these tax amounts to taxpayers according to the procedures guided at Point 3 of the Ministry of Finance’s Official Letter No. 1823/BTC-TCT of February 18, 2009, guiding the extension of the time for PIT payment.

2. For income from real properties transfer:

In case individuals have signed contracts on the transfer of real properties as prescribed by law and have submitted valid dossiers to competent state management agencies before January 1, 2009:

a/ Income from transfer of apartments will comply with the guidance at Point 2 of the Ministry of Finance’s Official Letter No. 762/BTC-TCT of January 16, 2009.

b/ For individuals who transfer land use rights together with works attached to land:

In case individuals have signed contracts on the transfer of real properties as prescribed by law and have submitted valid dossiers to competent state management agencies before January 1, 2009, if the payable tax amount calculated under the Law on Transfer of Land Use Rights is lower than that calculated under the Law on PIT, transferors may pay tax under the Law on Transfer of Land Use Rights. If the payable tax amount calculated under the Law on Transfer of Land Use Rights is higher than that calculated under the Law on PIT, taxpayers may pay tax under the Law on PIT. If taxpayers have paid into the state budget a tax amount higher than the payable amount before the date of issuance of this document, the overpaid amount will be refunded by tax authorities according to the procedures guided at Point 3 of the Ministry of Finance’s Circular No. 1823/BTC-TCT of February 18, 2009, guiding the extension of the time for PIT payment.

c/ On transfer prices of real properties used as a basis for calculation of PIT

The transfer price of real properties used as a basis for calculation of PIT is the price indicated in the transfer contract. In case the contractual price is lower than the price set by the provincial-level People’s Committee at the time of submission of a valid dossier to a competent state management agency, the land price set by the provincial-level People’s Committee will be used for tax calculation; if the contractual price is higher than the land price set by the provincial-level People’s Committee, the contractual price will be used.

In case of receipt of inheritance or gifts being real properties, the basis for tax calculation is the value of real properties at the time of submission of a valid dossier to a competent state management agency.

d/ Individuals who transfer real properties or receive inheritance or gifts being real properties are not required to make tax registration and have tax identification numbers before making tax filing and payment; if having no tax identification number, they should write the numbers of their identity cards on the returns.

Any problems arising in the course of implementation should be reported by provincial-level Tax Offices to the Ministry of Finance (the General Department of Taxation) for timely handling.