Công văn 3235/TCT-TNCN

To: Provincial Tax Offices

The General Department of Taxation has recently received Provincial Tax Offices’ reports on problems related to dossiers and procedures for refund of income tax on high-income earners. Regarding this issue, the General Department of Taxation guides the implementation as follows:

1. Income tax withholding vouchers, receipts of income tax on high-income earners

1.1. Point 6, Section I, Part G of the Finance Ministry's Circular No. 60/2007/TT-BTC of June 14, 2007, guiding the implementation of, a number of articles of the Tax Administration Law, and the Government's Decree No. 85/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Tax Administration Law, stipulates that a dossier of refund of income tax on high-income earners comprises “…- income tax withholding vouchers; income tax receipts (originals)…”

However, some individuals have lost original income tax withholding vouchers and/or income tax receipts in force majeure events. To facilitate and encourage taxpayers to fulfill their tax obligations, individuals may use in their tax refund dossiers copies of income tax receipts or income tax withholding vouchers, which are certified as true copies by the income payer, enclosed with a written commitment that they shall take responsibility before law for the accuracy and truthfulness of these copies.

1.2. Under Point 2.1, Section IV of the Finance Ministry's Circular No. 81/2004/TT-BTC of August 13, 2004, guiding the income tax on high-income earners, an income payer shall: “issue income tax receipts to individuals at their request and issue income tax withholding vouchers to individuals so as to certify the income tax amount already withheld by the income payer.”

So, when an income payer issues income tax withholding vouchers and income tax receipts to an individual later than the year of tax finalization, but have certified his/her tax withholding of the year of tax finalization, these certified documents may be used his/her in dossiers of personal income tax refund.

2. Personal income tax refund for individuals being multilevel sale agents and post-office agents is a particular case where a large number of agents having paid a 10% tax have a total taxable income of less than VND 60 million/year, resulting in tax refund for a large number of taxpayers. For unified settlement, the General Department of Taxation gives the following specific guidance:

- Individuals being multilevel sale agents or post-office agents whose total annual income is estimated at under VND 60 million shall make a written request to the multilevel business organization or post office for not withholding a 10% tax, and simultaneously send a written request to the tax agency of the locality where they reside (made according to the attached form). At the end of a year, the multilevel business organization or post office shall send to the Provincial Tax Office a statement listing the names and tax identification numbers of, and amounts paid to, these agents for the Provincial Tax Office’s management and examination.

- When a multilevel business organization or post office has withheld a 10% tax from its agents whose incomes earned from agent commissions and other incomes (if any) are under VND 60 million/year, the agents shall collect tax withholding vouchers, prepare tax refund dossiers according to the Finance Ministry's Circular No. 60/2007/TT-BTC of June 14, 2007 (declaration on personal income tax finalization made according to Form No. 06A/TNCN or No. 06B/TNCN attached to Circular No. 60/2007/TT-BTC) and send them to the multilevel sale organization or post office. Individual agents shall take responsibility before law for the accuracy and truthfulness of their declared statistics.

A multilevel business organization or post office shall gather tax declaration forms, and determine the incomes it has paid to, and the tax amounts it has withheld from, individuals during the year, make a list of individuals entitled to tax refund and send it to the responsible tax agency. The tax administration agency shall, based on the amount proposed for refund by the multilevel business organization or post office, issue a decision to collectively refund taxes to the organization’s account. The organization or post office shall refund taxes to its agents individually.

The General Department of Taxation informs Provincial Tax Offices thereof for compliance.

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness

…………., date …… month …… year ..…

REQUEST FOR NON-WITHHOLDING OF 10% PERSONAL INCOME TAX
(Form attached to Official Letter No…../TCTT-TNCN dated …. of the General Department of Taxation)

To: (Name of income payer responsible for withholding a 10% tax) ……

My name is: ……………………………………………………………...

Occupation: ………………………………………………………………

Address of residence: …………………………………………………….

Tax identification number: ……………………………………………….

My total income (of the year preceding the year of request) …… is …….

I estimate that my total income of the year …. is under VND 60 million. I request ……………… not to withhold a 10% tax on the income paid to me.

At the end of the year, if my total annual income is over VND 60 million, I will declare and pay income tax on high-income earners at the Tax Department of … province/city where I reside.

With sincere thanks,