Công văn 3406/TCT-TNCN

OFFICIAL LETTER

To: Viet Sea Shipbuilding Company Ltd.

The General Department of Taxation has received Viet Sea Shipbuilding Company Ltd’s Official Letter No. 142/07-09/CV-VSS of July 16, 2009, on refund of personal income tax for employees who agree to receive incomes in net salary. Regarding this issue, the General Department of Taxation gives the following opinion:

Under the Ministry of Finance's Circular No. 27/2009/TT-BTC of February 6, 2009, guiding the delayed payment of personal income tax and the Ministry of Finance ’s Official Letter No. 1823/BTC-TCT of February 18, 2009, guiding the delayed payment of personal income tax, income earners may keep tax amounts entitled to delayed payment during the delayed period. Income payers that temporarily withheld tax before the promulgation of Circular No. 27/2009/TT-BTC shall refund the withheld amounts to income earners.

In principle, individuals shall pay personal income tax and income payers shall withhold tax for remittance into the State budget for individuals. When an employee signs a labor contract with an employer under which the employee receives a salary without tax (net salary) and the employer pays tax for the employee, the employer may keep the tax amounts during the delayed tax payment period. If the employee wishes to receive the personal income tax amount entitled to delayed payment, he/she shall re-negotiate with the employer on the adjustment of the labor contract’s provision on tax obligations.

The General Department of Taxation notifies its opinion to Viet Sea Shipbuilding Company for information.