CIRCULAR ¹

GUIDELINES FOR IMPLEMENTATION OF THE LAW ON PERSONAL INCOME TAX, THE LAW ON AMENDMENTS TO THE LAW ON PERSONAL INCOME TAX, AND THE GOVERNMENT'S DECREE NO. 65/2013/ND-CP ON ELABORATION OF SOME ARTICLES OF THE LAW ON PERSONAL INCOME TAX AND THE LAW ON AMENDMENTS TO THE LAW ON PERSONAL INCOME TAX

Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Minister of Finance on guidelines for the implementation of the Law on Personal Income Tax, the Law on amendments to the Law on Personal Income Tax, and the Government's Decree No. 65/2013/ND-CP on elaboration of some Articles of the Law on Personal Income Tax and the Law on amendments to the Law on Personal Income Tax, which comes into force from October 01, 2013, is amended by:

1. Circular No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance on amendments to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and simplification of tax formalities, which comes into force from September 01, 2014.

2. Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance on guidance on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation, which comes into force from November 15, 2014.

3. Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

4. Circular No. 25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance on guidelines for the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 on amendments to some Articles of the Circular No.78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and Circular No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, which comes into force from May 01, 2018.

Pursuant to the Law No. 04/2007/QH12 dated November 21, 2007 on Personal Income Tax;

...

...

...

Pursuant to the Law No. 78/2006/QH11 on Tax Administration dated November 29, 2006;

Pursuant to the Law No. 21/2012/QH13 dated November 20, 2012 on amendments to some Articles of the Law on Tax Administration;

Pursuant to Government’s Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of implementation of some Articles of the Law on Personal Income Tax and the Law on amendments to some Articles of the Law on Personal Income Tax;

Pursuant to Government’s Decree No. 83/2013/ND-CP dated July 22, 2013 on elaboration of implementation of some Articles of the Law on Tax Administration and the Law on amendments to some Articles of the Law on Tax Administration;

Pursuant to Government’s Decree No. 118/2008/ND-CP dated November 27, 2008 on functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of the Director of the General Department of Taxation;

The Minister of Finance provides guidance on the implementation of some Articles of the Law on Personal Income Tax, the Law on amendments to the Law on Personal Income Tax, and the Government's Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of some Articles of the Law on Personal Income Tax and the Law on the amendments to the Law on Personal income tax:2

Chapter 1

GENERAL PROVISIONS

...

...

...

Taxpayers are residents and non-residents mentioned in Article 2 of the Law on Personal Income Tax, Article 2 of the Government's Decree No. 65/2013/NĐ-CP dated June 27, 2013 on guidelines for the Law on Personal Income Tax and the Law on amendments to the Law on Personal Income Tax (hereinafter referred to as “Decree No. 65/2013/ND-CP”) who earn taxable incomes as prescribed in Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013/ND-CP. 3

Taxable income is determined as follows:

Taxable income earned by a resident is the income earned within and beyond Vietnam’s territory regardless of the place where income is paid; 4

Any individual who is a citizen of a country or territory that has entered into an agreement on double taxation and prevention of tax avoidance with Vietnam, and also a resident in Vietnam shall calculate personal income tax from the month that individual arrives at Vietnam (if the individual goes to Vietnam for the first time) to the month in which the labor contract expires and the individual leaves Vietnam without following procedures for consular certification to avoid double taxation according to the double taxation agreement between the two countries. 5

Taxable income of a non-resident is income earned in Vietnam, regardless of the place where income is paid and received. 6

1. A resident is a person that meets one of the conditions below:

a) He/she has been present in Vietnam for at least 183 days in a calendar year or for 12 consecutive months from the first day of his/her presence in Vietnam (the date of arrival and date of departure are considered as 01 day). The date of arrival and date of departure depend on the certification of the immigration authority on his/her passport (or laissez-passers) when that person enters and leaves Vietnam. If the person enters and leaves Vietnam within one day, it will be considered as a day of residence.

A person in Vietnam defined in this Point is the presence of that person in Vietnam’s territory.

b) He/she has a regular residence in Vietnam in one of the following cases:

...

...

...

b.1.1) Regarding Vietnamese citizens: a place where that person regularly, stably and indefinitely lives, and which has been registered as a permanent residence as prescribed by regulations of law on residence.

b.1.2) Regarding foreigners: the permanent residence written in the permanent residence card or the temporary residence when applying for the temporary residence card issued by a competent authority affiliated to the Ministry of Public Security.

b.2) He/she rents a house in Vietnam according to regulations of law on housing under a contract that has a term of at least 183 days in the tax year. To be specific:

b.2.1) A person who has no regular residence defined in Point b.1 Clause 1 of this Article will be considered as a resident if he/she has a total house lease period of at least 183 days in the tax year under various lease contracts, even if he/she rents houses in different locations.

b.2.2) The rented houses may be hotels, guesthouses, motels, offices, etc. whether they are rented by the person or their employer.

If the person has a regular residence in Vietnam according to this Clause but his/her actual presence in Vietnam is shorter than 183 days in the tax year and he/she fails to prove his/her residency in any country, that person will be considered as a resident of Vietnam.

The residency in another country shall be proved by the Certificate of residence. If the person is a citizen of a country or territory that has signed a tax agreement with Vietnam and does not issue the Certificate of residence, that person shall present a photocopy of the passport to prove the period of residence.

2. A non-resident is a person who fails to meet any of the conditions specified in Clause 1 of this Article.

3. Taxpayers in some specific cases are identified as follows:

...

...

...

a.1) If only one person is registered in the Certificate of Business Registration, the taxpayer is person whose name is registered in the Certificate of Business Registration.

a.2) If multiple people are registered in the Certificate of Business Registration and participate in the business, taxpayers are the persons whose names are registered in the Certificate of Business Registration.

a.3) If multiple members of a household participate in the business but only one person is registered in the Certificate of Business Registration, the taxpayer is the person whose name is registered in the Certificate of Business Registration.

a.4) If the person or household conducts business without the Certificate of Business Registration (or practice certificate), the taxpayer is the person who is conducting business.

a.5) When leasing a house, the right to use land, water surface, and other property without business registration, the taxpayer is the person that owns the house, the right to use land, water surface and other property. If the house or the right to use land, water surface, and other property is under the ownership of multiple persons, the taxpayers are all the owners.

b) With regard to other individuals that earn taxable incomes.

b.1) When transferring real estate under a co-ownership, taxpayers are the co-owners of such real estate.

b.2) If the person authorized to manage real estate has the right to transfer real estate or rights similar to those of the real estate owner according to law regulations, the taxpayer is the authorizing person.

b.3) If the person that transfers the ownership, the right to use protected entities according to the Law on Intellectual Property and the Law on Technology Transfer is the co-owner or co-author, the taxpayer is co-owner or co-author that earns income from such transfer.

...

...

...

4. Taxpayers defined in Clause 1 and Clause 2 of this Article include:

a) Persons that hold Vietnamese nationality, including persons appointed to work or study overseas, and earn taxable incomes.

b) Persons that do not hold Vietnamese nationality but earn taxable incomes, including foreigners working in Vietnam, foreigners that are not present in Vietnam but earn taxable incomes from Vietnam.

Article 2. Taxable incomes

According to Article 3 of the Law on Personal Income Tax and Article 3 of the Decree No. 65/2013/ND-CP, incomes subject to personal income tax (hereinafter referred to as “taxable incomes”) include:

1. Incomes from business

Incomes from business are incomes earned from the production and trade. To be specific:

a) Incomes from production and trade in goods and services that belong to all industries according to law regulations such as production, good sale, construction, transport, restaurants, service provision, including lease of houses, right to use land, water surface, and other property.

b) Incomes from freelance works of individuals in the fields that are granted licenses or practice certificates as prescribed by law.

...

...

...

2. Incomes from wages and remunerations

Incomes from wages and remunerations (hereinafter referred to as “wages”) are incomes paid to employees by employers, including:

a) Wages, remunerations, and other amounts paid as wages or remunerations in cash or not in cash.

b) Allowances and benefits, except for:

b.1) Monthly benefits and allowances, lump-sum allowances according to regulations of law on incentives for contributors.

b.2) Monthly allowances and lump-sump allowances for persons that participate in the resistance movements, national defense, fulfillment of international tasks, and discharged volunteers.

b.3) Benefits for national defense and security; subsidies for the armed forces.

b.4) Benefits for dangerous or harmful works.

b.5) Benefits for employees in disadvantaged areas.

...

...

...

b.7) Benefits for beneficiaries of social security according to law regulations.

b.8) Benefits for senior officers.

b.9) 7 Lump-sum benefits for persons reassigned to areas facing extreme economic and social difficulties, lump-sum supports for officials working for sovereignty over sea and islands as prescribed by law. Lump-sum moving allowances for foreigners that move and reside in Vietnam and Vietnamese people that go to work abroad, and Vietnamese people that have long-term residence overseas and then go back to work in Vietnam.

b.10) Benefits for medical employees in villages.

b.11) Occupational benefits.

The allowances and benefits that are not included in taxable incomes according to guidance in Point b Clause 2 of this Article shall be defined by competent authorities.

If the documents on allowances and benefits are applicable to the public sector, other economic sectors and business establishments shall calculate allowances and benefits according to such documents.

If the actual benefits and allowances received are in excess of those stated above, the excess shall be included in taxable incomes.

Lump-sum moving allowances for foreigners that reside in Vietnam and Vietnamese people working overseas shall be deducted in accordance with the labor contract or collective bargaining agreement.

...

...

...

d) Payments for participation in business associations, Boards of Directors, Control Boards, project management boards, management councils, professional associations, and other organizations.

dd) Other benefits in cash or not in cash apart from wages paid to the taxpayer by the employer in any shape or form:

dd.1) 8 Payments for housing, electricity, water supply and associated services (if any), excluding benefits in terms of housing, electricity, water supply, and associated services (if any) of housing built by the employer for serving employees in industrial parks free of charge; housing built by the employer in disadvantaged areas and extremely disadvantaged areas that is provided free of charge for employees working therein.

If the person stays at the workplace, the taxable income depends on the house rent or depreciation expense, payments for electricity, water supply, and other services according to the ratio of area that person uses to the total area of the workplace.

The house rent, payments for electricity and water supply, and payments for associated services (if any) paid by the employer on behalf of the employee shall be included in taxable income according to the actual amount paid on behalf of the employee. Nevertheless, the amount must not exceed 15% of the total taxable income (excluding house rent, payments for electricity, water supply, and associated services (if any)) earned at the workplace regardless of income payer.”

dd.2) 9 Life insurance premiums, premiums of other optional insurance with accrual of premiums, voluntary pension insurance premiums or contributions to the voluntary pension fund paid on the employee’s behalf.

If the employer buys optional insurance without accrual of premiums for their employee (including insurance of insurers that are not established under Vietnam’s law but permitted to sell insurance in Vietnam), such premiums shall not be included in taxable income of the employee. Optional insurance without accrual of premiums are insurance products, including health insurance, death insurance (except for death insurance with refund policy), etc. from which policyholders do not receive the accrued amount of premiums apart from the insurance payout or indemnities paid by the insurer under insurance policies.”

dd.3) Membership fees and other expenses on services serving individuals, including healthcare, entertainments, sports, recreation. To be specific:

dd.3.1) Membership fees (such as membership card of golf course, tennis course, cultural, artistic, sports clubs, etc.) in case where the card specifies the user or group of users. If the card is shared without specific users, the fees shall not be included in taxable incomes.

...

...

...

dd.4) Flat expenditures on stationery, business trips, phone calls, costumes, etc. that are in excess of the limits prescribed by the State. Flat expenditures are not included in taxable income in the following cases:

dd.4.1) With regard to officials and employees in public service agencies, Communist Party’s agencies, associations: the flat expenditure shall follow guiding documents promulgated by the Ministry of Finance.

dd.4.2) With regard to the employees working in business establishments and representative offices: the flat expenditure shall conform to the income that incurs corporate income tax and guiding documents of the Law on Enterprise Income Tax.

dd.4.3) With regard to the employees in international organizations and representative offices of foreign organizations: the flat expenditure shall comply with regulations of such international organizations and representative offices of foreign organizations.

dd.5) 10 The expenditure on shuttling employees is not included in taxable incomes of employees according to rules and regulations of the employer.”

dd.6) Payments for refresher courses for employees, which suit their professions or accords with plans of the employer, shall not be included in incomes earned by employees.

dd.7) Other benefits.

Other benefits paid to employees by the employers, including payments during leave period or public holidays; payments for counseling, tax declaration services for a particular person or group of people; payments for domestic servants including driver, cook, and other domestic servants that work under contracts, etc.

e) Rewards in cash or not in cash in any shape or form, including rewards in the form of securities, except for:

...

...

...

e.1.1) Prize money associated with honorary titles awarded by Ministries, central and provincial agencies and associations, excellent employee titles

e.1.2) Prize money associated with the awards.

e.1.3) Prize money associated with the titles awarded by the State.

e.1.4) Prize money associated with the awards presented by associations and organizations belonging to central and local political organizations, socio-political organizations, social organizations, professional-social organizations in accordance with to their charters and the Law on Emulation and Commendation.

e.1.5) Prize money associated with the Ho Chi Minh Prize and National Prize.

e.1.6) Prize money associated with medals or badges.

e.1.7) Prize money associated with certificates of merit.

The authority to decide the commendation and prize money associated with the titles and awards above shall be conformable with the Law on Emulation and Commendation.

e.2) Prize money associated with national prizes and international prizes recognized by Vietnam.

...

...

...

e.4) Rewards for detecting and reporting violations against law to competent authorities.

g) Incomes below are not included in taxable incomes:

g.1) Supports provided by the employer for medical examination and treatment of fatal diseases suffered by employees and their families.

g.1.1) Relative of the employee in this case include children, legitimate adopted children, illegitimate children, stepchildren, spouse, parents, parents-in-law; stepparents, legitimate adoptive parents.

g.1.2) The support that is not included in taxable income is the actual paid amount according to hospital bills, but must not exceed the hospital fee paid by the employee and his or her relative after the amount paid by the insurer is deducted.

g.1.3) The employer that provide supports shall keep the copies of the hospital bills that are certified by the employer (if the employee and his or her relative pay for the remaining amount after the insurer directly pay the medical facility), the copies of the health insurance payment certified by the employer (if the employee and his or her family pay the entire hospital fee and then receive insurance money from the insurer) together with the papers proving the provision of supports for employees and their relatives who suffer from fatal diseases.

g.2) Amounts received according to regulations on using vehicles of state agencies, public service providers, Communist Party’s organizations, and associations.

g.3) Amounts received according to regulations on public housing.

g.4) Other payments received, apart from wages, for participation in consultation, appraisal, and inspection of legislative documents, Resolutions, political reports, inspectorates, serving votes, citizens; for costumes and other tasks directly serving the operation of the Office of the National Assembly, the Ethnic Communities Council, committees of the National Assembly, the delegations of the National Assembly, the Central Office, the departments of the Communist Party, City/Province Committees and their departments.

...

...

...

If the employer pays cash for their employees’ meals instead of providing mid-shift meals or lunch, such money is not included in the taxable income if it is conformable with the guidance of the Ministry of Labor, War Invalids and Social Affairs. If the payment is higher than the limit imposed by the Ministry of Labor, War Invalids and Social Affairs, the excess shall be included in taxable income.

Expenditures of state-owned enterprises, public service agencies, Communist Party’s agencies, associations shall not exceed the limits imposed by the Ministry of Labor, War Invalids and Social Affairs. Regarding non-public enterprises and organizations, the expenditures shall be decided by the head and the union president, and shall not exceed the limits imposed on state-owned enterprises.

g.6) Payments for round-trip air tickets made by the employer for foreign employees in Vietnam or Vietnamese employees overseas to go home once a year.

The basis for determination of the payment for air tickets is the labor contracts and the prices of air tickets from Vietnam to the other country and vice versa.

g.7) Tuition fees for children of foreign employees in Vietnam to study in Vietnam, for children of Vietnamese employees overseas to study overseas from preschool to high school, which are paid by the employer on their behalf.

g.8) Amounts received from sponsors are not included in the taxable income if the sponsorship beneficiary is a member of the sponsoring organization; the sponsorship is funded by government budget or managed in accordance with regulations of the State from composting literary and artistic works, scientific research, accomplishment of political objectives of the State, or other activities that conforms to their charters.

g.9) Payments paid by the employer for dispatching or reassigning foreign employees in Vietnam in accordance with labor contracts and international work schedules of some industries such as petroleum, mineral extraction.

The basis of determination is the labor contract and payments for air tickets from Vietnam to the home country of the foreign employee and vice versa.

Example 1: Mr. X is a foreigner dispatched by contractor Y to an oil rig on the continental shelf of Vietnam. According to the labor contract, the work cycle of Mr. X on this oil rig is 28 consecutive working days and 28 days off. The payments made by contractor Y for the air tickets for Mr. X to fly from his country to Vietnam and vice versa for every time of changing shift, the helicopter that take Mr. X from the mainland to the oil rig and vice verse, the residence expense while Mr. X is waiting for the helicopter shall not be included in the taxable income of Mr. X.

...

...

...

3. Incomes from capital investment

Incomes from capital investment are personal incomes in the form of:

a) Interest on the loans given to other organizations, enterprises, business households, business individuals and groups of business individuals according to loan contracts or agreements, except for the interests paid by credit institutions and foreign bank branches according to Point g.1 Clause 1 Article 3 of this Circular.

b) Dividends earned from capital contribution to purchase of shares.

c) 12 Profits from capital contributions to limited liability companies, partnerships, cooperatives, joint-ventures, business cooperation contracts, and other forms of business under the Law on Enterprises and the Law on Cooperatives; profits from capital contribution in establishment of credit institutions according to the Law on Credit Institutions, capital contributions to securities investment fund and other investment funds that are established and operate within the law.

Profits from capital investment of private companies and single-member limited liability companies under the ownership of individuals shall not be included in taxable income.

d) The added value of capital contribution received when the enterprise is dissolved, converted, divided, split, merged, amalgamation, or upon capital withdrawal.

dd) Incomes from interest on bonds, treasury bills, and other valuable papers issued by Vietnamese organizations, except for the incomes defined in Point g.1 and g.3 Clause 1 Article 3 of this Circular.

e) Incomes from capital investment in other forms, including capital contribution in kind, by reputation, rights to use land, patents.

...

...

...

4. Incomes from capital transfer

Incomes from capital transfer are personal incomes in the form of:

a) Profits from capital contributions to limited liability companies (including single-member limited liability companies), partnerships, cooperatives, business cooperation contracts, people's credit funds, economic organizations, and other organizations.

b) 13 Income from securities transfer, including income from transfer of stocks, the right to buy stocks, bonds, treasury bills, fund certificates and other securities according to Clause 1 Article 6 of the Law on Securities. Income from transfer of stocks by individuals in a joint-stock company is specified in Clause 2 Article 6 of the Law on Securities and Article 120 of the Law on Enterprises.

c) Incomes from other forms of capital transfer.

5. Incomes from real estate transfer

Incomes from real estate transfer:

a) Incomes from transferring rights to use land.

b) Incomes from transferring rights to use land and property on the land. Property on the land includes:

...

...

...

b.2) Infrastructure and constructions on the land, including off-the-plan constructions.

b.3) Other property on land, including agriculture, forestry and fishery products (such as plants and animals).

c) Incomes from transferring ownership of houses, including off-the-plan houses.

d) Incomes from transferring rights to use land, rights to rent water surface.

dd) Incomes from capital investment by real estate for establishment of enterprises or increase in capital of enterprises as prescribed by law.

e) Incomes from delegating the management of real estate, in case the person delegated to manage real estate has the right to transfer real estate or rights similar to those of the real estate owner according to law regulations.

g) Other incomes from real estate transfer in any form.

Regulations on off-the-plan houses and constructions in Clause 5 of this Article shall comply with regulations of law on real estate trading.

6. Incomes from winning prizes

...

...

...

a) Winning lottery prizes presented by lottery companies.

b) Wining prizes from promotion programs when buying products or services according to the Law on Commerce.

c) Winning prizes from the types of betting permitted by law.

d) 14  (Annulled)

dd) Winning prizes from the games with prizes and the like held by economic organizations, administrative agencies, associations, other organizations and individuals.

7. Incomes from copyright

Incomes from copyright are incomes from the transfer of ownership, rights to use the subjects of intellectual property rights according to the Law on Intellectual Property; income from technology transfer according to the Law on Technology Transfer. To be specific:

a) Subjects of intellectual property rights are specified in Article 3 of the Law on Intellectual Property and relevant guiding documents:

a.1) Subjects of copyright, including literary, artistic, and scientific works; subjects of rights relevant to copyright, including video recordings, sound recordings of broadcasted programs, program-carrying satellite signals.

...

...

...

a.3) Subjects of rights to plant varieties that are propagating materials and harvested materials.

b) Subjects of technology transfer are specified in Article 7 of the Law on Technology Transfer:

b.1) Transfer of technical know-hows.

b.2) Transfer of technological knowledge in forms of technological plans, technological processes, technical solutions, formulae, specifications, drawings, technical diagrams, computer programs, information.

b.3) Transfer of solutions for production rationalization and technological innovation.

Incomes from transfer of aforesaid subjects of intellectual property rights and technology transfer (including re-transfer).

8. Incomes from franchise

Franchise is a commercial operation in which the franchiser allows and requests the franchisee to sell goods and services under the conditions set out by the franchiser in the franchise contract.

Incomes from franchise are incomes that the person earned from the aforesaid franchise contracts, including re-franchise according to regulations of law on franchise.

...

...

...

Incomes from inheritance are incomes that the person receives under a will or in accordance with regulations of law on inheritance. To be specific:

a) Inherited securities: shares, call options on shares, bonds, treasury bills, fund certificates, and other securities according to the Law on Securities; shares of the person in the joint-stock company according to the Law on Enterprises.

b) Inherited capital in economic organizations and business establishments: capital contribution to limited liability companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises and business establishment of the person; capital in associations and funds established within the law, or the entire business establishment in case the private enterprise or business establishment is under the ownership of the person.

c) Inherited real estate: rights to use land, rights to use land and property thereon; ownership of houses, including off-the-plan houses, infrastructure and constructions on land, including off-the-plan constructions; rights to rent land or water surface; other incomes from inheritance being real estate in any shape or form, except for incomes from the inherited real estate mentioned in Point d Clause 1 Article 3 of this Circular.

d) The ownership and right to use other inherited assets (cars, motorbikes, ships, barges, speedboats, towboats, yachts, airplanes, hunting guns, and sporting guns) shall be registered with state agencies.

10. Incomes from receipt of gifts

Incomes from receipt of gifts are incomes that the person receives from organizations and individuals at home and overseas. To be specific:

a) Gifts being securities: shares, call options on shares, bonds, treasury bills, fund certificates, and other securities according to the Law on Securities; shares of the person in the joint-stock company according to the Law on Enterprises.

b) Gifts being capital in economic organizations and business establishments: capital contribution to limited liability companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises and business establishments of the person; capital in associations and funds established within the law, or the entire business establishment in case the private enterprise or business establishment is under the ownership of the person.

...

...

...

d) The ownership of and right to use gifts being other assets (cars, motorbikes, ships, barges, speedboats, towboats, yachts, airplanes, hunting guns, sporting guns) shall be registered with state agencies.

Article 3. Tax-free incomes

1. According to Article 4 of the Law on Personal Income Tax and Article 4 of the Decree No. 65/2013/ND-CP, tax-free incomes include:

a) Incomes from real estate transfer (including off-the-plan houses and constructions according to regulations of law on real estate trading) between husband and wife, parents and children; adoptive parents and adopted children; parents-in-law and children-in-law; grandparents and grand children, and among siblings.

The real estate (including off-the-plan houses and constructions according to regulations of law on real estate trading) that is established by either spouse during the marriage, considered marital property, divided under agreements or judgment of the court when they divorce shall be tax-free.

b) Income from transfer of a person's only house or right to use residential land and property thereon in Vietnam.

b.1) The person that transfers the house and right to use land that are tax-free as prescribed in Point b Clause 1 of this Article must meet all conditions below:

b.1.1) The transferor owns only one house or right to use residential land plot (with or without property thereon) at the time of transfer. To be specific:

b.1.1.1) The house ownership and right to use land shall be determined based on the certificate of rights to use land, ownership of house and other property on land.

...

...

...

b.1.1.3) If the house ownership or right to use land is the marital property and only property of the husband and wife, the person that has no other private house or land is eligible for tax exemption, the person that has another private house or land is not eligible for tax exemption.

b.1.2) 15 The house ownership or land use right has been possessed for at least 183 days before it is transferred.

The time for determination of the house ownership or land use right is the date of issuance of the certificate of land use right, ownership of house and other property on land. In case the certificate is reissued or replaced under regulations of law land, the time for determination of the house ownership or land use right is the date of issuance of the certificate of land use right, ownership of house and other property on land before reissuance or replacement”

b.1.3) The entire house or residential land is transferred.

If the individual has or shares the ownership of the only house or land use right and transfers part of it, the transferred part is not tax-free.

b.2) The only house and residential land that is tax-free shall be declared by the person and he/she shall be responsible for such declaration. If false declaration is discovered, the person has to pay tax arrears and incur penalties for violations against the laws on tax administration.

b.3) Transfer of off-the-plan houses and constructions that are not exempt from personal income tax shall follow guidance according to Point b Clause 1 of this Article.

c) Incomes from the person’s rights to use land allocated by the State that is eligible for land levy exemption or reduction.

The person that transfers the area of land eligible for exemption or reduction in land levy shall declare and pay tax on the income from real estate transfer according to Article 12 of this Circular.

...

...

...

dd) Incomes from conversion of agricultural land, which is allocated by the State for rationalization of agricultural production without change in land use purposes of the household or person engaged in agricultural production.

e) Incomes of households and persons engaged in agriculture, forestry, salt production and fishery with fishery products that have not yet been processed or have been preliminarily processed and have not yet been processed into other products.

Each household/person engaged in production according to guidance in this Point shall:

e.1) Have legitimate rights to use, lease land and water surface to engage in agriculture, forestry, salt production, and fishery.

Present a lease contract if the land or water surface is leased from another organization or person (unless the household or person is assigned to plant, take care of, manage, and protect forests by forestry companies). The household or person that does fishing shall have the Certificate of ownership of ships or contract to rent ships used for fishing and direct participation in fishing (except for fishing by trawling nets and other methods of fishery prohibited by law).

e.2) Reside in the local area where the agriculture, forestry, salt production or fishery takes place.

The aforesaid local area is a district, town, or city affiliated to a province (hereinafter referred to as “district”), or a district adjacent to the area where the production takes place.

Incomes from fishing do not depend on residence.

e.3) Raw agriculture, forestry products, salt, and fishery products which have not yet been processed into other products or have been preliminarily processed are products that are just cleaned, dried, husked, cut, salted, frozen, and put into ordinary storage.

...

...

...

g.1) The tax-free interest on deposits mentioned in this Point is the income from the interest on deposits in VND, gold, or foreign currencies at credit institutions and branches of foreign banks established and operating in accordance with the Law on Credit Institutions in the form of demand deposits, term deposits, savings, certificates of deposit, promissory notes, treasury bills, and other forms of deposits that the depositor should receive both principal and interest.

Bases for identification of tax-free incomes from deposits are the saving book (or saving card), certificates of deposit, exchange bills, treasury bills, and other papers that the depositor should receive both principal and interest.

g.2) Interest on life insurance contract is the interest that the person receives under the life insurance contract with the insurer.

The basis for identification of tax-free income from interest on life insurance contract is the note of interest payment from the insurance contract.

g.3) Interest on Government bonds is the interest that the person receives from purchase of Government bonds issued by the Ministry of Finance.

Bases for identification of tax-free income from interest on Government bonds are face values, interest rates, and terms on the Government bonds.

h) 16 Income from remittances is the amount of money the person receives from their relatives being Vietnamese people residing abroad, Vietnamese people that work or study abroad;

In case a person receives a remittance from a foreign relative from abroad in accordance with regulations on encouragement of remittance of money from abroad to Vietnam of the State Bank of Vietnam, it will be exempt from tax as prescribed in this Point.

Bases for identification of tax-free incomes mentioned in this Point are papers proving that those amounts are sent from abroad and  payment notes issued by the money-transferring organization (if any).

...

...

...

i.1) Tax-free additional payments for working at night or working overtime shall be identified according to the actual total payment for working at night or overtime minus (-) the payment for an ordinary working day.

Example 2: The wage of Mr. A on an ordinary working day is 40.000 VND/hour.

- When working overtime on a working day, he is paid 60.000 VND/hour, thus the tax-free income is:

60.000 VND/hour – 40.000 VND/ hour = 20.000 VND/ hour

- When working overtime on a holiday, he is paid 80.000 VND/hour, thus the tax-free income is:

80.000 VND/hour – 40.000 VND/ hour = 40.000 VND/ hour

i.2) The organization or person that pays incomes (hereinafter referred to as income payer) shall make a table specifying the hours of night work, extra hours, additional payments for working at nights and overtime. This table shall be kept and presented by the income payer at the request of the tax authority.

k) Pensions paid by Social Insurance Fund according to the Law on Social Insurance; monthly pensions from the voluntary pension fund.

Pensions paid from abroad to the people living and working in Vietnam are tax-free.

...

...

...

m.1) Scholarships funded by government budget, including scholarships given by the Ministry of Education and Training, Services of Education and Training, public schools, and other scholarships funded by government budget.

m.2) Scholarships given by Vietnamese and foreign organizations (including payment for living expenses).

The scholarship giver shall keep the decisions to give scholarships and notes of scholarship payments. Where the person directly receives scholarships from foreign organizations, the person shall keep the documents proving the incomes from such scholarships.

n) 17 Incomes from indemnities under the contract for life insurance, non-life insurance, or health insurance; compensation for occupational accidents; compensation and support according to regulations of law on compensation, support, and relocation; compensations provided by the State and other compensations prescribed by law.  To be specific:

n.1) Incomes from indemnities under the contract for life insurance, non-life insurance, or health insurance are the money that the life insurer, non-life insurer, or health insurer pays for the policyholders according to the concluded insurance contracts Bases for identification of such indemnity are the written decision on indemnity made by the insurer or the court and notes of indemnity payment.

n.2) The income from the compensation for an occupational accident is the money that the employee receives from his or her employer or the social insurance fund after suffering from an accident at work. Bases for identification of such compensation are the written decision on compensation made by the employer or the court and notes of compensation payment.

n.3) Incomes from compensations and supports according to law regulations on compensation, support, and relocation are compensations and supports provided by the State when withdrawing land, including incomes from the compensations and supports provided by economic organizations as prescribed.

Bases for identification of incomes from aforesaid compensations and supports are decisions on land withdrawal, compensations, and relocation issued by competent authorities, and notes of compensation payment.

n.4) Incomes from compensations provided by the State and other compensations prescribed by regulations of law on compensations provided by the State are compensations for the wrongful decisions on penalties for administrative violations made by competent persons or competent authorities which infringe the interests of the person; incomes from compensation for the miscarriage of justice during criminal proceedings. Bases for identification of such compensations are the decision made by the competent authority which forces the organization or individual making the wrongful decision to provide compensations and notes of compensation payment.

...

...

...

p) Incomes from non-profit charitable trusts accredited by competent authorities, which aim for charity, humanitarianism, and study encouragement.

These charitable trusts must be established and operate in accordance with the Government's Decree No. 30/2012/ND-CP dated April 12, 2012 on organization and operation of social trusts and charitable trusts.

Bases for identification of tax-free incomes from such charitable trusts in this Point are written decisions on giving money and notes of support in cash or in kind made by the charitable trusts.

q) Incomes from foreign aids for charitable and humanitarian purposes, whether governmental or non-governmental, that are approved by competent authorities.

The basis for identification of the tax-free income in this Point is written approval for receipt of aids made by the competent authority.

r) 18 Incomes from wages and remunerations of Vietnamese crewmembers from working for foreign shipping companies or Vietnamese shipping companies that provide international transport services.

s) 19 Incomes of individuals being ship owners or individuals having rights to use the ships from provision of goods/services directly serving offshore fishing.

2.  The procedure and application for tax exemption in the cases in Points a, b, c, d, dd Clause 1 of this Article shall comply with guiding documents on tax administration.

Article 4. Tax reduction

...

...

...

1. Determination of reduced tax:

a) Tax reduction shall be considered in the tax year. The taxpayer shall receive tax reduction for the tax year in which the taxpayer suffers from natural disaster, fire, accident, or fatal disease.

b) The tax payable used for calculating tax reduction is the total personal income tax payable in the tax year, including:

b.1) Paid or deducted personal income tax on incomes from capital investment, incomes from capital transfer, incomes from real estate transfer, incomes from winning prizes, incomes from royalties, incomes from franchise, incomes from inheritance, and incomes from gifts.

b.2) Personal income tax payable on incomes from business and incomes from wages, remunerations.

c) The basis for calculation of the damage eligible for tax reduction is the total expenditure for repairing damage minus the indemnities provided by insurers (if any) or compensations provided by the organization or individual that caused the accident (if any).

d) The reduced tax is determined as follows:

d.1) If the tax payable in the tax year is higher than the damage level, the reduced tax is equal to the damage level.

d.2) If the tax payable in the tax year is lower than the damage level, the reduced tax is equal to the tax payable.

...

...

...

Article 5. Converting taxable income into VND 20

1. Revenues and incomes subject to PIT are expressed as VND.

Revenues and taxable incomes received in foreign currencies shall be converted into VND at the buying rate of the bank where the person opens the transaction account at the time incomes are earned.

In case a taxpayer does not have a transaction account in Vietnam, foreign currencies shall be converted into VND at the buying rate of Vietcombank at the time incomes are earned.

Foreign currencies without rates of exchange into VND shall be converted into a foreign currency that has a rate of exchange into VND.

2. Non-cash taxable incomes shall be converted into VND at the market prices of such products/services or the similar products/services when the incomes are earned.

Article 6. Tax period

1. Regarding residents:

a) Annual tax statement is applicable to incomes from business and incomes from wages, remunerations.

...

...

...

If the person has been present in Vietnam for fewer than 183 days in a calendar year, but has been in Vietnam for 183 days for 12 consecutive months from the date of arrival, the first tax period is the 12 consecutive months from the date of arrival. In the second year, the tax period is the calendar year.

Example 3: Mr. B is a foreigner who first comes to Vietnam on April 20, 2014. In 2014 up to December 31, Mr. B has stayed in Vietnam for 130 days. In 2015 up to April 19, Mr. B has stayed in Vietnam for 65 days. The first tax period of Mr. B begins on April 20, 2014 and ends on April 19, 2015. The second tax period begins on January 01, 2015 and ends on December 31, 2015.

b) Tax statement when an income is earned is applicable to incomes from capital investment, incomes from capital transfer, incomes from real estate transfer, incomes from winning prizes, incomes from royalties, incomes from franchising, incomes from inheritance, and incomes from gifts.

c) Tax on incomes from transfer of securities shall be declared annually or when it is incurred.

2. Regarding non-residents:

Each non-resident shall declare tax whenever an income is earned.

Where the business person does not have a fixed business location such as a shop or counter, the tax period is similar to that applicable to the resident earning income from business.

Chapter 2

BASES FOR CALCULATION OF TAX INCURERD BY RESIDENTS

...

...

...

Bases for calculation of tax on incomes from 22 wages are the assessable income and tax rate. To be specific:

1. Assessable income equals taxable income according to guidance in Article 8 of this Circular minus (-) the following deductions:

a) Personal deductions according to guidance in Clause 1 Article 9 of this Circular.

b) Insurance premiums and payment to the voluntary pension fund according to guidance in Clause 2 Article 9 of this Circular.

c) Charitable, humanitarian, and study encouragement contributions (hereinafter referred to as charitable donations) according to guidance in Clause 3 Article 9 of this Circular.

2. Tax rate

The rate of personal income tax on incomes from 23 wages shall apply the progressive tax table in Article 22 of the Law on Personal Income Tax. To be specific:

Level

Assessable income/year (million VND)

...

...

...

Tax rate (%)

1

Up to 60

Up to 5

5

2

Over 60 to 120

Over 5 to 10

10

...

...

...

Over 120 to 216

Over 10 to 18

15

4

Over 216 to 384

Over 18 to 32

20

5

Over 384 to 624

...

...

...

25

6

Over 624 to 960

Over 52 to 80

30

7

Over 960

Over 80

35

...

...

...

Personal income tax on incomes from 24 wages is the total tax on each level of income. The tax on each level of income equals the assessable income of that level multiplied by (x) the corresponding tax rate of that level.

For convenience, the abridged method in Appendix 01/PL-TNCN to this Circular may be applied.

Example 4: Mrs. C earns an income of 40 million VND from wages in the month, and pay 7% of wages for social insurance premium, 1.5% of wages for health insurance premium. Mrs. C has 2 children under the age of 18, and makes no charitable donations. The preliminary personal income tax incurred by Mrs. C in the month is calculated as follows:

- Taxable income of Mrs. C is 40 million VND.

- Mrs. C is eligible for the deductions below:

+ Personal deduction: 9 million VND

+ Deductions for 02 dependants (02 children):

3.6 million VND x 2 = 7.2 million VND

+ Social insurance, health insurance:

...

...

...

Total deduction:

9 million VND + 7,2 million VND + 3,4 million VND = 19, 6 million VND

- Assessable income of Mrs. C:

40 million VND – 19,6 million VND = 20,4 million VND

- Tax payable:

Method 1: using the progressive tax table:

+ Level 1: assessable income up to 5 million VND, 5% tax:

5 million VND x 5% = 0,25 million VND

+ Level 2: assessable income from over 5 million VND to 10 million VND, 10% tax:

...

...

...

+ Level 3: assessable income from over 10 million VND to 18 million VND, 15% tax:

 (18 million VND - 10 million VND) x 15% = 1,2 million VND

+ Level 4: assessable income from over 18 million VND to 32 million VND, 20% tax:

 (20,4 million VND - 18 million VND) x 20% = 0,48 million VND

- Total preliminary tax payable by Mrs. C in the month:

0,25 million VND + 0,5 million VND + 1,2 million VND + 0,48 million VND = 2,43 million VND

Method 2: Using the abridged method:

The assessable income in the month 20,4 million VND is the assessable income in level 4. The personal income tax payable:

20,4 million VND x 20% - 1,65 million VND = 2,43 million VND

...

...

...

If the wages paid to the employee according to guidance in Clause 2 Article 2 of this Circular are exclusive of tax, they must be converted into assessable income in accordance with Appendix No. 02/PL-TNCN to this Circular. To be specific:

a) 25 The income converted into assessable income is the actual income received (excluding tax-free incomes) plus (+) benefits paid by the employer on behalf of the employee (if any) minus (-) the deductions.  If the employer applies “presumptive tax” or “presumptive house rent”, the income to be converted into assessable income does not include such “presumptive tax” and “presumptive house rent”. If the amounts paid on behalf of the employees include the house rent, the actual house rent shall be included in the converted income. Nevertheless, the house rent must not exceed 15% of the total taxable income incurred at the workplace regardless of income payer (excluding actual house rent, costs for electricity, water and other accompanying services and “presumptive house rent” (if any)).

Formula for calculation of converted income:

Converted income

=

Actual income

+

Amounts paid on the employee’s behalf

-

...

...

...

Where:

- Actual income is the tax-exclusive wage that the employee receives every month (exclusive of tax-free income).

- The amounts paid on the employee’s behalf are the benefits in cash or in kind paid to the employee by the employer as instructed in Point dd Clause 2 Article 2 of Circular No. 111/2013/TT-BTC, Clause 2, Clause 3 and Clause 4 Article 11 of Circular No. 92/2015/TT-BTC.

- Deductions include personal deductions, insurance premiums, contributions to the voluntary pension fund, and charitable donations according to guidance in Article 9 of Circular No. 111/2013/TT-BTC and Circular No. 92/2015/TT-BTC.

b) If the person is required to settle tax, the taxable income in the year is the sum of taxable income of each month based on the converted assessable income. If the person earns tax-exclusive incomes from multiple organizations, the taxable income in the year is the sum of taxable income of each month paid by each organization in the year.

Example 7. Mr. D in example 6 above has a contract and earns an income of 12 million VND/month at company Y from January 2014 to May 2014 apart from the income earned at company X Company Y also pays personal income tax on behalf of Mr. D.

Final personal income tax incurred by Mr. D in 2014:

- Taxable income in the year earned by Mr. D at company X:

42,687 million VND x 12 months = 512,244 million VND

...

...

...

+ Monthly assessable income (converted in accordance with Appendix No. 02/PL-TNCN):

 (12 million VND - 0,75 million VND) /0,85 = 13,235 million VND

+ Taxable income in the year earned at company Y:

13,235 million VND x 5 months = 66,175 million VND

+ Total taxable income earned by Mr. D in 2014:

512,244 million VND + 66,175 million VND = 578,419 million VND

- Monthly assessable income:

 (578,419 million VND : 12 months) - (9 million VND + 1,5 million VND) = 37, 702 million VND

- Personal income tax payable in the year:

...

...

...

5. 26. (Annulled)

6. 27 The basis for calculation of tax on accrued premiums of optional insurances is the accrued premiums of life insurance (except voluntary pension insurance) and other optional insurances paid by the employer on behalf of the employee with the deduction rate of 10%.

In case the employer buys life insurance (except voluntary pension insurance) and/or other optional insurances with accrual of insurance premiums for the employee from the insurer(s) established and operating under Vietnam’s law, the employee is not required to include the accrued premiums to taxable income when the employer buys the insurance(s). When the contract matures, the insurer shall deduct 10% tax from the accrual of premiums paid by the employer for the employee from July 01, 2013. In case the premium accrual is paid by installments, 10% tax shall be deducted from each payment.

In case the employer buys life insurance (except voluntary pension insurance) and/or other optional insurances with accrual of insurance premiums for the employee from the insurer(s) not established and operating under Vietnam’s law, the employer has the responsibility to deduct 10% tax from the premiums before paying the employee.

Insurers shall be responsible for monitoring premiums of life insurance and other optional insurances bought by employers for their employees in order to calculate PIT.”

Article 8. Calculation of taxable incomes from wages 28

1. 29 (Annulled)

2. Taxable income from wages

a) The taxable income from wages equals the sum of wages, remunerations and other incomes considered as wages received by the taxpayer in the tax period according to guidance in Clause 2 Article 2 of this Circular.

...

...

...

Taxable income from wages and remuneration shall be calculated when the income is paid to the taxpayer.

The taxable income from accrued insurance premium guided in Point dd.2 Clause 2 Article 2 of this Circular shall be calculated when the insurer 30 pays the insurance money.

33. 31 (Annulled)

Article 9. Deductions

Deductions under guidance in this Article are amounts deducted from the taxable income of the person before the taxable income from wages is calculated 32. To be specific:

1. Personal deductions

According to Article 19 of the Law on Personal Income Tax, Clause 4 Article 1 of the Law on amendments to the Law on Personal Income Tax, and Article 12 of the Decree No. 65/2013/ND-CP:

a) Personal deduction is the amount of money deducted from the taxable income before calculation of tax on the income from wages 33 earned by the resident taxpayer.

…34

...

...

...

b.1) Deduction for the taxpayer: 9 million VND/month, 108 million VND/year.

b.2) Deduction for each dependant: 3,6 million VND/month

c) Principles of calculating deductions

c.1) Personal deduction for the taxpayer:

c.1.1) The taxpayer that has multiple sources of income from wages 35 shall calculate the personal deduction for himself/herself in a place at a time (considered a full month).

c.1.2) The foreigner being a resident in Vietnam shall make personal deduction from January (or the month of arrival if the person comes to Vietnam for the first time) until the month in which the labor contract expires and that person leaves Vietnam in the tax year (considered a full month).

Example 8: Mr. E is a foreigner that comes to work in Vietnam continuously from March 01, 2014. On November 15, 2014, the labor contract expires and Mr. E goes home. Mr. E is present in Vietnam for 183 days from March 01, 2014 until the date of departure. Thus in 2014, Mr. E is a resident and may make a personal deduction from January until the end of November 2014.

Example 9: Mrs. G is a foreigner who comes to Vietnam for the first time on September 21, 2013. On June 15, 2014, the labor contract expires and Mrs. G leaves Vietnam. Mrs. G is present in Vietnam for 187 days during the period from September 21, 2013 to June 15, 2014. Thus in the first tax year (from September 21, 2013 to September 20, 2014), Mrs. G is considered a resident in Vietnam and may make a personal deduction from September 2013 until the end of June 2014.

c.1.3) If the person has not made personal deduction or the deduction does not cover 12 months in the tax year, the person may make deduction for 12 months before settling tax according to regulations.

...

...

...

c.2.1) The taxpayer may make deductions for his or her dependants if the taxpayer has applied for tax registration and been issued with the tax identification number.

c.2.2) When registering deductions for dependants, the taxpayer shall be issued with tax identification numbers for dependants by the tax authority and make preliminary deductions in the year from the registration date Dependants that are registered before the effective date of this Circular are still eligible for deductions until they are issued with tax identification numbers.

c.2.3) If the taxpayer has not made deductions for dependants in the tax year, the deductions for dependants shall be made from the month in which the custody is given when the taxpayer settles tax and registers deductions for dependants. Deductions for other dependants, who are defined in Point d.4 Clause 1 of this Article, shall be registered by December 31 of the tax year, otherwise the deduction for the whole tax year shall not be made.

c.2.4) The deduction for a dependant shall apply to only one taxpayer in the tax year. Where multiple taxpayers have the same dependant, they shall reach an agreement on the person that makes the deduction for such dependant.

d) Dependants include:

d.1) Children, legitimate adopted children, illegitimate children, stepchildren. To be specific:

d.1.1) Children under 18 years of age.

Example 10: A child of Mr. H born on July 25, 2014 is considered a dependant from July 2014.

d.1.2) Children from 18 years of age and over that are disabled and incapable of work.

...

...

...

d.2) Taxpayer's spouse that meets the conditions in Point dd Clause 1 of this Article.

d.3) Taxpayer’s parents, parents-in-law, stepparents, legitimate adoptive parents that meet the conditions in Point dd Clause 1 of this Article.

d.4) Other dependants that the taxpayer has to provide for, who meet the conditions in Point dd Clause 1 of this Article, including:

d.4.1) Taxpayer’s brothers and sisters.

d.4.2) Taxpayer’s grandparents, aunts, uncles.

d.4.3) Taxpayer’s nieces and nephews.

d.4.4) Other people as prescribed by law.

dd) A person that meets the conditions below shall be considered a dependant mentioned in Point d.2, d.3, d.4 Clause 1 of this Article:

dd.1) The person of working age shall meet all conditions below:

...

...

...

dd.1.2) The person has no income or his average monthly income from all sources does not exceed 1.000.000 VND.

dd.2) The people outside working age shall have no income or their average monthly income from all sources shall not exceed 1.000.000 VND.

e) The disabled that are incapable of work mentioned in Point dd.1.1 Clause 1of this Article are people regulated by regulations of law on the disabled and ill people incapable of works (sufferers from AIDS, cancer, chronic kidney failure, etc.)

g) Documents proving dependants

g.1) Children:

g.1.1) For children under 18 years of age: photocopies of the Certificates of birth and ID cards (if any).

g.1.2) For children from 18 years of age and over that are disabled and incapable of work:

g.1.2.1) Photocopies of the Certificates of birth and ID cards (if any).

g.1.2.2) Photocopies of Certificates of disability according to regulations of law on the disabled.

...

...

...

g.1.3.1) Photocopies of the Certificates of birth.

g.1.3.2) Photocopies of students’ cards or declarations certified by the schools, or other papers proving the study at such schools.

g.1.4) For adopted children, illegitimate children, stepchildren: apart from the aforesaid papers, other papers proving the relationship are required, such as photocopies of decisions on certification of adoption made by competent authorities.

g.2) For spouse:

- A photocopy of the ID card

- A photocopy of the household book (which proves the husband and wife relationship) or a photocopy of the Certificate of marriage.

If the spouse is of working age, other papers proving the dependant’s incapability of work are required, apart from the aforesaid papers, such as the Certificate of disability according to regulations of law on the disabled that are incapable of works, a photocopy of the medical record of the ill person incapable of work (sufferer from AIDS, cancer, chronic kidney failure, etc.)

g.3) For parents, parents-in-law, stepparents, legitimate adoptive parents:

- Photocopies of ID cards.

...

...

...

If they are of working age, other papers proving the dependants’ incapability of work are required, apart from the aforesaid papers, such as Certificates of disability according to regulations of law on the disabled that are incapable of works, photocopies of the medical records of ill persons incapable of work (sufferers from AIDS, cancer, chronic kidney failure, etc.).

g.4) For other people mentioned in Point d.4 Clause 1 of this Article, proving documents include:

g.4.1) Photocopies of Certificates of birth or ID cards.

g.4.2) Other legitimate papers for determination of the custody as prescribed by law.

If the dependants are of working age, other papers proving dependants’ incapability of work are required, apart from the aforesaid papers, such as the Certificate of disability according to regulations of law on the disabled that are incapable of works, photocopies of medical records of ill persons incapable of work (sufferers from AIDS, cancer, chronic kidney failure, etc.).

Legitimate papers mentioned in Point g.4.2 Clause 1 of this Article are any legal document that proves the relationship between the taxpayer and the dependant, including:

- Photocopies of papers proving the custody (if any).

- A photocopy of the household book (if their names are in the same household book).

- A photocopy of the certificate of temporary residence of the dependent (if their names are not in the same household book).

...

...

...

- A declaration that the dependant is residing in the commune and living alone, which is made by the taxpayer according to the form provided in documents on tax administration and certified by the People’s Committee of the commune where the taxpayer resides.

g.5) If the resident is a foreigner, legal documents proving the dependant, which are equivalent to the aforesaid documents are required.

g.6) Where the taxpayer working in an economic organization, a public service provider has specified his/her dependants being his/her parents, spouse, children, and other dependants in his or her résumé, the documents proving the dependants are the documents mentioned in Point g.1, g.2, g.3, g.4, g.5 Clause 1 of this Article, or only the dependant registration form certified by the head of the unit on the left is required.

The head of the unit is only responsible for full names of dependants, their years of birth and relationship with the taxpayer. The taxpayer is responsible for other information.

h) Declaration of deduction for dependants

h.1) The taxpayer that earns 09 million VND/month or less from wages 36 is not required to register dependants.

h.2) The taxpayer that earns over 09 million VND/month from wages 37 shall follow the procedure below to make deductions for dependants:

h.2.1) For taxpayers that earn incomes from wages

h.2.1.1) Registration of dependants

...

...

...

The taxpayer that earns income from wages shall submit 02 applications for dependant registration (using the form provided in guiding documents on tax administration) to the income payer as the basis for calculation of deductions for dependants.

The income payer shall keep 01 application and submit 01 application to the local tax authority when submitting the personal income tax declaration of that person in accordance with the Law on Tax Administration.

The person that directly declares tax at the tax authority shall submit 01 application for dependant registration (using the form provided in guiding documents on tax administration) to the tax authority that monitors the income payer when submitting his declaration of personal income tax in accordance with the Law on Tax Administration.

h.2.1.1.2) Registration in case of changes of dependants:

When the number of dependants are changed (increased or decreased), the taxpayer shall make an additional declaration using the form provided in guiding documents on tax administration, and submit it to the income payer (or to the tax authority if the taxpayer declares tax directly at the tax authority).

h.2.1.2) Location and deadline for submission of documents proving the dependants:

- The location for submission of documents proving the dependants is a place where the taxpayer submits the application for dependant registration

The income payer shall keep the documents proving the dependants and present them when the tax authority carries out tax inspection.

- The documents proving the dependants shall be submitted within 03 months from the day on which the application for dependant registration is submitted (including the registration of change of dependants).

...

...

...

h.2.2) 38 (Annulled)

i) The taxpayer shall register and submit proving documents for a dependant once throughout the deduction period. Where the taxpayer changes the workplace 39, the application for dependant registration and proving documents shall be similarly submitted according to guidance in Point h.2.1.1.1 Clause 1 of this Article.

2. Deductions for insurance premiums and contributions to the voluntary pension fund

a) Insurance premiums include premiums for social insurance, health insurance, unemployment insurance and professional liability insurance which is compulsory for some professions.

b) 40 Contributions to the voluntary pension fund and payment for voluntary pension insurance

Contributions to the voluntary pension fund and payment for voluntary pension insurance are deducted from the taxable income. Nevertheless, the deduction shall not exceed VND 01 million/month if the employee participates in voluntary pension products as instructed by the Ministry of Finance, including the amounts paid by the employer on behalf of the employee and the amounts paid by the employee himself/herself, even if the employee participates in multiple pension funds. The basis for determination of deductible income is a photocopy of receipt for payments issued by the voluntary pension fund or the insurer.

c) Where the foreigner being a resident in Vietnam, or the Vietnamese person being a resident but working overseas earns incomes from wages 41 overseas and pays compulsory insurance premiums required by the country where the person holds the nationality or works that are similar to those in Vietnam such as social insurance, health insurance, unemployment insurance, professional liability insurance, and other compulsory insurance, such insurance premiums may be deducted from the taxable income from wages 42 when the personal income tax is calculated.

Foreigners and Vietnamese people who pay the aforesaid insurance premiums overseas shall have them provisionally deducted from the income in the year (if supporting documents are provided). Deductions shall be officially made when they settle tax according to regulations. If no supporting documents are provided for immediate deduction, a lump-sum deduction shall be made when settling tax.

d) Insurance premiums and contributions to the voluntary pension fund in the year shall be deducted from the taxable income earned in that year.

...

...

...

3. Deductible charitable donations.

a) Charitable donations shall be deducted from the taxable income from wages 43 before the tax incurred by a resident taxpayer is calculated. To be specific:

a.1) Donations to the establishments that take care of disadvantaged children, the disabled, and the homeless elderly people.

Establishments that take care of disadvantaged children, the disabled, and the homeless elderly people shall be established and operate in accordance with the Government's Decree No. 68/2008/ND-CP dated May 30, 2008 on conditions and procedure for establishment, organization, operation, and dissolution of social protection organizations, the Government's Decree No. 81/2012/ND-CP dated October 08, 2012 on amendments to the Government's Decree No. 68/2008/ND-CP dated May 30, 2008 on conditions and procedure for establishment, organization, operation, and dissolution of social protection organizations, and the Government's Decree No. 109/2002/ND-CP dated December 27, 2002 on amendments to the Government's Decree No. 195/CP dated December 31, 1994 on elaboration and provision of guidance on the implementation of a number of Articles the Labor Code on hours for work and rest.

Documents proving the donations to the establishments that take care of disadvantaged children, the disabled, and the homeless elderly people are valid notes of receipts of such establishments.

a.2) Contributions to charitable, humanitarian and study encouragement funds established and operating in accordance with the Government's Decree No. 30/2012/ND-CP dated April 12, 2012 on the organization and operation of non-profit social funds, charitable funds, and other documents related to the management and use of sponsorships.

Documents proving charitable donations are valid notes of receipt made by central or provincial organizations and funds.

b) Charitable donations made in a tax year shall be deducted from the taxable income earned in that tax year. The donations that are not completely deducted shall be deducted from the taxable income earned in the next tax year. The maximum deduction shall not exceed the assessable income from wages 44 earned in the tax year in which the charitable donations are made.

Article 10. Bases for calculation of tax on incomes from capital investment.

...

...

...

1. Assessable income

The assessable income from capital investment is the taxable income earned by the individual according to Clause 3 Article 2 of this Circular.

2. The tax rate on the income from capital investment is 5% according to the whole income tax table.

3. Time to calculate the assessable income

The assessable income from capital investment shall be calculated when the taxpayer is paid by the income payer.

Times to calculate assessable income in some cases:

a) The income from additional value of capital contribution according to guidance in Point d Clause 3 Article 2 of this Circular shall be calculated when the person actually receives the income in case when the enterprise is dissolved, converted, divided, merged, amalgamated, or when the capital is withdrawn.

b) The income from reinvested profit according to guidance in Point g Clause 3 Article 2 of this Circular shall be calculated when the person transfers or withdraws capital.

c) The income from dividend in shares according to guidance in Point g Clause 3 Article 2 of this Circular shall be calculated when the person transfers his shares.

...

...

...

4. Tax calculation

Personal income tax payable = Assessable income x 5% tax

Article 11. Bases for calculation of tax on incomes from capital transfer.

1. Regarding income from transfer of contributed capital

Bases for calculation of tax on incomes from transfer of contributed capital are assessable income and the tax rate.

a) The assessable income from transfer of contributed capital equals the transfer price minus the purchase price of the transferred capital and rational expenses related to the generation of the income from capital transfer.

Where the enterprise does bookkeeping in foreign currencies and the contributed capital is transferred in foreign currencies, the transfer price and purchase price of the capital are also expressed as foreign currencies. Where the enterprise does bookkeeping in VND and the contributed capital is transferred in foreign currencies, the transfer price shall be expressed VND according to the average exchange rate on the inter-bank foreign exchange market announced by the State Bank of Vietnam when the transfer is made.

a.1) Transfer price

Transfer price is the amount of money that the individual receives under the capital transfer contract.

...

...

...

a.2) Purchase price

The purchase price of the transferred capital is the value of contributed capital when the transfer is made.

The value of contributed capital at that time includes the value of the capital contributed to the establishment of the enterprise, value of additional contributions, value of purchased capital, and value of capital from reinvested profit. To be specific:

a.2.1) For capital contributed to the establishment of the enterprise, it is the value of capital when the contribution is made. The value of contributed capital is determined based on accounting books and invoices.

a.2.2) For additional capital contribution, it is the value of the additional capital contribution when the additional contribution is made. The value of additional capital contribution is determined based on accounting books and invoices.

a.2.3) For purchased capital, it is its value when the purchase is made. The purchase price is determined based on the contract to purchase capital contribution. If the contract to purchase capital contribution does not specify the price or the price stated in the contract is not conformable with the market price, the tax authority may impose a purchase price in accordance with regulations of law on tax administration.

a.2.4) For the capital from reinvested profit, it is the value of the reinvested profit.

a.3) Deductible expenses when calculating taxable income from capital transfer are rational expenses that are related to the generation of income from capital transfer with valid invoices as prescribed. To be specific:

a.3.1) Expenses on legal procedures necessary for the transfer.

...

...

...

a.3.3) Other expenses related to the capital transfer.

b) Tax rate

The rate of personal income tax on the income from transfer of contributed capital is 20% according to the whole income tax table.

c) Time to calculate the assessable income

The assessable income shall be calculated when the capital transfer contract takes effect. Where making contribution from another capital contribution, the assessable income from capital transfer shall be calculated when the person transfers or withdraws capital.

d) Tax calculation

Personal income tax payable = Assessable income x 20% tax

2. Regarding income from transfer of securities

Bases for calculation of tax on incomes from transfer of securities are assessable income and the tax rate.

...

...

...

The assessable income from transfer of securities is the price of each transfer.

a.1) Securities transfer price is determined as follows:

a.1.1) The transfer price of securities of a public company traded at the Stock Exchange is the transaction price at the Stock Exchange. The executed price is the price of securities according to the order-matching result or the price from transactions at the Stock Exchange.

a.1.2) The transfer price of securities in cases other than the above case is the price written on the transfer contract or the actual transfer price or the price in the accounting book of the transferor when the latest financial statement is made before the time of transfer according to regulations of law on accounting.

b) 46 Tax rate and tax calculation:

Securities transferee shall pay 0.1% tax on the price of each transfer.

Tax calculation

PIT payable = Price of each transfer x  0,1% tax

c) Time to calculate the assessable income

...

...

...

c.1) For securities of a public company that are traded at the Stock Exchange, it is the time when the taxpayer receives the income from securities transfer.

c.2) For securities of a public company that are not traded at the Stock Exchange but only transferred via the system of the Vietnam Securities Depository, it is the time the ownership is transferred at the Vietnam Securities Depository.

c.3) For the securities that do not fall into the cases above, it is the time the securities transfer contract takes effect.

c.4) In case the capital contribution is made by securities without paying tax when making capital contribution, the time to calculate income from securities transfer to make capital contribution is the time the person transfers/withdraws capital.

d) Receipt of shares paid as dividend.

In case of receipt of shares paid as dividend, the person may delay paying personal income tax when receiving shares. When transferring such shares, the person shall pay personal income tax on the income from capital investment and the income from transfer of securities. To be specific:

d.1) The basis for determination of the personal income tax payable on the income from capital investment is the value of dividend in the accounting book or the quantity of actual shares received multiplied by (x) the face value of such shares and the rate of personal income tax on the income from capital investment.

If the transfer price of the shares paid as dividend is lower than the nominal price, the personal income tax on capital investment shall be calculated at the market price when the transfer is made.

If the person transfers the same type of securities after receiving shares paid as dividend, the person shall declare and pay personal income tax on the all the shares paid as dividends.

...

...

...

Example 12: Mr. K is a shareholder of joint-stock company X (listed at the Stock Exchange). In 2011, Mr. K receives 5.000 shares paid as dividend by company X (the face value of a share is 10.000 VND). In February 2014, Mr. K transfers 2.000 shares of company X at a price of 30.000 VND per share. In August 2014, Mr. K transfers 7.000 shares at a price of 20.000 VND per share.

When making the transfer, Mr. K has to pay personal income tax on the income from capital investment and the income from transfer of securities. To be specific:

* For the transfer in February 2014

- Personal income tax on the income from capital investment:

 (2.000 shares x 10.000 VND) x 5% = 1.000.000 VND

- Personal income tax (preliminary) on income from transfer of securities:

 (2.000 shares x 30.000 VND) x 0,1% = 60.000 VND

* For the transfer in August 2014:

- Personal income tax on the income from capital investment:

...

...

...

- Personal income tax (preliminary) on income from transfer of securities:

 (7.000 shares x 20.000 VND) x 0,1% = 140.000 VND

Article 12. Bases for calculation of tax on incomes from capital transfer real estate transfer 47

Bases for calculation of tax on incomes from real estate transfer are the price of each transfer and tax rate.

1. Transfer price

a) The price of transfer of right to use land without constructions thereon is the price written on the transfer contract at the time of transfer.

If the transfer contract does not specify the price or the price written on the transfer contract is lower than the land price imposed by the People’s Committee of the province at that time, the land price imposed by the People’s Committee of the province at that time shall apply.

b) The price of transfer of right to use land with constructions thereon, including off-the-plan houses and constructions, is the price written on the transfer contract at the time of transfer.

If the transfer contract does not specify the land price or the land price written on the transfer contract is lower than the land price imposed by the People’s Committee of the province at that time, the land price imposed by the People’s Committee of the province at that time shall apply according to the land law.

...

...

...

Regarding off-the-plan houses and constructions, if the contract does not specify the transfer price of the transfer price is lower than the ratio of capital contribution to total contract value multiplied by (x) land price and the price for calculation of registration fee imposed by the People’s Committee of the province, the transfer price shall equal the price imposed by the People’s Committee of the province multiplied by (x) ratio of capital contribution to total contract value. If the People’s Committee of the province has not imposed the unit price, the rate of construction investment announced by the Ministry of Construction which is applicable when the transfer is made shall apply.

c) The price of transfer of right to lease land/water surface is the price written on the transfer contract at the time of transfer.

If the unit price for sublease written on the contract is lower than the price imposed by the People’s Committee of the province when the sublease is taken, the sublease price shall be determined according to the price list compiled by the People’s Committee of the province.

2. Tax rate

Tax on real estate transfer is 2% of the transfer price or sublease price.

3. Time for taxing real estate transfer is determined as follows:

- If the transfer contract does not require the buyer to pay tax on behalf of the seller, the taxing time is the effective date of the transfer contract as prescribed by law;

- If the transfer contract requires the buyer to pay tax on behalf of the seller, the taxing time is time of registration of the right to own or right to use the real estate.

In case the person receives an off-the-plan house or right to use land associated with off-the-plan constructions, the taxing time is the time when the person submits tax declaration documents to the tax authority.

...

...

...

PIT on income from real estate transfer is calculated as follows:

PIT payable = Transfer price x  2% tax

b) In case the transferred real estate in under a co-ownership, the tax liability incurred by each taxpayer is proportional to their portions of real estate ownership. Bases for determination of the portion of ownership are legal documents, including initial capital contribution agreements, the testament, or the decision on division made by the court, etc. If no legitimate documents are provided, the tax liability incurred by each taxpayer shall be evenly divided.

Article 13. Bases for calculation of tax on incomes from royalties.

Bases for calculation of tax on incomes from royalties are the assessable income and tax rate.

1. Assessable income

The assessable income from royalties is the excess over 10 million VND of income according to the transfer contract, regardless of the number of payments or times the taxpayer receives money when transferring subjects of intellectual property right or technology transfer.

If the transfer of the same subject of intellectual property right or technology transfer to a transferee is made into multiple contracts, the assessable income is excess over 10 million VND of incomes from all transfer contracts.

If the subject of transfer is under a co-ownership, the assessable income shall be divided among the co-owners. The division ratio depends on the Certificate of ownership or rights to use issued by the competent authority.

...

...

...

3. Time to calculate the assessable income

The assessable income shall be calculated when the royalty is paid.

4. Tax calculation

Personal income tax payable = Assessable income x 5% tax

Article 14. Bases for calculation of tax on incomes from franchise.

Bases for calculation of tax on incomes from franchise are the assessable income and tax rate.

1. Assessable income

The assessable income from franchise is the excess over 10 million VND of income according to the transfer contract, regardless of the number of payments or times the taxpayer receives money.

If the franchise for the same subject is made into multiple contracts, the assessable income is the excess over 10 million VND of all franchise contracts.

...

...

...

The rate of personal income tax on the income from franchise is 5% according to the whole income tax table.

3. Time to calculate the assessable income

The assessable income from franchise shall be calculated when the payment for franchise is made between the franchiser and franchisee.

4. Tax calculation

Personal income tax payable = Assessable income x 5% tax

Article 15. Bases for calculation of tax on incomes from winning prizes.

Bases for calculation of tax on incomes from winning prizes are the assessable income and tax rate.

1. Assessable income

The assessable income from a prize is the excess over 10 million VND of the prize the taxpayer receives, regardless of the number of times of prize money receipt.

...

...

...

Assessable income from some games of chance:

a) The assessable income from a lottery prize is the excess over 10 million VND of 01 lottery prize without any deduction.

b) The assessable income from promotion prize in kind is the excess over 10 million VND of the prize that is converted into cash at the market price when the prize is given without any deduction.

c)48 The assessable income from betting is the amount of prize in excess of VND 10 million received by the player without any deductions.

2. The rate of personal income tax on the income from wining prizes is 10% according to the whole income tax table.

3. Time to calculate the assessable income

The assessable income from prizes shall be calculated when the prizewinner receives the prize.

4. Tax calculation

Personal income tax payable = Assessable income x 10% tax

...

...

...

Bases for calculation of tax on incomes from inheritance and gifts are the assessable income and tax rate.

1. Assessable income

The assessable income from inheritance and gifts is the excess over 10 million VND of the inheritance or gifts received. The value of inheritance and gifts is determined as follows:

a) 49 The value of inheritance and gifts that are securities is the value of securities at the time of registration of ownership transfer. The assessable income from an inheritance or gift being securities is the value of the inheritance or gift in excess of VND 10 million regardless of ticker symbols without any deductions at the time of registration of securities ownership transfer To be specific:

a.1) The value of securities traded at the Stock Exchange is based on the reference price at the Stock Exchange at the time of registration of securities ownership.

a.2) The value of securities in cases other than the above case is based on the book value provided by the corresponding issuer at the time of making the latest financial statement according to the law on accounting before the time of registration of securities ownership.

b) The assessable income from the inheritance and gifts that are capital contributions to economic organizations or business establishments is the value of the contributions based on their latest book values of the companies before the contribution ownership is registered.

c) The value of inheritance and gifts being real estate is determined as follows:

c.1) The value of right to use land is based on the land price list made by the People’s Committee of the province before the person registers the right to use real estate.

...

...

...

If the value is not identifiable, the price for calculation of registration fee imposed by the People’s Committee of the province shall apply.

d) 50 Regarding inheritance and gifts being other assets of which the right to ownership or right to use shall be registered with the regulatory agency: the value of assets is based on the price for calculation of registration fee imposed by the People’s Committee of the province at the time the person registers the right to ownership or right to use of inheritance and gifts.

If the person who receives the inheritance or gift being imported goods has to pay taxes on the import of such goods, the property value subject to PIT is the registration fee calculation price imposed by the People’s Committee of the province at the time of registration of right to ownership or right to use of the property minus (-) taxes paid by the person during the import stage.”

2. The rate of personal income tax on the income from inheritance and gifts is 10% according to the whole income tax table.

3. Time to calculate the assessable income

The assessable income from inheritance and gifts is calculated when the person registers the ownership or right to use of inheritance and gift.

4. Tax payable

Personal income tax payable = Assessable income x 10% tax

Chapter 3

...

...

...

Article 17. Income from business

The rate of personal income tax on income from business earned by a non-resident equals the revenue from business multiplied by (x) the tax rate.

1. Revenue:

The revenue from business earned by a non-resident is determined similarly to the revenue used to calculate tax on income earned by a president from business according to guidance in Clause 1 Article 8 of this Circular.

2. Tax rate

Rate of personal income tax on income from business earned by a non-resident in each field and industry:

a) 1% for goods sale.

b) 5% for service provision.

c) 2% for production, construction, construction, and other businesses.

...

...

...

Article 18. Income from wages

1. The rate of personal income tax on income from wages earned by a non-resident equals the taxable income from wages multiplied by (x) 20% tax.

2. The taxable income from wages earned by a non-resident is similar to that earned by a resident according to guidance in Clause 2 Article 8 of this Circular.

The taxable income from wages earned in by a non-resident that works both in Vietnam and a foreign country without being able to separate the income earned in Vietnam shall be calculated as follows:

a) Where the foreigner is not present in Vietnam:

Total income earned in Vietnam

=

Number of working days in Vietnam

X

...

...

...

+

Other pre-tax taxable income earned in Vietnam

Number of working days in the year

Where: the number of working days in the year is calculated in accordance with the Labor Code of Vietnam.

b) Where the foreigner is present in Vietnam:

Total income earned in Vietnam

=

Number of days in Vietnam

X

...

...

...

+

Other pre-tax taxable income earned in Vietnam

365 days

Other pre-tax taxable incomes earned in Vietnam mentioned in Point a and Point b above are other benefits in cash or not in cash apart from wages that are provided for the employee or paid on the employee’s behalf by the employer.

Article 19. Income from capital investment

The personal income tax on income from capital investment earned by a non-resident equals the total taxable income earned by the non-resident from capital investment in another organization/individual in Vietnam multiplied by (x) 5% tax

The assessable income and time to calculate assessable income from capital investment earned by the non-resident are similar to those of a resident according to guidance in Clause 1 and Clause 3 Article 10 of this Circular.

Article 20. Income from capital transfer.

1. The personal income tax on the income from capital transfer earned by a non-resident equals the total amount of money the non-resident receives from the transfer of capital invested in organizations and individuals in Vietnam multiplied by (x) 0,1% tax, whether the transfer is made in Vietnam or overseas.

...

...

...

2. Transfer price in some cases:

a. When transferring contributed capital, the transfer price is similar to that of a resident according to guidance in Point a.1 Clause 1 Article 11 of this Circular.

b. When transferring securities, the transfer price is similar to that of a resident according to guidance in Point a.1 Clause 2 Article 11 of this Circular.

3. Time to calculate the assessable income:

a) The assessable income from transfer of contributed capital earned by a non-resident shall be calculated when the capital transfer contract takes effect.

b) The time to calculate the assessable income from transfer of securities earned by a non-resident is similar to that earned by a resident according to guidance in Point c Clause 2 Article 11 of this Circular

Article 21. Income from real estate transfer

1. The personal income tax on the income from real estate transfer earned by a non-resident equals the transfer price multiplied by (x) 2% tax.

The aforesaid transfer price is the total amount the non-resident receives from the real estate transfer without any deductions, including the cost price.

...

...

...

3. The income from real estate transfer shall be calculated when the non-resident carries out the procedure for real estate transfer as prescribed by law.

Article 22. Incomes from royalties and franchise

1. Tax on income from royalties

a) The tax on income from royalties earned by a non-resident equals excess over 10 million VND of income from each contract to transfer the subjects of intellectual property right, technology transfer in Vietnam multiplied by 5% tax.

The determination of income from royalties shall comply with Clause 1 Article 13 of this Circular.

b) The income from royalties shall be calculated when the non-resident receives the royalties from the payer.

2. Income from franchise

The tax on income from franchise earned by a non-resident equals the excess over 10 million VND of income from each franchise contract in Vietnam multiplied by 5% tax.

The determination of income from franchise shall comply with Clause 1 Article 14 of this Circular.

...

...

...

Article 23. Incomes from prizes, inheritance, and gifts

1. The personal income tax on incomes from prizes, inheritance, or gifts earned by a non-resident equals the assessable income calculated according to guidance in Clause 2 of this Article multiplied by (x) 10% tax.

2. Assessable income

a) The assessable income from winning a prize earned by a non-resident is the excess over 10 million VND of the prize won in Vietnam.

The income from winning prizes earned by a non-resident is similar to that earned by a resident according to guidance in Clause 1 Article 15 of this Circular.

b) The taxable income from inheritance and gifts earned by a non-resident is the excess over 10 million VND of the inheritance or gift received in Vietnam.

The income from inheritance and gifts earned by a non-resident is similar to that earned by a resident according to guidance in Clause 1 Article 16 of this Circular.

3. Time to calculate the assessable income

a) The assessable income from prizes shall be calculated when the organization or person in Vietnam pays the prize money to the non-resident.

...

...

...

c) The assessable income from gift is calculated when the person registers the ownership or rights to use the assets in Vietnam.

Chapter 4

TAX REGISTRATION, TAX DEDUCTION, TAX DECLARATION, TAX SETTLEMENT, TAX REFUND

Article 24. Tax registration

1. Entities that must apply for tax registration

According to Article 27 of the Decree No. 65/2013/ND-CP, entities that are required to apply for personal income tax registration are:

a) Income payers, including:

a.1) Business organizations and individuals, including their branches, dependent units, affiliates that do bookkeeping separately and have separate legal status.

a.2) State administrative agencies.

...

...

...

a.4) Public service providers.

a.5) International organizations and foreign organizations.

a.6) Project management boards, representative offices of foreign organizations.

a.7) Other income payers.

b) Persons that earn taxable incomes, including:

b.1) Persons that earn incomes from production or business, including freelancers; persons and households engaged in agricultural production that are not exempt from personal income tax. Persons earning incomes from production or business who apply for the registration of personal income tax together with other taxes.

b.2) Wage earners, including foreigners working for foreign contractors and foreign sub-contractors in Vietnam.

b.3) Persons that transfer real estate.

b.4) Persons that earn other taxable incomes (if required).

...

...

...

Entities mentioned in Point a, Point b and Point c Clause 1 of this Article are not required to apply for new tax registration if tax registration has been obtained and tax identification number have been issued. The person that earns multiple taxable incomes shall apply for tax registration once. The tax identification number shall be used to make declare all kinds of incomes.

2. Application for tax

The tax registration procedure and application are specified in guiding documents on tax administration.

3. Places where applications for tax are submitted

a) Places where applications for tax are submitted are specified in guiding documents on tax administration.

b) Places where applications for tax are submitted in some particular cases:

b.1) The person that earns income from wages shall submit the application for tax to the income player or the local tax authority that directly monitors the income payer. The income payer shall consolidate and submit applications for tax to the local tax authority.

b.2) The person that earns income from multiple sources, including business, wages, other taxable incomes may submit the application for tax to the income payer or the local Sub-department of taxation.

b.3) The person that earns other taxable incomes may submit the application for tax at any tax authority.

...

...

...

a) The representative of the group of business persons shall apply for tax registration according to guidance in order to obtain the personal tax identification number. The tax identification number of the representative of the group of business persons shall be used to declare tax, pay VAT, excise duty, license tax, etc. incurred by the whole group, and used to declare personal income tax incurred by the representative himself. Other capital contributors in the group shall apply for tax registration in order to obtain separate tax identification numbers in the same way a business person does.

b) If the person that transfers real estate has not had a tax identification number, the tax authority shall automatically issue a tax identification number to the person according to the personal information in the real estate transfer dossier.

c) If a dependant for whom the taxpayer applies for a deduction has not had a tax identification number, the tax authority shall automatically issue the tax identification number to the dependant according to the dependant’s information in the application for deduction (the form is provided in guiding documents on tax administration) made by the taxpayer.

Article 25. Tax deduction and certificate of tax deduction

1. Tax deduction

The tax deduction is an act of calculating and deducting the tax payable from the taxpayer’s income by the income payer before the income is paid to the tax payer. To be specific:

a) Incomes earned by non-residents

The organization or individual that pays taxable incomes to the non-resident shall deduct the personal income tax from the income before it is paid. The determination of tax to be deducted shall comply with Chapter III (from Article 17 to Article 23) of this Circular.

b) Income from wages

...

...

...

b.2) The income payer shall still deduct tax from incomes earned residents that sign labor contracts for 03 months but resign before such labor contracts expire according to the progressive tax table.

b.3) The income payer shall deduct tax from incomes earned by the foreigners working in Vietnam based on the duration of work in Vietnam written in the contract or letter of introduction according to the progressive tax table (if the person has worked in Vietnam for at least 183 days in the tax year) or the whole income tax table (if the person has worked in Vietnam for fewer than 183 days in the tax year).

b.4) 51 The insurer shall be responsible for deducting tax on accrual of life insurance premiums paid by the employer on behalf of the employee (except voluntary pension insurance) or other optional insurances with accrual of premiums provided by the insurer established and operating under Vietnam’s law. The amount of tax deducted is specified in Clause 2 Article 14 of Circular No. 92/2015/TT-BTC.

Before paying the employee, the income payer has the responsibility to deduct tax from the premiums of life insurance or other optional insurances with accrual of insurance bought by the income payer for the employee from the insurer not established and operating under Vietnam’s law but permitted to sell insurance in Vietnam. The amount of tax deducted is specified in Clause 2 Article 14 of Circular No. 92/2015/TT-BTC.

b.5) The determination of tax deducted from incomes from wages earned by residents shall comply with Article 7 of this Circular; the determination of tax withheld from incomes from wages earned by non-residents shall comply with Article 18 of this Circular.

c) 52 Incomes from operation of insurance agents, lottery agents, and network marketing agents; incomes from lease of property to enterprises and/or business organizations.

Lottery companies, insurers and network marketing companies shall be responsible for deducting PIT before paying agents whose commission is over VND 100 million/year. The amount of tax deducted is specified in Clause 2 Article 9 of Circular No. 92/2015/TT-BTC.

The enterprise or business organization who leases property from a person has the responsibility to deduct VAT and PIT before paying the lessor if the amount paid to the lessor is over VND 100 million/year and the lease contract stipulates that the lessee pays tax on behalf of the lessor. The amount of tax deducted is specified in Clause 2 Article 8 of Circular No. 92/2015/TT-BTC.

d) Income from capital investment

...

...

...

dd) Income from transfer of securities

0,1% tax on the transfer price shall be deducted from every income from securities transfer before the income is paid to the transferor. Tax shall be deducted as follows:

dd.1) Regarding securities traded at the Stock Exchange:

dd.1.1) The securities company or commercial bank where the person opens the depository account shall deduct 0.1% personal income tax on the transfer price before the income is paid to the person. The determination of tax to be deducted shall comply with Point b.2 Clause 2 Article 11 of this Circular.

dd.1.2) The asset management company to which the person entrusts the management of securities investment portfolio shall deduct 0.1% personal income tax on the transfer price of the entrusting person according to the distribution table sent to the depository bank where the company opens its depository account.

dd.2) Regarding securities transfer without the transaction system of the Stock Exchange:

dd.2.1) For securities of a public company that has applied for securities registration at the Vietnam Securities Depository:

The securities company, commercial bank where the person opens the depository account shall deduct 0,1% personal income tax on the transfer price before carrying out the procedure for transfer of the securities ownership at the Vietnam Securities Depository.

dd.2.2) For securities of a joint-stock company that is not a public company, issues securities and authorizes a securities company to manage the list of shareholders:

...

...

...

The person that transfers securities shall present the transfer contract to the securities company when carrying out the procedure for transfer of securities ownership.

e) Incomes earned by non-residents from transfer of contributed capital

The organization or person that receives capital contribution from a non-resident shall deduct 0.1% personal income tax on the transfer price.

g) Income from winning prizes

The prize provider shall deduct personal income tax before providing prizes to the prizewinner. The determination of tax to be deducted shall comply with Article 15 of this Circular.

h) Incomes from royalties and franchise

The organization or person that pays income from royalties or franchise shall deduct personal income tax before the income is paid to the person. The deducted tax equals the excess over 10 million VND of the income according to the transfer contract multiplied by (x) 5% tax. If the contract has a high value and the payment is made in installments, when paying the first installment, the organization or person that pays income shall subtract 10 million VND from the payment, then withhold the amount that equals the remaining amount multiplied by 5% tax. Income tax on the next installments shall be deducted from each installment.

i) Tax deduction in other cases

The organization or person that pays a total income from 2 million VND to a resident that does not sign a labor contract (according to guidance in Point c and Point d Clause 2 Article 2 of this Circular) or that signs a labor contract for less than 03 months shall deduct 10% tax on the income before the income is paid to the person.

...

...

...

According to the commitment made by the income earner, the income payer shall not deduct tax. At the end of the tax year, the income payer shall make a list of persons that earn incomes below that taxable level (the form is provided in guiding documents on tax administration) and send it to the tax authority. Each person shall be responsible for his/her commitment. Any deceit discovered shall be penalized in accordance with the Law on Tax Administration.

Persons that make commitments according to guidance in this Point shall obtain tax registration and have tax identification numbers when such commitments are made.

2. Tax deduction certificate

a) After deducting tax according to guidance in Clause 1 of this Article, the income payer shall issue tax deduction certificates at the request of persons that have tax deducted. The tax deduction certificate shall not be issued if the person delegates the tax settlement.

b) Issuance of tax deduction certificates in some particular cases:

b.1) If the person does not sign a labor contract or signs a labor contract for less than 03 months, the person is entitled to request the income payer to issue the tax deduction certificate every time tax is deducted, or issue a single certificate of tax deduction for multiple deductions in the same tax period.

Example 15: Mr. Q signs a service contract with company X to cultivate ornamental plants on the company’s premises once per month from September 2013 to April 2014. Company X pays an income of 03 million VND per month to Mr. Q. In this case, Mr. Q may request company X to issue a tax deduction certificate every month or one certificate which reflects the deducted tax over the period from September 2013 to December 2013, and one tax deduction certificate over the period from January 2014 to April 2014.

b.2) If the person signs a labor contract for more than 03 months, the income payer shall issue only one certificate of tax deduction in a tax period.

Example 16: Mr. R signs a long-term labor contract (from September 2013 till the end of August 2014) with company Y. In this case, if Mr. R is required to settle tax at the tax authority and requests company Y to issue the certificate of tax deduction, company Y shall issue 01 certificate which reflects the deducted tax from September 2013 till the end of December 2013, and 01 certificate for the period from January 2014 till the end of August 2014.

...

...

...

The payer of taxable incomes and the person that earns taxable incomes shall declare tax and settle tax in accordance with the procedure provided in guiding documents on tax administration. Rules for declaration of tax in some cases:

1. Tax declaration made by the payer of taxable income.

a) The income payer that deducts 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 in the quarter.

b) The monthly or quarterly tax declaration shall be made from the first month in which tax is deducted, and is applicable to the whole tax year. To be specific:

b.1) The income payer that deducts personal income tax on 50 million VND or more in a month in at least one declaration of shall declare tax monthly, unless the income payer is required to declare tax quarterly.

b.2) Income payers that are not required to declare tax monthly according to the above guidance shall declare tax quarterly.

c) The payer of taxable income shall declare and settle tax on behalf of the authorizing person, whether or not tax is deducted.

2. Tax declaration made by residents that earn incomes from wages and business

a) Residents that earn incomes from wages shall directly declare tax at tax authorities. To be specific:

...

...

...

a.2) Residents that earn incomes from wages paid by overseas organizations and individuals shall directly declare tax quarterly at tax authorities.

b) Residents, groups of residents that earn incomes from business shall directly declare tax at tax authorities. To be specific:

b.1) Business persons, groups of business persons that pay tax according to tax declaration method are business persons, groups of business persons that comply with regulations of law on accounting and invoices and business persons, groups of business persons that fail to separate expense from revenue. They shall declare tax quarterly.

b.2) Business persons, groups of business persons that pay flat tax are business persons, groups of business persons that do not comply with the regulations of law on accounting and invoices and fail to determine revenue, expense, and taxable income. They shall declare tax annually.

b.3) Each nomadic business person shall declare personal income tax every time it is incurred.

b.4) Each business person that uses invoice sold separately by the tax authority shall declare personal income tax every time the revenue is earned.

b.5) Each non-business person that sells goods and services and needs to issue invoices to their customers shall declare tax when it is incurred.

b.6) Each person or group of persons that earns income from lease of houses, rights to use land, water surface and other property shall declare tax quarterly or every time it is incurred.

c) 53 A resident earns an income from his salaries, wages, or business shall make a tax declaration and settlement if there are additional taxes payable or overpaid taxes which claim the tax refund or offset against the tax in the next tax period, except for the following case:

...

...

...

c.2) A person or a business household earns an income from their business and has paid taxes by the flat tax method.

c.3) A person or a business household only earns an income from lease of their houses or rights to use land paid taxes according to their declaration at their leasing houses or lands.

c.4) A person who earns both an income from their salaries or wages from an at least 3-month labor contract with a company and other incomes at other companies provided that it is not more than VND 10 million and his income has been withheld at 10% by his employer, he is only required to settle tax on that income on request.

c.5) A person who earns both an income from their salaries or wages from an at least 3-month labor contract and other incomes from lease of his houses or lands provided that his average revenue in a year is not more than VND 10 million paid taxes at his leasing houses or lands, he is only required to settle tax on that income on request.

c.6) A person who is an insurance agent, a lottery agent, or a multi-level marketing agent whose personal income tax has been deducted by the income payer shall not settle tax on that income.

d) The wage earner shall request the income payer to settle tax on their behalf in the following cases:

d.1) The person that only earns income from wages signs a labor contract for 03 months or more in a unit and is actually working at that unit when delegating tax settlement, even he has not worked for 12 months in the year.

d.2) The wage earner signs a labor contract for 03 months or more and earns other incomes according to guidance in Point c.4 and Point c.5 Clause 2 of this Article.

dd) The income payer shall only settle tax on the income that it pays on the person’s behalf.

...

...

...

e.1) The resident that earns an income overseas and has paid personal income tax on that income overseas shall have the tax paid overseas deducted. The amount of tax deducted shall not exceed the tax payable on the income earned overseas according to Vietnam’s tax table. The ratio is based on the ratio of income earned overseas to the total taxable income.

e.2) If the person earns incomes from business and wages and has been present in Vietnam in the first calendar year for fewer than 183 days, but has been present in Vietnam for 183 days or more within 12 consecutive months from the date of arrival.

- In the first tax year: he/she shall make tax declaration and submit the tax settlement dossier by the 90^th day from the end of the 12 consecutive months.

- From the second tax year: he/she shall make tax declaration and submit the tax settlement dossier by the 90^th day from the end of the calendar year. The remaining tax payable in the second tax year is calculated as follows:

Remaining tax payable in the second tax year

=

Tax payable in the second tax year

-

Deductible duplicated tax

...

...

...

Tax payable in the second tax year

=

Assessable income in the second tax yea

X

Personal income tax rate according to the progressive tax table

Deductible duplicated tax

=

Tax payable in the first tax year

...

...

...

Number of months in which tax is duplicated

12

Example 17: Mr. S is a foreign who first comes to Vietnam and works under a labor contract from June 01, 2014 to May 31, 2016. In 2014, Mr. S has been present in Vietnam for 80 days and earned 134 million VND in wages. In 2015, Mr. S is present in Vietnam for 110 days during the period from January 01, 2015 until the end of May 31, 2015, and earns 106 million VND in wages. From June 01, 2015 to December 31, 2015, Mr. S has been in Vietnam for 105 days and earned 122 million VND in wages. Mr. S does not apply for deductions for dependants and does not pay insurance premiums or make charitable donations.

The personal income tax payable by Mr. S is calculated as follows:

+ In 2014, Mr. S is a non-resident, but for the period of 12 consecutive months from June 01, 2014 to the end of May 31, 2015, Mr. S has been present in Vietnam for totally 190 days (80 days + 110 days). Thus Mr. S is a resident in Vietnam.

+ In the first tax year from June 01, 2014 to May 31, 2015):

- Total taxable income in the first tax year:

134 million VND + 106 million VND = 240 million VND

- Personal deduction: 9 million VND x 12 = 108 million VND

...

...

...

- Personal income tax payable in the first tax year: 60 million VND x 5% + (120 million VND - 60 million VND) x 10% + (132 million VND - 120 million VND) x 15% = 10,8 million VND

+ In the second tax year (from January 01, 2015 to the end of December 31, 2015), Mr. S has been present in Vietnam for 215 days (110 days + 105 days) and is considered a resident in Vietnam.

- Taxable income earned in 2015:

106 million VND + 122 million VND = 228 million VND

- Personal deduction: 9 million VND x 12 = 108 million VND

- Assessable income in 2015:

228 million VND – 108 million VND = 120 million VND

- Personal income tax payable in the 2015:

 (60 million VND x 5%) + (120 million VND – 60 million VND) x 10% = 9 million VND

...

...

...

- Deductible duplicated tax:

 (10.8 million VND/12 months) x 5 months = 4,5 million VND.

- Personal income tax payable in the 2015:

9 million VND – 4,5 million VND = 4,5 million VND

e.3) The resident that is a foreigner and terminates the labor contract in Vietnam shall settle tax at the tax authority before departure.

e.4) The person that leases out houses, rights to use land, water surface and other property shall settle personal income tax, except for the cases in which tax settlement is exempt according to guidance in Point c.3 and Point c.5 Clause 2 of this Article. To be specific:

e.4.1) The person that declares tax quarterly or when it is incurred under a contract that is due within 01 year shall settle tax in the same way the person that pays tax according to declaration does.

e.4.2) Where the person declares tax when it is incurred under a contract that is due after 01 year and receives a deposit for a lease period, the person shall settle tax in one of the following methods: if tax is completely settled in the first year, the revenue is the lump-sum payment and personal deductions shall be made for a year, not the next; if tax is settled annually, the income from the lump-sum payment shall be provisionally declared and personal deductions shall be made for the first year, the revenue from lease of property shall be redistributed in the next years and personal deductions shall be calculated when they arise.

e.5) Persons that earn incomes from the insurance agents, lottery agents, or network marketing shall directly settle tax at tax authorities if required.

...

...

...

e.7) Non-resident business persons, groups of business persons that have fixed business locations in Vietnam shall declare and settle tax in the same way residents do.

3. Declaration of tax on income from real estate transfer

a) Persons that earn incomes from real estate transfer shall declare tax when it is incurred, including persons eligible for tax exemption. Declaration of tax in some cases:

a.1) If the person puts up his/her rights to use land or house ownership as collateral loans or for payment at the credit institution, the branch of foreign bank and fails to pay debts when they are due, the branch of foreign bank and the credit institution shall liquidate, sell such real estate, declare and pay personal income tax on the person’s behalf before setting the person’s debts.

a.2) If the person mortgages his rights to use land or house ownership to take loans or make payment with other organizations or persons, then transfers the whole or part of such real estate to pay debts, the person that has the rights to use land or house ownership shall declare and pay personal income tax, or the organization/person conducting transfer procedures on the person’s behalf shall declare and pay personal income tax on the person’s behalf before settling the debts.

a.3) Where a person transfers the real estate to another organization or person under a court’s decision, the transferor shall declare and pay personal income tax, or the organization/person holding the auction shall declare and pay personal income tax on behalf of the transferor. The real estate that is confiscated and put up for auction by the competent authority, personal income tax is not required to be paid.

a.4) If every person transfers land and houses that do not fall into the case in which agricultural land is converted to serve production, which is eligible for exemption of personal income tax according to guidance in Point dd Clause 1 Article 3 of this Circular, each person who transfers land and houses shall declare and pay personal income tax.

a.5) If an organization/person declares personal income tax on real estate transfer on behalf of another person, such organization/person shall state “On behalf of the taxpayer or the taxpayer's legal representative”, sign, write the full name, and append the organization’s seal (if any). The taxpayer in tax return and tax receipts is still the person that transfers real estate.

b) The real estate authority shall only conduct the procedure for transfer of the ownership of, rights to use real estate after personal income tax invoices are presented, or the tax authority certifies that the income from real estate transfer is eligible for tax exemption or deferred tax collection.

...

...

...

a) The person that transfers contributed capital shall declare tax when a transfer is made, whether or not incomes are earned.

b) The person that earns income from transfer of contributed capital in Vietnam is not required to directly declare tax at the tax authority. The transferee shall deduct tax according to guidance in Point e Clause 1 Article 25 of this Circular and declare tax when it is incurred.

c) If the company changes the list of capital contributors when transferring capital without documents proving that the capital transferor has fulfilled the tax obligations, the transferee company shall declare and pay tax on the person’s behalf.

The transferee company that pays tax on the person’s behalf shall also declare personal income tax on the person’s behalf. Such company shall state “On behalf of the taxpayer or the taxpayer's legal representative”, sign, write the full name, and append the company’s seal (if any). The taxpayer on tax return and tax receipts is the transferor (when transferring a resident’s capital) or the transferee (when transferring a non-resident’s capital).

5. Declaration of tax on income from transfer of securities

a) The person that transfers securities of a public company at the Stock Exchange is not required to declare tax directly at the tax authority. The account owner, commercial bank where the person opens his depository account, the asset management company where the person entrusts the management of the investment portfolio shall declare tax according to guidance in Clause 1 Article 26 of this Circular.

b) Where the person transfers securities without the transaction system of the Stock Exchange:

b.1) The person that transfers securities of a public company registered at the Vietnam Securities Depository is not required to declare tax directly at the tax authority. The securities company, commercial bank where the person opens his depository account shall deduct and declare tax according to guidance in Clause 1 Article 26 of this Circular.

b.2) The person that transfers securities of a joint-stock company that is not public company but issues securities and authorizes a securities company to manage shareholder list is not required to declare tax directly at the tax authority. The securities company authorized to manage shareholder list shall deduct and declare tax according to guidance in Clause 1 Article 26 of this Circular.

...

...

...

d) If the company changes the list of shareholders when transferring securities without documents proving that the transferor has fulfilled tax obligations, the transferee company shall declare and pay tax on the transferor’s behalf.

If the transferee company that declares tax on the transferor’s behalf, the transferor company shall also declare personal income tax on the person’s behalf. Such company shall state “On behalf of the taxpayer or the taxpayer's legal representative”, sign, write the full name, and append the company’s seal (if any). The taxpayer in tax return and tax receipts is the securities transferor.

dd) The securities transferor shall directly declare and settle tax at the tax authority at the year’s end if he wishes to settle tax.

6. Declaration of tax on incomes from inheritance and gifts

a) The person that earns income from inheritance or gifts shall declare tax when it is incurred (including persons eligible for tax exemption).

b) Relevant state agencies and organizations shall only carry out the procedure for transfer of the ownership or rights to use real estate, securities, contributed capital, and other assets, the ownership or right to use of which must be registered, to the inheritor or recipient after having the tax receipt or obtaining certification that incomes from inheritance or gifts being real estate are tax-free.

7. Declaration of tax on overseas incomes earned by residents

The resident that earns income overseas shall declare tax when it is incurred. The resident that earns income from wages overseas shall declare tax quarterly.

8. Declaration of tax on incomes earned in Vietnam but received overseas by non-residents

...

...

...

b) The non-resident that earns income from real estate or capital transfer (including securities transfer) in Vietnam but receives such income overseas shall declare tax when it is incurred according to guidance in Clause 3, Clause 4 and Clause 5 of this Article.

9. Declaration of tax on income from capital investment in case of receipt of shares as dividends or reinvested profits.

The person that receives shares as dividends or reinvested profits is not required to declare and pay tax upon receipt. When transferring capital, withdrawing capital, or dissolving the enterprise, the person shall declare and pay tax on the income from capital transfer and capital investment.

10. Declaration of tax on income from transfer of capital, securities, real estate in case of capital contribution by contributed capital, securities, or real estate.

The person that contributes capital by contributed capital, securities, or real estate is not required to declare and pay tax when making the contribution. When transferring capital, withdrawing capital, or dissolving the enterprise, the person shall declare and pay tax on the income from transfer of capital, real estate when contributing capital and carrying out transfer.

11. Declaration of tax on income from bonus shares

The person is not required to pay tax on wages when receiving bonus shares from the employer. The person shall declare tax on incomes from transfer of shares and wages when transferring bonus shares.

Article 27. Responsibilities of Vietnamese organizations that sign service contracts with foreign contractors that do not operate in Vietnam

When an organization established and operating within Vietnam’s law (hereinafter referred to as “Vietnamese party”) signs a contract to purchase services of a foreign contractor that signs labor contracts with foreign employees in Vietnam, the Vietnamese party shall notify the foreign contractor of obligations to pay personal income tax incurred by the foreign employees, obligations to provide information about the foreign employees, including their names, nationalities, passport numbers, working duration, positions, and incomes for the Vietnamese party. The Vietnamese party shall provide such information for the tax authority at least 07 days before such foreign employees start to work in Vietnam.

...

...

...

1. The refund of personal income tax applies to persons that have registered and obtain tax identification numbers when they submit the tax settlement dossier.

2. If the person has authorized the income payer to settle tax, tax refund shall be made via the income payer. The income payer shall offset the overpaid and underpaid tax. After being offset, the overpaid tax shall be offset against the tax in the next period or refunded on request.

3. The person that declares tax directly may choose to claim a tax refund or offset it against the tax in the next period at the same tax authority.

4. The person that is eligible for the refund of personal income tax and submits the tax settlement behind schedule is exempt from fines for overdue tax statement.

Chapter 5

IMPLEMENTATION PROVISIONS

Article 29. Entry into force 54

1. This Circular comes into force from October 01, 2013.

Regulations on personal income tax policies in the Law on amendments to the Law on Personal Income Tax, and the Decree No. 65/2013/ND-CP will come into force from the effective date of the Law and Decree (July 01, 2013).

...

...

...

2. Guidelines on personal income tax that are provided by the Ministry of Finance before the effective date of this Circular and are not conformable with those in this Circular are abolished.

Article 30. Implementation responsibilities 55

1. The Law on Tax Administration and its guiding documents shall apply to contents related to tax administration other than those under guidance in this Circular.

2. The settlement of issues and difficulties related personal income tax that arise before January 01, 2013 shall continue to comply with guiding documents that are effective at that time.

3. The taxable income rate shall be uniformly applied to business persons according to guidance in Article 8 of this Circular from January 1, 2014.

4. Regarding contracts to sell floors and contribute capital to obtain the right to buy floors, houses, and apartments that are signed before the effective date of the Government's Decree No. 71/2010/ND-CP dated June 23, 2010 on elaboration of the Law on Housing, and allowed to be transferred by the investor, tax shall be declared and paid according to guidance similar to that on transfer of off-the-plan houses.

5. 56 With regard to a person using a transferred real estate during the period from July 1, 1994 to before January 1, 2009, if he/she is granted a Certificate of land use right, house ownership and other property thereon by the regulatory agencies according to his application submitted from January 1, 2009, he/she shall only pay personal income tax once. If a person uses a transferred real estate before July 1, 1994, he is eligible for exemption from personal income tax.

From January 1, 2009 (implementation of the Law on Personal Income Tax), every person that transfers real estate, whether under a notarized contract, a handwritten document, or no contract at all, shall pay personal income tax on every transfer.”

6. Persons eligible for personal income tax incentives before the effective date of the Law on amendments to the Law on Personal Income Tax are still eligible for such incentives for the remaining period.

...

...

...

Any difficulties that arise during the implementation should be reported to the Ministry of Finance (the General Department of Taxation) for consideration and settlement./.

CERTIFIED BY
PP. MINISTER
DEPUTY MINISTER




Tran Xuan Ha

APPENDIX: 01/PL-TNCN

 (Issued together with Circular. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance)

APPENDIX

GUIDANCE ON TAX CALCULATION ACCORDING TO THE PROGRESSIVE TAX TABLE

...

...

...

The progressive method for calculating tax is abridged as follows:

Level

Assessable income/month

Tax rate

Tax payable

Method 1

Method 2

1

Up to 5 million VND

...

...

...

0 million VND + 5% of assessable income

5% of assessable income

2

From over 5 million VND to 10 million VND

10%

0,25 million VND + 10 % of assessable income in excess of 5 million VND

10% of assessable income – 0,25 million VND

3

From over 10 million VND to 18 million VND

...

...

...

0,75 million VND + 15 % of assessable income in excess of 10 million VND

15% of assessable income – 0,75 million VND

4

From over 18 million VND to 32 million VND

20%

1,95 million VND + 20 % of assessable income in excess of 18 million VND

20% of assessable income – 1,65 million VND

5

From over 32 million VND to 52 million VND

...

...

...

4,75 million VND + 25 % of assessable income in excess of 32 million VND

25% of assessable income – 3,25 million VND

6

From over 52 million VND to 80 million VND

30%

9.75 million VND + 30 % of assessable income in excess of 52 million VND

30% of assessable income – 5,85 million VND

7

From over 80 million VND

...

...

...

18,15 million VND + 35 % of assessable income in excess of 80 million VND

35% of assessable income – 9,85 million VND

APPENDIX: 02/PL-TNCN

 (Issued together with Circular. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance)

APPENDIX

CONVERSION OF TAX-EXCLUSIVE INCOMES TO ASSESSABLE INCOMES

 (for income from wages)

NO.

...

...

...

Assessable income

1

Up to 4,75 million VND

Converted income/0,95

2

From over 4,75 million VND to 9,25trđ million VND

 (converted income – 0,25 million VND)/0,9

3

From over 9,25 million VND to 16,05trđ million VND

...

...

...

4

From over 16,05 million VND to 27,25 million VND

 (converted income – 1,65 million VND)/0,8

5

From over 27,25 million VND to 42,25 million VND

 (converted income – 3,25 million VND)/0,75

6

From over 42,25 million VND to 61,85 million VND

 (converted income – 5,85 million VND)/0,7

...

...

...

From over 61,85 million VND

 (converted income – 9,85 million VND)/0,65

1This Circular is consolidated from the following 05 Circulars:

- Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Minister of Finance on guidelines for the implementation of the Law on Personal Income Tax, the Law on amendments to the Law on Personal Income Tax, and the Government's Decree No. 65/2013/ND-CP on elaboration of some Articles of the Law on Personal Income Tax and the Law on amendments to the Law on Personal Income Tax, which comes into force from October 01, 2013;

- Circular No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance on amendments to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and simplification of tax formalities, which comes into force from September 01, 2014;

- Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance on guidance on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation, which comes into force from November 15, 2014;

- Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

- Circular No. 25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance on guidelines for the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 on amendments to some Articles of the Circular No.78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and Circular No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, which comes into force from May 01, 2018.

...

...

...

2 Circular No. 119/2014/TT-BTC on amendments to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and simplification of tax formalities is promulgated pursuant to:  

 “The Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006 and the Law No. 21/2012/QH13 dated November 20, 2012 on amendments to the Law on Tax Administration;

The Law on Value-added Tax No. 13/2008/QH12 dated June 03, 2008 and the Law No. 31/2013/QH13 dated June 19, 2013 on amendments to the Law on Value-added Tax;

The Government’s Decree No. 83/2013/ND-CP dated July 22, 2013 on elaboration of implementation of some Articles of the Law on Tax Administration and the Law on amendments to some Articles of the Law on Tax Administration;

The Government's Decree No. 209/2013/ND-CP dated December 18, 2013 on guidelines for the Law on Value-added Tax;

The Government's Decree No. 51/2010/ND-CP dated May 14, 2010 on service supply and sale invoices and the Government's Decree No. 04/2014/ND-CP dated January 17, 2014 on amendments to Decree No. 51/2010/ND-CP dated May 14, 2010;

The Government's Decree No. 218/2013/ND-CP dated December 26, 2013 on guidelines for the Law on Corporate Income Tax;

The Government's Decree No. 215/2013/ND-CP dated December 23, 2013 on functions, tasks, entitlements and organizational structure of the Ministry of Finance;

At the request of the Director of the General Department of Taxation,

...

...

...

- Circular No. 151/2014/TT-BTC on guidance on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation is promulgated pursuant to: 

“The Law on Tax Administration No. 78/2006/QH11 and Law No. 21/2012/QH13 on amendments to the Law on Tax Administration;

The Law on Personal Income Tax No. 04/2007/QH12 and Law No. 26/2012/QH13 on amendments to the Law on Personal Income Tax;

The Law on Value-added Tax No. 13/2008/QH12 and the Law No. 31/2013/QH13 on amendments to the Law on Value-added Tax;

The Law on Corporate Income Tax No. 14/2008/QH12 and Law No. 32/2013/QH13 on amendments to the Law on Corporate Income Tax;

The Government’s Decree No. 83/2013/ND-CP dated July 22, 2013 on elaboration of implementation of some Articles of the Law on Tax Administration and the Law on amendments to some Articles of the Law on Tax Administration;

The Government’s Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of implementation of some Articles of the Law on Personal Income Tax and the Law on amendments to some Articles of the Law on Personal Income Tax;

The Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 on guidance on the implementation of the Law on Value-added Tax;

The Government’s Decree No. 218/2013/ND-CP dated December 26, 2013 on guidance on the implementation of the Law on Corporate Income Tax;

...

...

...

The Government's Decree No. 215/2013/ND-CP dated December 23, 2013 on functions, tasks, entitlements and organizational structure of the Ministry of Finance;

At the request of the Director of the General Department of Taxation,

The Minister of Finance provides guidance on implementation of Decree No. 91/2014/ND-CP dated October 01, 2014 of the Government on amendments to Decrees on taxation as follows:”

- Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation is promulgated pursuant to:  

 “The Law on Personal Income Tax No. 04/2007/QH12 dated November 21, 2007 and the Law No. 26/2012/QH13 dated November 22, 2012 on amendments to the Law on Personal Income Tax;

The Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006 and the Law No. 21/2012/QH13 dated November 20, 2012 on amendments to the Law on Tax Administration;

The Law No. 71/2014/QH13 dated November 26, 2014 on amendments to tax laws;

The Law on Value-added Tax No. 13/2008/QH12 dated June 03, 2008 amended by the Law No. 31/2013/QH13 dated June 19, 2013;

The Government’s Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of some Articles of the Law on Personal Income Tax and the Law on amendments to some Articles of the Law on Personal Income Tax;

...

...

...

The Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 on elaboration of some Articles of the Law on Tax Administration and the Law on amendments to some Articles of Laws and Decrees on taxation;

The Government's Decree No. 209/2013/ND-CP dated December 18, 2013 on guidelines for the Law on Value-added Tax;

The Government’s Decree No. 215/2013/ND-CP dated December 23, 2013 on functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of the Director of the General Department of Taxation;

The Minister of Finance provides the below guidelines:”

- Government’s Circular No. 25/2018/TT-BTC on guidelines for the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 on amendments to some Articles of the Circular No.78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and Circular No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance is promulgated pursuant to: 

 “The Law on Securities No. 70/2006/QH11 dated June 29, 2006 and Law No. 62/2010/QH12 on amendments to some articles of the Law on Securities dated November 24, 2010;

 “The Law on Personal Income Tax No. 04/2007/QH12 dated November 21, 2007 and the Law No. 26/2012/QH13 dated November 22, 2012 on amendments to the Law on Personal Income Tax;

The Law on Enterprises No. 68/2014/QH13 dated November 26, 2014;

...

...

...

The Law No. 106/2016/QH13 dated April 06, 2016 on amendments to some Articles of the Law on Value Added Tax, Law on Special Excise Tax and Law on Tax Administration;

The Government’s Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of some Articles of the Law on Personal Income Tax and the Law on amendments to some Articles of the Law on Personal Income Tax;

The Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 on elaboration of some Articles of the Law on Tax Administration and the Law on amendments to some Articles of Laws and Decrees on taxation;

The Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 on guidelines for the Law on amendments to certain articles of the Law on Value Added Tax, Law on Special Excise Tax and Law on Tax Administration;

The Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 on amendments to some articles of the Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 and Government’s Decree No. 12/2015/ND-CP dated February 12, 2015;

The Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 on functions, tasks, entitlements and organizational structure of the Ministry of Finance;

At the request of the Director of the General Department of Taxation,

The Minister of Finance hereby promulgates a Circular on guidelines for the Government’s Decree No. 146/2017/ND-CP dated December 12, 2017 on amendments to some articles of the Circular No.78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and Circular No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance. To be specific:”

3 This paragraph is amended by Article 2 of Circular No. 119/2014/TT-BTC on amendments to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and simplification of tax formalities, which comes into force from September 01, 2014;

...

...

...

5 This paragraph is amended by Article 2 of Circular No. 119/2014/TT-BTC on amendments to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and simplification of tax formalities, which comes into force from September 01, 2014;

6 This paragraph is amended by Article 2 of Circular No. 119/2014/TT-BTC on amendments to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and simplification of tax formalities, which comes into force from September 01, 2014;

7 This sub-point is amended by Clause 1 Article 11 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

8 This sub-point is amended by Clause 2 Article 11 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

This sub-point is amended by Article 11 of Circular No. 151/2014/TT-BTC on guidance on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation, which comes into force from November 15, 2014;

9 This sub-point is amended by Clause 3 Article 11 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

10 This sub-point is amended by Clause 4 Article 11 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

11 This sub-point is amended by Clause 5 Article 11 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

12 This sub-point is amended by Clause 6 Article 11 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

...

...

...

14 This Point is annulled by Clause 7 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

15 This sub-point is amended by Clause 1 Article 12 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

16 This Point is amended by Clause 2 Article 12 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

17 This Point is amended by Clause 3 Article 12 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

18 This Point is amended by Clause 4 Article 12 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

19 This Point is amended by Clause 5 Article 12 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

20 This Article is amended by Article 13 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

21 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

22 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

...

...

...

24 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

25 This Point is amended by Clause 1 Article 14 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

26 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

27 This Clause is amended by Clause 2 Article 14 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

28 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

29 Regulations on PIT incurred by businesspeople in this Clause are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

30 The phrase “công ty quản lý hưu trí tự nguyện” (the voluntary pension fund-managing company) is annulled by Article 15 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

31 Regulations on PIT incurred by businesspeople in this Clause are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

32 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

...

...

...

34 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

35 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

36 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

37 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

38 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

39 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

40 This Point is amended by Article 15 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

41 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

42 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

...

...

...

44 Regulations on PIT incurred by businesspeople in this Article are annulled by Clause 6 Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

45 This Point is amended by Article 16 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

46 This Point is amended by Article 16 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

47 This Article is amended by Article 17 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

48 This Point is amended by Article 18 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

49 This Point is amended by Clause 1 Article 19 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

50 This Point is amended by Clause 2 Article 19 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

51 This sub-point is amended by Clause 1 Article 20 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

52 This Point is amended by Clause 2 Article 20 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015.

...

...

...

54 Article 7 of Circular No. 119/2014/TT-BTC on amendments to some Articles of Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance for reform and simplification of tax formalities, which comes into force from September 01, 2014 stipulates that:

 “Article 7. Entry into force

1. This Circular comes into force from September 01, 2014.

When an enterprise needs time to prepare for the procedures and make the forms provided in Circulars mentioned in Clause 2 of this Article, it may choose procedures and forms according to applicable regulations and amended regulations until the end of October 31, 2014 without notification and registration with the tax authority. The General Department of Taxation shall provide instructions on the implementation of these regulations.

2. Instructions and forms provided in the Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014 and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance amended, replaced or annulled by this Circular are invalidated.

3. Other administrative procedures for taxation that are not mentioned in this Circular shall be implemented according to applicable regulations of law.

Any difficulties that arise during the implementation should be reported to the Ministry of Finance for consideration and settlement./.”

- Article 22 of Circular No. 151/2014/TT-BTC on guidance on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation, which comes into force from November 15, 2014 stipulates that:

 “Article 22. Entry into force

...

...

...

Regulations in Chapter I of this Circular shall be applied to the corporate income tax from 2014.”

- Article 25 of Circular No. 92/2015/TT-BTC on guidelines for VAT and personal income tax incurred by residents conducting business, amendments to some Articles on personal income tax of the Law No. 71/2014/QH13 on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of the Law on amendments to Laws and Decrees on taxation, which comes into force from July 30, 2015 stipulates that:

 “Article 25. Entry into force

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

Regulations on businesspeople paying flat tax with invoices of tax authorities shall apply to tax periods from January 01, 2016.

2. Persons who have lease contracts for many years and have declared and paid tax according to previous regulations are not required to adjust the amount of tax declared and paid.

3. Persons who transfer real estate and have applied for registration of right to ownership or right to use of real estate, or have submitted tax declaration documents before January 2015 to which 25% tax is applied may apply 2% tax if they have not received any tax notice from the tax authority by December 31, 2014.

4. Points b.2.2, b.2.3, and b.2.4 Clause 1 of Article 16, Article 22 of Circular No. 156/2013/TT-BTC are annulled.

5. Regulations on VAT and PIT incurred by businesspeople in Article 16 and Article 21 of Circular No. 156/2013/TT-BTC are annulled.

...

...

...

7. Point d Clause 6 Article 2 on PIT on casino prizes of Circular No. 111/2013/TT-BTC is annulled.

8. Sub-departments of taxation of districts shall send the lists of business households exempt from VAT and/or PIT and the lists of business households paying flat tax to the People’s Councils and Fatherland Front Agencies of districts and communes by August 30, 2015. The lists shall also be publicly posted at Sub-departments of taxation and the People’s Committees of districts, at the gates or suitable locations of the People’s Committees of communes, offices of tax collector teams, management boards of markets, and at the same time the list using Form No. 01/CKTT-CNKD issued together with this Circular shall be publicly sent to each businessperson. The list using Form No. 01/CKTT-CNKD shall be made according to guidance in Point a.1 Clause 9 Article 6 of this Circular.

Any difficulties that arise during the implementation should be reported to the Ministry of Finance (the General Department of Taxation) for consideration and settlement./.

- Article 5 of Government’s Circular No. 25/2018/TT-BTC on guidelines for the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 on amendments to some Articles of the Circular No.78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and Circular No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, which comes into force from May 01, 2018 stipulates that:

 “Article 5. Entry into force

1. This Circular comes into force from May 01, 2018.

2. Cases that arise from February 01, 2018 and are covered the Decree No. 146/2017/ND-CP shall comply with the Decree No. 146/2017/ND-CP and Article 1, Article 2 and Clauses 2, 3 and 4 Article 3 of this Circular.

3. Any difficulties that arise during the implementation should be reported to the Ministry of Finance for consideration and settlement./.”

55 Article 25 of Circular No. 151/2014/TT-BTC on guidance on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation, which comes into force from November 15, 2014 stipulates that:

...

...

...

1. People’s Committees of provinces and central-affiliated cities shall direct regulatory agencies to comply with regulations of the Government and guidance of the Ministry of Finance.

2. Tax authorities are responsible for providing guidance for organizations or individuals to comply with regulations of this Circular.

3. Regulated entities of this Circular shall comply with regulations of this Circular.

Any difficulties that arise during the implementation should be reported to the Ministry of Finance for consideration and settlement./.”

56 This Clause is amended by Article 11 of Circular No. 151/2014/TT-BTC on guidance on implementation of Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to Decrees on taxation, which comes into force from November 15, 2014;

Văn bản hợp nhất 68/VBHN-BTC năm 2019 hợp nhất Thông tư hướng dẫn thực hiện Luật Thuế thu nhập cá nhân, Luật Thuế thu nhập cá nhân sửa đổi và Nghị định 65/2013/NĐ-CP hướng dẫn Luật Thuế thu nhập cá nhân và Luật Thuế thu nhập cá nhân sửa đổi do Bộ Tài chính ban hành