Công văn 51/TCT-DNNCN năm 2021 về chính sách thuế thu nhập cá nhân đối với các khoản thanh toán cho người lao động khi chấm dứt hợp đồng lao động do Tổng cục Thuế ban hành

To: Suntory Pepsico Vietnam Beverage Co., Ltd.
(Sheraton Building, No. 88 Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh City)

General Department of Taxation received the Official Dispatch No. 23112020/CV dated November 23, 2020 from Suntory Pepsico Vietnam Beverage Co., Ltd. in the matter of the personal income tax policy on payments to employees upon termination of their employment contracts. In this regard, General Department of Taxation hereby gives advisory opinion as follows:

Pursuant to clause 2, Article 3 of the Law on Personal Income Tax No. 04/2007/QH12 dated November 21, 2007 of the National Assembly (amended by clause 1, Article 1 of the Law No. 26/2012/QH13 on amendments to the Law on Personal Income Tax dated November 22, 2012 of the National Assembly);

Pursuant to sub-point b, clause 2, Article 8 and clause 1, Article 25 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance on guidelines for the Law on Personal Income Tax and the Government’s Decree No. 65/2013/ND-CP dated June 27, 2013 on elaboration of the Law on Personal Income Tax and the Law on amendments to the Law on Personal Income Tax.

Pursuant to the above-mentioned regulation and guidance, in case Suntory Pepsico Vietnam Beverage Co., Ltd. pays income from salary or wage of at least VND 2 million (VND 2,000,000)/time to an employee after the termination of his/her employment contract, the Company must withhold personal income tax of the employee at the rate of 10% of the total taxable income from salary and wage which is determined in accordance with Clause 2, Article 3 of the Law on Personal Income Tax No. 04/2007/QH12 dated November 21, 2007 of the National Assembly (as amended by Clause 1, Article 1 of the Law No. 26/2012/QH13 on amendments to the Law on Personal Income Tax dated November 22, 2012 of the National Assembly). If the employee only has the income subject to tax withholding at the above-mentioned rate but it is estimated that the total taxable income of the employee after deducting the personal exemption does not reach a tax-liable level, he/she shall make a commitment (using the form issued together with the written guidance on tax administration) to the Company in order for the Company to suspend withholding his/her personal income tax.