Công văn 8817/BTC-TCT

Respectfully to: Taxation Departments of provinces, central-affiliated cities

On November 22, 2012, the National Assembly passed the Law amending and supplementing a number of articles of the Law on personal income tax, of which some provisions are taken effect on July 01, 2013.

Based on provisions on Law on personal income tax and Law amending and supplementing a number of articles of Law on personal income tax, the Government issued the Decree No. 65/2013/ND-CP dated 27/6/2013 detailing implementation.

At present, the Ministry of Finance is expeditiously completing draft to promulgate Circular guiding implementation of provisions of Law and Decree.

In order to carry out provisions which take effect on 01/7/2013 of Law on amending and supplementing a number of articles of Law on personal income tax, while waiting promulgation of a guiding Circular, the Ministry of Finance suggest Taxation Departments of provinces, central-affiliated cities to care, direct implementation of the following affairs:

1. To coordinate with concerned agencies at localities to push up calling, propagation about Law amending and supplementing a number of articles of Law on personal income tax which has been adopted by the National Assembly to organizations, enterprises, households, individuals .

2. To notify organizations and enterprises in geographical areas and carry out the following content:

2.1. To apply the reduction level based on family circumstances for resident individuals with income from salaries or wages, from business as follows:

- Reduction for taxpayer is 9 million dong/month;

- Reduction for each dependant who belongs to the reduced case is 3.6 million dong/month.

2.2. To regulate provisions on conditions to define resident individuals based on duration of renting house stated in contract of renting house to be 183 days or more (replaced for 90 days or more as prescribed in the Decree No. 100/2008/ND-CP dated 8/9/2013 of the Government).

2.3. Organizations, individuals paying income for resident individuals who not sign labor contract or sign labor contract under 03 months, will withhold at the unified rate of 10% for income of 2,000,000 dong or more/ payment period (regardless of such individuals have or not have tax identification numbers).

2.4. To perform unified application of determining income from share transfer regardless of shares of public companies or of companies not yet become public company are securities transfer.

2.5. To supplement provision on tax exemption for individuals with income from transfer of house, residential land use right and assets attached to residential land of individuals in case the transfer person has only one sole house, residential use land right in Vietnam as follows:

- Individuals must have ownership of house, residential land use right counted to time of transfer not less than 183 days.

- Cases of transfer of houses, construction works going to be formed in future are not exempt from personal income tax under case of having one sole house.  

2.6. Organizations, enterprises which have purchased or paid on behalf of laborers the amounts of accumulated premium to buy life insurance, other non-compulsory insurances, accumulated amounts contributed into voluntary retirement fund will not be required to add these amounts to the taxable income in period in order to determine the withheld personal income tax of individuals.

The detailed guidance for implementation shall comply with guiding documents in Circular of the Ministry of Finance.  

The Ministry of Finance requests taxation departments to execute.