Phần D: Thông tư 84/2008/TT-BTC Đăng ký thuế, khấu trừ thuế, khai thuế, quyết toán thuế, hoàn thuế

Part D.

TAX REGISTRATION, WITHHOLDING, DECLARATION, FINALIZATION AND REFUND

I. TAX REGISTRATION

1. Entities obliged to make tax registration

Under Article 21 of the Tax Administration Law; and Articles 2 and 8 of the Personal Income Tax Law, entities obliged to make personal income tax registration include:

1.1. Income-paying organizations and individuals, including:

1.1.1. Economic organizations, business households and individuals, including also their branches and affiliated units, which are obliged to make tax registration under the guidance in the Finance Ministry’s Circular No. 85/2007/TT-BTC of July 18, 2007, guiding the implementation of the Tax Administration Law regarding tax registration.

1.1.2. State administrative management agencies at all levels.

1.1.3. Political organizations, socio-political organizations and socio-professional organizations.

1.1.4. Non-business units.

1.1.5. International organizations and foreign organizations.

1.1.6. Project management units, representative offices of foreign organizations.

1.1.7. Other income-paying units.

In case income-paying agencies have affiliated units which have the legal person status and conduct independent cost-accounting, these units shall also make tax registration.

1.2. Individuals with personal income tax-liable incomes, including:

1.2.1. Individuals who earn incomes from production or business activities, including also independent professional practitioners; agricultural production individuals and households ineligible for personal income tax exemption; and individuals who earn incomes from production or business activities and make personal income tax registration concurrently with registration of other taxes.

1.2.2. Individuals who earn incomes from salaries or wages.

1.2.3. Other individuals with taxable incomes, which are earned on a regular basis.

If entities specified at Points 1.1 and 1.2 above have made tax registration and been issued tax identification numbers, they are not required to make new registration. Issued tax identification numbers may continue to be used in performing the personal income tax obligation. An individual who earns many personal income tax-liable incomes shall make tax registration only once. His/ her tax identification number may be used in making tax declarations for all his/her incomes.

2. Tax registration dossiers

2.1. For business organizations and individuals, tax registration dossiers comply with Point 2, Section I, Part II of the Finance Ministry’s Circular No. 85/2007/TT-BTC of July 18, 2007, guiding the implementation of the Tax Administration Law regarding tax registration.

For a group of business individuals who contribute capital and jointly conduct business activities, its authorized representative shall make tax registration under the guidance in Circular No. 85/2007/TT-BTC to get a tax identification number for himself/herself. The tax identification number of the representative of the group of business individuals may be used in making value-added tax, excise tax and license tax declaration and payment for the whole group and for making the representative’s own personal income tax declarations. Other capital-contributing members of the group are still required to make tax registration in order to be issued their own personal income tax identification numbers as for independent business individuals.

2.2. For income-paying units other than business organizations, tax registration dossiers comply with Point 2.10, Section I, Part II of Circular No. 85/2007/TT-BTC.

2.2. For individuals who earn incomes from salaries or wages, securities investment or capital transfer (including securities transfer) and other individuals with taxable incomes, a tax registration dossier comprises:

- A declaration for tax registration, made according to a set form.

- A copy of the taxpayer’s identity card or passport.

3. Places for filing tax registration dossiers

3.1. For enterprises established and operating under the Enterprise Law and business individuals, including also independent professional practitioners: Places for filing of tax registration dossiers are specified in Circular No. 85/2007/TT-BTC.

3.2. For administrative management agencies, non-business units, mass organizations, political organizations, social organizations and professional organizations, places for dossier filing are as follows:

3.2.1. Central agencies, agencies under or attached to ministries, branches, provincial-level People’s Committees, and provincial-level agencies shall file their tax registration dossiers with provincial-level Tax Departments.

3.2.2. Agencies under or attached to district-level People’s Committees and district-level agencies shall file their tax registration dossiers with district-level Tax Departments.

3.2.3. Diplomatic missions, international organizations, representative offices of foreign organizations shall file their tax registration dossiers with provincial-level Tax Departments in localities where they are based.

3.3. Individuals who earn taxable incomes from salaries or wages shall file their tax registration dossiers with their income-paying units or tax offices directly managing their income-paying units. In case individuals file their tax registration dossiers with their income-paying units, the latter shall collect tax registration declarations of registering individuals and submit them to their managing tax offices.

3.4. Individuals who earn other taxable incomes shall file their tax registration dossiers with district-level Tax Departments in localities where they reside.

3.5. Individuals who earn incomes from different sources: business activities, salaries, wages and other taxable incomes, may choose to file their tax registration dossiers with their income-paying agencies or units or district-level Tax Departments in localities where they conduct business activities.

II. TAX WITHHOLDING, DECLARATION AND FINALIZATION

1. Tax withholding means that income-paying organizations and individuals deduct payable tax amounts from incomes of taxpayers before paying incomes.

1.1. Kinds of income subject to tax withholding:

1.1.1. Incomes of non-resident individuals, including also those who are not present in Vietnam;

1.1.2. Incomes of resident individuals:

a. Incomes from salaries or wages;

b. Incomes from capital investment;

c. Incomes from capital transfer or securities transfer;

d. Incomes from won prizes of all kinds;

e. Incomes from copyright;

f. Incomes from commercial franchising.

1.2. In some specific cases, tax withholding shall be made as follows:

1.2.1. Withholding of tax on incomes from salaries or wages of individuals who have labor contracts or are recruited to work in a long-term and stable manner.

The withholding of tax on incomes from salaries or wages shall be made on a monthly basis. Income-paying agencies shall base themselves on salaries, wages and other salary or wage-based amounts actually paid to their employees to make temporary family circumstance-based reductions for taxpayers and their dependants according to taxpayers’ registrations. Based on remaining incomes and the partially progressive tariff, income-paying agencies shall calculate tax amounts and withhold calculated tax amounts for remittance into the state budget.

Example: Mr. A is a resident individual working for Company X, earning a regular income of VND 10 million from monthly salary and nurturing two minor children.

Every month, Company X shall withhold personal income tax of Mr. A as follows:

His income is eligible for a total family circumstance-based reduction of VND 7.2 million/month, including:

- Reduction for himself: VND 4 million/ month.

- For his two dependants (two children): VND 1.6 million x 2 = VND 3.2 million/month.

His taxed income: VND 10 million - VND 7.2 million = VND 2.8 million/month.

His personal income tax amount to be withheld: VND 2.8 million x 5% = VND 0.14 million/month.

1.2.2. Withholding of tax on incomes from capital investment

Before each time of payment of profits or dividends to individual investors, organizations shall withhold personal income tax. A tax amount to be withheld is determined to be the profit or dividend amount to be paid multiplied by (x) the tax rate of 5%.

1.2.3. Withholding of tax on incomes from securities transfer

All cases of securities transfer, regardless of whether personal income tax is paid at the tax rate of 0.1% or 20%, are subject to tax withholding before incomes are paid to transferors. A tax amount to be withheld is determined to be the transfer price inclusive of transfer expenses multiplied by (x) the tax rate of 0.1%.

Securities companies or commercial banks where investors open their trading accounts shall withhold personal income tax. For unlisted securities traded at the Stock Exchange or the Securities Trading Center, issuing organizations shall withhold tax if they do not authorize securities companies to manage shareholders’ lists.

1.2.4. Withholding of tax on incomes from copyright or commercial franchising

Organizations and individuals that pay incomes from copyright or commercial franchising shall withhold personal income tax before paying those incomes. A tax amount to be withheld is determined to be the income amount in excess of VND 10 million earned under each transfer contract multiplied by (x) the tax rate of 5%. For a contract of a large value and to be paid for in installments, the organization or individual that pays income shall deduct, upon the first payment installment, VND 10 million from the payment value and multiply the remainder by the tax rate of 5% for tax withholding. For subsequent payment installments, personal income tax calculated based on total amount of each payment installment shall be withheld.

1.2.5. Withholding of tax on incomes from won prizes:

Organizations that pay prize money to prize winners shall withhold personal income tax before paying those prizes. A tax amount to be withheld is determined to be the prize value in excess of VND 10 million multiplied by (x) the tax rate of 10%.

1.2.6. Withholding of tax for non-resident individuals who have taxable incomes

Organizations and individuals that pay taxable incomes to non-resident individuals shall withhold personal income tax before paying those incomes. Bases for withholding personal income tax are taxed income and personal income tax rate applicable to each kind of income and each kind of occupation or business line.

1.2.7. Withholding of tax in some other cases

Organizations and individuals that pay wages, remuneration or other sums of money to individuals performing services without entering into labor contracts, such as emoluments, royalties for book translators, payments for teachers and lecturers or allowances for members of associations, boards of directors, members’ councils or management boards; charges for provision of scientific, technical, cultural, sport, physical training, construction engineering consulting and legal services of VND 500,000 or more each time, shall withhold personal income tax before paying incomes to individuals under the following guidance:

- Withholding tax at the rate of 10% of incomes, for individuals having tax identification numbers.

- Withholding tax at the rate of 20% of incomes, for individuals having no tax identification numbers.

Organizations and individuals that pay incomes from which tax has been withheld under the above guidance shall issue tax withholding vouchers at the request of individuals from whom tax is withheld. Tax offices shall supply tax withholding vouchers to income-paying organizations or individuals upon their written requests (made according to a set form).

2. Tax declaration

Organizations and individuals that pay personal income tax-liable incomes and individuals who earn personal income tax-liable incomes shall make tax declaration as follows:

2.1. Tax declaration by income-paying organizations and individuals that withhold tax.

2.1.1. Monthly tax declaration

Organizations and individuals that pay personal income tax-liable incomes and withhold tax under the guidance at Point 1, Section II, Part D above shall complete and file tax returns with tax offices on a monthly basis, specifically as follows:

a. For withholding of personal income tax on incomes from salaries or wages, tax returns shall be made according to a set form.

b. For withholding of personal income tax on incomes from capital investment, securities transfer, copyright, commercial franchising or won prizes, tax returns shall be made according to a set form.

c. For withholding of personal income tax for non-resident individuals who earn incomes from salaries or wages or business activities, tax returns shall be made according to a set form.

2.1.2. The deadline for filing a tax return for a month is the 20th of the following month.

In case income-paying organizations or individuals have a total withheld personal income tax amount of less than VND 5 million/month in each tax return, they may make and file tax returns on a quarterly basis. The deadline for filing a tax return for a quarter is the 30th of the first month of the following quarter.

2.1.3. Declaration for tax finalization

Organizations and individuals that pay incomes subject to tax withholding, regardless of whether tax is actually withheld or not, shall make personal income tax declaration for finalization under the following specific provisions:

a. A dossier of declaration for tax finalization comprises:

- A declaration for personal income tax finalization, made according to a set form, and the following detailed lists:

+ List of incomes from salaries or wages paid to individuals who have labor contracts, made according to a set form, regardless of whether these incomes reach the taxable level or not.

+ List of incomes from salaries or wages paid to individuals who do not have labor contracts, made according to a set form.

- In case personal income tax is withheld on incomes from capital investment, securities transfer, copyright, commercial franchising or won prizes, there must be a declaration for personal income tax finalization, made according to a set form, and detailed lists enclosed with this declaration. Specifically as follows:

+ Detailed list of incomes from capital investment, made according to a set form.

+ Detailed list of incomes from securities transfer, made according to a set form.

+ Detailed list of incomes from copyright or commercial franchising, made according to a set form.

+ Detailed list of incomes from won prizes, made according to a set form.

b. The deadline for filing a dossier for tax finalization for a calendar year is the 90th day after the end of that year.

2.1.4. Places for filing monthly or quarterly tax declaration dossiers and tax finalization dossiers

a. For income-paying units that are organizations or individuals engaged in production or business activities: Tax declaration dossiers shall be filed with tax offices directly managing them.

b. For other cases:

- Central agencies, agencies under or attached to ministries, branches or provincial-level People’s Committees, and provincial-level agencies shall file their tax declaration dossiers with provincial-level Tax Departments.

- Agencies under or attached to district-level People’s Committees and district-level agencies shall file their tax declaration dossiers with district-level Tax Departments.

- Diplomatic missions, international organizations and representative offices of foreign organizations shall file their tax declaration dossiers with provincial-level Tax Departments in localities where they are headquartered.

2.1.5. Deadline for tax payment

The deadline for payment of withheld tax amounts and remaining tax amounts to be paid upon tax finalization is the deadline for filing monthly or quarterly tax declaration dossiers and dossiers for annual tax finalization.

2.2. Personal income tax declaration by resident individuals earning incomes from business activities

2.2.1. Personal income tax declaration by business individuals who have conducted the invoice and voucher-based accounting (declaration-based tax payment):

a. Declaration for temporary payment of personal income tax on a quarterly basis: Business individuals who have fully conducted the invoice and voucher-based accounting shall temporarily determine, on a quarterly basis, their taxable incomes and declare personal income tax amounts to be temporarily paid according to a set form and file tax returns with district-level Tax Departments directly managing them.

- The deadline for filing a tax return for a quarter is the 30th of the first day of the first month of the following quarter.

- Bases for determination of a personal income tax to be temporarily paid are:

+ Taxable income temporarily calculated in a quarter, which is the turnover in the quarter minus (-) expenses temporarily calculated in the quarter:

Turnover in the quarter is determined to be goods or service sale turnover declared in the quarter and consistent with turnover for value-added tax calculation and payment for the quarter.

Expenses temporarily calculated in the quarter are those actually paid in relation to turnover in the quarter.

+ Taxed income temporarily calculated in a quarter, which is determined to be taxable income minus (-) family circumstance-based reductions calculated for the whole quarter.

Family circumstance-based reductions include reduction for the business individual himself/ herself and reduction for his/her dependants. The number of a business as individual’s dependants eligible for temporary reduction is that declared by that business individual.

+ Personal income tax amount to be temporarily paid for a quarter shall be determined according to the following formula:

b. Declaration for tax finalization

- Individuals who earn incomes from business activities and pay tax according to tax declarations shall make declaration for tax finalization.

- A dossier for tax finalization comprises:

+ A declaration for tax finalization, made according to a set form.

+ Vouchers evidencing the tax amount already temporarily paid in the year.

- Dossiers for tax finalization shall be filed with district-level Tax Departments directly managing taxpayers.

- The deadline for filing a dossier for tax finalization for a calendar year is the 90th day after the end of that year.

c. The deadline for tax payment is the deadline for filing tax declaration dossiers.

2.2.2. Tax declaration by business individuals who can account only turnover from but not expenses for business activities: tax declaration dossiers, tax bases and tax payment deadline applicable to these individuals are those applicable to business individuals who have fully conducted the invoice and voucher-based accounting. Particularly, for business expenses, they shall be assessed by tax offices.

2.2.3. Tax declaration by business individuals or groups of business individuals that fail to conduct or improperly conduct the invoice and voucher-based accounting and pay tax by the presumptive method.

a. Tax declaration dossiers

Business individuals or groups of business individuals that fail to conduct or improperly conduct the invoice and voucher-based accounting shall make annual tax declaration (once a year) according to a set form.

b. The deadline for filing a tax declaration dossier for a year is the December 31 of the preceding year. Business individuals or groups of business individuals that have newly commenced their business activities shall file their tax declaration dossiers within 10 days after the date of business commencement.

c. Determination of payable presumptive tax amounts

- Based on business individuals’ declaration of turnover and dependants eligible for family circumstance-based reduction, tax offices shall coordinate with tax advisory councils in communes or wards in inspecting and assessing turnover to serve as a basis for determination of taxable incomes and presumptive personal income tax amounts payable or exempted.

- Tax offices shall post up lists of business individuals and their estimated taxable incomes, tax bases and tax amount payable by each individual. Tax offices shall give notices of tax amounts payable for the whole year and tax amounts to be temporarily paid for each quarter, made according to a set form, to individuals liable to pay tax no later than the last day of February.

Business individuals liable to pay tax shall file dossiers to evidence their dependants under the provisions of Point 3.1.7, Clause 3, Section I, Part B of this Circular.

- In case of a change in business scale, business line or number of dependants in a year, a business individual shall declare such change to the tax office for adjustment of the presumptive tax amount as appropriate.

- For a group of business individuals: Based on taxable income assessed for the whole group and the proportionally divided income and declaration for family circumstance-based reduction of each member of the group, the tax office shall calculate and give to each member a notice of the presumptive tax amount payable for the whole year and tax amount to be temporarily paid for each quarter, made according to a set form, no later than the last day of February.

d. The place for filing tax declaration dossiers is the district-level Tax Department in the locality where the business individual or group of business individuals conducts business activities.

e. The deadline for tax payment is the last day of the quarter.

f. Individuals who earn incomes only from business activities and pay personal income tax by the presumptive method are not required to make tax finalization.

2.2.5. Tax declaration by individuals who contribute capital to a business, jointly conduct business activities and are named in the same business registration, including case of lease of a house or business place under joint ownership (referred to as business group), fully conduct the invoice and voucher-based accounting and pay tax by the declaration method:

a. Declaration for temporary payment of personal income tax on a quarterly basis: the individual representing the business group shall declare the tax to be temporarily paid in a quarter according to a set form. Turnover and expenses temporarily calculated in the quarter shall be determined as for business individuals who have properly conducted the invoice and voucher-based accounting.

- The business group’s representative shall temporarily distribute taxable income to each individual member of the group under Clause 6, Section I, Part B of this Circular on income distribution.

- The personal income tax amount to be temporarily paid shall be calculated separately for each individual member of the group based on the income temporarily distributed to him/her, his/ her family circumstance and the tariff. Based on the personal income tax amount temporarily calculated for each individual member, the business group’s representative shall pay tax into the state budget according to each separate budget remittance voucher for each member.

- The deadline for filing a tax declaration dossier for a quarter is the 30th of the first month of the following quarter.

b. Declaration for tax finalization

- For a business group, the individual representing the group shall make a dossier of declaration for tax finalization according to a set form for determination of taxable income of the whole group and taxable income of each individual member of the group. Taxable income of each individual member shall be distributed under Clause 6, Section I, Part B of this Circular.

- Each individual member of the business group may receive one original of the group’s tax finalization declaration and shall make his/her own declaration for tax finalization.

- A dossier of declaration for tax finalization for each individual member of a business group comprises:

+ A declaration for tax finalization for the business group, made according to a set form.

+ A tax return, made according to a set form and its appendix made according to another set form.

+ Vouchers evidencing the tax amount already temporarily paid in the year.

- The dossier of declaration for tax finalization shall be filed with the district-level Tax Department in the locality where the business group conducts its business activities.

c. The deadline for tax payment for a business group and individuals of the group is the deadline for filing its tax declaration dossier.

2.3. Declaration of personal income tax for resident individuals earning incomes from salaries or wages

2.3.1. Monthly tax declaration

a. Individuals liable to make monthly tax declaration

- Individuals receiving incomes from salaries or wages paid by overseas organizations or individuals.

- Vietnamese individuals earning incomes from salaries or wages paid by Vietnam-based international organizations, embassies or consular offices.

Individuals earning incomes from salaries or wages and not falling into the above cases are not required to make monthly tax declaration.

b. The monthly tax declaration dossier is the personal income tax return made according to a set form.

c. Place and deadline for filing monthly tax declaration dossiers

- The place for filing a monthly tax declaration dossier is the provincial-level Tax Department in the locality where the declarant resides.

- The deadline for filing a monthly tax declaration dossier for a month is the 20th of the following month.

d. Individuals earning a monthly income of over VND 4 million and eligible for family circumstance-based reduction for their dependants shall file their tax declaration dossiers directly with tax offices and file registrations of their dependants together with tax declaration dossiers for the first month of the tax year. Time of filing dossiers evidencing dependants by these individuals is the time of dossier filing applicable to individuals earning incomes from salaries or wages guided in Item a, Point 3.1.8, Section I, Part B of this Circular.

Registrations of dependants and dossiers evidencing dependants shall be filed with provincial-level Tax Departments with which individuals have filed their tax declaration dossiers.

2.3.2. Declaration for tax finalization

a. An individual earning incomes from salaries or wages shall make declaration for tax finalization in the following cases:

- He/she has a tax amount payable in a year larger than the tax amount withheld or temporarily paid in the year or has a tax amount due in the year but neither has it withheld nor temporarily paid it.

- He/she wishes to have his/her tax amount in a period refunded or cleared against the payable tax amount of the following period.

Upon the expiration of their contracts for working in Vietnam and before their departure, resident foreigners shall make tax finalization with tax offices. Individuals other than those specified above are not required to make declaration for tax finalization.

b. A dossier of declaration for tax finalization comprises:

- A declaration for tax finalization, made according to a set form, and its annexes made according to set forms.

- Vouchers evidencing the tax amount already withheld or temporarily paid in the year.

- For individuals receiving incomes from international organizations, embassies, consular offices or overseas entities, there must be documents evidencing or certifying sums of money paid by overseas income-paying units or organizations enclosed with written certifications of annual incomes, made according to a set form.

c. The deadline and place for filing tax finalization dossiers

- The deadline for filing a tax finalization dossier is the 90th day after the end of a calendar year.

- The place for filing a tax finalization dossier is die tax office directly managing the income-paying unit.

For individuals who earn incomes from salaries or wages and directly make monthly tax declaration, the place for filing tax finalization dossiers is the place for filing monthly tax declaration dossiers (provincial-level Tax Department).

2.4. Tax declaration by resident individuals earning incomes from both business activities and salaries or wages

2.4.1. Tax declaration

Individuals earning incomes from both business activities and salaries or wages shall only make declaration for temporary payment of personal income tax on incomes from business activities under the guidance of Point 2.2 above.

2.4.2. Tax finalization

a. An individual earning incomes from both business activities and salaries or wages shall make declaration for tax finalization in the following cases:

- He/she has a total monthly taxable income of over VND 4 million.

- He/she files a dossier of request for tax refund or clearing of his/her overpaid tax amount in the period against the payable tax amount of the following period.

Upon the expiration of their contracts for working in Vietnam and before their departure, resident foreigners shall make tax finalization with tax offices. Individuals other than those specified above are not required to make declaration for tax finalization.

b. A dossier of declaration for tax finalization comprises:

- A declaration for tax finalization, made according to a set form;

- Annexes to the declaration, made according to set forms.

c. The place for filing a tax finalization dossier is the district-level Tax Department in the locality where the individual conducts business activities.

2.5. Tax declaration for incomes from real estate transfer

2.5.1. Time of tax declaration: Individuals earning incomes from real estate transfer, regardless of whether these incomes are liable to or exempt from tax, shall make personal income tax declaration dossiers and file them together with dossiers for transfer of the ownership of or the right to use real estate.

2.5.2. A tax declaration dossier comprises:

- A personal income tax return applicable to individuals transferring real estate, made according to a set form.

- A copy of the land use rights certificate or copies of title documents of the house or works on land.

- The real estate transfer contract.

- In case the individual wishes to pay tax at the tax rate of 25% of income from the real estate transfer, he/she shall additionally produce valid documents evidencing the following expenses:

+ Cost price of the real estate.

+ Expenses for building or renovating the house and works on land.

+ Paid charges and fees.

+ Other expenses directly related to the real estate transfer.

- For cases of real estate transfer eligible for personal income tax exemption, there must be papers to serve as a basis for identifying these cases as eligible for tax exemption in specific cases guided in Clauses 1, 2, 3, 4 and 5, Section III, Part A of this Circular.

2.5.3. Places for filing tax declaration dossiers: Individuals shall file their tax declaration dossiers together with real estate transfer dossiers with the real estate-managing agency. For localities in which the inter-branch one-stop-shop mechanism is not yet applied, dossiers shall directly filed with district-level Tax Departments in districts where transferred real estate exist.

Based on personal income tax declaration dossiers for real estate transfer, tax offices shall check and determine payable tax amounts and give notices thereof, made according to a set form, to taxpayers within three (3) working days after the receipt of complete dossiers. Tax notices shall be handed directly to taxpayers or sent together with dossiers through the competent real estate-managing agency. For individuals exempt from tax, tax offices shall give certifications in such individuals’ declarations and forward them to the real estate-managing agency.

The real estate-managing agency shall carry out procedures for transferring the ownership of or the right to use real estate only when receiving vouchers evidencing the payment of personal income tax or tax offices’ certification that incomes from real estate transfer are exempt from tax.

2.5.4. The deadline for tax payment shall be that stated in tax notices.

2.6. Tax declaration for incomes from capital transfer

Individuals earning incomes from capital transfer (except for incomes from securities transfer) shall make and file tax returns with tax offices under the following provisions:

2.6.1. Time of making tax declaration: Individuals earning incomes from capital transfer shall make personal income tax declaration concurrently with carrying out procedures for transferring the ownership of capital amounts to other organizations or individuals under law.

2.6.2. A tax declaration dossier comprises:

- A personal income tax return applicable to individuals earning incomes from capital transfer, made according to a set form.

- A copy of the capital transfer contract.

- Vouchers evidencing expenses related to the determination of income from capital transfer.

2.6.3. The place for filing tax declaration dossiers: Personal income tax declaration dossiers for incomes from capital transfer shall be filed with tax offices directly managing business establishments where capital transfer transactions are conducted or with district-level Tax Departments in localities where capital transferors (sellers) reside.

2.6.4. The deadline for tax payment shall be stated in tax notices, made according to a set form.

2.6.5. Competent state management agencies or enterprises having their capital transferred shall carry out procedures for transferring the capital ownership to the transferees only when receiving vouchers evidencing the payment of personal income tax on capital transfer.

2.7. Tax declaration by individuals earning incomes from securities transfer

2.7.1. A securities-transferring individual who has made tax registration with a tax office shall pay personal income tax under the whole income tariff at the tax rate of 20% of income and shall make tax finalization in the following cases:

a. His/her payable tax amount calculated at the tax rate of 20% is larger than that temporarily withheld at the tax rate of 0.1 % in the year.

b. He/she requests tax refund or clearing of the overpaid tax amount against the following year’s payable tax amount.

2.7.2. A tax finalization dossier comprises:

- A declaration for tax finalization, made according to a set form.

- A detailed list of securities transferred in the year, made according to a set form.

- Invoices and vouchers evidencing expenses related to the securities transfer.

- Vouchers evidencing the tax amount withheld in the year.

2.7.3. Places for filing tax finalization dossiers are tax offices directly managing securities companies with which individuals have registered for trading or district-level Tax Departments of localities where individuals reside.

2.7.4. The deadline for filing a tax finalization dossier is the 90th day after the end of a calendar year.

2.8. Tax declaration for incomes from inheritances or gifts

Individuals earning incomes from inheritances or gifts shall make tax declaration upon each time of receiving incomes from inheritances or gifts. Particularly for inheritances or gifts being real estate, they shall make tax declaration under the guidance at Point 2.5, Clause 2, Section II, Part D of this Circular.

2.8.1. A tax declaration dossier comprises:

- A personal income tax return for incomes from inheritances or gifts, made according to a set form.

- Copies of legal papers evidencing the right to receive the inheritance or gift.

2.8.2. Places for filing tax declaration dossiers are district-level Tax Departments of localities where heirs or gift recipients reside.

Based on these tax declaration dossiers, tax offices shall check and calculate tax amounts payable by heirs or gift recipients into the state budget. For case of incomes of under VND 10 million from inheritances or gifts.

State management agencies and concerned organizations shall carry out procedures for transferring the ownership of securities, capital holdings and assets which must be registered as inheritances or gifts for heirs or gift recipients only when they receive vouchers evidencing tax payment by individuals liable to pay tax.

2.8.3. The deadline for filing tax declaration dossiers

Individuals earning incomes from inheritances or gifts shall file their tax declaration dossiers concurrently with carrying out procedures for transferring the ownership of or the right to use assets received as inheritances or gifts.

2.8.4. The deadline for tax payment shall be stated in tax notices made according to a set form.

2.9. Tax declaration by resident individuals with incomes generated abroad

2.9.1. Resident individuals with incomes generated abroad shall make tax declaration and payment under the Personal Income Tax Law.

In case personal income tax on incomes generated abroad has been calculated and paid under foreign personal income tax laws, tax amounts paid abroad will be deducted. Deductible tax amounts must not exceed payable tax amounts calculated under Vietnam’s tariffs and allocated to incomes generated abroad. The allocation ratio shall be determined to be the ratio of income generated abroad to the total taxable income.

2.9.2. Tax declaration for each kind of income is as follows:

a. Tax declaration for incomes from salaries or wages and incomes from business activities

Individuals who are residents in Vietnam and earn incomes from salaries, wages or business activities abroad shall make personal income tax declaration under the guidance in Clause 2, Section II, Part D of this Circular.

b. Tax declaration for other taxable incomes (incomes from capital investment, capital transfer, real estate transfer, copyright, commercial franchising, won prizes, inheritances, gifts).

- The time limit for making declaration is 10 days after the generation or receipt of incomes. For individuals who are abroad when their incomes are generated or received abroad, die time limit for making tax declaration is 10 days after their entry into Vietnam.

- A tax declaration dossier comprises:

+ A tax return, made according to a set form, for taxable incomes from capital investment, copyright, commercial franchising or won prizes generated abroad.

+ A tax return, made according to a specific form set for incomes from real estate transfer, securities transfer, inheritances or gifts in Vietnam.

The above tax returns must be enclosed with vouchers evidencing payment of incomes and personal income tax abroad which will serve as a basis for determination of incomes and personal income tax amounts paid abroad.

- Places for filing tax declaration dossiers are those designated for these kinds of income generated in Vietnam.

2.10. Tax declaration by a resident individual who earns incomes from business activities, salaries or wages and is present in Vietnam for less than 183 days counted within the first calendar year but more than 183 days counted within 12 consecutive months from the first day of his/her presence in Vietnam.

- The first tax year: He/she shall make tax declaration and file the tax finalization dossier no later than the 90th day after the last day of the period of full 12 consecutive months.

- The second tax year: He/she shall make tax declaration and file the tax finalization dossier no later than the 90th day after the end of the calendar year.

The payable tax amount for the second tax year may be cleared against the tax amount already paid in the first tax year corresponding to the overlapping period between the two tax years.

The duplicated tax amount to be cleared against the payable tax amount for the second tax year is determined as follows:

Example: Mr. A comes to work in Vietnam from May 1, 2009 (the date shown in his passport) and earns taxable incomes in Vietnam.

Assuming that during the period from May 1, 2009, to December 31, 2009, Mr. A is present in Vietnam for a total of 160 days and during the period from January 1, 2010 to April 30, 2010, he is present in Vietnam for a total of 30 days. Under regulations, the period of Mr. A’s presence in Vietnam in 2009 is not enough for him to be identified as a resident individual (160 days < 183 days). However, for the reason that the total number of days of his presence in Vietnam counted within 12 consecutive months (from May 1, 2009, to April, 30, 2010) is 190 days (160 days plus 30 days), Mr. A can still be identified as a resident individual.

The first tax year of Mr. A is counted from May 1, 2009, to the end of April 30, 2010, and he shall file his tax finalization dossier no later than the 90th day after April 30, 2010.

The second tax year of Mr. A is counted from January 1, 2010, to the end of December 31, 2010, and he shall file his tax finalization dossier no later than the 90th day after December 31, 2010.

The payable tax amount for the second tax year of Mr. A will be cleared against the tax amount paid in the first year for the overlapping period between the two tax years, including four months January, February, March and April.

So, Mr. A’s duplicated tax amount in 2009 to be cleared against his payable tax amount for 2010 shall be determined as follows:

3. Tax refund

3.1. An individual is entitled to tax refund in the following cases:

3.1.1. His/her paid personal income tax amount for a tax period is larger than the tax amount payable for that tax period.

3.1.2. He/she has paid personal income tax but his/her taxable income is below the taxable level.

3.1.3. Other cases under decisions of competent state agencies.

Personal income tax refund is applicable only to individuals who have made tax registration and had tax identification numbers.

3.2. A tax refund dossier comprises:

- An application for tax refund, made according to form No. 01/HTBT attached to the Finance Ministry’s Circular No. 60/2007/TT-BTC of June 14, 2007.

- A copy of the applicant’s identity card or passport.

- The personal income tax return for finalization.

- Personal income tax withholding vouchers or receipts.

- Documents evidencing the expiration of the applicant’s working period, such as decision on retirement or resignation, written record of liquidation of the labor contract, and list of days of residence in Vietnam (if any).

- A power of attorney in case of authorized declaration for tax refund (if any).

3.3. Places for filing tax refund dossiers

- Individuals earning incomes from salaries, wages or securities transfer shall file their tax refund dossiers with tax offices directly managing their income-paying units.

- Individuals earning incomes from business activities shall file their tax refund dossiers with district-level Tax Departments in localities where they conduct business activities.

- Individuals earning incomes from both salaries or wages and business activities shall file their tax refund dossiers with district-level Tax Departments in localities where they conduct business activities.

3.4. Handling of tax refund dossiers

The receipt of tax refund dossiers and the responsibility to handle tax refund dossiers comply with the guidance in Section II, Part G of the Finance Ministry’s Circular No. 60/2007/TT-BTC of June 14, 2007.

3.5. Tax refund procedures

After examining and considering tax refund dossiers valid, tax offices shall issue and send tax refund decisions to the State Treasury of the same level and to individuals eligible for tax refund.

Upon receiving tax refund decisions of tax offices, the State Treasury of the same level shall refund tax amounts to eligible individuals.