Uni 03-09-2013 - guiding a number of Articles of the Law on Personal Income Tax

Ministry of Finance has just issued Circular No.111/2013/TT-BTC replacing Circular No.84/2008/rT-BTC, 62/2009/TT-BTC ... guiding the Law on Personal Income Tax, Law of Amending and Supplementing a number of articles of the Law on Personal Income Tax and Decree No. 65/2013/ND-CP, in which there are some notable new features as follows:

• Conversion of the Net income into assessable income: the Net incomeis the actualincome received plus ( + ) the benefits provided by the employer to pay on behalf of the employees ( if any), minus ( - ) deductions . In case of replacement payments with the rent, the rent is included in income as a basis with the actual payments but do not exceed 15 % of taxable income (excluding house rent).
• In the case of thatan individual is not yet deductedfor him/herself in the tax period or for him/herself less than 12 months will be deducted to 12 months when conducting the tax settlement as prescribed.
• When the taxpayers registerto family circumstance deduction for dependents will be granted for tax code by tax authorities and temporarily included family circumstance deduction in the years after registration. For dependents registered family circumstance deduction before the effective date of this Circular, the continued implementation of family circumstance deduction until being granted tax code.
• For resident individuals sign labor contracts from three ( 03 ) months or more but off from work before the end of the contract labor, income payers paying income still conduct tax deduction under thepartial progressive tariff.
• For individuals who are foreigners working in Vietnam, taxpayers based on time in Vietnam of taxpayers recorded on contracts or documents sent to work in Vietnam to temporarily withhold tax under the partial progressive tariff (for the individuals working in Vietnam from or up 183 days in a tax year) or the full tariff (for individuals working in Vietnam for less than 183 days during the tax year ) .
• For individuals who do not sign labor contracts or sign labor contracts under three ( 03 ) months : the individuals may request income payersto grant the withholding certificate for every tax deduction or a certificate of withholding tax deducted multiple times for a tax period . For individual having labor contracts from or up three ( 03 ) months, income payers only grant a withholding certificate in a tax period.