Circular No. 10/2009/TT-BTC guides tax registration, tax withholding, tax declaration, and final settlement of personal income tax for individuals acting as insurance agents. This document stipulates the steps to fulfill tax obligations of insurance agents, including tax registration, tax withholding, tax declaration, and final settlement of taxes.
적용 범위
Individuals acting as insurance agents have taxable income subject to personal income tax.
핵심 사항
- Individuals acting as insurance agents → must register for tax in accordance with the Law on Tax Administration and implementing guidance documents. The application includes a Tax Registration Form, a copy of the national identity card or passport, and a Business Registration Certificate or training certificate.
- The entity assigning the agency → has the responsibility to withhold personal income tax from the income derived from agency activities at progressive rates of 0%, 5%, and 10%. The income of the agent is converted monthly or annually for provisional withholding.
- The entity assigning the agency → must issue a tax withholding certificate to individuals acting as agents. Agents → declare and settle taxes in cases where the tax payable exceeds the amount withheld, or when there is income not yet subject to withholding.
- Agents → consolidate income from agency activities with income from salaries, wages, and other sources for joint declaration and settlement.
- This Circular → takes effect 45 days from the date of issuance and applies to the income of insurance agents from January 1, 2009.
🌐 이 문서의 사회적 영향
- Positive impact: Helps individuals acting as insurance agents comply with their tax obligations, ensuring fairness in assessing taxable income.
- Negative impact: May impose additional administrative burdens on insurance agents and entities assigning agencies.
❓ 자주 묻는 질문
What do individuals acting as insurance agents need to prepare for tax registration?
They need to prepare a Tax Registration Form according to Model No. 03 ĐK-TCT, a copy of the national identity card or passport, and a Business Registration Certificate or training certificate for insurance agency.
How does the entity assigning the agency have the responsibility to withhold tax?
The entity assigning the agency must withhold personal income tax at progressive rates of 0%, 5%, and 10%. The income of the agent is converted monthly or annually for provisional withholding.
When must individuals acting as insurance agents declare and settle taxes?
Declare and settle taxes in cases where the tax payable exceeds the amount withheld, or when there is income not yet subject to withholding.
Are there specific tax rates?
No, this document only specifies withholding rates: 0%, 5%, and 10%. The tax rate is calculated based on the agent's income according to a progressive scale.
When does this Circular take effect?
This Circular takes effect 45 days from the date of issuance and applies to the income of insurance agents from January 1, 2009.
전문
CIRCULAR
Guidelines for tax registration, tax withholding, tax declaration, and finalization of personal income tax for insurance agents
for individuals acting as insurance agents
_______________________
Based on the Personal Income Tax Law number 04/2007/QH 12 dated November 21, 2007 and the implementing guidance documents;
Based on the Tax Administration Law number 78/2006/QH 11 dated November 29, 2006 and the implementing guidance documents;
Based on Decree number 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
The Ministry of Finance hereby provides guidelines for tax registration, tax withholding, tax declaration, and finalization of personal income tax for insurance agents as follows:
b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.
1.1. Taxpayers: Individuals who are insurance agents and have taxable personal income.
1.2. Taxable personal income from agency activities includes commissions, bonuses, support payments, and other remuneration received from the entity assigning the agency.
2. Tax Registration
2.1. Insurance agents must register for tax in accordance with the Tax Administration Law and the implementing guidance documents.
2.2. Tax registration documents:
- A tax registration form according to Form No. 03 ĐK-TCT issued together with Circular No. 85/2007/TT-BTC dated July 18, 2007 of the Ministry of Finance guiding the implementation of the Tax Administration Law regarding tax registration.
- A copy of the national identity card or passport;
- Business registration certificate or training certificate as an insurance agent issued by the insurance company.
2.3. Place to submit tax registration documents:
- In cases where individual insurance agents directly register for tax, the tax registration documents shall be submitted to the District or County Tax Office where the individual resides.
- In cases where insurance agents submit tax registration documents collectively to the insurance company, the insurance company shall submit the tax registration documents to the tax authority directly managing the insurance company. The tax authority directly managing the insurance company will accept, review, and issue tax identification numbers for each agent. Subsequently, it will transfer these to the insurance company for distribution to the agents.
3. Tax Withholding and Issuance of Withholding Certificates
3.1. Tax Withholding and Declaration:
- The business entity providing the agency (hereinafter referred to as the agency assignor) is responsible for withholding personal income tax on the income paid to agents from their agency activities at corresponding rates based on the progressive scale as follows:
Unit: 1,000 Vietnamese Dong
|
Monthly Income of Agent |
Rate of Temporary Withholding on Monthly Income Paid to Agents |
|
Up to 4,000 |
0% |
|
Over 4,000 up to 15,000 |
5% |
|
Over 15,000 |
10% |
- The income of the agent under this table is the income of the individual agent without deductions for dependent allowances, mandatory social insurance contributions, charitable donations...
- If the agency assignor pays income to individuals from agency activities quarterly, it must convert the quarterly income into monthly amounts to calculate the temporary withholding tax according to the above table. If paid annually, it should convert the annual income for withholding.
- Each month, based on the amount of personal income tax withheld, the agency assignor shall declare taxes using Form No. 01/KK-BH issued together with this Circular and submit the declaration to the tax authority managing the agency assignor. If the monthly withholding tax is less than five million dong, the declaration shall be made quarterly.
3.2. Issuance of Withholding Certificates:
The agency assignor that has withheld tax according to the above guidance must issue withholding certificates upon request of the insurance agent to serve as evidence for tax finalization or refund.
4. Declaration and Finalization of Taxes
4.1. Declaration and Finalization of Taxes for the Agency Assignor according to Form No. 02/KK-BH issued together with this Circular.
4.2. Declaration and Finalization of Taxes for Insurance Agents:
Insurance agents with taxable income must declare and finalize taxes in the following situations:
- If the tax payable in the year exceeds the tax withheld or temporarily paid, or if there is additional income not subject to withholding during the year.
- If there is a request for a tax refund or offset against future tax periods.
The declaration and finalization of taxes, deadlines, and places for submission of the declaration and finalization documents are implemented according to the provisions of Clause 2.4 Point 2, Section II Part D of Circular No. 84/2008/TT-BTC dated September 30, 2008 of the Ministry of Finance mentioned above, applicable to individual businesses.
Declarations and finalizations of taxes by insurance agents must be accompanied by documentation proving dependents (if claiming dependent deductions).
- If there are income from salaries, wages, or other business activities outside of agency income, the insurance agent must consolidate the agency income with salary, wage income, and other business income for joint finalization.
- Other cases do not require declaration and finalization of taxes.
5. Implementation organization
5.1. This Circular takes effect 45 days from the date of signature and applies to the income of insurance agents from January 1, 2009.
5.2. Abolish the guidance on high-income tax and corporate income tax applicable to insurance agents.
5.3. Other matters not covered in this Circular shall be implemented according to the provisions of Circular No. 84/2008/TT-BTC dated September 30, 2008 of the Ministry of Finance guiding the implementation of certain Articles of the Personal Income Tax Law and guiding the implementation of Decree No. 100/2008/NĐ-CP dated September 8, 2008 of the Government detailing the implementation of certain Articles of the Personal Income Tax Law.
During implementation, if there are any difficulties, organizations and individuals are requested to promptly report to the Ministry of Finance (General Department of Taxation) for research and resolution./.
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