This circular guides the calculation of personal income tax on income in kind from 2001 onwards, and specifies certain cases exempt from taxation in 2000.
Đối tượng áp dụng
Provincial Tax Departments under the central government and enterprises
Các điểm cốt lõi
- As of January 1, 2001, income in kind must be converted into monetary value for personal income tax calculation (Point 3 of the Circular).
- Income in kind arising in 2000 is exempt from taxation if it meets specific conditions such as housing repair costs, bonuses less than one month's salary, foreign children’s school fees, and leave travel tickets (Point 4 of the Circular).
- This guidance replaces point 5.1, section II of Circular No. 687 TCT/NV2 dated March 6, 2001.
- The Tax Department sets an average market price to convert in-kind income into monetary value (Point 2 of the Circular).
- In-kind income must be included in taxable income for tax settlement year 2001 for high-income individuals.
🌐 Tác động xã hội từ văn bản này
- Reduce tax burden on workers in certain specific cases.
- Facilitate enterprises in implementing welfare policies for foreign employees.
- Provide clear regulations on the calculation of personal income tax on income in kind, ensuring fairness and transparency.
❓ Câu hỏi thường gặp
Is income in kind arising in 2001 subject to taxation?
Yes, as of January 1, 2001, income in kind must be converted into monetary value for inclusion in taxable income.
What types of income in kind in 2000 are exempt from taxation?
Items such as housing repair costs, bonuses less than one month's salary, foreign children’s school fees, and leave travel tickets.
How is the value of in-kind income converted into monetary value?
The value of in-kind income is converted into monetary value based on the average market price set by the Tax Department at the time of receipt.
Toàn văn
LETTER
OF THE MINISTRY OF FINANCE NO. 10677 TC/TCT DATED OCTOBER 8, 2001
REGARDING INCOME TAX ON INCOME IN KIND
Dear: Provincial and Central City Tax Departments
Recently, the Ministry of Finance received recommendations from some enterprises regarding the application of personal income tax on income in kind when settling taxes for the year 2000. Regarding this issue, the Ministry of Finance has the following opinion:
According to the guidance provided by Circular No. 39 TC/TCT dated June 26, 1997 and Letter No. 687 TCT/NV2 dated March 6, 2001 of the General Department of Taxation on implementing tax settlement for the year 2000: For individuals whose income is paid in kind, such income must be converted into monetary value based on the average market price in the locality as determined by the Tax Department at the time of receiving the goods to determine taxable income.
However, to create favorable conditions for enterprises to proactively manage their business operations and reduce personal income tax for employees, the Ministry of Finance provides guidance as follows:
- As of January 1, 2001, all income paid in kind must be included in taxable income when calculating personal income tax for high-income individuals in 2001.
- Income in kind arising in 2000 as stipulated in the Labor Contract or Collective Labor Agreement below is not subject to personal income tax on high-income individuals:
+ Costs for repairing and equipping living facilities for foreign employees.
+ Awards in kind not exceeding one month's salary.
+ Tuition fees paid for the children of foreigners.
+ Air tickets (or travel means) when returning home to visit family for foreigners.
The guidance provided in this letter replaces the guidance at point 5.1, section II, Letter No. 687 TCT/NV2 dated March 6, 2001 of the General Department of Taxation.
The Ministry of Finance hereby informs the Tax Departments and guides enterprises to implement accordingly.
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