Circular No. 12/2005/TT-BTC amending and supplementing certain points of Circular No. 81/2004/TT-BTC dated August 13, 2004, issued by the Ministry of Finance guiding the implementation of Decree No. 147/2004/NĐ-CP dated July 23, 2004, of the Government detailing the implementation of the Ordinance on income tax for high-income individuals.

CIRCULAR

Amending and supplementing some points of Circular No. 81/2004/TT-BTC dated August 13, 2004

of the Ministry of Finance guiding the implementation of Decree No. 147/2004/NĐ-CP dated July 23, 2004

of the Government detailing the implementation of the Ordinance on Income Tax for High-Income Individuals

for high-income individuals

Pursuant to the Ordinance on Income Tax for High-Income Individuals No. 35/2001/PL-UBTVQH10 dated May 19, 2001; the Ordinance amending and supplementing some Articles of the Ordinance on Income Tax for High-Income Individuals No. 14/2004/PL-UBTVQH11 dated March 24, 2004;

Pursuant to Decree No. 147/2004/NĐ-CP dated July 23, 2004 of the Government detailing the implementation of the Ordinance on Income Tax for High-Income Individuals;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance guides the amendment and supplementation of Circular No. 81/2004/TT-BTC dated August 13, 2004 of the Ministry of Finance guiding the implementation of Decree No. 147/2004/NĐ-CP dated July 23, 2004 of the Government detailing the implementation of the Ordinance on Income Tax for High-Income Individuals as follows:

I. AMENDING AND SUPPLEMENTING SOME POINTS OF CIRCULAR NO. 81/2004/TT-BTC DATED AUGUST 13, 2004 OF THE MINISTRY OF FINANCE

1. Point 1.3 Section I is amended as follows:

"1.3. Foreign individuals with income in Vietnam include: foreign individuals working in Vietnam in enterprises, economic organizations, cultural, social organizations, representative offices, branches of foreign companies in Vietnam, and independent practitioners in Vietnam".

2. Point 1.1.4 Section II is amended as follows:

"1.1.4. For foreign individuals considered as non-residents in Vietnam, taxable income includes total income generated in Vietnam, regardless of where such income is received in Vietnam or abroad.

A foreign individual is considered a resident in Vietnam if they stay in Vietnam for 183 days or more within a continuous period of 12 months from the date of entry into Vietnam; and is considered a non-resident in Vietnam if they stay in Vietnam for less than 183 days."

3. Point 3.2.2 Section III is amended and supplemented as follows:

"3.2.2. If the payer of income does not engage in production or business activities, they shall declare and pay tax at the Provincial Tax Department under the central government. In case the payer of income is located in a district or city directly under a province, they shall declare and pay tax at the District Tax Office where their headquarters is located".

4. Point 3.4 Section III is amended and supplemented as follows:

"3.4. Time limit for declaration and payment of tax:

The deadline for submitting the tax declaration form to the tax authority is no later than the 10th day of the following month, and the deadline for paying taxes into the State Budget is no later than the 25th day of the following month.

The determination of the tax payment date is carried out as follows:

In cases where tax is paid by bank transfer, the tax payment date is the date when the bank or financial institution signs confirmation on the payment slip.

In cases where tax is paid in cash, the tax payment date is the date when the Treasury receives the tax payment or the date when the tax authority issues a receipt, specifically:

- In cases where tax is paid directly to the Treasury: the tax payment voucher is "Cash Payment Slip to the State Budget," and the tax payment date is the date when the Treasury receives the payment and records it on the payment slip.

- In cases where tax is paid through the tax authority: the tax payment voucher is "Tax Receipt," and the tax payment date is the date when the tax authority receives the payment and issues the "Tax Receipt."

5. Paragraph 4 of Point 2.1 Section IV is amended as follows:

"- Issuing tax receipts for individuals who request them and issuing deduction certificates for individuals to confirm the amount of income tax deducted by the payer. The payer of income shall submit a request to the tax authority for issuance of tax receipts and deduction certificates according to Model No. 07/TNCN issued together with this Circular; and report monthly to the tax authority on the use of receipts and certificates in accordance with the regulations on receipt management and tax stamps."

6. Amending and supplementing the attached declaration forms of Circular No. 81/2004/TT-BTC as follows:

The declaration forms issued together with Circular No. 81/2004/TT-BTC dated August 13, 2004 of the Ministry of Finance guiding the implementation of Decree No. 147/2004/NĐ-CP dated July 23, 2004 of the Government detailing the implementation of the Ordinance on Income Tax for High-Income Individuals, which are Forms No. 01/TNTX, No. 02a/TNTX, No. 02b/TNTX, No. 03a/TNTX, No. 03b/TNTX, No. 04/TNTX, Form 05/TNTX, Form No. 06/TNKTX, Form No. 08/TNTX, Form No. 10/TNTX, Form No. 11/TNTX, and Form No. 15/TNTX, will be replaced by new forms and supplemented with guidance on how to fill out the attached forms in this Circular as follows: Form No. 01a/TNTX, Form No. 01b/TNTX, Form No. 02a/TNTX, Form No. 02b/TNTX, Form No. 03a/TNTX, Form No. 03b/TNTX, Form No. 04/TNTX, Form No. 05/TNTX, Form No. 06/TNKTX, Form No. 08/TNTX, Form No. 10/TNTX, Form No. 11/TNTX, and Form No. 15/TNTX; and abolish Form No. 14/TNCN.

II. IMPLEMENTATION

This Circular takes effect 15 days after its publication in the Official Gazette, and abolishes any provisions that conflict with the provisions of this Circular.

Tax authorities at all levels have the responsibility to disseminate and guide high-income individuals subject to income tax and organizations and individuals paying income to strictly comply with the provisions of this Circular./.