Circular No. 20/2010/TT-BTC guiding amendments and supplements to some administrative procedures regarding Personal Income Tax

CIRCULAR

Guidelines for Amending and Supplementing Certain Administrative Procedures Related to Personal Income Tax

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Pursuant to the Law on Personal Income Tax (PIT) and Decree No. 100/2008/NĐ-CP dated September 8, 2008 of the Government detailing certain provisions of the PIT Law;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

To implement administrative reform and simplify certain administrative procedures related to PIT, the Ministry of Finance issues guidelines for amending and supplementing certain administrative procedures related to PIT as follows:

Article 1. Amend certain tax declaration forms, schedules, and declaration documents for personal income tax as follows (Annexed to this Circular):

1. The withholding tax declaration form for organizations and individuals paying income from salaries and wages shall be implemented according to Form No. 02/KK-TNCN. The withholding tax declaration form for organizations and individuals paying income from capital investment, securities transfer, copyright, franchise rights, lottery winnings to individuals, and income from business to non-resident individuals shall be implemented according to Form No. 03/KK-TNCN issued with this Circular, replacing Forms No. 02/KK-TNCN, No. 03/KK-TNCN, and No. 04/KK-TNCN issued with Circular No. 84/2008/TT-BTC dated September 30, 2008 of the Ministry of Finance guiding the implementation of certain provisions of the PIT Law and guiding the implementation of Decree No. 100/2008/NĐ-CP dated September 8, 2008 of the Government detailing certain provisions of the PIT Law (hereinafter referred to as Circular No. 84/2008/TT-BTC)

2. The final tax declaration form for organizations and individuals paying income from salaries and wages to individuals shall be implemented according to Form No. 05/KK-TNCN, and the Schedules (Form No. 05A/BK-TNCN, Form No. 05B/BK-TNCN) issued with this Circular, replacing Forms No. 05/KK-TNCN, No. 05A/BK-TNCN, and No. 05B/BK-TNCN issued with Circular No. 84/2008/TT-BTC.

3. The final tax declaration form for organizations and individuals paying income from capital investment, securities transfer, copyright, franchise rights, lottery winnings to individuals, and income from business to non-resident individuals shall be implemented according to Form No. 06/KK-TNCN and the Schedule implemented according to Form No. 06B/BK-TNCN issued with this Circular, replacing Form No. 06/KK-TNCN and the Schedule according to Form No. 06B/BK-TNCN. Abolish the Schedules according to Form No. 06A/BK-TNCN, Form No. 06C/BK-TNCN, and Form No. 06D/BK-TNCN issued with Circular No. 84/2008/TT-BTC.

4. The personal income tax declaration form applicable to resident and non-resident individuals with income from salaries and wages declared directly to the tax authority shall be implemented according to Form No. 07/KK-TNCN issued with this Circular, replacing Form No. 07/KK-TNCN issued with Circular No. 84/2008/TT-BTC.

5. The provisional tax declaration form for individuals engaged in business who declare taxes (Form No. 08/KK-TNCN) shall be implemented according to Form No. 08/KK-TNCN issued with this Circular, replacing Form No. 08/KK-TNCN issued with Circular No. 84/2008/TT-BTC.

6. The provisional tax declaration form for groups of individuals engaged in business who declare taxes (Form No. 08A/KK-TNCN) shall be implemented according to Form No. 08A/KK-TNCN issued with this Circular, replacing Form No. 08A/KK-TNCN issued with Circular No. 84/2008/TT-BTC.

7. The final tax declaration form for groups of individuals engaged in business (Form No. 08B/KK-TNCN) shall be implemented according to Form No. 08B/KK-TNCN issued with this Circular, replacing Form No. 08B/KK-TNCN issued with Circular No. 84/2008/TT-BTC.

8. The final tax declaration form for individuals with income from salaries and wages and individuals with income from business shall be implemented according to Form No. 09/KK-TNCN and the Annexes according to Form No. 09A/PL-TNCN, Form No. 09B/PL-TNCN issued with this Circular, replacing Forms No. 09/KK-TNCN and the Annexes according to Form No. 09A/PL-TNCN, Form No. 09B/PL-TNCN issued with Circular No. 84/2008/TT-BTC.

9. The final tax declaration form for individuals with income from securities transfer shall be implemented according to Form No. 13/KK-TNCN issued with this Circular, replacing Form No. 13/KK-TNCN issued with Circular No. 84/2008/TT-BTC.

10. The request for tax reduction form shall be implemented according to Form No. 18/MGT-TNCN issued with this Circular, replacing Form No. 18/MGT-TNCN issued with Circular No. 84/2008/TT-BTC.

11. The withholding tax declaration form for insurance agencies paying income to insurance agents shall be implemented according to Form No. 01/KK-BH issued with this Circular, replacing Form No. 01/KK-BH issued with Circular No. 10/2009/TT-BTC dated January 21, 2009 of the Ministry of Finance guiding tax registration, withholding tax, tax declaration, and final tax settlement for individuals working as insurance agents (hereinafter referred to as Circular No. 10/2009/TT-BTC).

12. The consolidated tax declaration form for insurance agencies paying income to insurance agents shall be implemented according to Form No. 02/KK-BH and the Schedule of taxable income and personal income tax already withheld for the income of insurance agents shall be implemented according to Form No. 02A/BK-BH issued with this Circular, replacing Forms No. 02/KK-BH, No. 02A/BK-BH issued with Circular No. 10/2009/TT-BTC.

13. The withholding tax declaration form for lottery agencies paying income to lottery agents shall be implemented according to Form No. 01/KK-XS issued with this Circular, replacing Form No. 01/KK-XS issued with Circular No. 42/2009/TT-BTC dated March 9, 2009 of the Ministry of Finance guiding withholding tax for individuals working as lottery agents and withholding tax for individuals with income from lottery winnings (hereinafter referred to as Circular No. 42/2009/TT-BTC).

14. The final tax declaration form for lottery agencies paying income to lottery agents shall be implemented according to Form No. 02/KK-XS, and the Schedule of taxable income and personal income tax already withheld for the income of lottery agents shall be implemented according to Form No. 02A/BK-XS issued with this Circular, replacing Forms No. 02/KK-XS, No. 02A/BK-XS issued with Circular No. 42/2009/TT-BTC.

15. The personal income tax declaration form for individuals receiving dividends in the form of shares, bonus shares, or increased capital contributions shall be implemented according to Form No. 24/KK-TNCN issued with this Circular, replacing Form No. 24/KK-TNCN issued with Circular No. 62/2009/TT-BTC dated March 27, 2009 of the Ministry of Finance guiding amendments and supplements to certain points of Circular No. 84/2008/TT-BTC.

16. Repeal the annexes reducing personal income tax (forms 01/KKQT-TNCN, form 02/KKQT-TNCN, form 03/KKQT-TNCN) issued together with Circular No. 176/2009/TT-BTC dated September 9, 2009 of the Ministry of Finance guiding the reduction of personal income tax for individuals working in Economic Zones to be implemented uniformly according to the tax returns and schedules at Article 1 of this Circular. Organizations and individuals paying salaries and wages to individuals working in Economic Zones shall declare and settle the amount of personal income tax deducted after the reduction according to forms 05/KK-TNCN and the schedules 05A/KK-TNCN, 05B/KK-TNCN issued together with this Circular. Individuals earning income in Economic Zones who are eligible for reduced personal income tax shall declare the amount of reduced personal income tax on the personal income tax settlement return according to form 09/KK-TNCN and the annexes according to forms 09A/PL-TNCN, 09B/PL-TNCN issued together with this Circular.

Article 2. Repeal the guidance on the application for refund of personal income tax stipulated in Point 3.2, Section II, Part D of Circular No. 84/2008/TT-BTC and replace it with the following guidance:

3.2. The application for tax refund includes:

- Personal income tax settlement return (for taxpayers required to settle personal income tax);

- A request for tax reduction according to form 18/MGT-TNCN (for individuals eligible for tax reduction due to natural disasters, fire, accidents, serious illnesses who request a tax refund).

- Tax deduction vouchers, personal income tax receipt (original).

Resident individuals earning income from salaries, wages, business operations, and individuals transferring registered securities subject to a 20% tax rate who are required to file a tax settlement return; individuals eligible for tax reduction due to natural disasters, fire, unexpected accidents, serious illnesses, after tax reduction, if the amount of tax paid exceeds the tax payable and they request a refund, shall reflect the total amount of tax requested for refund in the corresponding items on the tax settlement return, accompanied by relevant tax payment vouchers and receipts.

Based on the tax refund request reflected on the tax settlement return and the request for tax reduction, the tax authority will review and process the tax refund. Individuals requesting a tax refund are not required to follow the tax refund procedures stipulated in Point 6, Section I, Part G of Circular No. 60/2007/TT-BTC dated June 14, 2007 of the Ministry of Finance guiding the implementation of certain provisions of the Law on Tax Administration and guiding the implementation of Decree No. 85/2007/NĐ-CP dated May 25, 2007 of the Government detailing certain provisions of the Law on Tax Administration and stipulated in Point 6, Section I, Part B of Circular No. 128/2008/TT-BTC dated December 24, 2008 of the Ministry of Finance guiding the collection and management of revenue through state budget via State Treasury.

Article 3. Implementation:

1. This Circular takes effect 45 days from the date of issuance. For personal income tax settlement returns and tax refund procedures, they will be applied immediately for the 2009 tax settlement period; other contents will be applied starting from the 2010 tax declaration period. Administrative procedures for personal income tax not guided by this Circular continue to be implemented according to current laws and regulations.

2. During the implementation process, 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./.