Joint Circular No. 212/2013/TTLT-BTC-BQP guiding the collection and payment of personal income tax for officers, non-commissioned officers, officials, civil servants, employees, and staff receiving salaries under the Ministry of National Defense.

JOINT CIRCULAR

Hguiding the collection and payment of personal income tax for officers,

professional military personnel, officials, civil servants, employees, and

wage earners under AND Article 24Ministry of National Defense

__________________

Pursuant to the Law on Tax Administration No.No. Decision No. 78/2006/QH11 dated November 29,amendm 2006;

based on the Personal Income Tax LawNo. No. 04/2007/QH12 dated November 21,June 2024;Pursuant to Decree No. 127/2007/NĐ-CP dated August 1, 2007 of the Government detailing implementation of certain provisions of the Law on Standards and Technical Regulations; Decree No. 78/2018/NĐ-CP dated May 16, 2018 of the Government amending and supplementing certain provisions of Decree No. 127/2007/NĐ-CP dated August 1, 2007 of the Government detailing implementation of certain provisions of the Law on Standards and Technical Regulations;

Pursuant to the Law on Amending and SupplementingNo. Article of the Tax Administration LawNo. No. 21/2012/QH13 dated November 20, 2012;

Pursuant to the Law on Amending and SupplementingNo. Article of the Personal Income Tax Law No. 26/2012/QH13 dated November 22, 2012;

WHEREAS,ứ Decree nNo. Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government detailing some Transit through, and Residence of Foreigners in Vietnam dated June 25, provisions of the Tax Administration Law and the Law amending and supplementing someNo. provisions of the Tax Administration Law;

based on Decree No. 65/2013/NĐ-CP dated June 27, 2013 of the Government detailing someNo. INDUSTRIAL EXPLOSIVES - TNP1 EXPLOSIVESonprovisions of the Personal Income Tax Law and the Law amending and supplementing someJune 2024; 1. The Incubator may lease land for investment in building infrastructure. For areas leased with annual rent payments, the Incubator has the right to sublease land with annual rent payments; for areas leased with lump-sum rent payments for the entire lease period, the Incubator has the right to sublease land with lump-sum rent payments for the entire lease period or annual rent payments. The Incubator is exempted or reduced from land rental fees according to Decree No. 46/2014/NĐ-CP of May 15, 2014, issued by the Government, and the Circular guiding the Minister of Finance applicable to industrial parks.

Based on Decree No. 11provisions of the Personal Income Tax Law;June 2024;Decree No. 8/2008/NĐ-CP dated November 27,

Pursuant to Decree No. 35/2012008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

WHEREAS,ứ Decree No. 3/2013/NĐ-CP dated April 22, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of National Defense;No.Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on salary systemsNo. for officials, civil servants, employees, and armed forces, and Decree No. 17/2013/NĐ-CP dated February 19, 2013 of the Government amending and supplementing someNo.Pursuant to Decree No. 24/2023/NĐ-CP dated May 14, 2023 of the Government stipulating the basic salary level

provisions of Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on salary systemsJune 2024; for officials, civil servants, employees, and armed forces;No.under the Ministry of National Defense as follows:No.shall be carried out as follows:

Article 1. Scope and Applicability

1. This Circular guides the collection and payment of personal income tax for individuals receiving salaries as officers, professional military personnel, individuals receiving salaries with honorary titles, technical honorary positions, civil servants, employees, contractual workers in agencies and units under the Ministry of National Defense (hereinafter referred to collectively as taxpayers) who have income from wages, salaries, and other income with the nature of wages and salaries received in monetary or non-monetary forms from agencies and units under the Ministry of National Defense (hereinafter referred to collectively as payers of income).

2. Individuals working in confidential positions at ministries, sectors, Party agencies, and localities shall fulfill their personal income tax obligations according to the guidance provided in Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding the implementation of the Personal Income Tax Law, the Law amending and supplementing certain provisions of the Personal Income Tax Law, and Decree No. 65/2013/NĐ-CP dated June 27, 2013 of the Government detailing the implementation of the Personal Income Tax Law and the Law amending and supplementing certain provisions of the Personal Income Tax Law (hereinafter referred to collectively as Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance). However, allowances and subsidies not included in taxable income shall be implemented according to the guidance provided in point b, Clause 2, Article 2 of this Circular.

3. This Circular does not apply to individuals guided in Clause 1 of this Article who have other taxable income (other than income from wages and salaries guided in Article 2 of this Circular). The declaration and payment of taxes on other taxable income shall be carried out according to the guidance provided in Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.

Article 2. Taxable and non-taxable income from salaries and wages

Taxable income from salaries and wages includes:

1. Salaries and wages and other amounts having the nature of salaries and wages received in cash or non-cash forms pursuant to recruitment decisions, salary increase decisions, appointment decisions, rank promotion decisions, transfer decisions; military rank promotion or recorded in labor contracts, collective labor agreements.

2. Allowances and subsidies including living expenses that taxpayers receive, except for the following allowances and subsidies:

a. Special allowances and subsidies related to national defense:

a.1) Special allowance;

a.2) Seniority allowance;

a.3) National Defense - Security service allowance for defense civil servants;

a.4) Subsidies for officers and soldiers when retiring, transferring careers, sacrificing, passing away according to the provisions of the law;

a.5) End-of-service subsidy, discharge subsidy, subsidy for job creation after discharge;

a.6) Allowance for concurrently holding leadership positions;

a.7) Military special allowances for certain subjects in the military including:

- Allowance for Air Defense - Air Force forces;

- Allowance for Border Guard forces;

- Allowance for forces directly participating in teams strengthening grassroots areas in the Central Highlands, Southwest, Northwest, and border provinces of Vietnam-Laos;

- Allowance for personnel guarding Ho Chi Minh Mausoleum, ceremonial duties;

- Allowance for Artillery forces;

- Allowance for Armored Forces;

- Allowance for Commando forces;

- Allowance for Engineering forces;

- Allowance for Chemical forces;

- Allowance for Signal forces;

- Allowance for Military Logistics forces;

- Allowance for Military Weapons and Ammunition forces;

- Allowance for Navy and Coast Guard forces;

- Allowance for submarine crews under the Navy Command;

- Sea allowance for the Navy Command;

- Allowance for forces on naval ships;

- Allowance for criminal execution and management of criminal execution and work at military prisons and temporary detention centers;

- Allowance for certain judicial and inspection positions in the military;

- Allowance for specialized anti-terrorism forces under the Ministry of National Defense;

- Allowance for defense personnel performing support tasks in the military;

- Allowance for forces performing Task C;

- One-time subsidy for defense personnel terminating service;

- Allowance for officers, professional soldiers, civil servants, and employees performing tasks at Cam Ranh Military Base;

- Allowance for campaign-level submarine forces;

- Allowance and subsidy for Naval Air forces;

- Subsidy for officers, professional soldiers, civil servants, and employees directly clearing bombs, explosive materials;

a.8) Other military allowances as prescribed by law.

b) Special allowances related to the Cryptographic sector include:

Seniority allowance for cryptographic workers; national defense and security service allowance for those working in other organizations in the cryptographic sector; responsibility allowance for protecting confidential information and codes; responsibility allowance for other cryptographic work; other special security and military allowances in the cryptographic sector (if applicable).

c) Allowances and subsidies exempted from personal income tax as prescribed by law include:

c.1) Monthly preferential allowances and one-time subsidies according to the law on preferential treatment for persons with meritorious service;

c.2) Hazardous and dangerous allowances for industries, occupations, or jobs in workplaces with hazardous factors;

c.3) Attraction allowances and regional allowances;

c.4) Emergency hardship subsidies, work injury and occupational disease subsidies, one-time childbirth or adoption subsidies, maternity benefit levels, post-maternity recuperation benefit levels, disability compensation, one-time retirement compensation, monthly pension, unemployment compensation, and other subsidies as prescribed by the Labor Code and Social Insurance Law;

c.5) Subsidies for social welfare beneficiaries as prescribed by law;

c.6) Service allowance for high-level leaders;

c.7) One-time subsidies for individuals transferred to regions with extremely difficult socio-economic conditions, and one-time support for officials and civil servants engaged in maritime sovereignty work as prescribed by law.

The allowances and subsidies and their levels not included in taxable income as stipulated in Clause 2 of this Article must be prescribed by competent state agencies. In cases where allowances and subsidies received exceed the prescribed levels, the excess amount must be included in taxable income.

3. Monetary or non-monetary bonuses in all forms, excluding the following monetary bonuses:

a) Bonuses accompanying titles conferred by the State, including bonuses accompanying commendations, awards as prescribed by the Law on Commendation and Awards, specifically:

- Bonuses accompanying commendations such as National Outstanding Soldier; Outstanding Soldier of Ministries, Sectors, Central Mass Organizations, Provinces, and Cities under Central Administration; Outstanding Soldier at the Grassroots Level, Advanced Worker, Advanced Soldier;

- Bonuses accompanying award forms;

- Bonuses accompanying titles conferred by the State;

b) Bonuses accompanying awards given by Associations and organizations under political organizations, political-social organizations, social organizations, and social-professional organizations at central and local levels in accordance with their charters and the Law on Commendation and Awards, specifically:

- Bonuses accompanying Ho Chi Minh Award, State Award;

- Bonuses accompanying Commemorative Medals, Badges;

- Bonuses accompanying Certificates of Merit, Letters of Commendation.

The authority to issue commendation decisions, bonus amounts accompanying commendations, and award forms as mentioned above must comply with the provisions of the Law on Commendation and Awards.

c) Bonuses accompanying national and international awards recognized by the Vietnamese State.

d) Awards for technical improvements, inventions, and patents recognized by competent state authorities.

đ) Awards for detecting and reporting violations of laws to competent state authorities.

e) Awards for achievements in combating crime and protecting national security; awards for scientific research contributing to national security in patriotic security movements, nationwide movements for protecting national security.

4. Remuneration received in various forms such as sales commission, brokerage fees; participation in scientific and technological research projects; participation in projects and programs; royalties as prescribed by the law on remuneration; teaching activity fees; cultural, artistic, sports performance fees; advertising service fees; other service fees and remunerations. Fees received from participating in business associations, boards of directors, supervisory boards, project management boards, management councils, associations, professional organizations, and other organizations.

Other monetary or non-monetary benefits outside wages and salaries paid by employers that taxpayers enjoy in all forms, as guided by point đ, clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance.

5. The following items are not included in taxable income:

a) Employer support for the treatment of serious illnesses for employees and their dependents. In this case, dependents include:

- Biological children, legally adopted children, out-of-wedlock children, and children of a spouse;

- Spouse;

- Biological father, biological mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; legally adopted father, legally adopted mother.

a.1) The amount of support not included in taxable income is the actual amount paid according to hospital fee payment receipts, but not exceeding the total hospital fees paid by the employee and their dependents after deducting the amount reimbursed by insurance organizations.

a.2) Employers providing financial support must retain copies of hospital fee payment receipts confirmed by the employer (in cases where the employee and their dependents pay the remaining amount after the insurance organization pays directly to the healthcare facility) or copies of hospital fee payment receipts; copies of health insurance payment receipts confirmed by the employer (in cases where the employee and their dependents pay the full hospital fees, and the insurance organization pays the insurance costs to the employee and their dependents), along with the payment receipts for financial support provided to the employee and their dependents suffering from serious illnesses.

b) Amounts received under regulations regarding travel allowances within state agencies, public institutions, Party organizations, and mass organizations.

c) Amounts received under housing allowance regulations for civil servants.

d) Benefits received outside of wages and salaries for participating in opinions, reviews, and verifications of legal documents, resolutions, political reports; participating in inspection and supervision delegations; meeting voters and citizens; uniforms and other activities related to directly serving the operations of the National Assembly Office, Ethnic Councils, and National Assembly Committees; Central Party Office and Party Committees; City Party Committee and Provincial Party Committee Offices and Committees.

e) Lunch and midday meal allowances provided by employers organizing lunch and midday meals for employees in the form of direct cooking, purchasing meals, or issuing meal vouchers.

If employers do not organize lunch and midday meals but provide cash allowances to employees, such amounts will not be included in individual taxable income if they comply with the guidelines of the Ministry of Labor, Invalids, and Social Affairs. If the cash allowance exceeds the guideline amount set by the Ministry of Labor, Invalids, and Social Affairs, the excess amount must be included in individual taxable income.

6. In cases where organizations pay income from wages and salaries to taxpayers without including tax, such income must be converted to taxable income according to the guidance provided in clause 4, Article 7 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance.

Article 3. Basis for Tax Calculation

The basis for tax calculation on income from salaries, wages, and other income with the nature of salaries and wages is taxable income and tax rate.

1. Taxable income is determined by deducting the following items from gross income subject to tax:

a) Mandatory social insurance contributions such as: social insurance, health insurance, unemployment insurance, occupational liability insurance for certain industries and professions required to participate in mandatory insurance, and other mandatory insurance contributions as prescribed by law.

b) Personal deductions.

c) Contributions to charitable funds, humanitarian funds, and educational funds.

The method of determining the deductible amounts under Clause 1 of this Article shall be implemented according to the guidelines set forth in Article 9 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance.

2. Tax Rate: The personal income tax rate applicable to income from salaries and wages is applied according to the progressive tax rate table as stipulated in Clause 2, Article 7 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance.

3. Method of Calculating Tax.

Personal income tax payable from salaries and wages is the total tax calculated at each income bracket, where the tax at each income bracket is the taxable income of that bracket multiplied by the corresponding tax rate of that bracket.

Article 4. Tax Reduction

In accordance with Article 5 of the Law on Personal Income Tax, and Article 5 of Decree No. 65/2013/NĐ-CP, taxpayers experiencing difficulties due to natural disasters, fires, accidents, or serious illnesses affecting their ability to pay taxes may be considered for tax reduction commensurate with the extent of damage but not exceeding the amount of tax payable. Specifically as follows:

1. Determination of the Amount of Tax Reduction

a) The process of considering tax reduction is carried out annually. Taxpayers experiencing difficulties due to natural disasters, fires, accidents, or serious illnesses during a particular tax year will be considered for tax reduction of the tax payable for that tax year.

b) The tax payable serves as the basis for considering tax reduction, which is the total personal income tax that the taxpayer must pay in the tax year.

c) The basis for determining the extent of damage eligible for tax reduction is the actual expenses incurred to mitigate the damage minus any compensation received from insurance organizations (if any) or from individuals or organizations causing the accident (if any).

d) The amount of tax reduction is determined as follows:

d.1) If the tax payable in the tax year exceeds the extent of damage, the tax reduction equals the extent of damage.

d.2) If the tax payable in the tax year is less than the extent of damage, the tax reduction equals the tax payable.

2. Documentation and Procedures for Considering Tax Reduction Shall Be Implemented According to Guidelines on Tax Administration.

3. Authority to Issue Tax Reduction Decisions

Heads of units at the regiment level and above, and heads of primary units under the General Office of the Government and equivalent levels shall consider and issue decisions on tax reduction for eligible taxpayers and bear responsibility for their decisions.

Article 5. Registration, Withholding, Declaration, Payment, and Settlement of Tax

Matters concerning registration, withholding, declaration, payment, and settlement of personal income tax on income from salaries and wages of taxpayers under the Ministry of National Defense shall be applied on a case-by-case basis as follows:

1. For Taxpayers Receiving Salaries in Organizations Paying Income Under the Ministry of National Defense

a) Tax Registration

a.1) Taxpayers in organizations paying income under the Ministry of National Defense are not required to register for tax;

a.2) Registration of dependents for personal deductions:

- Initial registration of dependents: Taxpayers shall register dependents using Form No. 01/ĐK-TNCN issued together with this Circular and submit it to the organization paying income as the basis for calculating deductions for dependents.

- Registration when there is a change in dependents: When there is a change (increase or decrease) in dependents, taxpayers shall supplement information about the changes in dependents using Form No. 01/ĐK-TNCN issued together with this Circular and submit it to the organization paying income as the basis for calculating deductions for dependents.

- In cases where taxpayers share dependents with other taxpayers such as spouses, siblings, or cousins, they must agree to declare dependents based on the principle that each dependent can only be deducted once from one taxpayer's tax in a tax year; if both taxpayers sharing the same dependent claim deductions, they will be subject to penalties under the Law on Tax Administration.

Taxpayers only need to submit the tax registration form for dependents, confirmed by the head of the organization paying income, without having to provide proof of dependents, and are responsible for the truthfulness of the declarations made.

b) Withholding Tax

b.1) Withholding tax on income from salaries and wages is carried out monthly; the amount of tax to be withheld is determined according to the guidelines set forth in Article 3 of this Circular. Organizations paying salaries directly from the budget have the responsibility to withhold personal income tax and remit it to higher-level units.

b.2) In cases where organizations paying income make payments to individuals outside their organization, they shall withhold tax at a rate of 10% for income of VND 2,000,000 or more per transaction according to the guidelines set forth in Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance. Organizations paying income shall use withholding tax certificates issued by the tax authority or print withholding tax certificates according to the guidelines set forth in Circular No. 37/2010/TT-BTC dated March 18, 2010, issued by the Ministry of Finance to provide to individuals whose income is being withheld.

c) Payment of Tax

c.1) Monthly, organizations paying income must remit the withheld tax to the higher-level financial authority as prescribed;

c.2) Quarterly, no later than the 30th day of the first month of the next quarter, the Department of Finance - Ministry of National Defense shall remit the personal income tax paid by organizations paying income into the State Budget;

c.3) By the end of the year, no later than June 30 of the following year, based on the settlement reports of organizations paying income, the Department of Finance - Ministry of National Defense shall determine the total personal income tax payable, the amount already paid, and remit the remaining balance into the State Budget.

d) Declaration and Settlement of Tax

d.1) The taxpayer shall not prepare a final settlement tax return for income from wages and salaries as stipulated in Article 2 of this Circular;

d.2) Organizations paying income shall settle taxes on behalf of each individual and report the consolidated final settlement with the annual budget settlement to the superior authority;

d.3) When settling personal income tax for each specific case, if the taxpayer has a higher amount of tax withheld during the year than the tax due, the organization paying income shall offset the difference against the tax payable by that individual in the subsequent period: If the taxpayer requests a refund of the excess tax paid, the organization paying income must refund it to the taxpayer. The taxpayer must submit a tax refund application to the organization paying income as the basis for the refund. The organization paying income shall use the total personal income tax withheld in the month to make the refund, and the remainder shall be remitted to the superior authority.

d.4) The organization paying income shall submit a consolidated final settlement tax return for personal income tax according to the form issued together with the guidance document on tax administration to the superior financial authority as prescribed.

2. For enterprises under the Ministry of National Defense:

a) Enterprises under the Ministry of National Defense shall implement tax declaration, tax withholding, tax payment, and final settlement of personal income tax in accordance with the guidance provided in Circular No. 111/2013/TT-BTC dated August 15, 2013, of the Ministry of Finance.

b) Taxpayers in enterprises under the Ministry of National Defense must perform tax registration, declare tax exemptions, determine the tax payable, settle taxes, and request refunds as individuals with income from wages and salaries working in administrative state agencies, mass organizations, and other business establishments in accordance with the guidance provided in Circular No. 111/2013/TT-BTC dated August 15, 2013, of the Ministry of Finance;

Special allowances and subsidies specific to national defense shall be deducted from taxable income in accordance with the guidance provided at point a, Clause 2, Article 2 of this Circular.

Article 6. Organization a) Report to the Ministry of Natural Resources and Environment on the results of training and upgrading, including listing the teaching staff participating in teaching, evaluating the participation of trainees in the training process, the results of organizing examinations for completing the training and upgrading program on land valuation business, the issuance of Certificates and the use of Certificate codes, summarizing the feedback from trainees on the quality of the training and upgrading program on land valuation business, and other relevant matters.

1. Effective date

This Circular takes effect from February 12, 2014, and replaces Joint Circular No. 122/2008/TTLT-BTC-BQP dated December 16, 2008, of the Ministry of Finance - Ministry of National Defense, and Joint Circular No. 19/2009/TTLT-BTC-BNV dated February 2, 2009, of the Ministry of Finance - Ministry of Home Affairs. Other contents related to income from wages and salaries not specified in this Circular shall be implemented in accordance with the guidance provided in Circular No. 111/2013/TT-BTC dated August 15, 2013, of the Ministry of Finance.

Contents regarding personal income tax policies stipulated in the Law amending and supplementing certain provisions of the Personal Income Tax Law and Decree No. 65/2013/NĐ-CP take effect from the date the Law and Decree come into force (July 1, 2013).

2. Responsibilities for implementation:

a) The General Department of Taxation - Ministry of Finance and the Financial Department - Ministry of National Defense are responsible for organizing and implementing this Circular;

b) Commanders of organizations paying income and individuals subject to tax are responsible for complying with and implementing this Circular.

During the implementation process, if there are any difficulties, units are requested to promptly reflect them to the Ministry of Finance (General Department of Taxation) and the Ministry of National Defense (Financial Department) for research and resolution./.