Circular No. 27/2009/TT-BTC guiding the implementation of the extension of the deadline for individual income tax payment

CIRCULAR

Guidelines for extending the deadline for paying personal income tax

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Pursuant to the Personal Income Tax Law and related guiding documents;

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;

The Ministry of Finance temporarily provides guidelines for extending the deadline for paying personal income tax as follows:

Article 1. Subjects eligible for extension of the personal income tax payment deadline

1. The subjects eligible for extended personal income tax payments under this Circular include:

- Resident individuals with taxable income from business operations; income from salaries and wages; income from capital investment; income from capital transfer (including securities transfers); income from copyright; income from franchise rights; income from inheritance; income from gifts,

- Non-resident individuals with taxable income from capital investment; income from capital transfer (including securities transfers); income from copyright; income from franchise rights,

2. Subjects not eligible for extension of tax payments:

- Resident individuals with income from real estate transfers; income from lottery winnings;

- Non-resident individuals (including those not present in Vietnam or leaving Vietnam before June 30, 2009) with income from business operations; income from salaries and wages; income from real estate transfers; income from lottery winnings; income from inheritances; income from gifts.

Article 2. Extension of the tax payment deadline:

1. Period for extended tax payment: from January 1, 2009 to May 31, 2009.

2. Determination of deferred tax amount:

The amount of personal income tax subject to extended payment deadlines shall be determined as follows:

2.1. For income from salaries and wages of resident individuals: it is the monthly withholding tax that the payer must deduct or the monthly self-reported tax amount (for individuals required to directly report taxes).

2.2. For income from capital investment, capital transfer (including securities transfers), copyright, and franchise rights: it is the tax amount that must be reported or deducted by the payer according to each occurrence of income.

2.3. For income from business operations of resident individuals:

a) In cases where provisional personal income tax is paid quarterly:

- For individuals conducting business operations who comply with accounting records, invoices, and declarations, and pay taxes based on their declared revenue and expenses, the deferred tax amount is the quarterly provisional tax calculated based on the declaration.

- For individuals conducting business operations who can only record revenue but not expenses, the deferred tax amount is the provisional quarterly tax calculated based on the declared revenue and the taxable income rate.

- For individuals conducting business operations who pay taxes using a fixed quota method, the deferred tax amount is the quarterly quota tax as notified by the tax authority.

b) For individuals renting out houses or assets for multiple months at once, the deferred tax amount is the tax corresponding to the month being deferred.

c) For mobile business operators and individuals paying taxes using a fixed quota method who need to issue individual invoices, the deferred tax amount is determined by the provisional tax calculated based on the revenue of each trip or the revenue recorded on individual invoices.

d) For individuals acting as agents selling goods and receiving commissions (insurance, lottery...), the deferred tax amount is the monthly withholding tax that the payer temporarily deducts.

For cases not eligible for deferred tax payments, organizations and individuals paying income and individuals earning income must still declare and pay taxes according to Circular No. 84/2008/TT-BTC dated September 30, 2008 of the Ministry of Finance guiding the implementation of certain provisions 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 certain provisions of the Personal Income Tax Law.

3. Procedures for deferred tax payments:

3.1. For income subject to withholding tax: organizations and individuals paying income subject to withholding personal income tax to eligible recipients, when paying income, still calculate the withholding tax and inform the recipient of the deferred withholding tax; they must still submit withholding tax declarations monthly as required and submit them to the tax authority so that the tax authority can track the generated tax amounts that are deferred.

3.2. For income subject to direct tax declaration by individuals:

Individuals eligible for deferred tax payments with income requiring direct tax declaration to the tax authority must still prepare and submit tax declarations as required.

3.3. Deferred tax amounts can be retained by individuals during the deferred period.

By May 2009, the Government will submit to the National Assembly for a decision on how to handle deferred tax amounts, and then implement according to the National Assembly's decision.

4. Handling violations:

During the deferred tax payment period, organizations and individuals withholding tax, and individuals with income eligible for deferred tax payments will not be considered late in tax payment and will not be administratively penalized for late tax payment for deferred tax amounts.

Other violations regarding withholding tax and tax declaration will still be subject to administrative penalties according to the regulations of the Tax Administration Law.

After the deferred tax payment period, organizations and individuals eligible for deferred tax payments must follow the guidelines of the Ministry of Finance.

Article 3. Implementation Organization

This Circular takes effect 45 days from the date of issuance and applies to income arising from January 1, 2009 onwards. Any issues encountered during implementation should be promptly reported to the Ministry of Finance for timely resolution./.