This circular of the Ministry of Finance guides provincial and municipal Tax Departments to implement the collection of income tax from gifts and donations in the form of money transferred from abroad as prescribed by law. The document requires the recovery and handling of outstanding taxes, as well as compiling information on cases where withholding tax has not been applied.
Scope of application
Provincial and Municipal Tax Departments
Key points
- Banks must recover and pay into the State budget any individual income tax that was withheld but not remitted before February 18, 1997 (Article 1)
- In cases where banks return the full amount to customers without withholding tax from April 1, 1995 to February 18, 1997, they must compile information and report to the directly managing tax authority (Article 2)
- Provincial Tax Departments are responsible for implementing recovery and late payment penalties on outstanding individual income tax that was withheld but not remitted, and confirming unpaid withholding tax according to the above guidance (Article 2)
- The consolidated report must be submitted to the Ministry of Finance before March 31, 2000 for compilation and submission to the Government for handling
- Tax Departments are responsible for inspecting banks that owe individual income tax from gifts and donations in the form of money transferred from abroad prior to February 18, 1997 (Article 1)
🌐 Social impact of this document
- Banks and customers will be held responsible for recovering taxes and paying late payment penalties if there is an outstanding tax
- Provincial and municipal Tax Departments are assigned responsibility for inspecting and handling outstanding tax amounts
- The compilation of information and reporting will help the Government understand the implementation of laws regarding income tax on gifts and donations in the form of money transferred from abroad
❓ Frequently asked questions
What must banks do when they have withheld but not yet remitted taxes?
They must recover and pay into the State budget as prescribed by law.
In cases where banks return the full amount to customers without withholding tax, what must be done?
Compile information on the recipient's name, address, date of receipt, amount, and tax due, report to the directly managing tax authority.
What responsibilities do provincial Tax Departments have in implementing this circular?
Inspect banks that owe individual income tax from gifts and donations in the form of money transferred from abroad and implement recovery and late payment penalties.
When must a consolidated report be submitted?
Before March 31, 2000 for compilation and submission to the Government for handling.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 466 TC/TCT DATE FEBRUARY 3, 2000
REGARDING INCOME TAX ON GIFTS AND DONATIONS FROM ABROAD
TRANSFERRED TO VIETNAM
Respected, Provincial Tax Departments
Pursuant to Letter No. 26/VPCP-KTTH dated January 5, 2000 of the Office of the Government regarding income tax on gifts and donations from abroad transferred in cash, the Ministry of Finance hereby provides detailed guidance as follows:
1/ Regarding the amount of income tax deducted for gifts and donations in cash.
Provincial Tax Departments are responsible for checking banks that still owe individual income tax on gifts and donations in cash transferred from abroad before February 18, 1997 but have not yet resolved this issue, and proceed to handle it as follows:
In cases where the bank has deducted individual income tax on gifts and donations but has not yet remitted it to the State budget, they must collect the overdue tax and impose late payment penalties according to the provisions of the Ordinance on Income Tax for High-Income Individuals.
2/ Regarding the amount of income tax due for gifts and donations in cash that have not been deducted.
In cases where individual income tax on gifts and donations from abroad transferred in cash arises between April 1, 1995 and February 18, 1997 but the bank has paid the full amount to the customer without deducting it as required, they must compile a report including: Name of recipient, address, date received, amount, tax due. This report must be verified by the directly managing tax authority.
Provincial Tax Departments are responsible for implementing collection and late payment penalties on overdue income tax that has been deducted and confirming undeducted income tax according to the above guidance and compiling it to submit to the Ministry of Finance (General Department of Taxation) before March 31, 2000 for consolidation and submission to the Government for handling.
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