This document provides guidance on withholding personal income tax (PIT) at source for individuals acting as agents for multi-level marketing organizations. The document stipulates that individuals with an expected annual total income below VND 60 million may be exempted from having PIT withheld.
适用范围
Individuals acting as agents for multi-level marketing organizations; multi-level marketing organizations and local tax authorities
要点
- Individuals acting as agents with an expected annual total income under VND 60 million are exempted from having personal income tax (PIT) withheld (Article 1).
- Multi-level marketing organizations must submit detailed lists containing the names, taxpayer identification numbers, and amounts paid to individual agents to the Tax Department for management and inspection (Article 2).
- Local tax authorities where individuals reside are responsible for reviewing requests from multi-level marketing organizations to exempt withholding of personal income tax (PIT).
- The final settlement and refund of PIT at year-end is detailed in Circular No. 1179/TCT-TNCN dated April 3, 2006 issued by the General Department of Taxation.
- This document applies from 2006.
🌐 本文件的社会影响
- Reduces the workload for tax authorities regarding final settlement and refund of PIT.
- Individuals with low income are relieved of administrative burdens related to tax procedures.
- Multi-level marketing organizations must also fulfill the obligation to report detailed information about their agents.
❓ 常见问题
What is the expected annual total income below which individuals acting as agents may be exempted from having personal income tax (PIT) withheld?
Below VND 60 million per year.
Multi-level marketing organizations must submit what information to the Tax Department?
Detailed lists containing names, taxpayer identification numbers, and amounts paid to individual agents.
全文
LETTER
OF THE MINISTRY OF FINANCE NUMBER 6209/BTC-TCT DATED MAY 17, 2006
REGARDING THE WITHHOLDING OF 10% TAX FOR INDIVIDUALS SERVING AS AGENTS
RESPECTED: PROVINCE AND CITY DIRECTORATES OF TAXES UNDER THE CENTRAL GOVERNMENT
IMPLEMENTING Circular No. 81/2004/TT-BTC dated August 13, 2004 on the implementation of a 10% withholding tax on payments to individuals with income of VND 500,000 or more per transaction. In recent times, multi-level marketing companies have strictly implemented this withholding tax for individual agents. However, in reality, most of these individuals earn an average annual income below VND 60 million, leading to a significant increase in the workload for reviewing and refunding personal income tax at year-end by tax authorities. Regarding this issue, the Ministry of Finance has the following opinion:
Pursuant to Decree No. 110/2005/NĐ-CP dated August 24, 2005 of the Government on managing multi-level marketing activities;
Pursuant to 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 Personal Income Tax Law for high-income individuals;
Regarding the refund of personal income tax in 2005, the General Department of Taxation issued Circular No. 1179/TCT-TNCN dated April 3, 2006 guiding on the settlement and refund of personal income tax for individual agents of multi-level marketing organizations.
Starting from 2006, the withholding of a 10% income tax for individuals serving as agents in multi-level marketing organizations shall be implemented as follows: In cases where these individuals continue to serve as agents for multi-level marketing organizations and their expected annual total income does not reach VND 60 million, they should submit a request to the multi-level marketing organization not to withhold the 10% tax, while also submitting this request to the local tax authority of their place of residence (where they live) (attached model). At year-end, the multi-level marketing organization shall provide the Tax Bureau with detailed declarations on names, taxpayer identification numbers, and amounts paid for the Tax Bureau's management and inspection.
The Ministry of Finance hereby informs the provincial and city tax directorates under the central government to be aware and implement this directive.
THE MINISTER
DIRECTOR OF THE GENERAL DEPARTMENT OF TAXATION
VICE-DIRECTOR OF THE GENERAL DEPARTMENT OF TAXATION
Signed
Nguyen Thi Cuc
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