Consolidated Document number 68/VBHN-BTC Circular guiding the implementation of the Law on Personal Income Tax, the Law amending and supplementing certain articles of the Law on Personal Income Tax, and Decree No. 65/2013/NĐ-CP of the Government detailing some provisions of the Law on Personal Income Tax and the Law amending and supplementing certain articles of the Law on Personal Income Tax.

MINISTRY OF FINANCE -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ----------------
Number: 68/VBHN-BTC	Hanoi, December 19, 2019

CIRCULAR1

GUIDELINES FOR IMPLEMENTING THE LAW ON PERSONAL INCOME TAX, THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON PERSONAL INCOME TAX, AND DECREE NO. 65/2013/ND-CP OF THE GOVERNMENT PROVIDING DETAILED REGULATIONS ON CERTAIN PROVISIONS OF THE LAW ON PERSONAL INCOME TAX AND THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON PERSONAL INCOME TAX

Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding the implementation of the Law on Personal Income Tax, the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax, and Decree No. 65/2013/ND-CP of the Government providing detailed regulations on certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax, which took effect from October 1, 2013, has been amended and supplemented by:

1. Circular No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance amending and supplementing several articles of Circular No. 156/2013/TT-BTC dated November 6, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance to reform and simplify tax administrative procedures, which took effect from September 1, 2014.

2. Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance guiding the implementation of Decree No. 91/2014/ND-CP dated October 1, 2014 of the Government regarding amendments and supplements to certain provisions of decrees regulating taxes, which took effect from November 15, 2014.

3. Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance guiding the implementation of value-added tax and personal income tax for resident individuals engaged in business activities; guiding the implementation of certain contents amended and supplemented regarding personal income tax as stipulated in the Law Amending and Supplementing Certain Provisions of Laws on Tax No. 71/2014/QH13 and Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of Laws on Tax and Amending and Supplementing Certain Provisions of Decrees on Tax, which took effect from July 30, 2015.

4. Circular No. 25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance guiding Decree No. 146/2017/ND-CP dated December 15, 2017 of the Government and amending and supplementing several articles of Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance, Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, which took effect from May 1, 2018.

Pursuant to the Law on Personal Income Tax No. 04/2007/QH12 dated November 21, 2007;

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

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

Pursuant to the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration No. 21/2012/QH13 dated November 20, 2012;

Pursuant to Decree No. 65/2013/NĐ-CP dated June 27, 2013 of the Government providing detailed regulations on certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax;

Pursuant to Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government detailing implementation of certain provisions of the Law on Tax Administration and the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration;

Pursuant to 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;

At the proposal of the Director General of the State Revenue总局局长的提议；

The Minister of Finance guides the implementation of certain provisions of the Law on Personal Income Tax, the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax, and Decree No. 65/2013/ND-CP dated June 27, 2013 of the Government providing detailed regulations on certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax as follows:2

Chapter 1

GENERAL PROVISIONS

Article 1. Taxpayer

The taxpayer is a resident individual and a non-resident individual as defined in Article 2 of the Law on Personal Income Tax, and Article 2 of Decree No. 65/2013/ND-CP dated June 27, 2013 of the Government detailing some provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax (hereinafter referred to as Decree No. 65/2013/ND-CP), who have taxable income as prescribed in Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013/ND-CP.

The scope for determining the taxpayer's taxable income is as follows:

For resident individuals, taxable income includes income generated both within and outside the territory of Vietnam, regardless of where the income is paid.

For individuals who are citizens of countries or territories that have signed Double Taxation Avoidance Agreements with Vietnam and are residents in Vietnam, their personal income tax liability shall be calculated from the month they first arrive in Vietnam until the month their labor contract ends and they leave Vietnam (calculated fully by month) without having to go through consular confirmation procedures to avoid double taxation under the Double Taxation Avoidance Agreement between the two countries.

For non-resident individuals, taxable income includes income generated in Vietnam, regardless of where the income is paid or received.

1. A resident individual is someone who meets one of the following conditions:

a) Being present in Vietnam for 183 days or more in a calendar year or in 12 consecutive months starting from the first day of presence in Vietnam, including the arrival and departure days counted as one (01) day. Arrival and departure days are based on the certification of the immigration management agency on the passport (or travel document) of the individual when entering and leaving Vietnam. If entry and exit occur on the same day, it is counted as one day of residence.

The presence of an individual in Vietnam as described herein refers to the individual's presence on Vietnamese territory.

b) Having a permanent place of residence in Vietnam according to either of the following cases:

b.1) Having a permanent place of residence as prescribed by the law on residence:

b.1.1) For Vietnamese citizens: a permanent place of residence is a place where the individual lives regularly and stably without a time limit at a specific location and has registered permanent residence according to the law on residence.

b.1.2) For foreign individuals: a permanent place of residence is the place of permanent residence recorded on the Permanent Residence Card or temporary residence place when registering for a Temporary Residence Card issued by the competent authority under the Ministry of Public Security.

b.2) Renting a house for residence in Vietnam according to the law on housing, with lease contracts lasting 183 days or more in the tax year, specifically as follows:

b.2.1) An individual who does not or does not have a permanent place of residence as guided in point b.1, Clause 1, of this Article but has a total of 183 days or more of renting a house for residence according to lease contracts in the tax year is also determined to be a resident individual, including cases of renting houses in multiple places.

b.2.2) Houses rented for residence include cases of residing in hotels, guesthouses, resorts, hostels, residences at workplaces, headquarters of organizations, etc., regardless of whether the individual rents directly or the employer rents for the employee.

In cases where an individual has a permanent place of residence in Vietnam as stipulated in this Clause but is actually present in Vietnam for less than 183 days in the tax year and cannot prove residency in another country, such individual is considered a resident individual in Vietnam.

Proof of being a resident of another country is based on a Certificate of Residency. In cases where individuals from countries or territories that have signed a tax agreement with Vietnam do not issue a Certificate of Residency, individuals provide a copy of their Passport to prove their period of residence.

2. A non-resident individual is someone who does not meet the conditions specified in Clause 1 of this Article.

3. The taxpayer in certain specific cases is determined as follows:

a) For individuals with income from business operations.

a.1) In cases where only one person is named in the Business Registration Certificate, the taxpayer is the individual named in the Business Registration Certificate.

a.2) In cases where multiple people are named together in the Business Registration Certificate (a group of business individuals), all participating in business operations, the taxpayer is each member named in the Business Registration Certificate.

a.3) In cases where multiple people in a household participate in business operations but only one person is named in the Business Registration Certificate, the taxpayer is the individual named in the Business Registration Certificate.

a.4) In cases where individuals or households actually engage in business operations but do not have a Business Registration Certificate (or Professional Certificate, Business License), the taxpayer is the individual currently conducting business operations.

a.5) For activities of leasing real estate, land use rights, water surfaces, other assets without business registration, the taxpayer is the individual owning the real estate, land use rights, water surfaces, other assets. In cases where multiple individuals jointly own real estate, land use rights, water surfaces, other assets, the taxpayer is each individual with ownership or usage rights.

b) For individuals with other taxable income.

b.1) In cases of transferring co-owned immovable property, the taxpayer is each individual co-owner of the immovable property.

b.2) In cases of entrusting management of immovable property where the entrusted individual has the right to transfer the immovable property or has rights similar to those of the owner of the immovable property as prescribed by law, the taxpayer is the individual entrusting the immovable property.

b.3) In cases of transferring or assigning ownership or usage rights of objects protected under the Intellectual Property Law and the Technology Transfer Law, where the transferred object or assigned rights belong to multiple individuals (multiple authors) as co-owners or co-authors, the taxpayer is each individual with ownership or authorship rights and receiving income from the aforementioned transfer or assignment.

b.4) In the case of commercial franchise transactions governed by the Commercial Law where the franchising objects involve multiple individuals participating in the franchise, each individual receiving income from the franchise shall be the taxpayer.

4. The taxpayers as guided in Clauses 1 and 2 of this Article include:

a) Individuals with Vietnamese citizenship, including those dispatched abroad for work, study, or training and earning taxable income.

b) Individuals who do not hold Vietnamese citizenship but earn taxable income, including foreigners working in Vietnam, and foreigners not present in Vietnam but earning taxable income generated in Vietnam.

Article 2. Taxable Income Items

Pursuant to Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/NĐ-CP, the items of personal income subject to personal income tax include:

1. Business Income

Business income refers to income derived from business activities in the following fields:

a) Income from production and business of goods and services in all sectors and industries as prescribed by law, such as: production and business of goods; construction; transportation; food service; service business, including rental income from real estate, land use rights, water surface rights, and other assets.

b) Income from independent professional activities of individuals in fields and industries licensed or certified according to the law.

c) Agricultural, forestry, salt-making, aquaculture, and fishing income that does not meet the conditions for tax exemption as stipulated in Point e, Clause 1, Article 3 of this Circular.

2. Salary and Wages Income

Salary and wages income refers to income received by employees from employers, including:

a) Salary and wages and other amounts having the nature of salary and wages in monetary or non-monetary forms.

b) Allowances and subsidies, except for the following:

b.1) Monthly allowances and one-time subsidies provided under laws on preferential treatment for persons with meritorious service.

b.2) Monthly allowances and one-time subsidies for individuals who participated in resistance wars, national defense, international missions, and youth volunteer corps who have completed their tasks.

b.3) National defense and security allowances; allowances for military personnel.

b.4) Hazardous and dangerous job allowances for jobs in industries or occupations with hazardous or dangerous factors.

b.5) Recruitment allowances, regional allowances.

b.6) Emergency hardship allowances, work injury allowances, occupational disease allowances, one-time childbirth allowances or adoption allowances, maternity leave benefits, post-maternity recovery benefits, allowances due to reduced work capacity, one-time retirement allowances, monthly pensions, severance allowances, unemployment allowances, and other allowances as prescribed by the Labor Code and Social Insurance Law.

b.7) Allowances for social welfare beneficiaries as prescribed by law.

b.8) Service allowances for high-level leaders.

b.9) One-time relocation allowances for individuals transferred to areas with extremely difficult socio-economic conditions, one-time support for civil servants engaged in maritime sovereignty work as prescribed by law. One-time relocation allowances for foreign nationals residing in Vietnam, Vietnamese nationals working overseas, and Vietnamese nationals returning from long-term residence abroad to work in Vietnam.

b.10) Allowances for village health workers.

b.11) Special allowances for specific professions.

Allowances and subsidies listed in Point b, Clause 2, of this Article, which are not included in taxable income, must be prescribed by competent state authorities.

Where guiding documents apply to allowances and subsidies for the public sector, other economic sectors and businesses may base their calculations on the list and levels of allowances and subsidies prescribed for the public sector.

If the allowances and subsidies received exceed the prescribed levels, the excess amount shall be included in taxable income.

For one-time relocation allowances for foreign nationals residing in Vietnam and Vietnamese nationals working overseas, the deduction shall be based on the level specified in the labor contract or collective labor agreement.

c) Honoraria received in various forms such as: commission for selling goods, brokerage fees; participation fees in scientific and technical research projects; project and program participation fees; royalties as prescribed by the law on royalty systems; teaching participation fees; cultural, artistic, sports performance fees; advertising service fees; other service fees, and other honoraria.

d) Amounts received from participating in business associations, corporate boards of directors, supervisory boards, project management boards, management councils, associations, professional organizations, and other organizations.

đ) Other monetary or non-monetary benefits outside of salary and wages paid by employers and enjoyed by taxpayers in any form:

đ.1) Housing, electricity, water, and accompanying services (if applicable), excluding: housing, electricity, and water benefits and accompanying services (if applicable) for residences built by employers to provide free of charge to employees working in industrial zones; residences built by employers in economic zones, areas with difficult socio-economic conditions, and areas with extremely difficult socio-economic conditions provided free of charge to employees working there.

In cases where individuals reside at the workplace, taxable income is based on rent or depreciation costs, electricity, water, and other service expenses calculated according to the ratio between the area used by the individual and the total office area.

The rental fee for housing, electricity, water, and other accompanying services (if any) paid by the employer on behalf of the employee shall be included in the taxable income based on the actual amount paid but not exceeding 15% of the total taxable income generated at the workplace (excluding the rental fee, electricity, and water, and other accompanying services (if any)) regardless of where the income is sourced from.

Clause 2.9 Amounts paid by the employer to purchase life insurance, non-mandatory insurance with accumulated premiums; purchasing voluntary retirement insurance or contributing to the Voluntary Retirement Fund for employees.

In cases where the employer purchases non-mandatory insurance without accumulated premiums for employees (including cases where insurance is purchased from insurance companies not established and operating under Vietnamese law but permitted to sell insurance in Vietnam), the premium payment for such insurance products shall not be included in the individual's taxable income. Non-mandatory insurance without accumulated premiums includes products such as health insurance, term life insurance (excluding term life insurance with return of premium), etc., where the insured does not receive accumulated premiums from participating in the insurance, except for the insurance benefit or compensation agreed upon in the insurance contract paid by the insurance company.

Clause 3 Membership fees and other service charges serving personal needs such as healthcare, entertainment, sports, leisure, beauty treatments, specifically as follows:

Clause 3.1 Membership fees (such as golf club membership cards, tennis court membership cards, cultural and artistic club activity membership cards, sports club membership cards, etc.) if the card is named to a specific individual or group of individuals. If the card is shared and not named to a specific individual or group of individuals, it shall not be included in taxable income.

Clause 3.2 Other service charges serving personal needs in activities related to healthcare, entertainment, leisure, beauty treatments, etc., if the payment details clearly indicate the name of the individual benefiting. If the payment details for service fees do not specify the individual benefiting and are paid collectively to a group of employees, they shall not be included in taxable income.

Clause 4 Expenditure quotas for office supplies, travel expenses, telephone, uniforms, etc., exceeding the current regulations set by the State. The expenditure quota not included in taxable income applies to the following situations:

Clause 4.1 For civil servants, public officials, and those working in administrative agencies, Party organizations, mass organizations, Associations, and Chambers: the expenditure quota shall be applied according to the guidance documents issued by the Ministry of Finance.

Clause 4.2 For employees working in business organizations and representative offices: the expenditure quota shall be applied in accordance with the determination of corporate income tax revenue as stipulated in the implementation guidelines of the Corporate Income Tax Law.

Clause 4.3 For employees working in international organizations and representative offices of foreign organizations: the expenditure quota shall be implemented according to the regulations of the international organization and the representative office of the foreign organization.

Clause 5.10 For expenditures on means of transportation serving the pick-up and drop-off of employees between their residence and workplace, these amounts shall not be included in the taxable income of employees according to the unit's regulations.

Clause 6 For expenditures paid by the employer to train employees to improve their qualifications and skills in line with their professional duties or according to the training plan of the employing entity, these amounts shall not be included in the employee's income.

Clause 7 Other benefits.

Other benefits provided by employers to employees such as expenditures during holidays and festivals; hiring consulting services, tax filing services for specific individuals or groups; expenditures for household helpers such as drivers, cooks, and other workers in the home under contracts...

e) All monetary and non-monetary bonuses in any form, including stock awards, except for the following monetary bonuses:

e.1 Monetary bonuses accompanying state-awarded titles, including bonuses accompanying commendations, rewards as prescribed by laws on commendation and reward, specifically:

e.1.1 Bonuses accompanying commendations such as National Model Worker; Model Worker at the Ministry, Sector, Central Mass Organizations, Provincial, and Municipal levels; Model Worker at the grassroots level, Advanced Worker, Model Soldier.

e.1.2 Bonuses accompanying rewards.

e.1.3 Bonuses accompanying state-awarded titles.

e.1.4 Bonuses accompanying awards given by associations and organizations under political parties, political-social organizations, social organizations, and occupational social organizations at central and local levels in accordance with their charters and the provisions of the Law on Commendation and Reward.

e.1.5 Bonuses accompanying the Ho Chi Minh Award, State Awards.

e.1.6 Bonuses accompanying Commemorative Medals, Badges.

e.1.7 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.

e.2 Monetary bonuses accompanying national and international awards recognized by the Vietnamese State.

e.3 Monetary bonuses for technical improvements, inventions, and discoveries recognized by competent state authorities.

e.4 Monetary bonuses for reporting violations of the law to competent state authorities.

g) Not included in taxable income for the following items:

g.1 Employer support for the treatment of serious illnesses for the employee and the employee's relatives.

g.1.1 Relatives in this context include: biological children, legally adopted children, illegitimate children, spouse's children or children of the spouse; spouse; biological father, mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; legally adopted father, mother.

g.1.2 The amount of support not included in taxable income is the actual amount paid for hospitalization fees as evidenced by payment receipts, but not exceeding the amount of hospitalization fees paid by the employee and their relatives after deducting the amount paid by the insurance organization.

g.1.3) The employer shall retain a copy of the payment voucher for hospital fees with confirmation from the employer (in cases where the employee and the employee's relatives pay the remaining portion after the insurance organization pays directly to the healthcare facility) or a copy of the hospital fee payment voucher; a copy of the health insurance payment voucher with confirmation from the employer (in cases where the employee and the employee's relatives pay the entire hospital fee, and the insurance organization pays the insurance money to the employee and the employee's relatives), together with the payment voucher for financial support provided to the employee and the employee's relatives suffering from serious illnesses.

g.2) Amounts received under regulations regarding the use of transportation means within state agencies, public service organizations, Party organizations, and mass organizations.

g.3) Amounts received under the housing allowance system for civil servants as prescribed by law.

g.4) Amounts received outside of wages and salaries for participating in opinions, appraisals, reviews of legal documents, Resolutions, political reports; participating in inspection and supervision teams; meeting voters and citizens; uniforms and other related activities serving the direct operations of the National Assembly Office, Ethnic Councils, and Committees of the National Assembly, Delegations of the National Assembly; Central Party Office and Party Committees; Municipal Party Committee and Provincial Party Committee Offices and Committees.

g.5) Lunch allowances provided by the employer for employees during mid-shift meals or lunch meals organized in various forms such as cooking meals directly, purchasing meal tickets, or providing meal vouchers.

In cases where the employer does not organize mid-shift meals or lunch meals but instead provides cash payments to employees, such amounts will not be included in the individual's taxable income if the payment level is consistent with the guidelines issued by the Ministry of Labor - Invalids and Social Affairs. If the payment level exceeds the guidelines issued by the Ministry of Labor - Invalids and Social Affairs, the excess amount must be included in the individual's taxable income.

Specific expenditure levels applicable to state-owned enterprises and organizations under administrative and public service agencies, Party organizations, mass organizations, and associations shall not exceed the guidelines issued by the Ministry of Labor - Invalids and Social Affairs. For non-state-owned enterprises and other organizations, the expenditure level shall be determined by the head of the unit in consultation with the trade union chairman, but it shall not exceed the level applicable to state-owned enterprises.

g.6) Amounts paid by the employer on behalf of foreign employees working in Vietnam or Vietnamese employees working abroad for round-trip airfare tickets once a year for annual leave.

The basis for determining the airfare amount is the labor contract and the payment for airfare tickets from Vietnam to the country where the foreigner holds citizenship or resides, and vice versa; the payment for airfare tickets from the country where the Vietnamese employee works back to Vietnam and vice versa.

g.7) Tuition fees for the children of foreign employees working in Vietnam studying in Vietnam, and the children of Vietnamese employees working abroad studying abroad at primary, secondary, and high school levels, paid by the employer on behalf of the employees.

g.8) Personal income received from Associations and organizations that provide sponsorship shall not be included in the taxable personal income if the recipient is a member of the Association or organization; the funding for sponsorship comes from state funds or is managed according to state regulations; the creation of literary and artistic works, scientific research projects... carried out in accordance with the political tasks of the state or in line with the operational programs stipulated in the Charter of the Association or organization.

g.9) Payments made by the employer to serve the transfer and rotation of foreign employees working in Vietnam as stipulated in the labor contract, following the standard work schedule according to international practices in certain industries such as oil and gas, mining.

The basis for determination is the labor contract and the payment for airfare tickets from Vietnam to the country where the foreigner resides and vice versa.

Example 1: Mr. X is a foreigner who was transferred by oil contractor Y to work on an offshore platform in Vietnam. According to the terms of his labor contract, Mr. X's work cycle at the platform is 28 consecutive days followed by 28 days off. Contractor Y pays Mr. X for round-trip airfare tickets from his home country to Vietnam each time he changes shifts, helicopter transportation costs from the mainland to the platform and vice versa, and accommodation costs when Mr. X waits for the helicopter ride to the platform. These amounts are not included in Mr. X's taxable personal income.

g.10)11 Amounts received due to the payer's expenditure on funeral and wedding expenses for the employee and their family according to the general regulations of the payer and consistent with the determination of taxable income under the Corporate Income Tax Law as specified in the guiding documents implementing the Corporate Income Tax Law.

3. Income from capital investment

Income from capital investment includes:

a) Interest received from lending to organizations, enterprises, households, individuals engaged in business, groups of individuals engaged in business, pursuant to loan contracts or agreements, except interest from deposits received from credit institutions and foreign bank branches as specified in Clause g.1, Point g, Item 1, Article 3 of this Circular.

b) Dividends received from equity investments in shares.

c)12 Profits received from participating in capital contributions to limited liability companies, partnerships, cooperatives, joint ventures, cooperation contracts, and other business forms as prescribed by the Enterprise Law and the Cooperative Law; profits received from participating in the establishment of credit organizations as prescribed by the Law on Credit Organizations; capital contributions to Securities Investment Funds and other investment funds established and operated in accordance with the law.

Exempt from taxable income from capital investment shall be the profits of private enterprises and limited liability companies with a single member owned by an individual.

d) The increased portion of the value of contributed capital received upon dissolution of the enterprise, conversion of business model, division, separation, merger, consolidation of the enterprise, or when withdrawing capital.

đ) Income received from bond interest, promissory note interest, and other securities issued by domestic organizations, except for income guided at sub-item g.1 and g.3, point g, Clause 1, Article 3 of this Circular.

e) Various types of income received from capital investment in other forms, including cases of investing capital in kind, reputation, land use rights, inventions, and patents.

g) Income from dividends paid in shares, income from profit recorded as increased capital.

4. Income from transfer of capital

Income from transfer of capital is personal income received including:

a) Income from transferring capital contribution in a limited liability company (including a single-member limited liability company), partnership, joint venture contract, cooperative, people's credit fund, economic organization, or other organization.

b)13 Income from transferring securities, including: income from transferring stocks, stock purchase rights, bonds, promissory notes, fund certificates, and other types of securities as stipulated in Clause 1, Article 6 of the Securities Law. Income from transferring stocks of individuals in a joint-stock company as stipulated in Clause 2, Article 6 of the Securities Law and Article 120 of the Enterprise Law.

c) Income from transferring capital in other forms.

5. Income from transfer of real estate

Income from transfer of real estate is the income received from the transfer of real estate including:

a) Income from transferring land use rights.

b) Income from transferring land use rights and immovable property attached to the land. Immovable property attached to the land includes:

b.1) Housing, including future housing.

b.2) Infrastructure structures and construction works attached to the land, including future construction works.

b.3) Other immovable properties attached to the land, including agricultural, forestry, and fishery products (such as crops, livestock).

c) Income from transferring ownership of housing, including future housing.

d) Income from transferring land lease rights, water surface lease rights.

đ) Income when contributing real estate to establish an enterprise or increase production and business capital of an enterprise according to the provisions of the law.

e) Income from entrusting management of real estate where the trustee has the right to transfer real estate or has the rights of a real estate owner according to the provisions of the law.

g) Other income received from transferring real estate in all forms.

Provisions regarding housing and future construction works mentioned in Clause 5 of this Article shall be implemented according to the laws on real estate business.

6. Income from winning prizes

Income from winning prizes is money or goods that individuals receive under the following forms:

a) Winning lottery prizes awarded by lottery companies.

b) Winning prizes in promotional activities when participating in buying and selling goods and services according to the provisions of the Trade Law.

c) Winning prizes in permitted gambling and betting forms.

d) 14 (abolished)

đ) Winning prizes in games, contests with rewards, and other prize-winning forms organized by economic organizations, administrative agencies, public institutions, social organizations, and other organizations and individuals.

7. Income from copyright

Income from copyright is income received when transferring, assigning ownership, and usage rights of intellectual property objects as stipulated in the Intellectual Property Law; income from technology transfer as stipulated in the Technology Transfer Law. Specifically as follows:

a) Intellectual property objects are carried out according to the provisions of Article 3 of the Intellectual Property Law and related guiding documents, including:

a.1) Copyright objects include literary works, artistic works, scientific works; related rights objects include: recording broadcasts, satellite signals carrying encoded programs.

a.2) Industrial property rights objects include inventions, industrial designs, integrated circuit layout designs, trade secrets, trademarks, trade names, and geographical indications.

a.3) Plant variety rights objects are propagation materials and harvested materials.

b) Objects of technology transfer are carried out according to the provisions of Article 7 of the Technology Transfer Law, including:

b.1) Transfer of technical know-how.

b.2) Transfer of technical knowledge about technology in the form of technological schemes, technological processes, technical solutions, formulas, technical parameters, drawings, technical diagrams, computer programs, data information.

b.3) Transfer of rationalization production solutions, technological innovation.

Income from transferring, assigning rights of intellectual property objects and technology transfer mentioned above includes the case of reassignment.

8. Income from franchising

Franchising is a commercial activity whereby the franchisor permits and requires the franchisee to independently carry out the sale of goods and provision of services according to the conditions set by the franchisor in the franchising agreement.

Income from franchising is the income that individuals receive from the aforementioned franchising agreements, including the case of reassigning franchise rights according to the provisions of the law on franchising.

9. Income from inheritance

Income from inheritance is the income that individuals receive according to a will or the provisions of the law on inheritance, specifically as follows:

a) For inheritance in the form of securities including: stocks, stock purchase rights, bonds, promissory notes, fund certificates, and other types of securities as stipulated in the Securities Law; shares of individuals in a joint-stock company as stipulated in the Enterprise Law.

b) For inheritance as part of capital in economic organizations, business establishments, including: contributed capital in limited liability companies, cooperatives, joint-stock companies, joint venture contracts; capital in private enterprises, individual business establishments; capital in associations, funds established according to the provisions of the law, or the entire business establishment if it is a private enterprise or an individual's business establishment.

c) For inheritance as immovable property, including: right to use land; right to use land with attached assets; ownership rights to houses, including future residential buildings; infrastructure and construction works attached to land, including future construction works; right to lease land; right to lease water surfaces; other income received from inheritance of immovable property in any form; except income from inheritance of immovable property as directed at point d, Clause 1, Article 3 of this Circular.

d) For inheritance as other assets that must be registered for ownership or usage rights with state management agencies, including: automobiles; motorcycles, motorbikes; ships, including barges, yachts, tugboats, push boats; boats, including pleasure boats; aircraft; hunting guns, sports guns.

10. Income from receiving gifts

Income from receiving gifts is the income of individuals received from organizations and individuals both within and outside the country, specifically as follows:

a) For receiving gifts as securities, including: stocks, stock purchase rights, bonds, bills, fund certificates, and other types of securities as prescribed by the Securities Law; shares of individuals in joint-stock companies as prescribed by the Enterprise Law.

b) For receiving gifts as part of capital in economic organizations, business establishments, including: capital in limited liability companies, cooperatives, joint-stock companies, joint venture contracts, capital in private enterprises, individual business establishments, capital in associations, funds established according to the provisions of the law, or the entire business establishment if it is a private enterprise or an individual's business establishment.

c) For receiving gifts as immovable property, including: right to use land; right to use land with attached assets; ownership rights to houses, including future residential buildings; infrastructure and construction works attached to land, including future construction works; right to lease land; right to lease water surfaces; other income received from inheritance of immovable property in any form; except income from gifts of immovable property as directed at point d, Clause 1, Article 3 of this Circular.

d) For receiving gifts as other assets that must be registered for ownership or usage rights with state management agencies, including: automobiles; motorcycles, motorbikes; ships, including barges, yachts, tugboats, push boats; boats, including pleasure boats; aircraft; hunting guns, sports guns.

Article 3. Tax-exempt income

1. Based on the provisions of Article 4 of the Personal Income Tax Law, Article 4 of Decree No. 65/2013/NĐ-CP, tax-exempt income includes:

a) Income from transferring immovable property (including future residential buildings, future construction works according to the laws on real estate business) between: husband and wife; father, mother with their biological children; adoptive father, adoptive mother with adopted children; father-in-law, mother-in-law with daughter-in-law; father-in-law, mother-in-law with son-in-law; grandfather, grandmother with grandson; grandfather, grandmother with granddaughter; siblings.

In the case where immovable property (including future residential buildings, future construction works according to the laws on real estate business) created during the marriage by either the husband or wife is determined as the common property of the couple, when divorcing and divided according to agreement or court decision, such division is exempted from tax.

b) Income from transferring residential houses, rights to use residential land, and assets attached to residential land of individuals in cases where the transferor only has one residential house or one plot of residential land in Vietnam.

b.1) Individuals transferring residential houses, rights to use residential land, who are exempted from tax according to point b, Clause 1, of this Article must simultaneously meet the following conditions:

b.1.1) Only having sole ownership of one residential house or sole right to use one plot of residential land (including cases where there is a residential building or construction work attached to that plot of land) at the time of transfer, specifically as follows:

b.1.1.1) The determination of ownership of residential houses and rights to use residential land is based on the Certificate of Land Use Right, House Ownership, and Other Assets Attached to Land.

b.1.1.2) In cases where the residential house is jointly owned, and the residential land is jointly used, only individuals without ownership of residential houses or rights to use residential land elsewhere are exempted from tax; individuals with joint ownership of residential houses or joint rights to use residential land who also have other residential houses or rights to use residential land are not exempted from tax.

b.1.1.3) In cases where the husband and wife jointly own a residential house and residential land, which is the only joint property of the couple, but one of them also has separate residential houses or lands, when transferring the jointly owned residential house or land, the spouse without separate residential houses or lands is exempted from tax; the spouse with separate residential houses or lands is not exempted from tax.

b.1.2) Having ownership of residential houses and rights to use residential land for at least 183 days up to the date of transfer.

The date of determining ownership of residential houses and rights to use residential land is the date of issuance of the Certificate of Land Use Right, House Ownership, and Other Assets Attached to Land. In cases of reissuance or replacement according to the laws on land, the date of determining ownership of residential houses and rights to use residential land is calculated based on the date of issuance of the Certificate of Land Use Right, House Ownership, and Other Assets Attached to Land before reissuance or replacement.

b.1.3) Transferring the entire residential house and land.

In cases where individuals have sole or joint ownership of a single residential house or land but transfer only a portion, they are not exempted from tax on the transferred portion.

b.2) The sole residence and land for residence exempted from tax due to the individual's declaration and responsibility when transferring real estate shall be subject to tax exemption. If any discrepancy is discovered, the individual will be subject to tax recovery and penalties for violations of tax laws as stipulated by the tax management laws.

b.3) In cases where residential property or construction projects formed in the future are transferred and do not fall under the category eligible for personal income tax exemption as guided by point b, Clause 1, Article of this provision.

c) Income from the value of land use rights granted to individuals by the State without payment or with reduced land use fees as prescribed by law.

In cases where individuals are exempted or reduced in land use fees when receiving land, if they transfer the area of land that was exempted or had reduced land use fees, they must declare and pay taxes on income from the transfer of real estate as guided by Article 12 of this Circular.

d) Income from inheriting or receiving gifts of real estate (including residential properties and future construction projects as defined by the Law on Real Estate Business) between: husband and wife; biological father and mother with their biological children; adoptive father and mother with their adopted children; father-in-law and mother-in-law with their daughter-in-law; father and mother with their son-in-law; paternal grandfather and grandmother with their grandson, maternal grandfather and grandmother with their granddaughter; full siblings.

đ) Income from converting agricultural land to rationalize agricultural production without changing the purpose of land use for households and individuals directly engaged in agricultural production, which has been assigned by the State for production purposes.

e) Income from households and individuals directly participating in agricultural, forestry, salt-making, aquaculture, and fishing activities that have not undergone processing or only undergone simple preliminary processing without being transformed into other products.

Households and individuals directly participating in production activities as guided herein must simultaneously meet the following conditions:

e.1) Having lawful rights to use land, lease land, use water surfaces, or lease water surfaces for production and directly engage in agricultural, forestry, salt-making, and aquaculture labor.

In cases where land or water surface is leased from other organizations or individuals, there must be a lease agreement in accordance with the law (except for households and individuals who undertake afforestation, care, management, and protection of forests with forestry companies). For fishing activities, there must be a certificate of ownership or a lease contract for boats and ships used for fishing and directly engaging in fishing activities (except for fishing on rivers using bottom nets and not engaging in prohibited fishing activities as stipulated by law).

e.2) Actually residing in the locality where agricultural, forestry, salt-making, aquaculture, and fishing activities take place.

The locality where agricultural, forestry, salt-making, aquaculture, and fishing activities take place as guided herein refers to districts, counties, towns, cities under provinces (collectively referred to as county-level administrative units) or bordering counties adjacent to the location of such activities.

Specifically, for fishing activities, it is not dependent on the place of residence.

e.3) Agricultural, forestry, salt-making, aquaculture, and fishing products that have not been processed into other products or have only undergone simple preliminary processing, such as cleaning, drying, peeling, separating kernels, cutting, salting, cold storage, and other common preservation methods.

g) Income from interest on deposits at credit institutions, foreign bank branches, interest from life insurance contracts; income from interest on government bonds.

g.1) Interest income exempted from tax as provided herein is the personal income received from deposits in Vietnamese dong, gold, and foreign currencies at credit institutions, foreign bank branches established and operating according to the Law on Credit Institutions in forms such as demand deposits, term deposits, savings accounts, deposit certificates, bills, promissory notes, and other deposit forms based on the principle of full repayment of principal and interest to depositors as agreed.

The basis for determining tax-exempt income from interest on deposits is the savings book (or savings card), deposit certificates, bills, promissory notes, and other documents based on the principle of full repayment of principal and interest to depositors as agreed.

g.2) Interest from life insurance contracts is the interest amount that individuals receive according to life insurance contracts with insurance companies.

The basis for determining tax-exempt income from interest on life insurance contracts is the payment receipt for interest from life insurance contracts.

g.3) Interest on government bonds is the interest amount that individuals receive from purchasing government bonds issued by the Ministry of Finance.

The basis for determining tax-exempt income from interest on government bonds is the face value, interest rate, and term on government bonds.

h)16 Tax-exempt remittances from overseas relatives are amounts received by individuals from abroad sent by relatives who are Vietnamese residents living abroad, Vietnamese workers, officials, or students studying abroad.

In cases where individuals receive money from abroad sent by non-Vietnamese relatives meeting the conditions for encouraging money transfers back home as stipulated by the State Bank of Vietnam, they are also exempted from tax as provided herein.

The basis for determining tax-exempt income herein is proof of the source of funds received from abroad and payment receipts from the organization making the payment on behalf of the sender (if applicable).

i) Income from higher wages or salaries paid for night work or overtime work as stipulated by the Labor Code. Specifically, as follows:

i.1) The portion of higher wages or salaries paid for night work or overtime work is exempted from tax based on the actual wages or salaries received for night work or overtime work minus the regular daily wage or salary.

Example 2: Mr. A has a regular daily wage according to the Labor Code of 40,000 VND/hour.

- In the case where an individual works overtime on a regular workday and receives VND 60,000/hour, the income exempt from tax is:

VND 60,000/hour - VND 40,000/hour = VND 20,000/hour

- In the case where an individual works overtime on a rest day or holiday and receives VND 80,000/hour, the income exempt from tax is:

VND 80,000/hour - VND 40,000/hour = VND 40,000/hour

i.2) Organizations and individuals paying income must prepare a list detailing nighttime work hours, overtime hours, and additional wages paid for nighttime and overtime work to employees. This list shall be kept at the entity paying the income and presented upon request by the tax authority.

k) Pensions paid by the Social Insurance Fund according to the provisions of the Social Insurance Law; monthly pensions received from the Voluntary Pension Fund.

Individuals residing and working in Vietnam are exempt from tax on pensions received from abroad.

m) Income from scholarships, including:

m.1) Scholarships received from the state budget, including scholarships from the Ministry of Education and Training, Department of Education and Training, public schools, or other types of scholarships funded by the state budget.

m.2) Scholarships received from domestic and foreign organizations (including living allowances) under their educational support programs.

The organization granting scholarships to individuals mentioned herein must retain scholarship award decisions and payment receipts. In cases where individuals directly receive scholarships from foreign organizations, the recipients must retain documentation and receipts proving that the income received is a scholarship granted by foreign organizations.

n)17 Income from insurance contract settlements, including life insurance, non-life insurance, health insurance; accident compensation payments; compensation and support provided according to laws on compensation, support, and resettlement; state compensation and other compensations stipulated by law. Specifically, in certain situations as follows:

n.1) Income from insurance contract settlements, including life insurance, non-life insurance, and health insurance, is the amount received by an individual from life insurance, non-life insurance, or health insurance organizations based on the terms of the signed insurance contracts. The basis for determining this settlement amount is the settlement document or decision issued by the insurance organization or court and the payment receipt.

n.2) Income from accident compensation payments is the amount received by workers from employers or the social insurance fund due to accidents during labor activities. The basis for determining this compensation amount is the compensation document or decision issued by the employer or court and the accident compensation payment receipt.

n.3) Income from compensation and support provided according to laws on compensation, support, and resettlement is the compensation and support received when the state acquires land, including income from economic organizations providing compensation and support in accordance with regulations.

The basis for determining income from compensation and support provided according to laws on compensation, support, and resettlement is the decision of the competent state agency regarding land acquisition, resettlement compensation, and the payment receipt.

n.4) Income from state compensation and other compensations stipulated by laws on state compensation is the amount received by individuals due to administrative penalties imposed incorrectly by authorized persons or state agencies causing damage to individual rights; income from compensation for wrongful convictions decided by authorized agencies in criminal proceedings. The basis for determining this compensation amount is the decision of the state agency ordering the agency or individual making the incorrect decision to provide compensation and the compensation receipt.

n.5) Income from damages outside of contractual agreements according to the Civil Code.

p) Income received from charitable funds established or recognized by authorized state agencies and operating for charitable, humanitarian, and educational purposes without profit motives.

The charitable fund referred to herein is a charitable fund established and operated in accordance with Decree No. 30/2012/NĐ-CP dated April 12, 2012, of the Government on the organization and operation of social and charitable funds.

The basis for determining income received from charitable funds exempt from tax herein is the document or decision granting the income from the charitable fund and the payment receipt or material distribution from the charitable fund.

q) Income received from foreign aid sources for charitable and humanitarian purposes in the form of government and non-governmental assistance approved by authorized state agencies.

The basis for determining income exempt from tax herein is the document of the authorized state agency approving the receipt of aid.

r)18 Income from wages and salaries of Vietnamese seafarers employed by foreign shipping companies or Vietnamese shipping companies engaged in international transportation.

s)19 Income of individuals who are ship owners, individuals with the right to use ships, and individuals working on ships derived from direct supply of goods and services serving distant sea fishing operations.

2. Procedures and documents for tax exemption for the cases specified in points a, b, c, d, đ, Clause 1, Article of this provision shall be carried out in accordance with the guidance document on tax administration.

Article 4. Tax Reduction

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

1. Determining the amount of tax to be reduced

a) The process of considering tax reduction is carried out on an annual basis. A taxpayer facing difficulties due to natural disasters, fires, accidents, or serious illnesses in a particular tax year shall be considered for tax reduction of that tax year.

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

b.1) Personal income tax already paid or deducted from income from capital investment, income from capital transfer, income from real estate transfer, income from lottery winnings, income from copyright, income from trademark licensing, income from inheritance; income from gifts.

b.2) Personal income tax payable on income from business operations and income from salaries and wages.

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 organizations or individuals causing the accident (if any).

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

d.1) In cases where the tax payable in the tax year is greater than the extent of damage, the tax reduction equals the extent of damage.

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

2. Procedures and documents for considering tax reduction shall be implemented according to the guiding documents on tax management.

Article 5. Conversion of Taxable Income into Vietnamese Dong

20

1. Business revenue and taxable personal income are calculated in Vietnamese Dong.

In cases where business revenue or taxable income is received in foreign currency, it must be converted into Vietnamese Dong based on the actual transaction buying rate of the bank where the individual's account is opened at the time the income is generated.

In cases where the taxpayer does not have an account in Vietnam, the foreign currency must be converted into Vietnamese Dong based on the buying rate of foreign currency of the Vietnam Joint Stock Commercial Bank for Foreign Trade at the time the income is generated.

For foreign currencies without a foreign exchange rate against the Vietnamese Dong, they must be converted through a foreign currency that has a foreign exchange rate against the Vietnamese Dong.

2. Taxable income received in non-monetary form must be converted into Vietnamese Dong based on the market price of the product or service or similar products or services at the time the income is generated.

Article 6. Tax Year

1. For resident individuals

a) Annual tax year: applicable to income from business operations and income from salaries and wages.

In cases where an individual is present in Vietnam for 183 days or more during a calendar year, the tax year is calculated based on the calendar year.

In cases where an individual is present in Vietnam for less than 183 days during a calendar year but is present for 183 days or more within a continuous period of 12 months starting from the first day of presence in Vietnam, the first tax year is determined as the continuous period of 12 months starting from the first day of presence in Vietnam. From the second year onwards, the tax year is based on the calendar year.

Example 3: Mr. B is a foreigner who first arrived in Vietnam on April 20, 2014. During the year 2014 up to December 31, 2014, Mr. B was present in Vietnam for a total of 130 days. In 2015, up to April 19, 2015, Mr. B was present in Vietnam for a total of 65 days. Mr. B's first tax year is from April 20, 2014, to April 19, 2015. His second tax year is from January 1, 2015, to December 31, 2015.

b) Per occurrence tax year: applicable to income from capital investment, income from capital transfer, income from real estate transfer, income from lottery winnings, income from copyright, income from trademark licensing, income from inheritance, income from gifts.

c) Per occurrence or annual tax year: applicable to income from securities transfer.

2. For non-resident individuals

The tax year for non-resident individuals is calculated per occurrence of income generation.

In cases where non-resident individuals engaged in business operations have a fixed place of business such as shops or stalls, the tax year applies as for resident individuals with income from business operations.

Chapter 2

BASIS FOR CALCULATING TAX FOR RESIDENT INDIVIDUALS

Article 7. Basis for calculating tax on taxable income

21

from salaries and wages

The basis for calculating tax on taxable income from salaries and wages is the taxable income and tax rate, specifically as follows:

1. Taxable income is determined by subtracting (-) the following deductions from the taxable income according to the guidance provided in Article 8 of this Circular:

a) Personal circumstances deduction according to the guidance provided in Clause 1, Article 9 of this Circular.

b) Social insurance contributions and voluntary pension fund contributions according to the guidance provided in Clause 2, Article 9 of this Circular.

c) Philanthropic, humanitarian, and educational contributions according to the guidance provided in Clause 3, Article 9 of this Circular.

2. Tax Rate

The personal income tax rate applicable to income from salaries and wages is applied according to the progressive tax rate table specified in Article 22 of the Law on Personal Income Tax, specifically as follows:

Tax Bracket	Annual taxable income portion (million dong)	Monthly taxable income portion (million dong)	Tax Rate (%)
1	Over 60 to 70	Up to 5	5
2	Over 60 to 120	Above 5 to 10	10
3	Over 120 to 216	Over 10 to 18	15
4	Over 216 to 384	Over 18 to 32	20
5	Over 384 to 624	Over 32 to 52	25
6	Over 624 to 960	Over 52 to 80	30
7	Over 960	Over 80	35

3. Method of Calculating Tax

Personal income tax on income from salaries and wages is the total tax calculated based on each income bracket, with the tax for each bracket being the taxable income of that bracket multiplied (x) by the corresponding tax rate for that bracket.

For convenience in calculation, the simplified method set out in Appendix No. 01/PL-TNCN accompanying this Circular may be applied.

Example 4: Ms. C has a salary income of 40 million VND in a month and pays social insurance at 7% and health insurance at 1.5% of her salary. Ms. C supports two children under 18 years old, and she did not make charitable donations in that month. Her provisional personal income tax for the month is calculated as follows:

- Ms. C's taxable income is 40 million VND.

- Ms. C is entitled to the following deductions:

+ Personal circumstances deduction: 9 million VND

+ Circumstances deduction for 02 dependents (two children):

3.6 million VND x 2 = 7.2 million VND

+ Social insurance and health insurance:

40 million VND x (7% + 1.5%) = 3.4 million VND

Total deductions:

9 million VND + 7.2 million VND + 3.4 million VND = 19.6 million VND

- Ms. C's taxable income is:

40 million VND - 19.6 million VND = 20.4 million VND

- Tax payable:

Method 1: Tax payable calculated according to each bracket of the progressive tax rate table:

+ Bracket 1: taxable income up to 5 million VND, tax rate 5%:

5 million VND x 5% = 0.25 million VND

+ Bracket 2: taxable income over 5 million VND to 10 million VND, tax rate 10%:

(10 million VND - 5 million VND) x 10% = 0.5 million VND

+ Bracket 3: taxable income over 10 million VND to 18 million VND, tax rate 15%:

(18 million VND - 10 million VND) x 15% = 1.2 million VND

+ Bracket 4: taxable income over 18 million VND to 32 million VND, tax rate 20%:

(20.4 million VND - 18 million VND) x 20% = 0.48 million VND

- Total provisional tax Ms. C must pay in the month is:

0.25 million VND + 0.5 million VND + 1.2 million VND + 0.48 million VND = 2.43 million VND

Method 2: Tax payable calculated using the simplified method:

Ms. C's monthly taxable income of 20.4 million VND falls within Bracket 4. The personal income tax payable is as follows:

20.4 million VND x 20% - 1.65 million VND = 2.43 million VND

4. Conversion of Income Excluding Tax to Taxable Income

In cases where organizations or individuals pay income from salaries and wages to employees according to the guidance provided in Clause 2, Article 2 of this Circular, which does not include tax, they must convert income excluding tax into taxable income according to Appendix No. 02/PL-TNCN accompanying this Circular to determine the taxable income. Specifically as follows:

a) The income serving as the basis for conversion into taxable income is the actual income received (excluding tax-exempt income) plus (+) benefits paid by the employer on behalf of the employee (if any), minus (-) deductions. If the employer applies a "hypothetical tax" or "hypothetical housing allowance" policy, the income serving as the basis for conversion into taxable income does not include "hypothetical tax" or "hypothetical housing allowance." If among the benefits paid there is rent, the rent included in the income serving as the basis for conversion is the actual amount paid but not exceeding 15% of the total taxable income generated at the unit regardless of the place of payment (excluding rent, electricity, water, and other accompanying services actually incurred, "hypothetical housing allowance" if any).

Formula for determining the income serving as the basis for conversion:

Income serving as the basis for conversion

=

Actual income received

+

Benefits paid on behalf

-

Deductions

Where:

- Actual income received is the salary and wage income without tax that the employee receives monthly (excluding tax-exempt income).

- Benefits paid on behalf are monetary or non-monetary benefits provided by the employer to the employee according to the guidance provided in Point d, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC and Clauses 2, 3, and 4 of Article 11 of Circular No. 92/2015/TT-BTC.

- Deductions include: personal circumstances deduction; social insurance and voluntary pension fund contribution deduction; philanthropic, humanitarian, and educational contribution deduction according to the guidance provided in Article 9 of Circular No. 111/2013/TT-BTC and Article 15 of Circular No. 92/2015/TT-BTC.

b) In cases where individuals are subject to final settlement of tax according to regulations, the annual taxable income is the total taxable income of each month determined based on converted taxable income. In cases where individuals have income without tax from multiple employers, the annual taxable income is the total taxable income from each employer during the year.

Example 7: Assuming Mr. D in the above Example 6, in addition to his income from Company X, from January 2014 to May 2014, he also had a contract to receive income from Company Y at 12 million VND/month. Company Y also paid the personal income tax on behalf of Mr. D.

The final settlement of personal income tax for Mr. D in 2014 is as follows:

- At Company X, Mr. D's annual taxable income is:

42,687,000 VND x 12 months = 512,244,000 VND

- At Company Y:

+ Monthly taxable income (converted according to Appendix No. 02/PL-TNCN):

(12 million VND - 0.75 million VND) / 0.85 = 13.235 million VND

+ Income subject to tax at company Y for the year:

13.235 million VND x 5 months = 66.175 million VND

+ Total income subject to tax of Mr. D in 2014:

512.244 million VND + 66.175 million VND = 578.419 million VND

- Taxable income per month:

(578.419 million VND : 12 months) - (9 million VND + 1.5 million VND) = 37.702 million VND

- Individual income tax payable for the year:

(37.702 million VND x 25% - 3.25 million VND) x 12 months = 74.105 million VND.

5.26 (Repealed)

6.27 The basis for calculating tax on accumulated funds for non-mandatory insurance is the amount of accumulated premiums for life insurance (excluding voluntary pension insurance), other non-mandatory insurance purchased or contributed by the employer for employees, and a withholding rate of 10%.

In cases where the employer purchases life insurance (excluding voluntary pension insurance) or other non-mandatory insurance with accumulated premiums from an insurance company established and operating under Vietnamese law for employees, the employee does not need to include such income in taxable income when the employer purchases the insurance. At the maturity date of the contract, the insurance company is responsible for withholding tax at a rate of 10% on the accumulated premium corresponding to the portion purchased by the employer for the employee starting from July 1, 2013. If the accumulated premium is paid in installments, the tax will be withheld at a rate of 10% corresponding to each installment payment.

In cases where the employer purchases life insurance (excluding voluntary pension insurance) or other non-mandatory insurance with accumulated premiums from an insurance company not established and operating under Vietnamese law but permitted to sell insurance in Vietnam, the employer is responsible for withholding tax at a rate of 10% on the insurance premium paid or contributed before paying wages to the employee.

Insurance companies are responsible for separately tracking the life insurance premiums and other non-mandatory insurance premiums purchased or contributed by employers for employees to serve as the basis for calculating individual income tax.

Article 8. Determination of Taxable Income

28

from salaries and wages

1.29 (abolished)

2. Taxable income from salaries and wages

a) Taxable income from salaries and wages is determined by the total amount of salaries, wages, honoraria, and other income of a similar nature received by the taxpayer during the tax period as guided by Clause 2, Article 2 of this Circular.

b) Time of determination of taxable income.

The time of determination of taxable income from salaries and wages is the time when the organization or individual pays income to the taxpayer.

Specifically, the time of determination of taxable income for accumulated insurance premiums as guided by Point d.2, Clause 2, Article 2 of this Circular is the time when the insurance company pays the insurance money.

33.31 (abolished)

Article 9. Deductions

The deductions as guided by this Article are amounts deducted from the taxpayer's taxable income before determining the income subject to tax from salaries and wages. Specifically as follows:

1. Personal allowances

As stipulated in Article 19 of the Law on Personal Income Tax; Clause 4, Article 1 of the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax; Article 12 of Decree No. 65/2013/NĐ-CP, personal allowances are implemented as follows:

a) Personal allowances are amounts deducted from taxable income before calculating tax on income from salaries and wages of taxpayers who are resident individuals.

…34

b) Levels of personal allowances

b.1) For taxpayers, it is 9 million VND/month, 108 million VND/year.

b.2) For each dependent, it is 3.6 million VND/month.

c) Principles for calculating personal allowances

c.1) Personal allowances for the taxpayer themselves:

c.1.1) If the taxpayer has multiple sources of income from salaries and wages, at any given time (calculated monthly), the taxpayer chooses to calculate personal allowances for themselves at one place.

c.1.2) For foreign individuals residing in Vietnam, personal allowances for themselves are calculated from January or from the month they first arrived in Vietnam until the end of their labor contract and departure from Vietnam within the tax year (calculated monthly).

Example 8: Mr. E came to work in Vietnam continuously from March 1, 2014. On November 15, 2014, Mr. E ended his labor contract and returned home. From March 1, 2014, until he left, Mr. E was present in Vietnam for more than 183 days. Therefore, in 2014, Mr. E was a resident individual and was entitled to personal allowances for himself from January to November 2014.

Example 9: Ms. G first arrived in Vietnam on September 21, 2013. On June 15, 2014, Ms. G ended her labor contract and left Vietnam. During the period from September 21, 2013, to June 15, 2014, Ms. G was present in Vietnam for 187 days. Thus, in the first tax year (from September 21, 2013, to September 20, 2014), Ms. G was identified as a resident individual of Vietnam and was entitled to personal allowances for herself from September 2013 to June 2014.

c.1.3) If the taxpayer did not deduct personal allowances for themselves or did not deduct for a full 12 months in the tax year, they can deduct for a full 12 months when settling taxes according to regulations.

c.2) Personal allowances for dependents

c.2.1) The taxpayer is eligible to claim personal allowances for dependents if the taxpayer has registered for tax and been issued a tax identification number.

c.2.2) When the taxpayer registers for personal allowances for dependents, the tax authority will issue a tax identification number for the dependents and allow temporary deduction of personal allowances for the year from the registration date. For dependents who have already registered for personal allowances before this Circular takes effect, they continue to be eligible for personal allowances until they receive a tax identification number.

c.2.3) In case the taxpayer has not deducted the dependent deduction for dependents in the tax calculation year, they shall be allowed to deduct the dependent deduction from the month when the obligation to support arises, provided that the taxpayer completes the final tax settlement and registers the dependent deduction. However, for other dependents as specified in paragraph d.4, Clause 1, Article this, the deadline for registering the dependent deduction is no later than December 31 of the tax calculation year; if the deadline is exceeded, the dependent deduction will not be allowed for that tax calculation year.

c.2.4) Each dependent can only be deducted once for one taxpayer in the tax calculation year. If multiple taxpayers share the same dependent who needs to be supported, the taxpayers must agree among themselves to register the dependent deduction with one taxpayer.

d) Dependents include:

d.1) Children: biological children, legally adopted children, out-of-wedlock children, stepchildren, half-siblings, specifically including:

d.1.1) Children under 18 years old (calculated according to months).

Example 10: The child of Mr. H born on July 25, 2014 is considered a dependent from July 2014.

d.1.2) Children aged 18 or older with disabilities, unable to work.

d.1.3) Children currently studying in Vietnam or abroad at the university, college, vocational high school, or vocational training level, including children aged 18 or older currently studying at the secondary education level (including during the waiting period for university admission results from June to September of grade 12) without income or with average monthly income from all sources not exceeding 1,000,000 VND in the year.

d.2) Spouse of the taxpayer meeting the conditions specified in point d, Clause 1, Article this.

d.3) 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 of the taxpayer meeting the conditions specified in point d, Clause 1, Article this.

d.4) Other individuals without a place to rely on whom the taxpayer is directly supporting and meeting the conditions specified in point d, Clause 1, Article this, including:

d.4.1) Full brothers, full sisters, half-brothers, half-sisters of the taxpayer.

d.4.2) Grandfathers, grandmothers; grandfathers, grandmothers; aunts, uncles, cousins of the taxpayer.

d.4.3) Grandchildren of the taxpayer including: children of full brothers, full sisters, half-brothers, half-sisters.

d.4.4) Other individuals required to be directly supported according to the provisions of the law.

đ) Individuals recognized as dependents according to the guidance in paragraphs d.2, d.3, d.4, point d, Clause 1, Article this must meet the following conditions:

đ.1) For individuals within working age, they must simultaneously meet the following conditions:

đ.1.1) Disabled, unable to work.

đ.1.2) Without income or with average monthly income from all sources not exceeding 1,000,000 VND in the year.

đ.2) For individuals outside working age, they must not have income or have average monthly income from all sources not exceeding 1,000,000 VND in the year.

e) Individuals with disabilities, unable to work, as specified in paragraph đ.1.1, point đ, Clause 1, Article this are those individuals subject to the regulations of the law on persons with disabilities, persons suffering from diseases that render them unable to work (such as AIDS, cancer, end-stage renal disease, etc.).

g) Documentation proving dependents

g.1) For children:

g.1.1) Children under 18 years old: Documentation proving includes copies of Birth Registration Certificate and copies of Identity Card (if available).

g.1.2) Children aged 18 or older with disabilities, unable to work, documentation proving includes:

g.1.2.1) Copies of Birth Registration Certificate and copies of Identity Card (if available).

g.1.2.2) Copies of Disability Confirmation Certificate according to the law on persons with disabilities.

g.1.3) Children currently studying at various levels as specified in paragraph d.1.3, point d, Clause 1, Article this, documentation proving includes:

g.1.3.1) Copies of Birth Registration Certificate.

g.1.3.2) Copies of Student ID or a declaration confirmed by the school or other documents proving current enrollment in universities, colleges, vocational high schools, secondary schools, or vocational training institutions.

g.1.4) In cases where the child is adopted, out-of-wedlock, or a stepchild, in addition to the documents mentioned above, the documentation proving also requires additional documents to prove the relationship such as copies of adoption recognition decisions, recognition of parent-child relationships by competent state authorities, etc.

g.2) For spouse, documentation proving includes:

- Copies of Identity Card.

- Copies of Household Registration Booklet (proving marital relationship) or Copies of Marriage Certificate.

In cases where the spouse is within working age, in addition to the aforementioned documents, the documentation proving also requires additional documents to prove the inability to work such as copies of Disability Confirmation Certificate according to the law on persons with disabilities for disabled individuals unable to work, copies of medical records for individuals suffering from diseases rendering them unable to work (such as AIDS, cancer, end-stage renal disease, etc.).

g.3) For 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, documentation proving includes:

- Copies of Identity Card.

- Legal documents to confirm the relationship between the dependent and the taxpayer such as copies of Household Registration Booklet (if they are in the same Household Registration Booklet), birth registration certificates, decisions recognizing parent-child relationships by competent state authorities.

In cases where they are within working age, in addition to the aforementioned documents, the documentation proving also requires additional documents to prove disability and inability to work such as copies of Disability Confirmation Certificate according to the law on persons with disabilities for disabled individuals unable to work, copies of medical records for individuals suffering from diseases rendering them unable to work (such as AIDS, cancer, end-stage renal disease, etc.).

g.4) For other individuals as specified in paragraph d.4, point d, Clause 1, Article this, documentation proving includes:

g.4.1) Copies of Identity Card or Birth Registration Certificate.

g.4.2) Legal documents to confirm the responsibility for support according to the law.

In cases where dependents are within the working age, in addition to the aforementioned documents, the proof documentation must also include papers demonstrating their inability to work, such as a copy of the Certificate of Disability issued in accordance with the laws on persons with disabilities for those who are disabled and unable to work, and a copy of the medical record for those suffering from illnesses that render them unable to work (such as AIDS, cancer, end-stage renal disease, etc.).

The legal documents referred to in paragraph g.4.2, point g, Clause 1, Article this are any legal documents that establish the relationship between the taxpayer and the dependent, including:

- A copy of the document determining the maintenance obligation according to the provisions of the law (if applicable).

- A copy of the household registration book (if they share the same household registration book).

- A copy of the temporary residence registration of the dependent (if they do not share the same household registration book).

- A self-declaration form of the taxpayer according to the model issued together with the guiding document on tax management, confirmed by the People's Committee of the commune where the taxpayer resides regarding the fact that the dependent lives with the taxpayer.

- A self-declaration form of the taxpayer according to the model issued together with the guiding document on tax management, confirmed by the People's Committee of the commune where the dependent resides regarding the fact that the dependent currently resides in the locality and is not being maintained by anyone (in case they do not live together).

g.5) For resident individuals who are foreigners, if there is no file as directed for each specific case mentioned above, they must have similar legal documents to prove the dependent.

g.6) For taxpayers working in economic organizations, administrative agencies, and public institutions, if the father, mother, spouse (or husband), children, and other persons who are considered dependents are clearly stated in the taxpayer's resume, the proof documentation for dependents shall be carried out according to the guidance at paragraphs g.1, g.2, g.3, g.4, g.5, point g, Clause 1, Article this, or only need to submit the Declaration Form for Dependents according to the model issued together with the guiding document on tax management, confirmed by the Head of the unit on the left side of the declaration form.

The Head of the unit is only responsible for the following contents: name of the dependent, year of birth, and relationship with the taxpayer; other contents are declared and the taxpayer bears responsibility.

h) Declaration of deduction for dependents

h.1) Taxpayers earning income 36 from salaries and wages up to nine million VND per month are not required to declare dependents.

h.2) Taxpayers earning income 37 from salaries and wages over nine million VND per month to be eligible for family allowance deductions for dependents shall declare as follows:

h.2.1) For taxpayers earning income from salaries and wages

h.2.1.1) Registration of dependents

h.2.1.1.1) Initial registration of dependents:

Taxpayers earning income from salaries and wages shall register dependents according to the model issued together with the guiding document on tax management and submit two (02) copies to the entity or individual paying income to serve as the basis for deducting dependents' allowances.

The entity or individual paying income shall retain one (01) copy of the registration and submit one (01) copy of the registration to the direct managing tax authority along with the personal income tax return for the tax period according to the regulations of the tax management law.

For individuals directly declaring taxes to the tax authority, the individual shall submit one (01) copy of the dependent registration form according to the model issued together with the guiding document on tax management to the direct managing tax authority of the organization paying income at the same time as submitting the personal income tax return for the tax period according to the Law on Tax Management.

h.2.1.1.2) Registration when there is a change in dependents:

When there is a change (increase, decrease) in dependents, the taxpayer shall supplement the information about the changed dependents according to the model issued together with the guiding document on tax management and submit it to the entity or individual paying income or the tax authority for taxpayers who directly declare taxes to the tax authority.

h.2.1.2) Place and deadline for submitting proof of dependents:

- The place for submitting proof of dependents is where the taxpayer submits the dependent registration form.

The entity paying income has the responsibility to retain the proof of dependents and present it when the tax authority conducts inspections or audits.

- The deadline for submitting proof of dependents is within three (03) months from the date of submission of the dependent registration form (including cases of changing dependents).

If the taxpayer fails to submit the proof of dependents within the specified deadline, they will not be entitled to the dependent deduction and must adjust the amount of tax payable.

h.2.2)38 (abolished)

i) The taxpayer only needs to register and submit proof for each dependent once throughout the period of being eligible for family allowance deductions. In case the taxpayer changes workplaces 39, they shall carry out the registration and submission of proof of dependents as in the initial registration of dependents according to the guidance at paragraph h.2.1.1.1, point h, Clause 1, Article this.

2. Deduction for insurance contributions, Voluntary Pension Fund contributions

a) Insurance contributions include: social insurance, health insurance, unemployment insurance, occupational liability insurance for certain occupations that must participate in mandatory insurance.

b)40 Contributions to the Voluntary Pension Fund, purchase of voluntary pension insurance

The amount contributed to the Voluntary Pension Fund, purchased voluntary pension insurance is deductible from taxable income based on actual occurrence but not exceeding one (01) million VND per month for employees participating in voluntary pension products according to the guidelines of the Ministry of Finance, including both the amount paid by the employer for the employee and the amount paid by the employee themselves (if any), even in the case of participation in multiple funds. The basis for determining the deductible income is a copy of the payment receipt (or fee) issued by the Voluntary Pension Fund or insurance company.

c) Foreign individuals residing in Vietnam and Vietnamese individuals residing but working abroad who have income from salaries and wages earned outside Vietnam and have participated in mandatory insurance contributions according to the regulations of the country where they hold citizenship or work, similar to the provisions of Vietnamese law such as social insurance, health insurance, unemployment insurance, mandatory professional liability insurance, and other mandatory insurances (if applicable), shall be allowed to deduct those insurance fees from their taxable income from salaries and wages when calculating personal income tax.

Foreign individuals and Vietnamese individuals who have participated in the aforementioned insurance contributions abroad will be temporarily deducted from their income for tax withholding during the year (if there is documentation) and calculated based on the formal amount if the individual settles their tax according to the regulations. In cases where there is no documentation for temporary deduction during the year, the deduction will be made once during the tax settlement.

d) The amount contributed to insurance and voluntary pension funds in a given year shall be deducted from the taxable income of that year.

Documentation proving the deductions for the aforementioned insurance contributions includes copies of payment receipts from insurance organizations or confirmation from income-paying organizations regarding the amount of insurance already deducted and paid (in cases where the income-paying organization pays on behalf).

3. Deduction for charitable, humanitarian, and educational contributions

a) Charitable, humanitarian, and educational contributions shall be deducted from the taxable income from salaries and wages before calculating tax for resident taxpayers, including:

a.1) Expenses for contributions to organizations and facilities caring for and nurturing children with special difficulties, people with disabilities, and elderly people without support.

Organizations and facilities caring for and nurturing children with special difficulties, people with disabilities must be established and operate according to the provisions of Decree No. 68/2008/ND-CP dated May 30, 2008 of the Government stipulating conditions, procedures for establishment, organization, operation, and dissolution of social welfare institutions; Decree No. 81/2012/ND-CP dated October 8, 2012 of the Government amending and supplementing Decree No. 68/2008/ND-CP dated May 30, 2008 of the Government stipulating conditions, procedures for establishment, organization, operation, and dissolution of social welfare institutions; and Decree No. 109/2002/ND-CP dated December 27, 2002 of the Government amending and supplementing certain articles of Decree No. 195/CP dated December 31, 1994 of the Government detailing and guiding the implementation of certain provisions of the Labor Code concerning working hours and rest periods.

Documentation to prove contributions to organizations and facilities caring for and nurturing children with special difficulties, people with disabilities, and elderly people without support is a legitimate receipt issued by the organization or facility.

a.2) Expenses for contributions to charitable funds, humanitarian funds, and educational funds established and operating according to the provisions of Decree No. 30/2012/ND-CP dated April 12, 2012 of the Government on the organization and operation of social funds, charitable funds, activities for charitable, humanitarian, and educational purposes, not for profit, and stipulated in other relevant documents concerning the management and use of funding sources.

Documentation proving charitable, humanitarian, and educational contributions is a legitimate receipt issued by central or provincial organizations and funds.

b) Charitable, humanitarian, and educational contributions arising in a given year shall be deducted from the taxable income of the tax year in which the contribution arises. If the deduction is not fully utilized, it cannot be deducted from the taxable income of the subsequent tax year. The maximum deduction shall not exceed the taxable income from salaries and wages of the tax year in which the charitable, humanitarian, and educational contributions arise.

Article 10. Basis for calculating tax on income from capital investment

The basis for calculating tax on income from capital investment includes taxable income and tax rate.

1. Taxable income

Taxable income from capital investment is the income subject to tax that individuals receive in accordance with the guidance provided in Clause 3, Article 2 of this Circular.

2. Tax rate for income from capital investment shall be applied according to the full tax schedule with a tax rate of 5%.

3. Time of determining taxable income

The time of determining taxable income for income from capital investment is the time when organizations or individuals pay income to taxpayers.

Specifically, the time of determining taxable income for certain cases is as follows:

a) For income from the value of additional capital contributions in accordance with Point d, Clause 3, Article 2 of this Circular, the time of determining income from capital investment is the time when individuals actually receive income upon dissolution of the enterprise, conversion of business model, division, separation, merger, or consolidation of enterprises, or withdrawal of capital.

b) For income from increased capital recorded as profit in accordance with Point g, Clause 3, Article 2 of this Circular, the time of determining income from capital investment is the time when individuals transfer or withdraw capital.

c) For income from dividends paid in shares in accordance with Point g, Clause 3, Article 2 of this Circular, the time of determining income from capital investment is the time when individuals transfer shares.

d) In the case where individuals receive income from investing capital abroad in any form, the time of determining taxable income is the time when individuals receive income.

4. Method of calculating tax

Amount of personal income tax payable = Taxable income x Tax rate 5%

Article 11. Basis for calculating tax on income from transferring capital

1. For income from transferring equity contribution

The basis for calculating tax on income from transferring equity contribution includes taxable income and tax rate.

a) Taxable income: Taxable income from transferring equity contribution is determined by subtracting the purchase price of the transferred equity and related reasonable costs from the transfer price.

If the enterprise maintains accounting records in foreign currency and the individual transfers equity contribution in foreign currency, the transfer price and purchase price of the transferred equity are determined in foreign currency. If the enterprise maintains accounting records in Vietnamese dong and the individual transfers equity contribution in foreign currency, the transfer price must be determined in Vietnamese dong based on the average exchange rate on the inter-bank foreign exchange market published by the State Bank of Vietnam at the time of transfer.

a.1) Transfer price

The transfer price is the amount of money received by the individual under the equity transfer contract.

If the transfer contract does not specify a payment price or the payment price specified in the contract is inconsistent with the market price, the tax authority has the right to determine the transfer price in accordance with the law on tax administration.

a.2) Purchase price

The purchase price of the transferred equity is the value of the equity contribution at the time of transfer.

The value of the equity contribution at the time of transfer includes: the value of the initial equity contribution, the value of subsequent additional contributions, the value of purchased equity, and the value of equity from recorded profit increase. Specifically, as follows:

a.2.1) For the initial equity contribution to establish the enterprise, it is the value of the equity at the time of contribution. The value of the equity contribution is determined based on accounting books, invoices, and receipts.

a.2.2) For additional equity contributions, it is the value of the additional equity contribution at the time of contribution. The value of the additional equity contribution is determined based on accounting books, invoices, and receipts.

a.2.3) For purchased equity, it is the value of that equity at the time of purchase. The purchase price is determined based on the equity contribution repurchase contract. If the repurchase contract does not have a payment price or the payment price specified in the contract is inconsistent with the market price, the tax authority has the right to determine the purchase price in accordance with the law on tax administration.

a.2.4) For equity from recorded profit increase, it is the value of the recorded profit increase.

a.3) Related expenses deductible when determining the taxable income from the equity transfer activity include actual reasonable expenses incurred in generating income from the equity transfer, with valid invoices and receipts in accordance with the law, specifically as follows:

a.3.1) Costs for necessary legal procedures for the transfer.

a.3.2) Fees and taxes paid by the transferor to the budget when handling transfer procedures.

a.3.3) Other expenses directly related to the transfer of equity.

b) Tax rate

The personal income tax rate for income from transferring equity contribution shall be applied according to the full tax schedule with a tax rate of 20%.

c) Time of determining taxable income

The time of determining taxable income is the time when the equity transfer contract becomes effective. Specifically, for the case of contributing capital through equity contribution, the time of determining taxable income from transferring equity is the time when individuals transfer or withdraw equity.

d) Method of calculating tax

Personal income tax payable = Taxable income x Tax rate 20%

2. For income from transferring securities

The basis for calculating tax on the activity of transferring securities includes taxable income and tax rate.

a)45 Taxable income

Taxable income from transferring securities is determined as the transfer price of each security transaction.

a.1) The transfer price of securities is determined as follows:

a.1.1) For securities of public companies traded on the Stock Exchange, the transfer price of securities is the execution price at the Stock Exchange. The execution price is the price of securities determined from the results of matching orders or prices formed from negotiated transactions at the Stock Exchange.

a.1.2) For securities not falling within the above category, the transfer price is the price stated in the transfer contract or the actual transfer price or the price recorded in the financial statements of the entity holding the transferred securities closest to the time of transfer in accordance with the accounting law before the transfer.

b)46 Tax rate and tax calculation:

Individuals transferring securities shall pay tax at a rate of 0.1% on the transfer price of each security transaction.

Method of calculating tax:

Individual income tax payable = Transfer price of each security transaction x 0.1% tax rate

c) Time of determining taxable income

The time for determining taxable income from securities trading activities is determined as follows:

c.1) For listed company securities traded on the Stock Exchange, it is the time when the taxpayer receives income from the securities transfer.

c.2) For listed company securities not traded on the Stock Exchange but only transferred ownership through the Securities Depository Center's transfer system, it is the time of securities ownership transfer at the Securities Depository Center.

c.3) For securities not falling under the above cases, it is the time when the securities transfer contract becomes effective.

c.4) In the case of capital contribution with securities without paying tax at the time of contribution, the time for determining income from securities transfer due to capital contribution is the time when the individual transfers or withdraws capital.

d) In the case of receiving dividends in the form of shares.

When receiving dividends in the form of shares, individuals are not required to pay individual income tax at the time of receiving the shares. When transferring these shares, individuals must pay individual income tax on income from capital investment and income from securities transfer, specifically as follows:

d.1) The basis for determining the amount of individual income tax payable on income from capital investment is the value of dividends recorded in accounting books or the number of shares actually received multiplied (x) by the par value of those shares and the individual income tax rate on income from capital investment.

If the share transfer price received instead of dividends is lower than the par value, the individual income tax on capital investment activity is calculated based on the market price at the time of transfer.

After receiving dividends in the form of shares, if the individual transfers the same type of shares, they must declare and pay individual income tax on dividends received in the form of shares until all such shares are transferred.

d.2) The basis for determining the amount of individual income tax payable on income from securities transfer is determined according to the guidance provided in point b, Clause 2, of this Article.

Example 12: Mr. K is a shareholder of Joint Stock Company X (listed on the Stock Exchange). In 2011, Mr. K received 5,000 shares (CP) as dividends from Company X (the par value of the shares is 10,000 VND). In February 2014, Mr. K transferred 2,000 shares of Company X at a price of 30,000 VND/share. In August 2014, Mr. K transferred 7,000 shares at a price of 20,000 VND/share.

At the time of transfer, Mr. K must pay individual income tax on income from capital investment and income from securities transfer, specifically as follows:

* For the transfer in February 2014

- Individual income tax on income from capital investment:

(2,000 CP x 10,000 VND) x 5% = 1,000,000 VND

- Individual income tax (provisional payment) on income from securities transfer:

(2,000 CP x 30,000 VND) x 0.1% = 60,000 VND

* For the transfer in August 2014

- Individual income tax on income from capital investment:

(3,000 CP x 10,000 VND) x 5% = 1,500,000 VND

- Individual income tax (provisional payment) on income from securities transfer:

(7,000 CP x 20,000 VND) x 0.1% = 140,000 VND

Article 12. Basis for calculating tax on income from the transfer of real estate

47

The basis for calculating tax on income from the transfer of real estate is the transfer price each time and the tax rate.

1. Transfer Price

a) The transfer price of land with the transfer of land use rights without construction works on the land is the price recorded in the transfer contract at the time of transfer.

In cases where the transfer contract does not record a price or the price recorded in the transfer contract is lower than the land price stipulated by the provincial People's Committee at the time of transfer, the transfer price shall be determined according to the land price table stipulated by the provincial People's Committee at the time of transfer.

b) The transfer price for the transfer of land use rights attached to construction works on the land, including houses and future construction works, is the price recorded in the transfer contract at the time of transfer.

In cases where the transfer contract does not record a land price or the land price recorded in the transfer contract is lower than the price stipulated by the provincial People's Committee, the transfer price of the land is the price stipulated by the provincial People's Committee at the time of transfer in accordance with the laws on land.

In cases where a house is transferred together with the land, the value of the house, infrastructure, and architectural works attached to the land shall be determined based on the house transaction fee price stipulated by the provincial People's Committee. In cases where the provincial People's Committee has no stipulation on the house transaction fee price, it shall be based on the classification of houses, standards, and basic construction norms stipulated by the Ministry of Construction, and the actual remaining value of the works on the land.

For houses and future construction works, if the transfer contract does not record a transfer price or the transfer price is lower than the proportion of capital contribution to the total contract value multiplied by the land price and the construction work transaction fee price stipulated by the provincial People's Committee, the transfer price shall be determined according to the price agreed upon by the provincial People's Committee with the proportion of capital contribution to the total contract value. In cases where the provincial People's Committee has not stipulated a unit price, it shall apply the construction investment cost per unit announced and in effect at the time of transfer by the Ministry of Construction.

c) The transfer price for the transfer of land lease rights and water surface lease rights is the price recorded in the contract at the time of transferring the lease rights.

In cases where the rental price recorded in the contract is lower than the price stipulated by the provincial People's Committee at the time of re-leasing, the rental price shall be determined based on the price table stipulated by the provincial People's Committee.

2. Tax Rate

The tax rate for the transfer of real estate is 2% on the transfer price or the rental price.

3. The time of tax calculation from the transfer of real estate is determined as follows:

- In cases where the transfer contract does not agree that the buyer will pay the tax on behalf of the seller, the time of tax calculation is the time when the transfer contract becomes effective according to the law;

- In cases where the transfer contract agrees that the buyer will pay the tax on behalf of the seller, the time of tax calculation is the time when procedures for registering ownership and use rights of the real estate are completed.

In cases where an individual receives the transfer of a future house or land use rights attached to future construction works, the time of tax calculation is the time when the individual submits the tax declaration form to the tax authority.

4. Method of calculating tax

Personal income tax on income from the transfer of real estate is calculated as follows:

Personal income tax payable = Transfer price x Tax rate 2%

b) In cases where the transferred real estate is jointly owned, the tax liability is determined separately for each taxpayer according to their share of ownership. The basis for determining the ownership share is legal documents such as initial capital contribution agreements, wills, or court decisions on division, etc. In cases where there are no legal documents, the tax liability of each taxpayer is determined according to the average share.

Article 13. Basis for calculating tax on income from copyright

The basis for calculating tax on income from copyright royalties is taxable income and tax rate.

1. Taxable income

Taxable income from copyright royalties is the portion of income exceeding ten million Vietnamese dong according to the transfer contract, regardless of the number of payments or receipts that the taxpayer receives when transferring ownership rights or usage rights of intellectual property objects or technology transfer.

In cases where the same intellectual property object or technology transfer is divided into multiple contracts with the same user, the taxable income is the portion of income exceeding ten million Vietnamese dong calculated based on the total of all transfer and usage right contracts.

If the transferred object or usage right is jointly owned, the taxable income is allocated to each individual owner. The allocation ratio is based on the certificate of ownership or usage right issued by the competent state agency.

2. The personal income tax rate applicable to income from copyright is 5% under the full tax schedule.

3. Time of determining taxable income

The time for determining taxable income from copyright is the payment date of the copyright royalty.

4. Method of calculating tax

Personal income tax payable = Taxable income x 5% tax rate.

Article 14. Basis for calculating tax on income from trademark licensing

The basis for calculating tax on income from trademark licensing is taxable income and tax rate.

1. Taxable income

Taxable income from trademark licensing is the portion of income exceeding ten million Vietnamese dong according to the trademark licensing contract, regardless of the number of payments or receipts that the taxpayer receives.

In cases where the same commercial right is divided into multiple contracts, the taxable income is the portion exceeding ten million Vietnamese dong calculated based on the total of all trademark licensing contracts.

2. Tax Rate

The personal income tax rate applicable to income from trademark licensing is 5% under the full tax schedule.

3. Time of determining taxable income

The time for determining taxable income from trademark licensing is the payment date of the trademark licensing fee between the licensee and the licensor.

4. Method of calculating tax

Personal income tax payable = Taxable income x 5% tax rate.

Article 15. Basis for calculating tax on income from lottery winnings

The basis for calculating tax on income from lottery winnings is taxable income and tax rate.

1. Taxable income

Taxable income from lottery winnings is the portion of prize value exceeding ten million Vietnamese dong that the taxpayer receives according to each winning event, regardless of the number of prize payments received.

In cases where a single prize is won by multiple individuals, the taxable income is allocated to each prize recipient. The winner must present legal evidence. If there is no legal evidence, the lottery winnings are attributed to one individual. If an individual wins multiple prizes in one event, the taxable income is calculated based on the total value of all prizes.

Taxable income for certain prize games is as follows:

a) For lottery winnings, it is the entire value of the prize money exceeding ten million Vietnamese dong on one (01) lottery ticket received in one draw period, without deducting any expenses.

b) For promotional prize winnings in kind, it is the value of the promotional product exceeding ten million Vietnamese dong converted into money at market price at the time of receiving the prize, without deducting any expenses.

c) For winnings in gambling or betting forms, it is the entire value of the prize exceeding ten million Vietnamese dong that the participant receives, without deducting any expenses.

2. The personal income tax rate applicable to income from lottery winnings is 10% under the full tax schedule.

3. Time of determining taxable income

The time for determining taxable income from lottery winnings is the date when the organization or individual pays the prize to the winner.

4. Calculation method:

Personal income tax payable = Taxable income x 10% tax rate.

Article 16. Basis for calculating tax on inheritance and gifts

The basis for calculating tax on income from inheritance and gifts is taxable income and tax rate.

1. Taxable income

Taxable income from receiving inheritance and gifts is the portion of the value of inherited assets and gifts exceeding 10 million VND per receipt. The value of inherited assets and gifts is determined for each case as follows:

a) For securities as inheritance or gifts: the value of inherited assets is the portion of the value of inherited assets and gifts exceeding 10 million VND calculated based on all received securities codes without deducting any costs at the time of registering to transfer ownership rights. Specifically, as follows:

a.1) For securities traded on the Stock Exchange: the value of the securities is based on the reference price on the stock exchange at the time of registering ownership rights for the securities.

a.2) For securities not falling under the above case: the value of the securities is based on the book value of the company issuing such securities at the time of preparing the most recent financial report according to accounting laws before the time of registering ownership rights for the securities.

b) For contributions to economic organizations or businesses as inheritance or gifts: the income for tax calculation is the value of the contribution portion determined based on the book value of the company at the nearest point in time before the time of registering ownership rights for the contribution portion.

c) For real estate as inherited assets or gifts: the value of the real estate is determined as follows:

c.1) For real estate being the right to use land, the portion of the value of the right to use land is determined based on the Land Price Table prescribed by the Provincial People's Committee at the time when the individual processes the registration procedures for the right to use real estate.

c.2) For real estate being houses and architectural structures on land, the value of the real estate is determined based on the regulations of competent state management agencies regarding classification of house values; standards and norms for basic construction issued by competent state management agencies; the remaining value of the house and architectural structures at the time of processing the registration procedures for ownership rights.

In cases where it cannot be determined according to the above provisions, it shall be based on the valuation for stamp duty prescribed by the Provincial People's Committee at that time.

d) For other assets as inheritance or gifts that must be registered with state management agencies for ownership or usage rights: the value of the asset is determined based on the valuation table for stamp duty prescribed by the Provincial People's Committee at the time when the individual processes the registration procedures for ownership or usage rights for inherited assets or gifts.

In cases where the individual receives imported assets as inheritance or gifts and the individual must pay related import taxes, the value of the asset for calculating personal income tax on inheritance or gifts is the valuation for stamp duty prescribed by the Provincial People's Committee at the time of processing the registration procedures for ownership or usage rights for the asset minus (-) the import taxes paid by the individual according to regulations.

2. Tax Rate: The tax rate for personal income tax on inheritance and gifts is applied at a full tax rate of 10%.

3. Time of determining taxable income

The time for determining taxable income from inheritance and gifts is the time when the individual processes the registration procedures for ownership or usage rights for inherited assets or gifts.

4. Method of Calculating Tax Due

Personal income tax payable = Taxable income x 10% tax rate.

Chapter 3

BASIS FOR CALCULATING TAX FOR NON-RESIDENTS

Article 17. Regarding income from business operations

Individual income tax on income from business operations of non-resident individuals shall be determined by multiplying the business revenue from production and business activities (x) with the tax rate.

1. Business Revenue:

The business revenue from business operations of non-resident individuals shall be determined as the business revenue serving as the basis for calculating tax from business operations of resident individuals according to the guidance provided in Clause 1, Article 8 of this Circular.

2. Tax Rate

The individual income tax rate applicable to income from business operations of non-resident individuals is specified for each field and industry of production and business operations as follows:

a) 1% for trading activities.

b) 5% for service provision activities.

c) 2% for production, construction, transportation activities, and other business operations.

In cases where non-resident individuals have business revenue from multiple fields and industries of production and business operations but cannot separately identify the business revenue of each field and industry, the individual income tax rate shall be applied at the highest tax rate corresponding to the actual field and industry of operation across the entire business revenue.

Article 18. Regarding income from salaries and wages

1. Individual income tax on income from salaries and wages of non-resident individuals shall be determined by multiplying the taxable income from salaries and wages (x) with a tax rate of 20%.

2. Taxable income from salaries and wages of non-resident individuals shall be determined similarly to the taxable income from salaries and wages of resident individuals according to the guidance provided in Clause 2, Article 8 of this Circular.

Determination of taxable income from salaries and wages in Vietnam in cases where non-resident individuals work simultaneously in Vietnam and abroad but cannot separately identify the portion of income generated in Vietnam shall be carried out according to the following formula:

a) For cases of foreign nationals not present in Vietnam:

Total income generated in Vietnam	=	Number of working days for the job in Vietnam	x	Global income from salaries and wages (pre-tax)	+	Other pre-tax income subject to tax generated in Vietnam
		Total number of working days in the year

Where: The total number of working days in the year is calculated according to the provisions of the Labor Code of Vietnam.

b) For cases of foreign nationals present in Vietnam:

Total income generated in Vietnam	=	Number of days present in Vietnam	x	Global income from salaries and wages (pre-tax)	+	Other pre-tax income subject to tax generated in Vietnam
		365 days

Other pre-tax income subject to tax generated in Vietnam as mentioned above at points a and b includes other monetary or non-monetary benefits that employees enjoy in addition to salaries and wages paid by employers or paid on behalf of employees.

Article 19. Regarding income from capital investment

Individual income tax on income from capital investment of non-resident individuals shall be determined by multiplying the total taxable income received by non-resident individuals from investing capital in organizations and individuals in Vietnam (x) with a tax rate of 5%.

Taxable income, the time of determining taxable income from individual income tax on income from capital investment of non-resident individuals shall be determined similarly to the taxable income, the time of determining taxable income from individual income tax on income from capital investment of resident individuals according to the guidance provided in Clause 1, Clause 3, Article 10 of this Circular.

Article 20. Regarding income from the transfer of capital

1. Personal income tax on income from the transfer of capital by non-resident individuals shall be determined by multiplying the total amount of money received by such non-resident individuals from transferring their share of capital in organizations and individuals in Vietnam by (x) with a tax rate of 0.1%, regardless of whether the transfer takes place in Vietnam or abroad.

The total amount of money that non-resident individuals receive from transferring their share of capital in organizations and individuals in Vietnam is the capital transfer price without deducting any expenses, including the cost price.

2. The transfer price for each specific case shall be determined as follows:

a. In the case of transferring shares of contributed capital, the transfer price shall be determined according to the guidance provided at point a.1, clause 1, Article 11 of this Circular for resident individuals.

b. In the case of transferring securities, the transfer price shall be determined according to the guidance provided at point a.1, clause 2, Article 11 of this Circular for resident individuals.

3. The time for determining taxable income:

a) For income from the transfer of contributed capital by non-resident individuals, it is the effective date of the capital contribution transfer contract.

b) For income from the transfer of securities by non-resident individuals, it shall be determined according to the guidance provided at point c, clause 2, Article 11 of this Circular for resident individuals.

Article 21. Regarding income from the transfer of real estate

1. Personal income tax on income from the transfer of real estate in Vietnam by non-resident individuals shall be determined by multiplying the real estate transfer price by (x) with a tax rate of 2%.

The real estate transfer price of non-resident individuals is the entire amount of money received from the transfer of real estate without deducting any expenses, including the cost price.

2. The real estate transfer price of non-resident individuals in each specific case shall be determined according to the guidance provided at points a.1, b.1, c.1, d.1, clause 1, Article 12 of this Circular for resident individuals.

3. The time for determining income from the transfer of real estate is the time when the non-resident individual completes the procedures for transferring real estate in accordance with the provisions of the law.

Article 22. Regarding income from copyright, trademark licensing

1. Tax on income from copyright

a) Tax on income from copyright of non-resident individuals shall be determined by multiplying the portion of income exceeding 10 million VND per contract for the transfer or assignment of intellectual property rights, technology transfer in Vietnam by the tax rate of 5%.

Income from copyright shall be determined according to the guidance provided at clause 1, Article 13 of this Circular.

b) The time for determining income from copyright is the time when the organization or individual pays income from the transfer of copyright to the non-resident taxpayer.

2. Tax on income from trademark licensing

Tax on income from trademark licensing of non-resident individuals shall be determined by multiplying the portion of income exceeding 10 million VND per trademark licensing contract in Vietnam by the tax rate of 5%.

Income from trademark licensing shall be determined according to the guidance provided at clause 1, Article 14 of this Circular.

b) The time for determining taxable income from trademark licensing is the time of payment for trademark licensing between the licensee and the licensor.

Article 23. Income from lottery winnings, inheritance, and gifts

1. Personal income tax on income from lottery winnings, inheritance, and gifts of non-resident individuals shall be determined based on taxable income as guided in Clause 2 of this Article multiplied by the tax rate of 10%.

2. Taxable income

a) The taxable income from lottery winnings for non-resident individuals is the portion of the prize value exceeding VND 10 million per individual lottery win in Vietnam.

The income from lottery winnings of non-resident individuals shall be determined according to the guidance provided in Clause 1, Article 15 of this Circular for resident individuals.

b) The taxable income from inheritance and gifts for non-resident individuals is the portion of the asset value from inheritance and gifts exceeding VND 10 million per occurrence of income received in Vietnam.

The income from inheritance and gifts of non-resident individuals shall be determined according to the guidance provided in Clause 1, Article 16 of this Circular for resident individuals.

3. Time of determining taxable income

a) For income from lottery winnings: the time of determining taxable income is the time when organizations or individuals in Vietnam pay the prize money to non-resident individuals.

b) For income from inheritance: the time of determining taxable income is the time when individuals complete the registration procedures for ownership or usage rights of assets in Vietnam.

c) For income from receiving gifts: the time of determining taxable income is the time when individuals complete the registration procedures for ownership or usage rights of assets in Vietnam.

Chapter 4

REGISTRATION FOR TAX, DEDUCTION OF TAX, TAX RETURN, SETTLEMENT OF TAX, REFUND OF TAX

Article 24. Tax Registration

1. Tax registration subjects

According to Article 27 of Decree No. 65/2013/ND-CP, the tax registration subjects for personal income tax include:

a) Organizations and individuals paying income including:

a.1) Business organizations and individuals, including branches, affiliated units, and separately accounted units with independent legal status.

a.2) Administrative state agencies at all levels.

a.3) Political organizations, political social organizations, and occupational social organizations.

a.4) Public service units.

a.5) International organizations and foreign organizations.

a.6) Project Management Boards and Representative Offices of foreign organizations.

a.7) Other organizations and individuals paying income.

b) Individuals with taxable personal income including:

b.1) Individuals with income from production and business activities, including independent practitioners; individuals and households engaged in agricultural production not exempted from personal income tax. Individuals with income from production and business activities must simultaneously register for personal income tax and other types of taxes.

b.2) Individuals with income from salaries and wages, including foreigners working for foreign contractors and subcontractors in Vietnam.

b.3) Individuals transferring real estate.

b.4) Individuals with other taxable income (if required).

c) Dependent persons eligible for family deduction.

In cases of tax registration as specified in Point a, b, and c, Clause 1 of this Article, if they have already registered for tax and been issued a taxpayer identification number, they do not need to register again. Individuals with multiple sources of taxable personal income only need to register once. The taxpayer identification number can be used to file tax returns for all sources of income.

2. Tax registration documents

The procedures and documents for tax registration shall be carried out according to the management tax guidelines.

3. Place to submit tax registration documents

a) The place to submit tax registration documents shall be carried out according to the management tax guidelines.

b) The place to submit tax registration documents for certain specific cases:

b.1) Individuals with taxable income from salaries and wages shall submit tax registration documents to the organization or individual paying the income or directly to the tax authority managing the organization or individual paying the income. The organization or individual paying the income has the responsibility to compile and submit the tax registration declaration forms of individuals to the directly managing tax authority.

b.2) Individuals with multiple sources of income: from business, from salaries and wages, from other taxable income may choose to submit tax registration documents to the unit or agency paying the income or to the Tax Branch where the business is conducted.

b.3) Individuals with other taxable income may submit tax registration documents to any tax authority.

4. Tax registration for certain specific cases:

a) For groups of individuals engaged in business, the representative of the group of individuals engaged in business shall carry out tax registration according to the guidance for individuals engaged in business to obtain a taxpayer identification number for themselves. The taxpayer identification number of the representative of the group of individuals engaged in business will be used to declare and pay VAT, special consumption tax, business license tax, etc., collectively for the entire group and to declare personal income tax for themselves. Other individuals contributing capital in the group must also carry out tax registration to obtain their own separate taxpayer identification numbers like individuals engaged in business.

b) For individuals transferring real estate who do not yet have a taxpayer identification number, the tax authority will automatically issue a taxpayer identification number for the individual based on the information of the individual in the Real Estate Transfer Document.

c) For individuals who are dependents and taxpayers who have declared family deductions if they do not yet have a taxpayer identification number, the tax authority will automatically issue a taxpayer identification number for the dependent based on the information of the dependent in the Declaration Form for Family Deduction (according to the model issued together with the management tax guidelines) of the taxpayer.

Article 25. Tax Deduction and Tax Deduction Documents

1. Tax Deduction

Tax deduction is the act of organizations and individuals paying income calculating the amount of tax to be deducted from the income of the taxpayer before paying the income, specifically as follows:

a) Income of non-resident individuals

Organizations and individuals paying taxable income to non-resident individuals have the responsibility to deduct personal income tax before paying the income, the amount of tax to be deducted is determined according to the guidance in Chapter III (from Article 17 to Article 23) of this Circular.

b) Income from wages and salaries

b.1) For resident individuals signing labor contracts for three (03) months or more, organizations and individuals paying income shall deduct tax according to the Progressive Tax Rate Table, including cases where individuals sign labor contracts for three (03) months or more at multiple locations.

b.2) For resident individuals signing labor contracts for three (03) months or more but stop working before the end of the labor contract, organizations and individuals paying income still deduct tax according to the Progressive Tax Rate Table.

b.3) For foreign individuals coming to work in Vietnam, organizations and individuals paying income base on the time of work in Vietnam recorded on the Labor Contract or dispatch document to temporarily deduct tax according to the Progressive Tax Rate Table (for individuals with over 183 days of work in Vietnam within the tax year) or according to the Full Tax Rate Table (for individuals with less than 183 days of work in Vietnam within the tax year).

b.4) Insurance companies have the responsibility to deduct tax on the accumulated insurance premium corresponding to the portion purchased by the employer for employees' life insurance (excluding voluntary pension insurance), other non-mandatory insurance with accumulated premiums of insurance companies established and operating in accordance with Vietnamese law. The amount of tax deducted is determined according to the guidance in Clause 2, Article 14 of Circular No. 92/2015/TT-BTC.

Organizations and individuals paying income have the responsibility to deduct tax on the insurance premium already purchased or contributed before paying salary to employees for life insurance, other non-mandatory insurance with accumulated premiums of insurance companies not established and operating under Vietnamese law that are permitted to operate insurance in Vietnam which organizations and individuals pay for employees. The amount of tax deducted is determined according to the guidance in Clause 2, Article 14 of Circular No. 92/2015/TT-BTC.

b.5) The amount of tax to be deducted from income from wages and salaries of resident individuals is determined according to the guidance in Article 7 of this Circular; for non-resident individuals, it is determined according to Article 18 of this Circular.

c) Income from insurance agency, lottery agency, multi-level marketing sales; income from leasing assets to enterprises and economic organizations.

Lottery companies, insurance companies, multi-level marketing companies paying commission to individuals acting as lottery agents, insurance agents, multi-level marketing salespeople with annual commission exceeding 100 million VND have the responsibility to deduct personal income tax before paying income to individuals, the amount of tax deducted is determined according to the guidance in Clause 2, Article 9 of Circular No. 92/2015/TT-BTC.

Enterprises and economic organizations leasing assets from individuals have the responsibility to deduct value-added tax and personal income tax before paying income exceeding 100 million VND annually to individuals leasing assets if the lease agreement stipulates that the lessee is the withholding taxpayer. The amount of tax deducted is determined according to the guidance in Clause 2, Article 8 of Circular No. 92/2015/TT-BTC.

d) Income from capital investment

Organizations and individuals paying income from capital investment according to the guidance in Clause 3, Article 2 of this Circular have the responsibility to deduct personal income tax before paying income to individuals except when individuals declare tax according to the guidance in Clause 9, Article 26 of this Circular. The amount of tax deducted is determined according to the guidance in Article 10 of this Circular.

đ) Income from securities transfer

All cases of securities transfer must deduct tax at a rate of 0.1% on the transfer price before payment to the transferor. Specifically, the deduction of tax is carried out as follows:

đ.1) For securities traded on the Stock Exchange:

đ.1.1) Securities companies and commercial banks where individuals open securities deposit accounts have the responsibility to deduct personal income tax at a rate of 0.1% on the transfer price before paying money to individuals, the amount of tax deducted is determined according to the guidance in Point b.2, Clause 2, Article 11 of this Circular.

đ.1.2) Fund management companies where individuals entrust the management of their securities investment portfolios have the responsibility to deduct personal income tax at a rate of 0.1% on the transfer price of the individual's securities investment portfolio according to the allocation table sent by the company to the deposit bank where the company opens a deposit account.

đ.2) For securities transferred outside the trading system on the Stock Exchange:

đ.2.1) For listed company securities registered for centralized custody at the Securities Depository Center:

Securities companies and commercial banks where individuals open securities deposit accounts deduct personal income tax at a rate of 0.1% on the transfer price before processing the transfer of ownership of securities at the Securities Depository Center.

đ.2.2) Đối với chứng khoán của công ty cổ phần chưa là công ty đại chúng nhưng tổ chức phát hành chứng khoán ủy quyền cho công ty chứng khoán quản lý danh sách cổ đông:

Công ty chứng khoán được ủy quyền quản lý danh sách cổ đông khấu trừ thuế thu nhập cá nhân theo thuế suất 0,1% trên giá chuyển nhượng trước khi làm thủ tục chuyển quyền sở hữu chứng khoán.

Cá nhân chuyển nhượng chứng khoán phải xuất trình hợp đồng chuyển nhượng với Công ty chứng khoán khi làm thủ tục chuyển quyền sở hữu chứng khoán.

e) Thu nhập từ chuyển nhượng vốn góp của cá nhân không cư trú

Tổ chức, cá nhân nhận chuyển nhượng vốn góp của cá nhân không cư trú có trách nhiệm khấu trừ thuế thu nhập cá nhân theo thuế suất 0,1% trên giá chuyển nhượng vốn góp.

g) Thu nhập từ trúng thưởng

Tổ chức trả tiền thưởng có trách nhiệm khấu trừ thuế thu nhập cá nhân trước khi trả thưởng cho cá nhân trúng thưởng, số thuế khấu trừ được xác định theo hướng dẫn tại Điều 15 Thông tư này.

h) Thu nhập từ bản quyền, nhượng quyền thương mại

Tổ chức, cá nhân trả thu nhập từ bản quyền, nhượng quyền thương mại có trách nhiệm khấu trừ thuế thu nhập cá nhân trước khi trả thu nhập cho cá nhân. Số thuế khấu trừ được xác định bằng phần thu nhập vượt trên 10 triệu đồng theo từng hợp đồng chuyển nhượng nhân (x) với thuế suất 5%. Trường hợp hợp đồng có giá trị lớn thanh toán làm nhiều lần thì lần đầu thanh toán, tổ chức, cá nhân trả thu nhập trừ 10 triệu đồng khỏi giá trị thanh toán, số còn lại phải nhân với thuế suất 5% để khấu trừ thuế. Các lần thanh toán sau sẽ khấu trừ thuế thu nhập tính trên tổng số tiền thanh toán của từng lần.

i) Khấu trừ thuế đối với một số trường hợp khác

Các tổ chức, cá nhân trả tiền công, tiền thù lao, tiền chi khác cho cá nhân cư trú không ký hợp đồng lao động (theo hướng dẫn tại điểm c, d, khoản 2, Điều 2 Thông tư này) hoặc ký hợp đồng lao động dưới ba (03) tháng có tổng mức trả thu nhập từ hai triệu (2.000.000) đồng/lần trở lên thì phải khấu trừ thuế theo mức 10% trên thu nhập trước khi trả cho cá nhân.

Trường hợp cá nhân chỉ có duy nhất thu nhập thuộc đối tượng phải khấu trừ thuế theo tỷ lệ nêu trên nhưng ước tính tổng mức thu nhập chịu thuế của cá nhân sau khi trừ gia cảnh chưa đến mức phải nộp thuế thì cá nhân có thu nhập làm cam kết (theo mẫu ban hành kèm theo văn bản hướng dẫn về quản lý thuế) gửi tổ chức trả thu nhập để tổ chức trả thu nhập làm căn cứ tạm thời chưa khấu trừ thuế thu nhập cá nhân.

Căn cứ vào cam kết của người nhận thu nhập, tổ chức trả thu nhập không khấu trừ thuế. Kết thúc năm tính thuế, tổ chức trả thu nhập vẫn phải tổng hợp danh sách và thu nhập của những cá nhân chưa đến mức khấu trừ thuế (vào mẫu ban hành kèm theo văn bản hướng dẫn về quản lý thuế) và nộp cho cơ quan thuế. Cá nhân làm cam kết phải chịu trách nhiệm về bản cam kết của mình, trường hợp phát hiện có sự gian lận sẽ bị xử lý theo quy định của Luật quản lý thuế.

Cá nhân làm cam kết theo hướng dẫn tại điểm này phải đăng ký thuế và có mã số thuế tại thời điểm cam kết.

2. Chứng từ khấu trừ

a) Tổ chức, cá nhân trả các khoản thu nhập đã khấu trừ thuế theo hướng dẫn tại khoản 1, Điều này phải cấp chứng từ khấu trừ thuế theo yêu cầu của cá nhân bị khấu trừ. Trường hợp cá nhân ủy quyền quyết toán thuế thì không cấp chứng từ khấu trừ.

b) Cấp chứng từ khấu trừ trong một số trường hợp cụ thể như sau:

b.1) Đối với cá nhân không ký hợp đồng lao động hoặc ký hợp đồng lao động dưới ba (03) tháng: cá nhân có quyền yêu cầu tổ chức, cá nhân trả thu nhập cấp chứng từ khấu trừ cho mỗi lần khấu trừ thuế hoặc cấp một chứng từ khấu trừ cho nhiều lần khấu trừ thuế trong một kỳ tính thuế.

Ví dụ 15: Ông Q ký hợp đồng dịch vụ với công ty X để chăm sóc cây cảnh tại khuôn viên của Công ty theo lịch một tháng một lần trong thời gian từ tháng 9/2013 đến tháng 4/2014. Thu nhập của ông Q được Công ty thanh toán theo từng tháng với số tiền là 03 triệu đồng. Như vậy, trường hợp này ông Q có thể yêu cầu Công ty cấp chứng từ khấu trừ theo từng tháng hoặc cấp một chứng từ phản ánh số thuế đã khấu trừ từ tháng 9 đến tháng 12/2013 và một chứng từ cho thời gian từ tháng 01 đến tháng 04/2014.

b.2) Đối với cá nhân ký hợp đồng lao động từ ba (03) tháng trở lên: tổ chức, cá nhân trả thu nhập chỉ cấp cho cá nhân một chứng từ khấu trừ trong một kỳ tính thuế.

Ví dụ 16: Ông R ký hợp đồng lao động dài hạn (từ tháng 9/2013 đến tháng hết tháng 8/2014) với công ty Y. Trong trường hợp này, nếu ông R thuộc đối tượng phải quyết toán thuế trực tiếp với cơ quan thuế và có yêu cầu Công ty cấp chứng từ khấu trừ thì Công ty sẽ thực hiện cấp 01 chứng từ phản ánh số thuế đã khấu trừ từ tháng 9 đến hết tháng 12/2013 và 01 chứng từ cho thời gian từ tháng 01 đến hết tháng 8/2014.

Điều 26. Khai thuế, quyết toán thuế

Tổ chức, cá nhân trả thu nhập thuộc diện chịu thuế thu nhập cá nhân và cá nhân có thu nhập thuộc diện chịu thuế thu nhập cá nhân thực hiện khai thuế và quyết toán thuế theo hướng dẫn về thủ tục, hồ sơ tại văn bản hướng dẫn về quản lý thuế. Nguyên tắc khai thuế đối với một số trường hợp cụ thể:

1. Khai thuế đối với tổ chức, cá nhân trả thu nhập chịu thuế thu nhập cá nhân.

a) Tổ chức, cá nhân trả thu nhập khấu trừ thuế thu nhập cá nhân khai thuế theo tháng hoặc quý. Trường hợp trong tháng hoặc quý, tổ chức, cá nhân trả thu nhập không phát sinh khấu trừ thuế thu nhập cá nhân thì không phải khai thuế.

b) Việc khai thuế theo tháng hoặc quý được xác định một lần kể từ tháng đầu tiên có phát sinh khấu trừ thuế và áp dụng cho cả năm tính thuế, cụ thể như sau:

b.1) Tổ chức, cá nhân trả thu nhập phát sinh số thuế khấu trừ trong tháng của ít nhất một loại tờ khai thuế thu nhập cá nhân từ 50 triệu đồng trở lên thì thực hiện khai thuế theo tháng, trừ trường hợp tổ chức, cá nhân trả thu nhập thuộc diện khai thuế giá trị gia tăng theo quý.

b.2) Tổ chức, cá nhân trả thu nhập không thuộc diện khai thuế theo tháng theo hướng dẫn nêu trên thì thực hiện khai thuế theo quý.

c) Tổ chức, cá nhân trả thu nhập thuộc diện chịu thuế thu nhập cá nhân không phân biệt có phát sinh khấu trừ thuế hay không phát sinh khấu trừ thuế có trách nhiệm khai quyết toán thuế thu nhập cá nhân và quyết toán thuế thu nhập cá nhân thay cho các cá nhân có ủy quyền.

2. Khai thuế đối với cá nhân cư trú có thu nhập từ tiền lương, tiền công, từ kinh doanh

a) Cá nhân cư trú có thu nhập từ tiền lương, tiền công khai thuế trực tiếp với cơ quan thuế bao gồm:

a.1) Cá nhân cư trú có thu nhập từ tiền lương, tiền công do các tổ chức quốc tế, Đại sứ quán, Lãnh sự quán tại Việt Nam trả nhưng chưa thực hiện khấu trừ thuế thực hiện khai thuế trực tiếp với cơ quan thuế theo quý.

a.2) Cá nhân cư trú có thu nhập từ tiền lương, tiền công do các tổ chức, cá nhân trả từ nước ngoài thực hiện khai thuế trực tiếp với cơ quan thuế theo quý.

b) Cá nhân, nhóm cá nhân cư trú có thu nhập từ kinh doanh khai thuế trực tiếp với cơ quan thuế bao gồm:

b.1) Cá nhân, nhóm cá nhân kinh doanh nộp thuế theo phương pháp kê khai là cá nhân, nhóm cá nhân kinh doanh thực hiện đầy đủ chế độ kế toán, hóa đơn, chứng từ và cá nhân, nhóm cá nhân kinh doanh chỉ hạch toán được doanh thu, không hạch toán được chi phí thực hiện khai thuế theo quý.

b.2) Cá nhân, nhóm cá nhân kinh doanh nộp thuế theo phương pháp khoán là cá nhân kinh doanh, nhóm cá nhân kinh doanh không thực hiện đúng quy định của pháp luật về kế toán, hóa đơn, chứng từ, không xác định được doanh thu, chi phí và thu nhập chịu thuế thực hiện khai thuế theo năm.

b.3) Cá nhân kinh doanh lưu động (buôn chuyến) khai thuế thu nhập cá nhân theo từng lần phát sinh.

b.4) Cá nhân kinh doanh sử dụng hóa đơn do cơ quan thuế bán lẻ theo từng số khai thuế thu nhập cá nhân theo từng lần phát sinh đối với doanh thu trên hóa đơn.

b.5) Cá nhân không kinh doanh nhưng có phát sinh hoạt động bán hàng hóa, cung ứng dịch vụ cần có hóa đơn để giao cho khách hàng khai thuế thu nhập cá nhân theo từng lần phát sinh.

b.6) Cá nhân, nhóm cá nhân có thu nhập từ cho thuê nhà, quyền sử dụng đất, mặt nước, tài sản khác khai thuế theo quý hoặc từng lần phát sinh.

c)53 Cá nhân cư trú có thu nhập từ tiền lương, tiền công, từ kinh doanh có trách nhiệm khai quyết toán thuế nếu có số thuế phải nộp thêm hoặc có số thuế nộp thừa đề nghị hoàn thuế hoặc bù trừ thuế vào kỳ khai thuế tiếp theo, trừ các trường hợp sau:

c.1) Cá nhân có số thuế phải nộp nhỏ hơn số thuế đã tạm nộp mà không có yêu cầu hoàn thuế hoặc bù trừ thuế vào kỳ sau.

c.2) Cá nhân, hộ kinh doanh có thu nhập từ kinh doanh đã thực hiện nộp thuế theo phương pháp khoán.

c.3) Cá nhân, hộ gia đình chỉ có thu nhập từ việc cho thuê nhà, cho thuê quyền sử dụng đất đã thực hiện nộp thuế theo kê khai tại nơi có nhà, quyền sử dụng đất cho thuê.

c.4) Cá nhân có thu nhập từ tiền lương, tiền công ký hợp đồng lao động từ ba (03) tháng trở lên tại một đơn vị mà có thêm thu nhập vãng lai ở các nơi khác bình quân tháng trong năm không quá 10 triệu đồng đã được đơn vị trả thu nhập khấu trừ thuế tại nguồn theo tỷ lệ 10% nếu không có yêu cầu thì không quyết toán thuế đối với phần thu nhập này.

c.5) Cá nhân có thu nhập từ tiền lương, tiền công ký hợp đồng lao động từ ba (03) tháng trở lên tại một đơn vị mà có thêm thu nhập từ cho thuê nhà, cho thuê quyền sử dụng đất có doanh thu bình quân tháng trong năm không quá 20 triệu đồng đã nộp thuế tại nơi có nhà cho thuê, có quyền sử dụng đất cho thuê nếu không có yêu cầu thì không quyết toán thuế đối với phần thu nhập này.

c.6) Cá nhân là đại lý bảo hiểm, đại lý xổ số, bán hàng đa cấp đã được tổ chức trả thu nhập khấu trừ thuế thu nhập cá nhân thì không quyết toán thuế đối với phần thu nhập này.

d) Cá nhân có thu nhập từ tiền lương, tiền công ủy quyền cho tổ chức, cá nhân trả thu nhập quyết toán thuế thay trong các trường hợp sau:

d.1) Cá nhân chỉ có thu nhập từ tiền lương, tiền công ký hợp đồng lao động từ ba (03) tháng trở lên tại một đơn vị và thực tế đang làm việc ở đơn vị tại thời điểm ủy quyền quyết toán, kể cả trường hợp không làm việc đủ 12 tháng trong năm.

d.2) Cá nhân có thu nhập từ tiền lương, tiền công ký hợp đồng lao động từ ba (03) tháng trở lên và có thêm thu nhập khác theo hướng dẫn tại tiết c.4 và c.5, điểm c, khoản 2, Điều này.

đ) Tổ chức, cá nhân trả thu nhập chỉ thực hiện quyết toán thuế thay cho cá nhân đối với phần thu nhập từ tiền lương, tiền công mà cá nhân nhận được từ tổ chức, cá nhân trả thu nhập.

e) Nguyên tắc khai thuế, quyết toán thuế đối với một số trường hợp như sau:

e.1) Trường hợp cá nhân cư trú có thu nhập phát sinh tại nước ngoài đã tính và nộp thuế thu nhập cá nhân theo quy định của nước ngoài thì được trừ số thuế đã nộp ở nước ngoài, số thuế được trừ không vượt quá số thuế phải nộp tính theo biểu thuế của Việt Nam tính phân bổ cho phần thu nhập phát sinh tại nước ngoài. Tỷ lệ phân bổ được xác định bằng tỷ lệ giữa số thu nhập phát sinh tại nước ngoài và tổng thu nhập chịu thuế.

e.2) Cá nhân cư trú có thu nhập từ kinh doanh, thu nhập từ tiền lương, tiền công trong trường hợp số ngày có mặt tại Việt Nam tính trong năm dương lịch đầu tiên là dưới 183 ngày, nhưng tính trong 12 tháng liên tục kể từ ngày đầu tiên có mặt tại Việt Nam là từ 183 ngày trở lên.

- Năm tính thuế thứ nhất: khai và nộp hồ sơ quyết toán thuế chậm nhất là ngày thứ 90 kể từ ngày tính đủ 12 tháng liên tục.

- Từ năm tính thuế thứ hai: khai và nộp hồ sơ quyết toán thuế chậm nhất là ngày thứ 90 kể từ ngày kết thúc năm dương lịch. Số thuế còn phải nộp trong năm tính thuế thứ 2 được xác định như sau:

Số thuế phải nộp năm tính thuế thứ 2

=

Số thuế phải nộp của năm tính thuế thứ 2

-

Số thuế tính trùng được trừ

Trong đó:

Số thuế phải nộp năm tính thuế thứ 2

=

Thu nhập tính thuế của năm tính thuế thứ 2

x

Thuế suất thuế thu nhập cá nhân theo Biểu lũy tiến từng phần

Số thuế tính trùng được trừ	=	Số thuế phải nộp trong năm tính thuế thứ nhất	x	Số tháng tính trùng
		12

Ví dụ 17: Ông S là người nước ngoài lần đầu tiên tới Việt Nam làm việc theo hợp đồng có thời hạn từ ngày 01/6/2014 đến 31/5/2016. Năm 2014, ông S có mặt tại Việt Nam 80 ngày và phát sinh thu nhập từ tiền lương, tiền công là 134 triệu đồng. Năm 2015, ông S có mặt tại Việt Nam trong thời gian từ 01/01/2015 đến hết ngày 31/5/2015 là 110 ngày và phát sinh thu nhập từ tiền lương, tiền công là 106 triệu đồng; từ ngày 01/6/2015 đến 31/12/2015, ông S có mặt tại Việt Nam là 105 ngày và phát sinh thu nhập từ tiền lương, tiền công là 122 triệu đồng. Ông S không đăng ký giảm trừ gia cảnh cho người phụ thuộc và không phát sinh các khoản đóng góp bảo hiểm, từ thiện, nhân đạo, khuyến học.

Số thuế thu nhập cá nhân của Ông S phải nộp được xác định như sau:

+ Nếu tính theo năm 2014, Ông S là cá nhân không cư trú, nhưng tính theo 12 tháng liên tục kể từ ngày 01/6/2014 đến hết ngày 31/5/2015, tổng thời gian ông S có mặt tại Việt Nam là 190 ngày (80 ngày + 110 ngày). Vì vậy, ông S là cá nhân cư trú tại Việt Nam.

+ Năm tính thuế thứ nhất (từ ngày 01/6/2014 đến ngày 31/5/2015):

- Tổng thu nhập chịu thuế trong năm tính thuế thứ nhất:

134 triệu đồng +106 triệu đồng = 240 triệu đồng

- Giảm trừ gia cảnh: 9 triệu đồng x 12 = 108 triệu đồng

- Thu nhập tính thuế: 240 triệu đồng - 108 triệu đồng = 132 triệu đồng

- Thuế thu nhập cá nhân phải nộp năm tính thuế thứ nhất: 60 triệu đồng x 5% + (120 triệu đồng - 60 triệu đồng) x 10% + (132 triệu đồng - 120 triệu đồng) x 15% = 10,8 triệu đồng

+ Năm tính thuế thứ hai (từ 01/01/2015 đến hết ngày 31/12/2015): Ông S có mặt tại Việt Nam 215 ngày (110 ngày + 105 ngày) là cá nhân cư trú tại Việt Nam.

- Thu nhập chịu thuế phát sinh trong năm 2015:

106 triệu đồng + 122 triệu đồng = 228 triệu đồng

- Giảm trừ gia cảnh: 9 triệu đồng x 12 = 108 triệu đồng

- Thu nhập tính thuế năm 2015:

228 triệu đồng - 108 triệu đồng =120 triệu đồng

- Thuế thu nhập cá nhân phải nộp năm 2015:

(60 triệu đồng x 5%) + (120 triệu đồng - 60 triệu đồng) x 10% = 9 triệu đồng

+ Quyết toán thuế năm 2015 có 5 tháng tính trùng với quyết toán thuế năm thứ nhất (từ tháng 01/2015 đến tháng 05/2015)

- Số thuế tính trùng được trừ:

(10,8 triệu đồng/12 tháng) x 5 tháng = 4,5 triệu đồng.

- Thuế thu nhập cá nhân còn phải nộp năm 2015 là:

9 triệu đồng - 4,5 triệu đồng = 4,5 triệu đồng

e.3) Cá nhân cư trú là người nước ngoài kết thúc hợp đồng làm việc tại Việt Nam thực hiện quyết toán thuế với cơ quan thuế trước khi xuất cảnh.

e.4) Đối với cá nhân cho thuê nhà, quyền sử dụng đất, mặt nước, tài sản khác thực hiện quyết toán thuế thu nhập cá nhân trừ các trường hợp không phải quyết toán thuế theo hướng dẫn tại điểm c.3 và c.5, khoản 2, Điều này, cụ thể như sau:

e.4.1) Trường hợp cá nhân khai thuế theo quý hoặc khai thuế theo từng lần phát sinh đối với hợp đồng có kỳ hạn thanh toán từ một năm trở xuống thì thực hiện quyết toán thuế như đối với cá nhân kinh doanh nộp thuế theo phương pháp kê khai.

e.4.2) Trường hợp cá nhân khai thuế theo từng lần phát sinh đối với hợp đồng có kỳ hạn thanh toán trên một năm và nhận tiền trước cho một thời hạn thuê thì cá nhân lựa chọn một trong hai hình thức hình thức quyết toán thuế như sau: nếu quyết toán thuế hết vào năm đầu thì doanh thu được xác định theo doanh thu trả tiền một lần và tính giảm trừ gia cảnh của một năm, các năm sau không tính lại; nếu quyết toán theo từng năm thì tạm kê khai doanh thu trả tiền một lần và tính giảm trừ gia cảnh của năm đầu, các năm sau phân bổ lại doanh thu cho thuê tài sản và tính giảm trừ gia cảnh theo thực tế phát sinh.

e.5) Cá nhân có thu nhập từ đại lý bảo hiểm, đại lý xổ số, bán hàng đa cấp trực tiếp quyết toán thuế với cơ quan thuế nếu thuộc diện phải quyết toán thuế.

e.6) Cá nhân có thu nhập từ tiền lương, tiền công, từ kinh doanh nhưng thuộc diện xét giảm thuế do thiên tai, hỏa hoạn, tai nạn, bệnh hiểm nghèo trực tiếp quyết toán thuế với cơ quan thuế.

e.7) Cá nhân, nhóm cá nhân kinh doanh là đối tượng không cư trú nhưng có địa điểm kinh doanh cố định trên lãnh thổ Việt Nam thực hiện khai thuế, quyết toán thuế như đối với cá nhân, nhóm cá nhân kinh doanh là đối tượng cư trú.

3. Khai thuế đối với thu nhập từ chuyển nhượng bất động sản

a) Cá nhân có thu nhập từ chuyển nhượng bất động sản thực hiện khai thuế theo từng lần phát sinh, kể cả trường hợp thuộc đối tượng được miễn thuế. Khai thuế đối với một số trường hợp cụ thể như sau:

a.1) Trường hợp cá nhân có quyền sử dụng đất, quyền sở hữu nhà nhưng đem thế chấp, bảo lãnh vay vốn hoặc thanh toán tại tổ chức tín dụng, chi nhánh ngân hàng nước ngoài; đến hết thời hạn trả nợ, cá nhân không có khả năng trả nợ thì tổ chức tín dụng, chi nhánh ngân hàng nước ngoài làm thủ tục phát mại, bán bất động sản đó đồng thời thực hiện khai thuế, nộp thuế thu nhập cá nhân thay cho cá nhân trước khi thực hiện thanh quyết toán các khoản nợ của cá nhân.

a.2) Trường hợp cá nhân có quyền sử dụng đất, quyền sở hữu nhà nhưng đem thế chấp để vay vốn hoặc thanh toán với tổ chức cá nhân khác, nay thực hiện chuyển nhượng toàn bộ (hoặc một phần) bất động sản đó để thanh toán nợ thì cá nhân có quyền sử dụng đất, quyền sở hữu nhà phải khai thuế, nộp thuế thu nhập cá nhân hoặc tổ chức, cá nhân làm thủ tục chuyển nhượng thay phải khai thuế, nộp thuế thu nhập cá nhân thay cho cá nhân trước khi thanh quyết toán các khoản nợ.

a.3) Trường hợp bất động sản do cá nhân chuyển nhượng cho tổ chức, cá nhân khác theo quyết định thi hành án của Tòa án thì cá nhân chuyển nhượng phải khai, nộp thuế hoặc tổ chức, cá nhân tổ chức bán đấu giá phải khai thuế, nộp thuế thu nhập cá nhân thay cho cá nhân chuyển nhượng. Riêng đối với bất động sản của cá nhân bị cơ quan Nhà nước có thẩm quyền thực hiện tịch thu, bán đấu giá nộp vào Ngân sách Nhà nước theo quy định của pháp luật thì không phải khai, nộp thuế thu nhập cá nhân.

a.4) Trường hợp chuyển đổi nhà, đất cho nhau giữa các cá nhân không thuộc các trường hợp chuyển đổi đất nông nghiệp để sản xuất thuộc đối tượng được miễn thuế thu nhập cá nhân theo hướng dẫn tại điểm đ, khoản 1, Điều 3 Thông tư này thì từng cá nhân chuyển đổi nhà, đất phải khai thuế, nộp thuế thu nhập cá nhân.

a.5) Trường hợp khai thay hồ sơ khai thuế thu nhập cá nhân đối với hoạt động chuyển nhượng bất động sản, thì tổ chức, cá nhân khai thay ghi thêm “Khai thay” vào phần trước cụm từ “Người nộp thuế hoặc Đại diện hợp pháp của người nộp thuế” đồng thời người khai ký, ghi rõ họ tên, nếu là tổ chức khai thay thì sau khi ký tên phải đóng dấu của tổ chức. Trên hồ sơ tính thuế, chứng từ thu thuế vẫn phải thể hiện đúng người nộp thuế là cá nhân chuyển nhượng bất động sản.

b) Cơ quan quản lý bất động sản chỉ làm thủ tục chuyển quyền sở hữu, quyền sử dụng bất động sản khi đã có chứng từ nộp thuế thu nhập cá nhân hoặc xác nhận của cơ quan thuế về khoản thu nhập từ việc chuyển nhượng bất động sản thuộc đối tượng được miễn thuế hoặc tạm thời chưa thu thuế.

4. Khai thuế đối với thu nhập từ hoạt động chuyển nhượng vốn (trừ chuyển nhượng chứng khoán)

a) Cá nhân cư trú chuyển nhượng vốn góp thực hiện khai thuế theo từng lần chuyển nhượng không phân biệt có hay không phát sinh thu nhập.

b) Cá nhân không cư trú có thu nhập từ chuyển nhượng vốn góp tại Việt Nam không phải khai thuế trực tiếp với cơ quan thuế mà tổ chức, cá nhân nhận chuyển nhượng thực hiện khấu trừ thuế theo hướng dẫn tại điểm e, khoản 1, Điều 25 Thông tư này và khai thuế theo từng lần phát sinh.

c) Doanh nghiệp làm thủ tục thay đổi danh sách thành viên góp vốn trong trường hợp chuyển nhượng vốn mà không có chứng từ chứng minh cá nhân chuyển nhượng vốn đã hoàn thành nghĩa vụ thuế thì doanh nghiệp nơi cá nhân chuyển nhượng vốn có trách nhiệm khai thuế, nộp thuế thay cho cá nhân.

Trường hợp doanh nghiệp nơi cá nhân chuyển nhượng vốn nộp thuế thay cho cá nhân thì doanh nghiệp thực hiện khai thay hồ sơ khai thuế thu nhập cá nhân. Doanh nghiệp khai thay ghi thêm “Khai thay” vào phần trước cụm từ “Người nộp thuế hoặc Đại diện hợp pháp của người nộp thuế” đồng thời người khai ký, ghi rõ họ tên và đóng dấu của doanh nghiệp. Trên hồ sơ tính thuế, chứng từ thu thuế vẫn phải thể hiện đúng người nộp thuế là cá nhân chuyển nhượng vốn góp (trường hợp là chuyển nhượng vốn của cá nhân cư trú) hoặc cá nhân nhận chuyển nhượng vốn (trường hợp là chuyển nhượng vốn của cá nhân không cư trú).

5. Khai thuế đối với cá nhân có thu nhập từ chuyển nhượng chứng khoán

a) Cá nhân chuyển nhượng chứng khoán của Công ty đại chúng giao dịch tại Sở giao dịch chứng khoán không phải khai trực tiếp với cơ quan thuế mà Công ty chứng khoán, Ngân hàng thương mại nơi cá nhân mở tài khoản lưu ký, Công ty quản lý quỹ nơi cá nhân ủy thác quản lý danh mục đầu tư khai thuế theo hướng dẫn tại khoản 1, Điều 26 Thông tư này.

b) Cá nhân chuyển nhượng chứng khoán không thông qua hệ thống giao dịch trên Sở giao dịch chứng khoán:

b.1) Cá nhân chuyển nhượng chứng khoán của công ty đại chúng đã đăng ký chứng khoán tập trung tại Trung tâm lưu ký chứng khoán không phải khai trực tiếp với cơ quan thuế mà Công ty chứng khoán, Ngân hàng thương mại nơi cá nhân mở tài khoản lưu ký chứng khoán khấu trừ thuế và khai thuế theo hướng dẫn tại khoản 1, Điều 26 Thông tư này.

b.2) Cá nhân chuyển nhượng chứng khoán của công ty cổ phần chưa là công ty đại chúng nhưng tổ chức phát hành chứng khoán ủy quyền cho công ty chứng khoán quản lý danh sách cổ đông không phải khai trực tiếp với cơ quan thuế mà Công ty chứng khoán được ủy quyền quản lý danh sách cổ đông khấu trừ thuế và khai thuế theo hướng dẫn tại khoản 1, Điều 26 Thông tư này.

c) Cá nhân chuyển nhượng chứng khoán không thuộc trường hợp nêu tại điểm a, b, khoản 5, Điều này thì khai thuế theo từng lần phát sinh.

d) Doanh nghiệp thực hiện thủ tục thay đổi danh sách cổ đông trong trường hợp chuyển nhượng chứng khoán mà không có chứng từ chứng minh cá nhân chuyển nhượng chứng khoán đã hoàn thành nghĩa vụ thuế thì doanh nghiệp nơi cá nhân chuyển nhượng chứng khoán có trách nhiệm khai thuế, nộp thuế thay cho cá nhân.

Trường hợp doanh nghiệp nơi cá nhân chuyển nhượng chứng khoán khai thuế thay cho cá nhân thì doanh nghiệp thực hiện khai thay hồ sơ khai thuế thu nhập cá nhân. Doanh nghiệp khai thay ghi thêm “Khai thay” vào phần trước cụm từ “Người nộp thuế hoặc Đại diện hợp pháp của người nộp thuế” đồng thời người khai ký, ghi rõ họ tên và đóng dấu của doanh nghiệp. Trên hồ sơ tính thuế, chứng từ thu thuế vẫn phải thể hiện đúng người nộp thuế là cá nhân chuyển nhượng chứng khoán.

đ) Cuối năm nếu cá nhân chuyển nhượng chứng khoán có yêu cầu quyết toán thuế thì thực hiện khai quyết toán thuế trực tiếp với cơ quan thuế.

6. Khai thuế đối với thu nhập từ nhận thừa kế, quà tặng

a) Cá nhân có thu nhập từ nhận thừa kế, nhận quà tặng khai thuế theo từng lần phát sinh kể cả trường hợp được miễn thuế.

b) Các cơ quan quản lý Nhà nước, các tổ chức có liên quan chỉ thực hiện thủ tục chuyển quyền sở hữu, quyền sử dụng bất động sản, chứng khoán, phần vốn góp và các tài sản khác phải đăng ký quyền sở hữu hoặc quyền sử dụng cho người nhận thừa kế, nhận quà tặng khi đã có chứng từ nộp thuế hoặc xác nhận của cơ quan thuế về khoản thu nhập từ thừa kế, quà tặng là bất động sản được miễn thuế.

7. Khai thuế đối với cá nhân cư trú có thu nhập phát sinh tại nước ngoài

Cá nhân cư trú có thu nhập phát sinh tại nước ngoài thực hiện khai thuế theo từng lần phát sinh, riêng cá nhân cư trú có thu nhập từ tiền lương, tiền công trả từ nước ngoài khai thuế theo quý.

8. Khai thuế đối với cá nhân không cư trú có thu nhập phát sinh tại Việt Nam nhưng nhận thu nhập ở nước ngoài

a) Cá nhân không cư trú có thu nhập phát sinh tại Việt Nam nhưng nhận tại nước ngoài khai thuế theo lần phát sinh. Riêng cá nhân không cư trú có thu nhập từ tiền lương, tiền công phát sinh tại Việt Nam nhưng nhận tại nước ngoài khai thuế theo quý.

b) Cá nhân không cư trú có thu nhập từ chuyển nhượng bất động sản, chuyển nhượng vốn (bao gồm cả chuyển nhượng chứng khoán) phát sinh tại Việt Nam nhưng nhận thu nhập tại nước ngoài thực hiện khai thuế theo từng lần phát sinh hướng dẫn tại khoản 3, khoản 4, khoản 5 Điều này.

9. Khai thuế đối với thu nhập từ đầu tư vốn trong trường hợp nhận cổ tức bằng cổ phiếu, lợi tức ghi tăng vốn.

Cá nhân nhận cổ tức bằng cổ phiếu, lợi tức ghi tăng vốn chưa phải khai và nộp thuế từ đầu tư vốn khi nhận. Khi chuyển nhượng vốn, rút vốn, giải thể doanh nghiệp cá nhân khai và nộp thuế thu nhập cá nhân đối với thu nhập từ chuyển nhượng vốn và thu nhập từ đầu tư vốn.

10. Khai thuế đối với thu nhập từ chuyển nhượng vốn, chuyển nhượng chứng khoán, chuyển nhượng bất động sản trong trường hợp góp vốn bằng phần vốn góp, góp vốn bằng chứng khoán, góp vốn bằng bất động sản.

Cá nhân góp vốn bằng phần vốn góp, bằng chứng khoán, bằng bất động sản chưa phải khai và nộp thuế từ chuyển nhượng khi góp vốn. Khi chuyển nhượng vốn, rút vốn, giải thể doanh nghiệp cá nhân khai và nộp thuế đối với thu nhập từ chuyển nhượng vốn, chuyển nhượng bất động sản khi góp vốn và thu nhập từ chuyển nhượng vốn, chuyển nhượng bất động sản khi chuyển nhượng.

11. Khai thuế từ tiền lương, tiền công đối với thu nhập từ thưởng bằng cổ phiếu.

Cá nhân khi nhận thưởng bằng cổ phiếu từ đơn vị sử dụng lao động chưa phải nộp thuế từ tiền lương, tiền công. Khi cá nhân chuyển nhượng cổ phiếu thưởng thì khai thuế đối với thu nhập từ chuyển nhượng cổ phiếu và thu nhập từ tiền lương, tiền công.

Điều 27. Trách nhiệm của tổ chức Việt Nam ký hợp đồng mua dịch vụ của nhà thầu nước ngoài không hoạt động tại Việt Nam

Tổ chức được thành lập và hoạt động theo pháp luật Việt Nam (sau đây gọi tắt là bên Việt Nam) có ký hợp đồng mua dịch vụ của nhà thầu nước ngoài mà nhà thầu đó có ký hợp đồng lao động với người nước ngoài làm việc tại Việt Nam thì bên Việt Nam có trách nhiệm thông báo cho nhà thầu nước ngoài về nghĩa vụ nộp thuế thu nhập cá nhân của người lao động nước ngoài và về trách nhiệm cung cấp các thông tin về người lao động nước ngoài, gồm: danh sách, quốc tịch, số hộ chiếu, thời gian làm việc, công việc đảm nhận, thu nhập cho bên Việt Nam để bên Việt Nam cung cấp cho cơ quan thuế chậm nhất trước 07 ngày kể từ ngày cá nhân nước ngoài bắt đầu làm việc tại Việt Nam.

Điều 28. Hoàn thuế

1. Việc hoàn thuế thu nhập cá nhân áp dụng đối với những cá nhân đã đăng ký và có mã số thuế tại thời điểm nộp hồ sơ quyết toán thuế.

2. Đối với cá nhân đã ủy quyền quyết toán thuế cho tổ chức, cá nhân trả thu nhập thực hiện quyết toán thay thì việc hoàn thuế của cá nhân được thực hiện thông qua tổ chức, cá nhân trả thu nhập. Tổ chức, cá nhân trả thu nhập thực hiện bù trừ số thuế nộp thừa, nộp thiếu của các cá nhân. Sau khi bù trừ, nếu còn số thuế nộp thừa thì được bù trừ vào kỳ sau hoặc hoàn thuế nếu có đề nghị hoàn trả.

3. Đối với cá nhân thuộc diện khai trực tiếp với cơ quan thuế có thể lựa chọn hoàn thuế hoặc bù trừ vào kỳ sau tại cùng cơ quan thuế.

4. Trường hợp cá nhân có phát sinh hoàn thuế thu nhập cá nhân nhưng chậm nộp tờ khai quyết toán thuế theo quy định thì không áp dụng phạt đối với vi phạm hành chính khai quyết toán thuế quá thời hạn.

Chương 5

ĐIỀU KHOẢN THI HÀNH

Điều 29. Hiệu lực thi hành

54

1. Thông tư này có hiệu lực kể từ ngày 01 tháng 10 năm 2013.

Các nội dung về chính sách thuế thu nhập cá nhân quy định tại Luật sửa đổi, bổ sung một số điều của Luật thuế thu nhập cá nhân và Nghị định số 65/2013/NĐ-CP hiệu lực từ thời điểm Luật, Nghị định có hiệu lực (01/7/2013).

Bãi bỏ hướng dẫn về thuế thu nhập cá nhân tại các Thông tư số 84/2008/TT-BTC ngày 30/9/2008, 10/2009/TT-BTC ngày 21/01/2009, 42/2009/TT-BTC ngày 09/3/2009, 62/2009/TT-BTC ngày 27/3/2009, 161/2009/TT-BTC ngày 12/8/2009, 164/2009/TT-BTC ngày 13/8/2009, 02/2010/TT-BTC ngày 11/01/2010, 12/2011/TT-BTC ngày 26/01/2011, 78/2011/TT-BTC ngày 08/6/2011, 113/2011/TT-BTC ngày 04/8/2011 của Bộ Tài chính.

2. Bãi bỏ các nội dung hướng dẫn về thuế thu nhập cá nhân do Bộ Tài chính ban hành trước ngày Thông tư này có hiệu lực thi hành không phù hợp với hướng dẫn tại Thông tư này.

Điều 30. Trách nhiệm thi hành

55

1. Các nội dung khác liên quan đến quản lý thuế không hướng dẫn tại Thông tư này được thực hiện theo quy định tại Luật Quản lý thuế và các văn bản hướng dẫn thực hiện Luật Quản lý thuế.

2. Việc giải quyết những tồn tại, vướng mắc về thuế thu nhập cá nhân phát sinh trước ngày 01 tháng 7 năm 2013 tiếp tục thực hiện theo quy định tại các văn bản hướng dẫn có hiệu lực cùng thời điểm.

3. Việc áp dụng tỷ lệ thu nhập chịu thuế ấn định đối với cá nhân kinh doanh theo hướng dẫn tại Điều 8 Thông tư này được thực hiện thống nhất từ ngày 01 tháng 01 năm 2014.

4. Đối với hợp đồng mua bán nền nhà, hợp đồng góp vốn để có quyền mua nền nhà, nhà, căn hộ ký trước thời điểm có hiệu lực thi hành của Nghị định số 71/2010/NĐ-CP ngày 23/6/2010 của Chính phủ quy định chi tiết và hướng dẫn thi hành Luật Nhà ở, nay được chủ đầu tư đồng ý cho cá nhân chuyển nhượng thì khai, nộp thuế như hướng dẫn với chuyển nhượng nhà ở hình thành trong tương lai.

5.56 Đối với trường hợp người sử dụng bất động sản do nhận chuyển nhượng trong khoảng thời gian từ ngày 01 tháng 7 năm 1994 đến trước ngày 01 tháng 01 năm 2009, nếu từ ngày 01 tháng 01 năm 2009 nộp hồ sơ đề nghị cấp Giấy chứng nhận quyền sử dụng đất, quyền sở hữu nhà và tài sản khác gắn liền với đất được cơ quan Nhà nước có thẩm quyền chấp thuận thì chỉ nộp một (01) lần thuế thu nhập cá nhân. Trường hợp người sử dụng bất động sản do nhận chuyển nhượng trước ngày 01 tháng 7 năm 1994 thì không thu thuế thu nhập cá nhân.

Từ ngày 01 tháng 01 năm 2009 thực hiện Luật thuế thu nhập cá nhân, cá nhân chuyển nhượng bất động sản có hợp đồng công chứng hoặc không có hợp đồng chỉ có giấy tờ viết tay đều phải nộp thuế thu nhập cá nhân cho từng lần chuyển nhượng.

6. Cá nhân đang được hưởng ưu đãi về thuế thu nhập cá nhân trước ngày Luật sửa đổi, bổ sung một số điều của Luật Thuế thu nhập cá nhân có hiệu lực thi hành thì tiếp tục được hưởng ưu đãi về thuế thu nhập cá nhân cho thời gian ưu đãi còn lại.

7. Trường hợp nước Cộng hòa xã hội chủ nghĩa Việt Nam tham gia ký kết Điều ước quốc tế có quy định về thuế thu nhập cá nhân khác với hướng dẫn tại Thông tư này thì thực hiện theo quy định của Điều ước quốc tế đó.

Trong quá trình thực hiện, nếu có vướng mắc, đề nghị các tổ chức, cá nhân phản ảnh kịp thời về Bộ Tài chính (Tổng cục Thuế) để nghiên cứu giải quyết./.

Nơi nhận: - Văn phòng Chính phủ (để đăng Công báo); - Cổng TTĐT của Bộ Tài chính (để đăng tải); - Vụ Pháp chế - Bộ Tài chính; - Vụ QL thuế DNNCN, Vụ CS - TCT; - Lưu: VT, TCT (PC) (5b).

XÁC THỰC VĂN BẢN HỢP NHẤT KT. BỘ TRƯỞNG THỨ TRƯỞNG Trần Xuân Hà

Phụ lục: 01/PL-TNCN

(Ban hành kèm theo Thông tư số 111/2013/TT-BTC ngày 15 ngày 8 tháng 2013 của Bộ Tài chính)

Phụ lục

BẢNG HƯỚNG DẪN PHƯƠNG PHÁP TÍNH THUẾ THEO BIỂU THUẾ LŨY TIẾN TỪNG PHẦN

(đối với thu nhập từ tiền lương, tiền công, từ kinh doanh)

Phương pháp tính thuế lũy tiến từng phần được cụ thể hóa theo Biểu tính thuế rút gọn như sau:

Bậc	Thu nhập tính thuế /tháng	Thuế suất	Tính số thuế phải nộp
			Cách 1	Cách 2
1	Đến 5 triệu đồng (trđ)	5%	0 trđ + 5% TNTT	5% TNTT
2	Trên 5 trđ đến 10 trđ	10%	0,25 trđ + 10% TNTT trên 5 trđ	10% TNTT - 0,25 trđ
3	Trên 10 trđ đến 18 trđ	15%	0,75 trđ + 15% TNTT trên 10 trđ	15% TNTT - 0,75 trđ
4	Trên 18 trđ đến 32 trđ	20%	1,95 trđ + 20% TNTT trên 18 trđ	20% TNTT - 1,65 trđ
5	Trên 32 trđ đến 52 trđ	25%	4,75 trđ + 25% TNTT trên 32 trđ	25% TNTT - 3,25 trđ
6	Trên 52 trđ đến 80 trđ	30%	9,75 trđ + 30% TNTT trên 52 trđ	30 % TNTT - 5,85 trđ
7	Trên 80 trđ	35%	18,15 trđ + 35% TNTT trên 80 trđ	35% TNTT - 9,85 trđ

Phụ lục: 02/PL-TNCN

(Ban hành kèm theo Thông tư số 111/2013/TT-BTC ngày 15 ngày 8 tháng 2013 của Bộ Tài chính)

Phụ lục

BẢNG QUY ĐỔI THU NHẬP KHÔNG BAO GỒM THUẾ RA THU NHẬP TÍNH THUẾ

(đối với thu nhập từ tiền lương, tiền công)

STT	Thu nhập làm căn cứ quy đổi/tháng (viết tắt là TNQĐ)	Thu nhập tính thuế
1	Đến 4,75 triệu đồng (trđ)	TNQĐ/0,95
2	Trên 4,75 trđ đến 9,25trđ	(TNQĐ - 0,25 trđ)/0,9
3	Trên 9,25 trđ đến 16,05trđ	(TNQĐ - 0,75 trđ )/0,85
4	Trên 16,05 trđ đến 27,25 trđ	(TNQĐ - 1,65 trđ)/0,8
5	Trên 27,25 trđ đến 42,25 trđ	(TNQĐ - 3,25 trđ)/0,75
6	Trên 42,25 trđ đến 61,85 trđ	(TNQĐ - 5,85 trđ)/0,7
7	Trên 61,85 trđ	(TNQĐ - 9,85 trđ)/0,65