Circular No. 92/2015/TT-BTC guides the implementation of value-added tax and personal income tax for resident individuals engaged in business activities; it also provides guidance on certain amended and supplemented contents regarding personal income tax as stipulated in Law Amending and Supplementing Certain Provisions of Tax Laws No. 71/2014/QH13 and Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of Tax Laws and Amending and Supplementing Certain Provisions of Tax Decrees.

CIRCULAR

Guidelines for implementing value-added tax and personal income tax for resident individuals engaged in business activities; guidelines for implementing certain amended and supplemented contents regarding personal income tax as stipulated in Law Amending and Supplementing Certain Provisions of Tax Laws No. 71/2014/QH13 and Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of Law Amending and Supplementing Certain Provisions of Tax Laws and amending and supplementing certain provisions of tax decrees Pursuant to the Personal Income Tax Law No. 04/2007/QH12 dated November 21, 2007; and Law Amending and Supplementing Certain Provisions of the Personal Income Tax Law No. 26/2012/QH13 dated November 22, 2012; Pursuant to the Tax Administration Law No. 78/2006/QH11 dated November 29, 2006; and Law Amending and Supplementing Certain Provisions of the Tax Administration Law No. 21/2012/QH13 dated November 20, 2012; Pursuant to the Value-Added Tax Law No. 13/2008/QH12 dated June 3, 2008, which has been amended and supplemented by certain provisions of the Value-Added Tax Law No. 31/2013/QH13 dated June 19, 2013; Pursuant to Decree No. 65/2013/NĐ-CP dated June 27, 2013 of the Government detailing certain provisions of the Personal Income Tax Law and Law Amending and Supplementing Certain Provisions of the Personal Income Tax Law; Pursuant to Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of Law Amending and Supplementing Certain Provisions of Tax Laws and amending and supplementing certain provisions of tax decrees; Pursuant to Decree No. 209/2013/NĐ-CP dated December 18, 2013 of the Government detailing and guiding the implementation of certain provisions of the Value-Added Tax Law;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Minister of Finance hereby issues guidelines for amending and supplementing certain contents as follows:

Pursuant to the Law No. 71/2014/QH13 amending and supplementing certain articles of various tax laws dated November 26, 2014;

VALUE-ADDED TAX AND PERSONAL INCOME TAX FOR RESIDENT INDIVIDUALS ENGAGED IN BUSINESS ACTIVITIES

Article 1. Taxpayer

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;

1. The taxpayer as guided in Chapter I of this Circular includes resident individuals, including individuals, groups of individuals, and households engaged in production and business activities of goods and services in all fields and industries of production and business as prescribed by law (hereinafter referred to as individual businesses). Fields and industries of production and business include the following cases:

a) Engaging independently in fields and industries that are licensed or certified according to the law.

b) Acting as agents selling at the correct price for lottery agents, insurance agents, and multi-level marketing agents who directly sign contracts with lottery companies, insurance enterprises, and multi-level marketing enterprises.

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

c) Cooperating in business with organizations.

2. The taxpayers mentioned in Clause 1 of this Article do not include individual businesses with annual turnover of up to 100 million Vietnamese dong.

1. The taxpayer as guided in Chapter I of this Circular is a resident individual including individuals, groups of individuals, and households engaged in production and business activities of goods and services in all sectors and industries of production and business as prescribed by law (hereinafter referred to as individual businesses). Sectors and industries of production and business include the following cases:

a) Independently practicing in fields and industries that are licensed or certified according to the provisions of law.

b) Acting as an authorized agent selling at the correct price for lottery agents, insurance agents, multi-level marketing sales of individuals directly signing contracts with lottery companies, insurance enterprises, and multi-level marketing enterprises.

c) Cooperating in business with organizations.

d) Engaging in agricultural, forestry production, salt-making, aquaculture, and fishing without meeting the conditions for tax exemption as stipulated in point e, Clause 1, Article 3 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.

2. The taxpayers mentioned in Clause 1 of this Article do not include individual businesses with annual revenue of up to 100 million VND.

Article 2. Method of calculating tax for individuals engaged in business and paying tax under the quota method

1. Principles in accordance with

a) Individuals engaged in business and paying tax under the quota method (hereinafter referred to as individuals paying tax by quota) are individuals engaged in business generating revenue from trading goods and services across all production and business sectors, except for individuals engaged in business as specified in Articles 3, 4, and 5 of this Circular.

b) For individuals paying tax by quota, the revenue level of up to 100 million VND/year to determine that individuals are not required to pay value-added tax and personal income tax is the taxable personal income tax revenue for the year.

In cases where individuals pay tax on turnover but do not operate throughout the year (less than 12 months in the calendar year), including new businesses, seasonal businesses, and businesses that cease operations, the revenue level from 100 million VND/year or less to determine that individuals are not required to pay value-added tax or personal income tax is the taxable personal income tax revenue of one year (12 months); the actual revenue used to determine the tax payable in the year is the revenue corresponding to the actual number of months of operation. In cases where individuals paying tax on turnover have been notified by the tax authority of the amount of tax payable, if they do not operate throughout the year, the individual will be granted a reduction in the tax payable corresponding to the number of months of cessation of operations in the year.

Example 1: Mr. A began operating from April 2015, and is expected to have a turnover of 90 million VND (average 10 million VND/month) for nine months of actual operation. The corresponding annual revenue (12 months) is 120 million VND (>100 million VND). Therefore, Mr. A falls under the category required to pay value-added tax and personal income tax based on the actual revenue generated from April 2015, which is 90 million VND.

Example 2: Ms. B has been notified by the tax authority of the tax payable for the entire year 2015. By October 2015, Ms. B ceased operations. Ms. B will be granted a reduction in the tax payable corresponding to the last three months of 2015.

c) In cases where individuals engage in business through a group of individuals or household form, the revenue level of up to 100 million VND/year to determine that individuals are not required to pay value-added tax and personal income tax is determined for only one (01) representative person throughout the tax year.

Example 3: Household C was established by a group of four individuals. In 2015, Household C had a business revenue of 180 million VND (>100 million VND). Therefore, Household C falls under the category required to pay value-added tax and personal income tax on the total revenue of 180 million VND.

d) Individuals engaged in business who are non-residents but have a fixed place of business within the territory of Vietnam shall declare taxes as if they were residents.

2. Basis for calculating tax

The basis for calculating tax for individuals paying tax on turnover is the taxable revenue and the tax rate applied to revenue.

a) Taxable revenue

a.1) Value-added tax taxable revenue and personal income tax taxable revenue include the total revenue from sales, processing fees, commissions, service provision fees arising from production and business activities of goods and services during the tax period, including taxes (if applicable).

In cases where individuals paying tax on turnover use tax invoices, the taxable revenue is based on the turnover and the revenue on the invoice.

a.2) In cases where individuals conducting business cannot determine the taxable turnover or determine it inaccurately according to reality, the tax authority with jurisdiction shall set the taxable turnover according to the regulations on tax management.

b) Tax rate on revenue

b.1) The tax rate applied to revenue includes the value-added tax rate and the personal income tax rate applied to each industry as follows:

- Distribution and supply of goods: the value-added tax rate is 1%; the personal income tax rate is 0.5%.

- Services and construction without material supply: the value-added tax rate is 5%; the personal income tax rate is 2%.

- Production, transportation, and services attached to goods, construction with material supply: the value-added tax rate is 3%; the personal income tax rate is 1.5%.

- Other business activities: the value-added tax rate is 2%; the personal income tax rate is 1%.

b.2) Detailed list of industries to apply the value-added tax rate and personal income tax rate is provided in Appendix 01 issued together with this Circular.

b.3) In cases where individuals conduct business in multiple industries, the individual shall declare and calculate tax according to the tax rate applied to each industry. In cases where individuals cannot determine the taxable revenue of each industry or determine it inaccurately according to reality, the tax authority with jurisdiction shall set the taxable turnover of each industry according to the regulations on tax management.

c) Determination of tax payable

Where:

- Taxable revenue for value-added tax and personal income tax as guided in Point a and Point b.3, Clause 2 of this Article.

- Value-added tax rate and personal income tax rate as guided in Point b, Clause 2 of this Article.

d) Time of determining taxable revenue

d.1) For taxable turnover, the time when individuals determine their revenue is from November 20 to December 15 of the previous year before the tax year.

d.2) For newly started businesses (not operating from the beginning of the year) or individuals changing the scale or industry of their business during the year, the time when individuals determine their taxable turnover for the year is within ten days from the start date of business or the date of change in the scale or industry of business.

d.3) For revenue based on invoices, the time to determine taxable revenue is carried out as guided in Point d, Clause 2 of Article 3 of this Circular.

Article 3. Method of calculating tax for individuals engaged in business and paying tax on each occurrence 

1. Principles in accordance with

a) Individuals engaged in business and paying tax on each occurrence include: resident individuals generating business revenue outside the territory of Vietnam; individuals engaged in infrequent business without a fixed place of business; individuals cooperating with organizations in business under a form that allows determination of individual business revenue.

Irregular business operations are determined based on the characteristics of production and business activities of each industry and are self-determined by individuals to choose the method of declaring tax according to the turnover method guided in Article 2 of this Circular or declaring tax according to each occurrence as guided in this Article.

Fixed place of business is the location where individuals carry out production and business activities such as transaction sites, shops, stores, factories, warehouses, docks, parking lots, etc.

b) For individuals engaged in business and paying tax on each occurrence, the revenue level of up to 100 million VND/year to determine that individuals are not required to pay value-added tax and personal income tax is the total revenue from business operations during the calendar year.

Example 4: In 2015, Mr. C generated revenue from one contract with Company X with a contract value for the year of 40 million VND and one contract with Company Y with a contract value for the year of 50 million VND. The total value of the two contracts for the year was 90 million VND (<100 million VND). Therefore, Mr. C does not have to pay VAT, nor personal income tax on the revenue generated from the aforementioned two contracts. If in 2015, Mr. C generates additional revenue from a contract with Company Z with a contract value for the year of 20 million VND. The total value of three contracts for the year is 110 million VND (>100 million VND). Therefore, Mr. C must pay VAT and personal income tax on the revenue generated from all three aforementioned contracts amounting to 110 million VND.

2. Basis for calculating tax

The basis for calculating taxes for individuals who pay taxes on a per-occurrence basis is taxable revenue and the tax rate applied to that revenue.

a) Taxable revenue

a.1) Taxable revenue for VAT and personal income tax includes the total revenue from sales, processing fees, commissions, service provision fees as determined by sales, processing, commission, and service contracts including subsidies, surcharges, premiums; compensation and breach-of-contract penalties (for personal income tax) that the business individual receives regardless of whether payment has been received or not. Taxable revenue in certain cases is as follows:

a.1.1) Taxable revenue for goods sold on installment basis is determined based on the price of goods paid in full at once excluding late payment interest.

a.1.2) Taxable revenue for goods and services used for exchange or gift is determined based on the selling price of similar products, goods, or services at the time of exchange or gift.

a.1.3) Taxable revenue for processing activities is the income from processing activities including labor costs, fuel, power, auxiliary materials, and other expenses serving the processing of goods.

a.1.4) Taxable revenue for transportation activities is the entire revenue from passenger and cargo transportation fees generated during the tax period.

a.1.5) Taxable revenue for construction and installation activities is the value of the project, project component, or construction volume completed and handed over for acceptance during the calendar year. In cases where construction and installation do not include the cost of raw materials, machinery, and equipment, taxable revenue does not include the value of raw materials, machinery, and equipment.

b) Tax rate on revenue

The VAT tax rate and personal income tax rate for individuals paying taxes on a per-occurrence basis apply as for individuals engaged in business activities paying taxes under the quota method as stipulated in Point b Clause 2 Article 2 of this Circular.

c) Determination of tax payable

Where:

- Taxable revenue for VAT and personal income tax is calculated according to the guidance provided in Point a Clause 2 of this Article.

- Value-added tax rate and personal income tax rate as guided in Point b, Clause 2 of this Article.

d) Time of determining taxable revenue

- For sales activities, it is the point of transfer of ownership or usage rights of goods or the issuance of a sales invoice if the invoice is issued before the transfer of ownership or usage rights of goods.

- For transportation and service provision activities, it is the completion of service provision to the buyer or the issuance of a service provision invoice if the invoice is issued before the completion of service provision.

- For construction and installation activities, it is the point of acceptance and handover of completed projects, components, or construction volumes.

Article 4. Method of calculating tax for individuals leasing assets

1. Principles in accordance with

a) Individuals leasing assets are those generating revenue from leasing assets including: leasing houses, premises, shops, factories, warehouses excluding accommodation services; leasing transportation means, machinery, equipment without operators; leasing other assets without accompanying services.

Accommodation services are not considered rental property activities as guided herein and include: short-term accommodation provision for tourists and other visitors; long-term accommodation provision for students, workers, and similar groups; accommodation provision along with food services and/or entertainment facilities. Accommodation services do not include: long-term accommodation provision considered as permanent residence such as monthly or annual apartment rentals classified within the real estate sector according to Vietnam's legal provisions on the Economic Sector Classification System.

b) For individuals leasing assets, the revenue level of up to 100 million VND/year to determine that individuals are not required to pay value-added tax and personal income tax is the total revenue generated during the calendar year from asset lease contracts. In cases where the lessee pays rent in advance for multiple years, when determining the revenue level of up to 100 million VND/year to determine that individuals are not required to pay value-added tax and personal income tax, the lump-sum payment is allocated annually according to the calendar year.

Example 5: Ms. C signed a lease contract for two years - continuous twelve months - from October 2015 to September 2017, with rent of 10 million VND/month and paid in one lump sum. Thus, the taxable revenue and tax payable for Ms. C's one-time rental income from leasing activities are determined as follows:

In 2015, Ms. C leased the house for three months (from October to December) with rental income of: 3 months x 10 million VND = 30 million VND (<100 million VND). Therefore, in 2015, Ms. C does not have to pay VAT or personal income tax on her leasing activities.

In 2016, Ms. C leased the house for twelve months (from January to December) with rental income of: 12 months x 10 million VND = 120 million VND (>100 million VND). Therefore, in 2016, Ms. C must pay VAT and personal income tax on her leasing activities.

In 2017, Ms. C leased the house for nine months (from January to September) with rental income from leasing activities of: 9 months x 10 million VND = 90 million VND (<100 million VND). Therefore, in 2017, Ms. C does not have to pay VAT or personal income tax on her leasing activities.

After determining the taxable revenue for each year, Ms. C declares taxes once with one-time revenue of 180 million VND, the tax payable on the generated revenue is 120 million VND, and the one-time tax payable for the entire contract is 12 million VND (120 million VND x (5% + 5%)).

c) In cases where individuals jointly own leased assets, the revenue level of up to 100 million VND/year to determine that individuals are not required to pay value-added tax and personal income tax is determined for only one (01) representative person throughout the tax year.

Example 6: Two individuals, A and B, are co-owners of a property. In 2015, both individuals agreed to lease the jointly-owned property for a rental fee of 180 million VND/year (based on the Gregorian calendar - exceeding 100 million VND), with individual A representing the parties in fulfilling tax obligations. Therefore, individual A is subject to Value Added Tax (VAT) and Personal Income Tax (PIT) on the rental income from the aforementioned leasing activity, with taxable revenue amounting to 180 million VND.

2. Basis for calculating tax

The basis for calculating taxes for individuals leasing assets is the taxable revenue and the tax rate applied to that revenue.

a) Taxable revenue

The taxable revenue for leasing activities is determined as follows:

a.1) The taxable revenue for VAT on leasing activities includes the total amount received from the lessee according to the lease agreement, including tax (if applicable), and other revenues excluding penalty payments and compensation received by the lessor as stipulated in the lease agreement.

a.2) The taxable revenue for PIT on leasing activities includes the total amount received from the lessee according to the lease agreement, including tax (if applicable), and other revenues including penalty payments and compensation received by the lessor as stipulated in the lease agreement.

a.3) If the lessee pays rent for multiple years in advance, the taxable revenue for VAT and PIT shall be calculated based on a lump-sum payment.

b) Tax rate on revenue

- The VAT rate for leasing activities is 5%.

- The PIT rate for leasing activities is 5%.

c) Determination of tax payable

Where:

- The taxable revenue for VAT and the taxable revenue for PIT are determined in accordance with point a, Clause 2, Article [this should reference the correct article number].

- Value-added tax rate and personal income tax rate as guided in Point b, Clause 2 of this Article.

d) Time of determining taxable revenue

The time of determining the taxable revenue is the start date of each payment period specified in the lease agreement.

Article 5. Method of calculating tax for individuals directly signing contracts to act as lottery agents, insurance agents, and multi-level marketing sellers

1. Principles in accordance with

a) Individuals directly signing contracts to act as lottery agents, insurance agents, and multi-level marketing sellers are individuals directly signing contracts with lottery companies, insurance enterprises, and multi-level marketing enterprises in the form of agency sales at fixed prices.

b) For individuals directly signing contracts to act as lottery agents, insurance agents, and multi-level marketing sellers, the revenue level from 100 million VND/year or less to determine that individuals are not required to pay personal income tax is the total amount of commission received by the agent, all types of bonuses, all forms of support, and other receipts received by the individual during the calendar year.

Example 7: Mr. D directly signed a contract with Lottery Company X to act as a lottery agent for the company. In 2015, Mr. D received a total commission of 230 million VND (exceeding 100 million VND). Thus, Mr. D is subject to tax on his lottery agency activities with taxable revenue amounting to 230 million VND.

2. Basis for calculating tax

The basis for calculating taxes for individuals acting as lottery agents, insurance agents, and multi-level marketing sellers is the taxable revenue and the PIT rate applied to that revenue.

a) Taxable revenue

The taxable revenue is the total amount received from commissions, bonuses in all forms, support payments, and other revenues that the individual receives from the lottery company, insurance company, or multi-level marketing company (hereinafter referred to as commission).

b) The rate of personal income tax calculated on revenue

The PIT rate for individuals acting as lottery agents, insurance agents, and multi-level marketing sellers is 5%.

c) Determination of tax payable

Where:

- The taxable revenue for PIT is determined in accordance with point a, Clause 2, Article [this should reference the correct article number].

- The PIT rate is determined in accordance with point b, Clause 2, Article [this should reference the correct article number].

d) Time of determining taxable revenue

The time of determining the taxable revenue is the date when the lottery company, insurance company, or multi-level marketing company pays the commission to the individual.

Article 6. Tax Declaration for Individual Businesses Paying Tax on a Turnover Basis

1. Principles of Tax Declaration

a) An individual paying tax on a turnover basis shall declare their annual turnover once a year at the Tax Branch where the individual has a business location and does not need to settle accounts.

b) An individual using tax invoices issued by the tax authority must, in addition to declaring the annual turnover, declare and pay taxes on quarterly turnover shown on the invoices.

c) In cases where an individual conducts business through a cooperative arrangement with an organization, and the assets involved in the cooperative business belong to the individual but the business income cannot be determined, the individual may authorize the organization to declare and pay taxes on their behalf according to the turnover method. The organization is responsible for declaring and paying taxes on behalf of the individual at the tax authority managing the organization.

2. Documents for Tax Declaration

From November 20 to December 5 each year, the tax authority shall issue the next year's tax declaration form for all individual businesses subject to fixed-rate taxation.

The tax declaration documents for individual businesses subject to fixed-rate taxation are as follows:

- Individual businesses subject to fixed-rate taxation shall declare their turnover under the fixed-rate system using the Model Declaration Form No. 01/CNKD issued together with this Circular.

- In cases where individual businesses subject to fixed-rate taxation use tax invoices provided by the tax authority, such individuals shall declare their turnover based on the invoices in the Invoice Usage Report Model No. 01/BC-SDHĐ-CNKD issued together with this Circular, and they are not required to prepare and submit the Invoice Usage Report issued together with Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance.

- In cases where individual businesses operate under a cooperative business model and authorize an organization to declare taxes and pay taxes on their behalf, the organization shall declare taxes on behalf of the individual using the Model Declaration Form No. 01/CNKD attached with Appendix Model No. 01-1/BK-CNKD issued together with this Circular, along with a copy of the cooperative business contract (if it is the first tax declaration for the contract).

3. Deadline for Submitting Tax Declaration Documents

- The deadline for submitting tax declaration documents for individual businesses subject to fixed-rate taxation is no later than December 15 of the preceding year of the taxable year.

- In cases where individual businesses subject to fixed-rate taxation start operating or change their business sector or scale during the year, the deadline for submitting tax declaration documents is no later than the tenth day (10) from the date of starting operations or changing the business sector or scale.

- In cases where individual businesses subject to fixed-rate taxation use tax invoices provided by the tax authority, the deadline for submitting tax declaration documents for turnover on the invoices is no later than the thirtieth day (30) of the quarter following the quarter in which the tax liability arises.

4. Determination of Turnover and Turnover Tax Rate

a) The taxable turnover for individuals paying tax on a turnover basis is the stable turnover over one year.

b) Individuals paying tax on a turnover basis shall self-determine their taxable turnover for the year as the basis for determining the amount of tax payable on the declaration form number 01/CNKD issued together with this Circular. In cases where the individual cannot determine the turnover, fails to submit tax declaration documents, or the declared taxable turnover does not match actual business operations, the tax authority shall set the taxable turnover according to the regulations on tax administration.

Based on the tax declaration documents of individual businesses and the tax authority's database including: integrated centralized information system of the tax sector; verification and survey results; tax inspection and audit results (if any), the tax authority shall determine the turnover under the fixed-rate system and the estimated fixed-rate tax for individuals to seek public opinion, consult the opinions of the Tax Advisory Council, and serve as the basis for the Tax Bureau to direct and review the establishment of the Tax Ledger at each Tax Branch.

c) If there is a change in the business activities (trade, scale, location, etc.) of an individual paying tax on a turnover basis during the year, they must declare adjustments and supplements to allow the tax authority to re-determine the turnover, tax rate, and other information about the individual's business for the remaining time of the tax year. If the business trade remains unchanged, the tax authority will only re-determine the turnover if verified data indicates that the turnover has changed by 50% or more compared to the previously determined turnover. In cases of changes in business trade, adjustments should be made based on the actual situation of the new business trade.

5. First Public Announcement

The tax authority shall publicly post the first notice (Notice 1) to seek opinions on the estimated turnover and estimated tax. The materials for the first public posting include: List of individuals exempt from value-added tax and personal income tax; List of individuals subject to tax; List of individuals using tax invoices provided by the tax authority. The first public posting shall be carried out as follows:

a) The Tax Branch shall make the first public announcement at the one-stop service desk of the Tax Branch, People's Committee of district, town, or city; at the entrance, gate, or suitable location of: the People's Committee office of commune, ward, town; the Tax Team office; Market Management Board; ensuring convenience for citizens and individual businesses to monitor the information. The first announcement period is from December 20th to December 31st each year.

b) The Tax Branch shall send the first public announcement materials to the People's Council and the Vietnam Fatherland Front Committee of district, town, commune, ward, town no later than December 20th each year, clearly stating the address and deadline for the Tax Branch to receive feedback (if any) from the People's Council and the Vietnam Fatherland Front Committee of district, town, commune, ward, town. The Tax Branch shall receive feedback (if any) no later than December 31st.

By no later than December 20th each year, the Tax Branch shall send the Notice of Estimated Turnover and Estimated Tax Rate according to form number 01/TBTDK-CNKD along with the Public Disclosure Table of Information of Individual Businesses Paying Tax on a Turnover Basis according to form number 01/CKTT-CNKD (hereinafter referred to as the Public Disclosure Table) issued together with this Circular to each individual business, clearly stating the address and deadline for the Tax Branch to receive feedback (if any) from the individual business no later than December 31st. The notice shall be directly sent to the individual business (with the taxpayer's signature acknowledging receipt of the notice) or the tax authority must send the notice via registered mail.

The public notice information sheet sent to individuals is established by area and includes both individuals subject to tax and those exempt from tax. For markets, streets, alleys, residential wards with up to two hundred (200) individual businesses, the Tax Branch shall print and distribute to each individual business the Public Notice Sheet of individual businesses in the area. In cases where markets, streets, alleys, residential wards have more than 200 individual businesses, the Tax Branch shall print and distribute to each individual business the Public Notice Sheet of no more than 200 individual businesses in the area. Specifically, for markets with more than 200 individual businesses, the Tax Branch shall print and distribute to each individual business the Public Notice Sheet by trade.

d) The Tax Branch is responsible for publicly announcing the location of the announcement, the address for receiving feedback (phone number, fax number, address at the one-stop service desk, email address) regarding the content of the first public announcement to inform individual businesses.

e) The Tax Branch is responsible for compiling the feedback on the first public announcement content from citizens, taxpayers, the People's Council, and the Vietnam Fatherland Front Committee of district, town, commune, ward, town to study and adjust the management objects, estimated turnover, and estimated tax rate before consulting the Tax Advisory Council.

6. Consulting the Tax Advisory Council

The Tax Branch shall organize meetings to seek advice from the Tax Advisory Council within the period from January 1 to January 10 each year regarding the first public postings and feedback. The content of the advisory opinions sought from the Tax Advisory Council must be recorded in a Minutes document signed and confirmed by members of the Tax Advisory Council. The minutes must clearly record the opinions on adjustments to the objects, turnover, and tax payable for each individual business to serve as the basis for establishing the Tax Ledger.

The Tax Advisory Council referred to in this Circular is the Tax Advisory Council established in accordance with the laws on tax administration.

7. Establishing and Approving the Tax Register

Based on the tax declaration documents of individual businesses subject to fixed-rate taxation, the results of actual investigations, the compilation of feedback when publicly posting the first time, the meeting minutes with the Tax Advisory Council, and the directive documents of the Tax Bureau, the Tax Branch shall establish and approve the Tax Ledger before January 15 each year.

Monthly, based on changes in the business activities of individuals (newly started businesses; ceased or suspended businesses; changes in business scale, sector, or tax calculation method...), or due to changes in tax policies affecting the turnover under the fixed-rate system and the fixed-rate tax payable, the Tax Branch shall establish and approve the adjusted and supplementary Tax Ledger and notify the monthly or quarterly tax payable to individual businesses subject to fixed-rate taxation.

8. Responsibilities of the Provincial Tax Department in Directing and Supervising the Establishment of the Tax Register at the Tax Branch

The Tax Bureau is responsible for exploiting the centralized tax management database of the tax sector to analyze, evaluate, and direct the establishment of the Tax Ledger of Tax Branches as follows:

a) The Provincial Tax Department is responsible for annually conducting on-site inspections of at least 20% of the Tax Branches according to risk management regulations for determining the estimated turnover and tax rates. The inspection results of the Provincial Tax Department serve as a basis for the Tax Branch to establish and approve the tax register of individual businesses paying tax on a turnover basis.

b) During the implementation of tax collection tasks, the Provincial Tax Department is responsible for periodically inspecting on-site at least 10% of the Tax Branches every quarter. The inspection results serve as a basis for setting the estimated turnover and tax rates for the next year and adjusting the turnover and tax rates for the remaining time of the tax year according to point c, Clause 4, Article 6 of this Circular.

c) The content of the on-site inspection by the Provincial Tax Department as stipulated in Clause 8 of this Article includes: inspection based on management data; comparison of registration and tax declaration data; on-site inspection of at least 15% of individual businesses in the area, focusing on inspecting 100% of individual businesses under risk management criteria as guided in point c, Clause 12, Article 6 of this Circular.

9. Sending the Notice of Tax Due and Payment Deadline

a) Sending the Notice of Tax Due

a.1) The tax authority shall send the Tax Payment Notification Model No. 01/TBT-CNKD accompanied by the Public Notice Sheet Model No. 01/CKTT-CNKD issued together with this Circular to individual businesses subject to fixed-rate taxation (including both individuals subject to tax and those exempt from tax) no later than January 20 each year. The notification shall be directly delivered to individual businesses (with the taxpayer's signature confirming receipt of the notification) or the tax authority must deliver the notification through registered mail.

The official public notice information sheet sent to individuals is established by area and includes both individuals subject to tax and those exempt from tax. For markets, streets, alleys, residential wards with up to two hundred (200) individual businesses, the Tax Branch shall print and distribute to each individual business the Public Notice Sheet of individual businesses in the area. In cases where markets, streets, alleys, residential wards have more than 200 individual businesses, the Tax Branch shall print and distribute to each individual business the Public Notice Sheet of no more than 200 individual businesses in the area. Specifically, for markets with more than 200 individual businesses, the Tax Branch shall print and distribute to each individual business the Public Notice Sheet by trade.

a.2) In case the tax payable under the tax quota needs to be adjusted due to changes in scale, business sector, or due to changes in tax policy, the tax authority shall send the Notice of Tax Payment Form No. 01/TBT-CNKD issued together with this Circular to the individual taxpayer no later than the 20th day of the month following the month in which the change in tax amount occurs.

a.3) In case a new individual taxpayer starts business operations, the tax authority shall send the Notice of Tax Payment Form No. 01/TBT-CNKD issued together with this Circular to the individual taxpayer no later than the 20th day of the month following the month in which the tax payable arises.

b) Payment Deadline

b.1) Based on the Notice of Tax Payment, the individual taxpayer shall pay the value-added tax and personal income tax for the quarter no later than the last day of the quarter.

b.2) In case the individual taxpayer uses tax invoices issued by the tax authority, the deadline for paying taxes on revenue shown on the invoice is the deadline for declaring taxes on such revenue according to the guidance provided in Clause 3 of this Article.

10. Second Public Announcement

The tax authority shall publicly post the second announcement (Announcement No. 2) regarding the annual revenue and the officially required tax amount for individuals engaged in business operations. The second public posting shall be carried out as follows:

a) At the Provincial Tax Department Level

The Tax Department shall publicly post information about individual taxpayers subject to the tax quota on its electronic information website no later than January 30 each year, including the following information: List of individuals exempt from value-added tax and personal income tax; List of individuals required to pay taxes; List of individuals using tax invoices issued by the tax authority.

In case a new individual taxpayer starts business operations or there is a change in the amount of tax payable or in the status of business operations, the Tax Department shall publicly post or adjust the information on its electronic information website no later than the last day of the month following the month in which the individual started business operations or experienced a change.

b) At the Tax Branch Level

b.1) The Tax Sub-Department shall publicly post the second announcement no later than January 30 each year at the one-stop service counter of the Tax Sub-Department, People's Committee of district or county; at the entrance, gate, or suitable location of: the headquarters of the People's Committee of commune, ward, town; the headquarters of the Tax Team; Market Management Board; etc., ensuring convenience for citizens and individual business operators to receive and monitor the information.

b.2) The Tax Sub-Department shall send the publicly posted second announcement to the People's Council and the Vietnam Fatherland Front Committee at the district, county, commune, ward, town level no later than January 30, clearly stating the address and time when the Tax Sub-Department will accept feedback (if any) from the People's Council and the Vietnam Fatherland Front Committee at the district, county, commune, ward, town level.

b.3) The Tax Sub-Department shall be responsible for publicly announcing the posting location, address for receiving feedback (phone number, fax number, address at the one-stop service counter, email address) regarding the content of the publicly posted announcement so that individual business operators can be informed.

b.4) The public disclosure materials at the Tax Sub-Department level shall be conducted similarly to the public disclosure of information on the electronic information website of the Tax Department at the Tax Department level.

11. Cases of Reduced Turnover Tax

a) Individual Businesses Paying Tax on a Turnover Basis Cease or Temporarily Stop Business Operations

In case an individual taxpayer subject to the tax quota ceases or suspends business operations, they must notify the tax authority of the cessation or suspension of business operations no later than one day before ceasing or suspending business operations. The tax authority shall determine the amount of tax quota reduction based on the cessation or suspension period of the individual taxpayer and issue the Decision on Tax Reduction Form No. 03/MGTH or the Notice of Non-Eligibility for Tax Reduction Form No. 04/MGTH issued together with Circular No. 156/2013/TT-BTC. The amount of tax quota reduction shall be determined as follows:

In case an individual taxpayer subject to the tax quota has a continuous cessation of business operations for a full month (from the 1st to the last day of the month) or longer, they shall be entitled to a reduction of 1/3 of the quarterly tax quota payable; if the cessation is continuous for two full months or longer, they shall be entitled to a reduction of 2/3 of the quarterly tax quota payable; if the cessation covers the entire quarter, they shall be entitled to a full reduction of the quarterly tax quota payable. If the cessation of business operations does not cover a full month, no reduction of the monthly tax quota payable shall be granted.

Example 8: Business Household A has a tax quota payable for the year 2015 of 12 million VND, corresponding to 3 million VND per quarter. Business Household A ceased business operations continuously from February 20 to June 20. The cessation period of Business Household A is considered to be full months of March, April, and May. Therefore, the tax reduction due to cessation of business operations for Business Household A is as follows: 1/3 of the quarterly tax quota payable, equivalent to 1 million VND, for the first quarter; 2/3 of the quarterly tax quota payable, equivalent to 2 million VND, for the second quarter.

b) Individual Businesses Paying Tax on a Turnover Basis Suffer from Natural Disasters, Fires, Accidents, or Serious Illnesses

In case an individual taxpayer subject to the tax quota suffers from natural disasters, fire, accidents, or serious illnesses, they must submit a request for tax exemption (reduction) Form No. 01/MGTH issued together with Circular No. 156/2013/TT-BTC to the tax authority no later than the 90th day (ninety days) from the end of the calendar year.

The tax authority shall examine and reduce taxes accordingly to the extent of damage based on the tax exemption (reduction) application in accordance with the Law on Tax Administration and current guiding documents, but not exceeding the amount of tax payable.

c) Individual Businesses Paying Tax on a Turnover Basis Change Their Tax Declaration Method

An individual taxpayer currently paying taxes under the tax quota method who requests to switch to the declaration method for each transaction shall have the tax management under the tax quota method terminated by the tax authority and the tax quota reduction procedure shall be carried out as specified for an individual ceasing or suspending business operations as stipulated in Point a, Clause 11 of this Article for the months without tax payment under the tax quota method.

12. Other matters concerning the management of taxes for individuals paying tax on a lump-sum basis

a) Individuals engaged in business who regularly employ ten or more workers must establish a business in accordance with the Law on Enterprises; in cases where a business has not been established, the tax authority shall determine the tax payable according to the laws governing the management of taxes for individual businesses paying taxes under the lump-sum method, and at the same time, the tax authority shall be responsible for compiling a list of such individual businesses to report to the competent state agency for business registration.

b) The Tax Authority shall be responsible for issuing tax identification numbers to individual businesses based on information from their tax declaration forms and implementing the tax management process for individual businesses through the centralized tax management application of the tax sector.

c) The Tax Department shall be responsible for developing risk criteria for individual businesses paying taxes under the lump-sum method, categorized by type and area of management, based on certain risk criteria.

- Individual taxpayers subject to the tax quota operating in border markets;

- Individual taxpayers subject to the tax quota operating in construction materials derived from mineral resources (sand, stone, gravel, wood, wood products, etc.);

- Individual taxpayers whose taxable revenue is unreasonable compared to costs (business area, rental location, asset value, equipment, store, warehouse, electricity cost, water cost, etc.); compared to the number of transportation vehicles in use; compared to the number of employees; compared to goods (goods purchased, goods displayed, inventory goods, etc.);

- Individual taxpayers subject to the tax quota but regularly employ ten or more workers without establishing a business entity;

- Individual taxpayers subject to the tax quota who use tax invoices issued by the tax authority;

- Individuals subject to periodic tax payments have two (02) or more business locations;

- Individuals subject to periodic tax payments owe taxes.

d) The Tax Revenue Office shall be responsible for promptly updating information on changes during the management process for individual businesses paying taxes on a lump-sum basis. By November 1st each year, all Tax Revenue Offices and Tax Departments must complete the database on individual businesses paying taxes on a lump-sum basis (including individual businesses listed in the category exempt from value-added tax and personal income tax) based on information from taxpayers' files, verification results, inspection, and audit findings of the tax authority, and information from relevant state management agencies.

e) The General Department of Taxation shall provide guidance on the procedures, steps, and methods for building and managing the use of databases on taxpayers paying taxes on a lump-sum basis, as prescribed by the Ministry of Finance, to serve the work of risk management in inspections and tax collection.

Article 7. Declaration and payment of taxes for individual businesses paying taxes on a per-occurrence basis

1. Principles of Tax Declaration

a) Individual businesses paying taxes on a per-occurrence basis shall declare value-added tax and personal income tax on a per-occurrence basis if their total annual revenue exceeds 100 million VND.

b) For individual businesses engaging in joint ventures with organizations, where the assets participating in the joint venture belong to the individual and the individual's business revenue can be determined, the individual may authorize the organization to declare and pay taxes on their behalf. The organization is responsible for declaring and paying taxes on behalf of the individual at the tax authority managing the organization.

2. Documents for Tax Declaration

The tax declaration dossier for individuals engaged in business activities subject to periodic tax payments includes:

- Declaration form number 01/CNKD issued together with this Circular;

- A copy of the economic contract providing goods or services;

- A copy of the acceptance certificate or contract termination document;

- A copy of documentation proving the origin of goods such as: Purchase list of agricultural products if they are domestic agricultural products; List of goods traded by border residents if they are imported goods from border residents; Invoice provided by the seller if they are imported goods purchased from domestic organizations or individuals; relevant documents to prove if they are goods produced by individuals;...

- In cases where individuals engage in business through a commissioned agency agreement and authorize an organization to declare and pay taxes on their behalf, the organization shall declare taxes using Declaration Form number 01/CNKD along with Appendix number 01-1/BK-CNKD issued together with this Circular and a copy of the business cooperation contract (if it is the first tax declaration of the contract).

3. Place for submitting tax declaration forms

- Individuals subject to periodic tax payments submit the tax declaration dossier at the Tax Branch where the individual resides (permanent or temporary residence).

- For individuals engaged in seasonal trading, the location for submitting the tax declaration dossier is the place where the individual registers their business.

- For individuals engaging in business through a commissioned agency agreement and authorizing an organization to declare and pay taxes on their behalf, the organization submits the tax declaration dossier at the tax authority managing the organization.

4. Deadline for submitting tax declaration forms

The deadline for submitting the tax declaration dossier for periodic tax payments is no later than the thirtieth day of the quarter following the quarter in which taxable revenue was generated.

5. Deadline for tax payment

The tax payment deadline is the deadline for submitting the tax declaration dossier.

Article 8. Withholding tax, declaration, and payment of taxes for individuals leasing assets

1. In cases where individuals directly declare taxes to the tax authority

The individual directly declaring taxes to the tax authority is the individual who signed the asset rental contract with another individual; the individual who signed the asset rental contract with an organization that is not an economic entity (state agencies, mass organizations, associations, international organizations, embassies, consulates,...); the individual who signed the asset rental contract with a business or economic entity where the contract does not specify the lessee as the taxpayer.

a) Principles of tax declaration

- Individuals directly declaring taxes must declare value-added tax and personal income tax if their total annual rental income exceeds one hundred million dong.

- Individuals may choose to declare taxes based on payment periods or declare taxes once annually. If there is a change in the content of the rental asset contract leading to changes in taxable revenue, payment periods, or lease terms, the individual must adjust and supplement declarations according to the provisions of the Law on Tax Administration for the tax period affected by the change.

- Individuals can declare taxes based on each contract or declare taxes for multiple contracts on one declaration form if the rented assets are located within the jurisdiction of the same tax authority.

b) Tax declaration forms

The tax declaration dossier for individual asset rental activities includes:

- Declaration form number 01/TTS issued together with this Circular;

- Appendix number 01-1/BK-TTS issued together with this Circular (if it is the first tax declaration of the Contract or Contract Appendix);

- A copy of the asset rental contract and contract appendix (if it is the first tax declaration of the Contract or Contract Appendix);

- A copy of the Power of Attorney as prescribed by law (in cases where the individual renting assets has authorized a legal representative to handle the declaration and tax payment procedures).

c) Place for submitting tax declaration forms

The location for submitting the tax declaration dossier is the Tax Branch where the rented assets are located.

d) Deadline for submitting tax declaration forms

- The deadline for submitting the tax declaration dossier for individuals declaring taxes based on payment periods is no later than the thirtieth day of the quarter following the quarter in which the lease period begins.

Example 9: Mr. X has a rental house contract with a lease term of two years - calculated continuously over twelve months - from April 10, 2015 to April 9, 2017, with a payment period of every three months. If Mr. X chooses to declare taxes based on payment periods, then: The deadline for the first tax declaration is no later than July 30, 2015 (the thirtieth day of the first month of the third quarter); The deadline for the second tax declaration is no later than October 30, 2015. Subsequent tax declarations should be made similarly, no later than the thirtieth day of the first month of the next quarter following the start of the lease period; If Mr. X's rental house contract has a payment period of six months, and he chooses to declare taxes based on payment periods, then: The deadline for the first tax declaration is no later than July 30, 2015 (the thirtieth day of the first month of the third quarter); The deadline for the second tax declaration is no later than January 30, 2016 (the thirtieth day of the first month of the first quarter). Subsequent tax declarations should be made similarly, no later than the thirtieth day of the next quarter following the start of the lease period.

- The deadline for submitting the tax declaration dossier for individuals declaring taxes once annually is no later than ninety days from the end of the calendar year.

e) Deadline for tax payment

The tax payment deadline is the deadline for submitting the tax declaration dossier.

2. For enterprises and economic organizations declaring and paying taxes on behalf of individuals leasing assets

If an individual signs a rental asset contract with a business or economic entity where the contract specifies the lessee as the taxpayer, the business or economic entity is responsible for withholding tax, declaring tax, and paying tax on behalf of the individual, including both value-added tax and personal income tax.

a) Withholding tax

Businesses or economic entities withhold value-added tax and personal income tax before paying rent to the individual if the individual's annual rental income at the unit exceeds one hundred million dong. If an individual generates rental income from multiple sources during the year and anticipates or determines that the total annual rental income will exceed one hundred million dong, they may authorize, according to the law, the business or organization to declare and pay taxes on their behalf for contracts up to one hundred million dong per year at the unit.

The amount of tax withheld is determined according to the guidance in Clause 2, Article 4 of this Circular.

b) Principles of tax declaration

When businesses or economic entities declare taxes on behalf of individuals renting assets, they must add "Delegated" before the phrase "Taxpayer or Legal Representative of the Taxpayer" on the declaration form. The declarant must sign and clearly write their name, and if it is an organization declaring on behalf, they must affix the organization's seal after signing according to regulations. On the tax calculation documents and tax collection receipts, the taxpayer must still be correctly identified as the individual renting the asset.

Enterprises and economic organizations shall use the individual's form number 01/TTS to declare for each contract or for multiple contracts on one declaration if the leased assets at the same tax authority's jurisdiction have the same managing agency.

c) Tax declaration forms

The tax declaration dossier for the leasing of assets by individuals includes:

- Declaration form number 01/TTS issued together with this Circular;

- Annex according to model number 01-1/BK-TTS issued together with this Circular;

- A copy of the Asset Lease Contract, Contract Annex (if it is the first tax declaration of the Contract or Contract Annex).

d) Place for submitting tax declaration forms, deadline for submitting tax declaration forms, and deadline for tax payment

The place of submitting the tax declaration dossier, the deadline for submitting the tax declaration dossier, and the deadline for paying taxes for enterprises and economic organizations declaring and paying taxes on behalf of individuals shall be carried out as stipulated for individuals directly declaring taxes as provided in points c, d, and đ of Clause 1 of this Article.

Article 9. Withholding tax, declaration, and payment of taxes for individuals directly signing lottery agency contracts, insurance agency contracts, and multi-level marketing sales contracts

1. Withholding tax

Lottery companies, insurance enterprises, multi-level marketing enterprises are responsible for withholding personal income tax if they determine that the amount of commission paid to individuals who sign contracts as direct agents selling at the correct price exceeds 100 million dong in a calendar year.

In cases where an individual engages in business activities from multiple locations within a year and anticipates or determines their total revenue to exceed 100 million dong/year, they may authorize, in accordance with the law, for the enterprise to withhold tax on commissions received from units up to 100 million dong/year.

The amount of tax withheld is determined in accordance with the guidance provided in Clause 2 of Article 5 of this Circular.

2. Principles of tax declaration

- Lottery companies, insurance enterprises, multi-level marketing enterprises that withhold personal income tax from individuals acting as lottery agents, insurance agents, or multi-level marketing agents must declare taxes monthly or quarterly. The principle for determining the object of monthly or quarterly tax declarations is implemented in accordance with the guidance provided in point a of Clause 1 of Article 16 of Circular No. 156/2013/TT-BTC.

- Lottery companies, insurance enterprises, multi-level marketing enterprises must declare taxes monthly or quarterly and are not required to declare final settlement tax returns for the obligation to withhold personal income tax from individuals acting as lottery agents, insurance agents, or multi-level marketing agents.

- Individuals acting as lottery agents, insurance agents, or multi-level marketing agents, if additional personal income tax is payable due to the lottery company, insurance enterprise, or multi-level marketing enterprise not having withheld tax because the threshold has not been reached, must declare the tax on the annual tax return form number 01/TKN-XSBHĐC issued together with this Circular by the end of the year.

3. Tax declaration forms

a) Monthly and quarterly tax declaration forms of the withholding organization

- Lottery companies, insurance enterprises, multi-level marketing enterprises must declare taxes withheld from individual commissions for acting as lottery agents, insurance agents, or multi-level marketing agents using the declaration form number 01/XSBHĐC issued together with this Circular.

- For the last month/quarter declaration of the year, an annex according to model number 01-1/BK-XSBHĐC issued together with this Circular must be attached (regardless of whether there is tax withholding or not).

b) Annual tax declaration forms of individuals directly declaring taxes

Individuals acting as lottery agents, insurance agents, or multi-level marketing agents who are required to declare annually must declare using the declaration form number 01/TKN-XSBHĐC issued together with this Circular.

c) Place for submitting tax declaration forms

- Lottery companies, insurance enterprises, multi-level marketing enterprises must submit tax declaration dossiers for individual commissions withheld from acting as lottery agents, insurance agents, or multi-level marketing agents to the directly managing tax authority.

- Individuals acting as lottery agents, insurance agents, or multi-level marketing agents who are required to declare annually must submit their tax declaration dossiers to the Tax District where the individual resides (permanent or temporary residence).

d) Deadline for submitting tax declaration forms

- The deadline for submitting the monthly tax declaration dossier for lottery companies, insurance enterprises, and multi-level marketing enterprises is no later than the twentieth day of the following month after the month in which the tax liability arises.

- The deadline for submitting the quarterly tax declaration dossier for lottery companies, insurance enterprises, and multi-level marketing enterprises is no later than the thirtieth day of the following quarter after the quarter in which the tax liability arises.

- The deadline for submitting the annual tax declaration dossier for individuals required to declare annually is no later than ninety days from the end of the calendar year.

e) Deadline for tax payment

- For lottery companies, insurance enterprises, and multi-level marketing enterprises, the tax payment deadline is the deadline for submitting the tax declaration dossier.

- For individuals required to declare annually, the tax payment deadline is the deadline for submitting the annual tax declaration dossier.

Article 10. Tax Collection Agency

In areas where electronic tax payment methods have not yet been implemented, the tax management agency authorizes organizations to collect taxes from individuals engaged in business under the fixed-rate tax system. The authorized tax collection must be carried out through a contract between the head of the tax management agency and the authorized organization.

Authorized tax collection organizations include entities such as market management boards, shopping centers, or nationwide networks of enterprises operating in fields like postal services, telecommunications, electricity, etc., which provide convenient conditions for individuals to pay taxes to the state budget.

Organizations authorized to collect taxes as stipulated in this provision are entitled to receive authorized tax collection fees deducted from the operational budget of the tax authority.

The tax authority uses the unit's budget to pay the authorized tax collection organizations according to the signed contract with the tax authority.

The Director of the General Department of Taxation organizes the implementation of unified authorized tax collection throughout the country in accordance with current regulations on authorized tax collection and the provisions of this Article.

Chapter III
OTHER AMENDMENTS AND SUPPLEMENTS PERSONAL INCOME TAX

Article 11. Amend and supplement Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by 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/NĐ-CP of the Government detailing certain 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 Circular No. 111/2013/TT-BTC) as follows:

1. Amend and supplement sub-item b.9 of point b, Clause 2, Article 2

“b.9) One-time allowance for individuals when transferring work to areas with particularly difficult socio-economic conditions, one-time support for civil servants engaged in maritime sovereignty work according to the provisions of the law. One-time relocation allowance for foreigners residing in Vietnam, Vietnamese working abroad, and Vietnamese residing abroad for a long time returning to work in Vietnam.”

2. Amend and supplement sub-item đ.1 of point đ, Clause 2, Article 2

“đ.1) Housing rent, electricity, water, and accompanying services (if any), excluding: benefits related to housing, electricity, and water, and accompanying services (if any) provided free of charge by the employer for workers at industrial zones; housing built by employers in economic zones, areas with difficult socio-economic conditions, and areas with particularly difficult socio-economic conditions provided free of charge for workers in those areas.

In cases where individuals reside at their workplace, taxable income shall be based on housing rent or depreciation costs, electricity, water, and other services calculated according to the ratio between the area used by the individual and the total area of the workplace.

The amount of housing rent, electricity, water, and accompanying services (if any) paid by the employer on behalf of the employee shall be included in the taxable income according to the actual amount paid but not exceeding 15% of the total taxable income generated (excluding housing rent, electricity, water, and accompanying services (if any)) at the unit regardless of the place of income payment.”

3. Amend and supplement sub-item đ.2 of point đ, Clause 2, Article 2

“đ.2) Amounts paid by the employer for life insurance, non-mandatory insurance with accumulated premiums; purchasing voluntary retirement insurance or contributing to a voluntary retirement fund for employees.

If the employer purchases non-mandatory insurance without accumulated premiums (including cases where insurance products are purchased from insurance companies not established and operating under Vietnamese law and permitted to sell insurance in Vietnam) for employees, the premium amount for such insurance products shall not be included in the taxable personal income of the employee. Non-mandatory insurance without accumulated premiums includes products such as health insurance, accidental death insurance (excluding accidental death insurance with refundable premiums), etc., where the policyholder does not receive accumulated premiums from participating in the insurance, except for the insurance or compensation amount stipulated in the insurance contract paid by the insurance company.”

4. Amend and supplement sub-item đ.5 of point đ, Clause 2, Article 2

“đ.5) For expenses related to means of transportation serving the pick-up and drop-off of employees from their residence to their workplace and vice versa, these expenses shall not be included in the taxable income of the employee according to the regulations of the organization.”

5. Add sub-item g.10 of point g, Clause 2, Article 2

“g.10) Amounts received from organizations or individuals paying income for condolences and celebrations for the employee and their family according to the general regulations of the organization or individual paying income and consistent with the level of taxable income determined according to the guidelines for implementing the Law on Corporate Income Tax.”

6. Amend and supplement point c, Clause 3, Article 2

“c) Profits received from participating in capital contributions to limited liability companies, partnerships, cooperatives, joint ventures, business cooperation contracts, and other forms of business operations 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 for profits from private enterprises, single-member limited liability companies owned by individuals.”

Article 12. Amend and supplement Article 3 of Circular No. 111/2013/TT-BTC as follows:

1. Amend and supplement paragraph b.1.2 point b Clause 1 Article 3

“b.1.2) Possessing ownership rights to housing or land use rights for at least 183 days as of the date of transfer.

The date for determining ownership rights to housing and land use rights is the date of issuance of the Certificate of Land Use Right, Housing Ownership Right, and Other Property Rights Attached to the Land. In cases where certificates are reissued or replaced according to the provisions of the Law on Land, the determination date shall be based on the date of issuance of the Certificate of Land Use Right, Housing Ownership Right, and Other Property Rights Attached to the Land prior to reissuance or replacement.”

2. Amend and supplement point h Clause 1 Article 3

“h) Income from remittances from overseas that is exempt from tax includes amounts received by individuals from abroad from relatives who are Vietnamese residing overseas, Vietnamese working, serving, or studying abroad sent back to relatives in Vietnam;

In cases where individuals receive money from abroad from foreign relatives meeting the conditions for encouraging money transfers home as stipulated by the State Bank of Vietnam, such income is also exempt from tax under this provision.

The basis for determining tax-exempt income under this point is proof of the source of funds received from abroad and payment vouchers issued by organizations making payments on behalf (if applicable).”

3. Amend and supplement point n Clause 1 Article 3

“n) Income from compensation under life insurance, non-life insurance, health insurance contracts; accident compensation; compensation and support as prescribed by laws on compensation, support, and resettlement; state compensation and other compensations as prescribed by laws. Specifically, in certain cases as follows:

n.1) Income from compensation under life insurance, non-life insurance, and health insurance contracts is the amount received by individuals from life insurance, non-life insurance, and health insurance organizations according to the terms of the insurance contract signed. The basis for determining this compensation is the compensation document or decision issued by the insurance organization or court and the payment voucher.

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

n.3) Income from compensation and support as prescribed by laws on compensation, support, and resettlement is the compensation and support paid by the state when reclaiming land, including income from compensation and support provided by economic organizations when reclaiming land according to regulations.

The basis for determining income from compensation and support as prescribed by laws on compensation, support, and resettlement is the decision of the competent state agency regarding land reclamation, compensation, and resettlement and the payment voucher for compensation.

n.4) Income from state compensation and other compensations as prescribed by laws on state compensation is the amount individuals receive as compensation due to administrative penalties imposed incorrectly by authorized persons or state agencies causing damage to individual interests; income from compensation for wrongful convictions decided by competent authorities in criminal proceedings. The basis for determining this compensation is the decision of the competent state agency ordering the entity or individual with incorrect decisions to compensate and the payment voucher for compensation.

n.5) Income from compensation for damages outside of contractual obligations as prescribed by the Civil Code.”

4. Supplement point r Clause 1 Article 3

“r) Income from wages and salaries of Vietnamese seafarers employed by foreign shipping companies or Vietnamese international shipping companies.”

5. Supplement point s Clause 1 Article 3

“s) 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 to support distant sea fishing operations.”

Article 13. Amend and supplement Article 5 of Circular No. 111/2013/TT-BTC as follows:

“Article 5. Conversion of taxable income into Vietnamese Dong

1. Business revenue and taxable personal income shall be 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 buying exchange rate of the bank where the individual's transaction account is opened at the time the income is generated.

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

For foreign currencies that do not have an exchange rate with Vietnamese Dong, they must be converted through a foreign currency that has an exchange rate with 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 or equivalent products or services at the time the income is generated.”

Article 14. Amend and supplement Article 7 of Circular No. 111/2013/TT-BTC as follows:

1. Amend and supplement point a, Clause 4, Article 7

“a) The income serving as the basis for conversion into taxable income is the actual income received (excluding tax-exempt income) plus (+) any benefits paid by the employer to the employee (if any) minus (-) deductions. In cases where the employer applies a "hypothetical tax" or "hypothetical housing" policy, the income serving as the basis for conversion into taxable income does not include "hypothetical tax" or "hypothetical housing". If there are rental payments among the benefits paid, the rental payment included in the income serving as the basis for conversion shall be the actual amount paid but shall not exceed 15% of the total taxable income generated at the unit regardless of the place of income receipt (excluding rental payments, electricity, water, and other accompanying services actually incurred, "hypothetical housing" if applicable).

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

Where:

- Actual income received includes monthly salary and wages excluding taxes received by the employee (excluding tax-exempt income).

- Benefits paid include monetary or non-monetary benefits provided by the employer to the employee as stipulated in point d, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC and Clauses 2, 3, and 4, Article 11 of Circular No. 92/2015/TT-BTC.

- Deductions include: family allowance reduction; reduction for social insurance contributions and voluntary pension fund contributions; reduction for charitable donations, humanitarian aid, and educational support as stipulated in Article 9 of Circular No. 111/2013/TT-BTC and Article 15 of Circular No. 92/2015/TT-BTC.”

2. Amend and supplement Clause 6, Article 7

“6. The basis for calculating tax on non-mandatory insurance savings is the amount of premiums for life insurance (excluding voluntary pension insurance) and other non-mandatory insurance purchased or contributed by the employer for the employee and a withholding rate of 10%.

In cases where the employer purchases life insurance (excluding voluntary pension insurance) or other non-mandatory insurance with savings from an insurance company established and operating under Vietnamese law for the employee, the employee does not need to include this in their 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 corresponding premium savings portion purchased by the employer for the employee starting from July 1, 2013. If the premium savings are paid in installments, the tax will be withheld at a rate of 10% corresponding to each installment.

In cases where the employer purchases life insurance (excluding voluntary pension insurance) or other non-mandatory insurance with savings 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 amount of insurance premiums purchased or contributed before paying the employee’s salary.

The insurance company is responsible for separately tracking the portion of life insurance premiums and other non-mandatory insurance premiums purchased or contributed by the employer for the employee to serve as the basis for calculating personal income tax.”

Article 15. Amend and supplement Point b Clause 2 Article 9 Circular No. 111/2013/TT-BTC as follows:

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

The amount contributed to the voluntary pension fund, purchase of voluntary pension insurance shall be deductible from taxable income based on actual occurrence but not exceeding one million VND/month for employees participating in voluntary pension products according to the guidance of the Ministry of Finance, including contributions made by employers for employees and contributions made by employees themselves (if any), regardless of participation in multiple funds. The basis for determining deductible income is a copy of payment vouchers (or fees) issued by the voluntary pension fund or insurance company.”

Article 16. Amend and supplement Point a and Point b Clause 2 Article 11 Circular No. 111/2013/TT-BTC as follows:

“a) Taxable income

Taxable income from the transfer of securities is determined as the price of each individual transfer of securities.

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

a.1.1) For securities of public companies traded on the Stock Exchange, the price of transferring 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 covered by the above cases, the transfer price is the price recorded in the transfer contract, the actual transfer price, or the price according to the accounting records of the entity holding the transferred securities at the time of preparing the latest financial report in accordance with accounting laws before the transfer.

b) Tax rate and tax calculation method:

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

Tax calculation method:

Article 17. Amend and supplement Article 12 Circular No. 111/2013/TT-BTC as follows:

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

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

1. Transfer price

a) The transfer price for 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 case the transfer contract does not record the price or the price recorded in the transfer contract is lower than the land price set by the Provincial People's Committee at the time of transfer, the transfer price will be determined according to the land price list set by the Provincial People's Committee at the time of transfer.

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

In case the transfer contract does not record the land price or the land price recorded in the transfer contract is lower than the price set by the Provincial People's Committee, the transfer price of the land will be the price set by the Provincial People's Committee at the time of transfer in accordance with land laws.

In case of transferring a house attached to land, the value of the house, infrastructure, and architectural works attached to the land will be determined based on the valuation for stamp duty on houses set by the Provincial People's Committee. In case the Provincial People's Committee has no regulations on the valuation for stamp duty on houses, it will be based on the classification of houses, standards, and basic construction norms set by the Ministry of Construction, and the actual remaining value of the works on the land.

For future construction projects, if the transfer contract does not record the 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 valuation for stamp duty on construction projects set by the Provincial People's Committee, the transfer price will be determined based on the Provincial People's Committee's price list with the proportion of capital contribution to the total contract value. In case the Provincial People's Committee has no regulations on unit prices, the investment cost per unit of construction projects announced and applied by the Ministry of Construction at the time of transfer will be applied.

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

In case the rental price recorded in the contract is lower than the price set by the Provincial People's Committee at the time of subleasing, the sublease price will be determined based on the price list set 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 sublease price.

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

- In case the transfer contract does not agree that the buyer pays 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 case the transfer contract agrees that the buyer pays the tax on behalf of the seller, the time of tax calculation is the time when the registration procedures for ownership or use rights of the real estate are completed.

In case individuals receive the transfer of future housing or land use rights with future construction works, the time of tax calculation is the time when individuals submit tax declaration forms to the tax authority.

4. Tax calculation method

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

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

Article 18. Amend and supplement Point c Clause 1 Article 15 Circular No. 111/2013/TT-BTC as follows:

“c) For winnings from gambling or betting forms, it is the entire value of the prize exceeding 10 million VND that the participant receives without deducting any expenses whatsoever.”

Article 19. Amend and supplement Article 16 Circular No. 111/2013/TT-BTC as follows:

1. Amend and supplement Point a Clause 1 Article 16

“a) For inheritance and gifts in the form of securities: the value of the inherited property is the portion of the value of the inherited property and gifts exceeding 10 million VND calculated on the total value of all securities received without deducting any expenses whatsoever at the time of registration for ownership transfer. 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 registration for ownership of 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 issuing company's securities at the time of preparing the most recent financial report according to accounting laws before the time of registration for ownership of the securities.”

2. Amend and supplement Point d Clause 1 Article 16

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

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

Article 20. Amend and supplement Article 25 Circular No. 111/2013/TT-BTC as follows:

1. Amend and supplement Subparagraph b.4 Point b Clause 1 Article 25

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

Organizations and individuals paying income have the responsibility to withhold tax on the insurance premiums already paid or contributed before paying salaries to employees for life insurance, non-mandatory insurance with accumulated premiums of insurance companies not established and operating according to Vietnamese law but permitted to sell insurance in Vietnam, which organizations and individuals paying income purchase for employees. The amount of tax withheld is determined according to the guidance provided in Clause 2 Article 14 Circular No. 92/2015/TT-BTC.”

2. Amend and supplement Point c Clause 1 Article 25

“c) Income from acting as an insurance agent, lottery agent, multi-level marketing salesperson; income from leasing assets to enterprises and economic organizations.

Lottery companies, insurance companies, multi-level marketing companies, when paying commissions to individuals acting as lottery agents, insurance agents, multi-level marketing salespersons with annual commission amounts over 100 million VND have the responsibility to withhold personal income tax before paying income to the individual. The amount of tax withheld is determined according to the guidance provided in Clause 2 Article 9 Circular No. 92/2015/TT-BTC.

Enterprises and economic organizations leasing assets from individuals have the responsibility to withhold VAT and personal income tax before paying income over 100 million VND annually to the individual who leases the asset if the lease agreement stipulates that the lessee is the withholding agent. The amount of tax withheld is determined according to the guidance provided in Clause 2 Article 8 Circular No. 92/2015/TT-BTC.”

Chapter IV
OTHER AMENDMENTS AND SUPPLEMENTS ON THE MANAGEMENT OF PERSONAL INCOME TAX

Article 21. Amend and supplement Article 16 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance guiding the implementation of certain provisions of the Law on Tax Administration; the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration and Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government (hereinafter referred to as Circular No. 156/2013/TT-BTC) as follows:

1. Amend and supplement paragraph a.3 point a Clause 1 Article 16

“a.3) Organizations and individuals paying income that fall within the scope of personal income tax on income from salaries and wages have the responsibility to declare and settle personal income tax returns and settle personal income tax on behalf of individuals who have authorized them, regardless of whether there has been withholding tax or not. In cases where organizations and individuals do not generate income payments, they are not required to declare and settle personal income tax returns.

In cases where organizations and individuals paying income are dissolved or cease operations but have generated income payments without generating withholding tax on personal income, such organizations and individuals paying income shall not carry out settlement of personal income tax, but shall provide the tax authority with a list of individuals who received income during the year (if any) according to Form No. 05/DS-TNCN issued together with Circular No. 92/2015/TT-BTC no later than the 45th day (forty-five days) from the date of the decision regarding dissolution or cessation of operations.

Organizations paying income that undergo division, separation, merger, acquisition, conversion, dissolution, or bankruptcy according to the Enterprise Law must settle personal income tax for the amount of personal income tax withheld no later than the 45th day (forty-five days) from the date of division, separation, merger, acquisition, conversion, dissolution, or bankruptcy, and issue withholding tax certificates to employees as the basis for employees to carry out settlement of personal income tax. In cases where the enterprise type is converted and the receiving party inherits all tax obligations of the enterprise before the conversion (such as converting the enterprise type from Limited Liability Company to Joint Stock Company or vice versa; converting a 100% state-owned enterprise into a Joint Stock Company and other cases as prescribed by law), the enterprise before conversion does not need to declare and settle tax until the date of the decision on enterprise conversion, the receiving party shall declare and settle tax for the year according to regulations.”

2. Amend and supplement point b.1 Clause 1 Article 16

“b.1) Monthly and quarterly tax declaration forms

- Organizations and individuals withholding tax on income from salaries and wages shall declare taxes according to Form No. 05/KK-TNCN issued together with Circular No. 92/2015/TT-BTC.

- Organizations and individuals withholding tax on income from capital investment, from securities transfer, from copyright, from franchise rights, from lottery winnings of resident and non-resident individuals; from business activities of non-resident individuals; Organizations and individuals receiving capital transfers from non-resident individuals shall declare taxes according to Form No. 06/TNCN issued together with Circular No. 92/2015/TT-BTC.

- Lottery companies, insurance enterprises, multi-level marketing enterprises withholding tax on commissions from lottery agents, insurance agents, multi-level marketing sales of individuals shall declare taxes according to Form No. 01/XSBHĐC issued together with Circular No. 92/2015/TT-BTC. For the last monthly/quarterly tax declaration form of the year, it must be accompanied by Annex according to Form No. 01-1/BK-XSBHĐC issued together with Circular No. 92/2015/TT-BTC (regardless of whether there has been withholding tax or not).”

3. Amend and supplement Clause 2 Article 16

“2. Declaration of tax for resident individuals with income from salaries and wages

a) Principles of tax declaration

a.1) Individuals directly declaring taxes with the tax authority are as follows:

- Resident individuals with income from salaries and wages paid by international organizations, embassies, consulates in Vietnam but these organizations have not carried out withholding tax;

- Resident individuals with income from salaries and wages paid by organizations and individuals from abroad.

a.2) Forms of tax declaration

Resident individuals with income from salaries and wages shall declare taxes directly with the tax authority quarterly and declare and settle tax returns.

a.3) Declaration and settlement of tax returns

Resident individuals with income from salaries and wages have the responsibility to declare and settle tax returns if there is additional tax payable or excess tax paid requiring refund or offset against the next tax declaration period, except in the following cases:

- Individuals whose tax payable is less than the tax already temporarily paid and do not request a tax refund or offset against the next period.

- Individuals with income from salaries and wages who sign labor contracts for three months or more at one unit and have additional casual income elsewhere averaging no more than ten million VND per month in the year, which has been subject to withholding tax at source at a rate of 10% by the payer of income, if there is no request, then they do not need to settle tax returns for this part of the income.

- Individuals who are provided with life insurance (excluding voluntary pension insurance) or other non-mandatory insurance with accumulated premiums by the employer or insurance company, which has already withheld personal income tax at a rate of 10% on the corresponding premium amount for the portion purchased or contributed by the employer for the employee according to Clause 2 Article 14 of Circular No. 92/2015/TT-BTC, do not need to settle tax returns for this part of the income.

a.4) Delegation to settle tax returns

a.4.1) Individuals with income from salaries and wages may delegate organizations and individuals paying income to settle tax returns on their behalf in the following cases:

- Individuals with income from salaries and wages who sign labor contracts for three months or more at one organization or individual paying income and are actually working there at the time of delegating the settlement of tax returns, including cases where they do not work for twelve months in the year.

- An individual earning income from wages or salaries who enters into a labor contract for three months or more with an organization or individual paying income and is actually working there at the time of authorizing tax settlement, including cases where they have not worked for twelve months in a year, and simultaneously has occasional income from other places averaging no more than ten million VND per month which has been subject to a 10% withholding tax by the income-paying entity without requesting tax settlement for this portion of income.

- An individual who is a worker transferred from an old organization to a new organization due to the old organization's restructuring, division, merger, consolidation, or business conversion. At the end of the year, if the worker authorizes tax settlement, the new organization must collect withholding tax certificates for personal income tax issued by the old organization (if any) to serve as the basis for consolidating income, the amount of tax withheld, and settling taxes on behalf of the worker.

a.4.2) The organization or individual paying income shall only settle taxes on behalf of individuals for the portion of income from wages or salaries received from the organization or individual paying income. In cases where the organization pays after restructuring, division, merger, consolidation, or business conversion and settles taxes based on the authorization of workers transferred from the old organization, the new organization is responsible for settling taxes for both the portion of income paid by the old organization and the new organization.

a.5) Principles for declaring and settling taxes for certain cases are as follows:

- A resident individual earning income from wages or salaries in a situation where the number of days present in Vietnam within the first calendar year is less than 183 days, but the continuous period of 12 months starting from the first day of presence in Vietnam is 183 days or more.

+ First tax year: declare and submit the tax settlement application form no later than the ninetieth day from the date when the continuous period of 12 months is completed.

+ From the second tax year onwards: declare and submit the tax settlement application form no later than the ninetieth day from the end of the calendar year.

- In the case of a foreign resident individual ending their work contract in Vietnam, they must declare and settle taxes with the tax authority before departure according to the guidance on tax declaration and settlement forms at point b.2 clause of this provision.

If a foreign resident individual ends their work contract in Vietnam but does not complete tax settlement procedures with the tax authority before departure, they may authorize another entity or organization to settle taxes on their behalf according to the Civil Code regulations if that entity or organization agrees to be responsible for the personal income tax payable by the individual as stipulated. The deadline for submitting the personal income tax settlement application form in this case is no later than the forty-fifth day from the date of the individual's departure.

- A resident individual earning income from wages or salaries who also qualifies for tax reduction due to natural disasters, fires, accidents, or serious illnesses shall not authorize tax settlement but must declare and settle taxes themselves along with the application for tax reduction according to the guidelines in Clause 1 Article 46 Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

b) Tax declaration forms

b.1) Quarterly tax declaration form

Resident individuals earning income from wages or salaries directly declare quarterly taxes with the tax authority using the Model 02/KK-TNCN declaration form issued together with Circular No. 92/2015/TT-BTC.

b.2) Tax settlement declaration form

b.2.1) Individuals earning income from wages or salaries who do not fall under the category authorized to have organizations or individuals paying income settle taxes on their behalf must directly declare and settle taxes with the tax authority using the following form:

- The Model 02/QTT-TNCN tax settlement declaration form issued together with Circular No. 92/2015/TT-BTC.

- The Model 02-1/BK-QTT-TNCN annex form issued together with Circular No. 92/2015/TT-BTC if there is a registration for dependent deductions.

- Copies of documents proving the tax withheld, temporarily paid during the year, and tax paid abroad (if applicable). The individual commits to the accuracy of the information on these copies. In cases where the income-paying organization does not provide withholding tax certificates due to the organization ceasing operations, the tax authority will base its decision on the tax department's database to process the tax settlement application without requiring withholding tax certificates.

In cases where, according to foreign laws, foreign tax authorities do not issue confirmation of tax payments, taxpayers can submit copies of withholding tax certificates (clearly stating the tax payment according to which tax return) issued by the income-paying organization or copies of bank documents for taxes paid abroad with taxpayer confirmation.

- Copies of invoices and documents proving charitable contributions to welfare funds, educational assistance funds (if applicable).

- For individuals receiving income from international organizations, embassies, consulates, and income from abroad, proof of the amount paid by the foreign organization or entity paying income is required.

b.2.2) For individuals authorizing organizations or individuals paying income to settle taxes on their behalf

Individuals authorizing organizations or individuals paying income to settle taxes on their behalf use the Model 02/UQ-QTT-TNCN form issued together with Circular No. 92/2015/TT-BTC, accompanied by copies of invoices and documents proving charitable contributions (if applicable).

c) Place for submitting tax declaration forms

c.1) Place to submit quarterly tax declaration forms

The place to submit quarterly tax declaration forms for resident individuals earning income from wages or salaries who directly declare taxes with the tax authority is the Directly Managing Tax Department where the individual works or where the work is performed in Vietnam (in cases where the individual does not work in Vietnam).

c.2) Place to submit tax settlement declaration forms

c.2.1) For individuals earning income from wages or salaries who directly declare taxes with the tax authority, the place to submit tax settlement declaration forms is the Tax Department where the individual submitted tax declaration forms during the year.

c.2.2) For individuals earning income from wages or salaries from two or more places who are directly required to settle taxes with the tax authority, the place to submit tax settlement declaration forms is as follows:

- An individual who has had personal tax deductions calculated at any organization or individual paying income shall file the final income tax return with the tax authority directly managing that organization or individual paying income. In case an individual changes their workplace and the last organization or individual paying income has calculated personal tax deductions for them, they shall file the final income tax return with the tax authority managing the last organization or individual paying income. If an individual changes their workplace and the last organization or individual paying income does not calculate personal tax deductions for them, they shall file the final income tax return with the Tax Revenue Office where the individual resides (permanent residence or temporary residence).

- In cases where an individual has not had personal tax deductions calculated at any organization or individual paying income, they shall file the final income tax return with the Tax Revenue Office where the individual resides (permanent residence or temporary residence).

c.2.3) In cases where an individual does not have a labor contract, or has a labor contract for less than three months, or signs a service provision contract with income at one place or multiple places subject to a 10% withholding, the final income tax return shall be filed with the Tax Revenue Office where the individual resides (permanent residence or temporary residence).

c.2.4) In cases where an individual has income from salaries or wages at one place or multiple places during the year but at the time of filing the final return is not working at any organization or individual paying income, the place to submit the final income tax return filing is the Tax Revenue Office where the individual resides (permanent residence or temporary residence).

d) Deadline for submitting tax declaration forms

- The deadline for submitting quarterly tax declaration forms is no later than the thirtieth day of the quarter following the quarter in which the tax liability arises.

- The deadline for submitting final tax declaration forms is no later than ninety days from the end of the calendar year.

e) Deadline for tax payment

The tax payment deadline is the deadline for submitting quarterly tax declaration forms and final tax declaration forms.

4. Amend and supplement paragraph b.1 point b clause 3 Article 16

“b.1) The tax declaration form for income from the transfer of real estate includes:

- Individual income tax declaration form according to model number 03/BĐS-TNCN issued together with Circular No. 92/2015/TT-BTC.

- A copy of the land use right certificate, proof of ownership of the house or construction works on the land, and the individual's signed commitment to take responsibility for the copy. In cases of transferring a purchase contract for a house or a future construction project, submit a copy of the purchase contract for the house or future construction project signed with the first-level or second-level project owner or the sales floor of the project owner; or a copy of the capital contribution contract to acquire a plot of land or apartment signed before the effective date of Decree No. 71/2010/NĐ-CP dated March 26, 2010 of the Government detailing the implementation of the Law on Housing.

- Real estate transfer contract. In cases of transferring a purchase contract for a house or a future construction project, submit the Real Estate Transfer Contract of the Purchase Contract for the House or Future Construction Project that has been notarized; or the Real Estate Transfer Contract of the Capital Contribution Contract to Acquire a House, Plot of Land, or Apartment that has been notarized. If transferring a purchase contract for a house or future construction project for the second time or more, the parties must also present the previous adjacent transfer contract. In cases of entrusting real estate, submit the Real Estate Entrustment Contract.

- Documents serving as the basis for determining the eligibility for tax exemption according to the guidance at point b.2, this clause (in cases of transferring real estate exempted from individual income tax).

- Documents proving the capital contribution according to the provisions of the law (in cases of transferring real estate due to capital contribution to a business temporarily exempted from individual income tax).

The tax authority will notify the amount of tax payable according to model number 03/TBT-BĐS-TNCN issued together with Circular No. 92/2015/TT-BTC to the individual.”

5. Amend and supplement point c and point d clause 3 Article 16

“c) Place to submit tax declaration forms

Individuals submit tax declaration forms along with real estate transfer documents at the single window interconnection department or the Tax Revenue Office where the transferred real estate is located. In cases where the locality has not implemented the single window interconnection system, submit the documents directly to the land registration office where the transferred real estate is located.

In cases where individuals transfer houses or future construction projects, declare taxes and pay individual income tax at the local Tax Revenue Office where the house or future construction project is located or at organizations or individuals authorized by the tax authority to collect taxes.

d) Deadline for submitting tax declaration forms

- In cases where the transfer contract does not stipulate that the buyer is responsible for paying the tax on behalf of the seller, the tax declaration form must be submitted no later than ten days from the date the transfer contract becomes effective according to the law.

- In cases where the transfer contract stipulates that the buyer is responsible for paying the tax on behalf of the seller, the tax declaration form must be submitted no later than the time when the procedures for registering ownership or use rights of the real estate are completed. In cases where an individual acquires a transfer of a future house or construction project, it is the time when the individual submits the tax declaration form to the tax authority.”

6. Amend and supplement clause 5 Article 16

“5. Declaration of tax on income from the transfer of securities

a) Principles of tax declaration

a.1) Individuals transferring securities of public companies traded on the Stock Exchange do not need to declare taxes directly to the tax authority, Securities Company, Commercial Bank where the individual opens a securities account, Fund Management Company where the individual entrusts management of investment portfolios declare taxes according to the guidance at clause 1 Article 16 of Circular No. 156/2013/TT-BTC.

a.2) Individuals transferring securities not through the trading system on the Stock Exchange:

- Individuals transferring securities of public companies registered for centralized custody at the Securities Depository Center do not need to declare taxes directly to the tax authority, Securities Company, Commercial Bank where the individual opens a securities account deducting tax and declaring taxes according to the guidance at clause 1 Article 16 of Circular No. 156/2013/TT-BTC.

- An individual transferring shares of a joint-stock company that has not yet become a public company, where the share issuance entity has authorized a securities company to manage the shareholder list, does not directly declare taxes to the tax authority. The authorized securities company managing the shareholder list shall deduct taxes and declare taxes according to the guidance provided in Clause 1, Article 16 of Circular No. 156/2013/TT-BTC.

a.3) An individual transferring shares not falling under the cases mentioned in sub-item a.1 and sub-item a.2 of this clause shall declare taxes on each occurrence.

a.4) A business entity shall handle the procedure to change the shareholder list in the case of transferring shares without proof that the individual transferring the shares has fulfilled their tax obligations. In such a case, the business entity where the individual transferred the shares shall be responsible for declaring taxes and paying taxes on behalf of the individual.

If a business entity declares taxes on behalf of an individual, then the business entity shall submit the declaration form for personal income tax declaration on behalf of the taxpayer. The entity declaring on behalf of the taxpayer shall write the phrase "Declaration on Behalf" before the phrase "Taxpayer or Legal Representative of Taxpayer," while the declarer signs, writes their full name, and stamps the business entity's seal. On the tax calculation form and tax receipt, the taxpayer remains listed as the individual transferring the shares.

b) Tax declaration forms

The tax declaration documents for individuals transferring shares who are required to directly declare taxes with the tax authority as stipulated in sub-item a.3 of this clause include:

- Declaration Form Model No. 04/CNV-TNCN issued together with Circular No. 92/2015/TT-BTC;

- A copy of the Share Transfer Contract.

c) Place for submitting tax declaration forms

Individuals subject to direct declaration of taxes on each occurrence as stated in Point a.3 of this clause shall submit tax declaration documents to the tax authority managing the share-issuing enterprise where the individual transferred the shares.

d) Deadline for submitting tax declaration forms

- The deadline for submitting tax declaration documents for individuals required to directly declare taxes with the tax authority is no later than the tenth day following the date when the share transfer contract becomes effective according to the law.

- In the case where a business entity pays taxes on behalf of an individual, the deadline for submitting tax declaration documents is no later than before the procedure to change the shareholder list is carried out according to the law.

e) Deadline for tax payment

The tax payment deadline is the deadline for submitting tax declaration documents.”

Article 22. Amend and supplement Clause 5 of Article 33 of Circular No. 156/2013/TT-BTC as follows:

“5. The obligation to settle taxes on behalf of individuals can be offset against the withholding obligation of organizations and individuals paying income.

After offsetting, if there is a remaining tax amount to be paid, the organization or individual paying income must pay the outstanding tax amount to the state budget. If, after offsetting, there is an excess tax payment, the tax authority will automatically offset it against the tax payable for the next tax period, or the organization or individual paying income may submit a Request for Refund of State Revenue Payment Form No. 01/ĐNHT issued in Circular No. 156/2013/TT-BTC to the directly managing tax authority to refund the tax according to regulations.”

Article 23. Amend and supplement Article 53 of Circular No. 156/2013/TT-BTC as follows:

“Article 53. Refund of Personal Income Tax

The refund of personal income tax only applies to individuals who have a tax identification number at the time of requesting a refund.

For individuals who have authorized organizations or individuals paying income to settle taxes on their behalf, the refund of the individual’s tax will be processed through the organization or individual paying income.

Individuals directly settling taxes with the tax authority, if they have an excess tax payment, are entitled to a refund or offset against the tax payable for the next period.

1. Refund of tax for organizations or individuals paying income who settle taxes on behalf of individuals who have authorized them to settle taxes.

In the event that, after offsetting the excess and short payments of individuals, the organization or individual paying income has an excess tax payment and requests a refund from the tax authority, the organization or individual paying income shall submit a tax refund application to the directly managing tax authority. The tax refund application includes:

- Request for Refund of State Revenue Payment Form No. 01/ĐNHT issued together with Circular No. 156/2013/TT-BTC.

- A copy of the tax payment voucher, and the legal representative of the organization or individual paying income signs a commitment to take responsibility for the copy.

2. For individuals with income from salaries and wages who directly settle taxes with the tax authority, if they have an excess tax payment, they do not need to submit a tax refund application but only need to record the requested refund amount in Item [47] - "Refund Amount to Taxpayer Account" or Item [49] - "Total Tax Offset Against Future Periods' Occurrences" on the tax settlement declaration form Model No. 02/QTT-TNCN when settling taxes.”

Article 24. Amending and supplementing tax declaration forms for individual businesses and personal income tax declaration forms

1. Replacing Form No. 01/THKH and 01A/KK-HĐ issued together with Circular No. 156/2013/TT-BTC with Form No. 01/CNKD issued together with this Circular.

2. Replacing Forms No. 02/THKH and 01/KK-TTS issued together with Circular No. 156/2013/TT-BTC with new corresponding Forms No. 01/TB-CNKD and 01/TTS issued together with this Circular.

3. Replacing Form No. 01/KK-BHĐC and 01/KK-XS issued together with Circular No. 156/2013/TT-BTC with Form No. 01/BHXSĐC issued together with this Circular.

4. Replacing Form No. 02-1/BK-BH, 02-1/BK-ĐC and 02-1/BK-XS issued together with Circular No. 156/2013/TT-BTC with Form No. 01-1/BK-BHXSĐC issued together with this Circular.

5. Replacing Form No. 21a/XN-TNCN and 21b/XN-TNCN issued together with Circular No. 156/2013/TT-BTC with Form No. 09/XN-NPT-TNCN issued together with this Circular.

6. Replacing Revenue Receipt Form No. CTT-50 issued together with Decision No. 1042/1998/QĐ-BTC dated August 15, 1998 of the Ministry of Finance with Form No. CTT-50 issued together with this Circular to be used for issuing and delivering to individual businesses that pay taxes under the turnover method.

7. Amending Forms No. 05/KK-TNCN, 05-1/BK-TNCN, 05-2/BK-TNCN, 05-3/BK-TNCN, 02/KK-TNCN, 11/KK-TNCN, 11-1/TB-TNCN, 04-2/KK-TNCN, 07/KK-TNCN, 09/KK-TNCN, 09-3/KK-TNCN, 16/ĐK-TNCN, 04-2/TNCN, 23/CK-TNCN, 03/KK-TNCN, 17/TNCN, 18/MGT-TNCN issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance with new corresponding Forms No. 05/QTT-TNCN, 05-1/BK-TNCN, 05-2/BK-TNCN, 05-3/BK-TNCN, 05/KK-TNCN, 03/BĐS-TNCN, 03/TBT-BĐS-TNCN, 04/UQ-QTT-TNCN, 02/KK-TNCN, 02/QTT-TNCN, 02-1/BK-QTT, 02/ĐK-NPT-TNCN, 02/UQ-QTT-TNCN, 02/CK-TNCN, 06/TNCN, 07/CTKT-TNCN, 08/MGT-TNCN issued together with this Circular.

The list of tax declaration forms for individual businesses and personal income tax declaration forms is compiled in Appendix 02 issued together with this Circular.

Chapter V
IMPLEMENTATION

Article 25. Effective Date

1. This Circular takes effect from July 30, 2015 and applies to personal income tax periods starting from 2015 onwards.

Guidelines on individual businesses paying taxes under the turnover method using tax invoices issued by the tax authority shall apply to tax periods starting from January 1, 2016.

2. In cases where individuals have entered into lease contracts spanning multiple years and have declared and paid taxes according to previous regulations, there will be no adjustment made to the taxes already declared and paid.

3. In cases where individuals transfer immovable property and have submitted registration applications for ownership rights or tax declarations before January 1, 2015, applying a tax rate of 25%, but the tax authority has not issued a tax payment notice by December 31, 2014, such individuals may declare adjustments at a tax rate of 2% if they request it.

4. Abolishing sub-clause b.2.2, sub-clause b.2.3, and sub-clause b.2.4 point b Clause 1 Article 16; abolishing Article 22 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance guiding the implementation of certain provisions of the Law on Tax Administration, the Law amending and supplementing certain provisions of the Law on Tax Administration, and Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government.

5. Abolishing contents related to value-added tax and personal income tax for individual businesses guided in Article 16 and Article 21 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

6. Abolishing contents related to personal income tax for individual businesses guided in Article 7, Article 8, and Article 9 of Circular No. 111/2013/TT-BTC dated August 15, 2013 guiding the implementation of the Personal Income Tax Law, the Law amending and supplementing certain provisions of the Personal Income Tax Law, and Decree No. 65/2013/NĐ-CP of the Government detailing certain provisions of the Personal Income Tax Law and the Law amending and supplementing certain provisions of the Personal Income Tax Law.

7. Abolishing point d Clause 6 Article 2 of Circular No. 111/2013/TT-BTC guiding personal income tax for individuals with income from lottery winnings in casinos.

8. For the current turnover tax rates implemented in 2015, no later than August 30, 2015, the Tax Office shall publicly display: the list of individual businesses exempt from value-added tax and personal income tax, the list of individual businesses subject to turnover tax and the amount of tax payable at the one-stop service window of the Tax Office and the People's Committee of the district or county, and at appropriate locations such as the entrance or gate of the People's Committee office, market management board, or other suitable places; send the publicly displayed information to the People's Council and the Vietnam Fatherland Front Committee of the district or county, commune, ward, town; simultaneously send the Public Disclosure Form No. 01/CKTT-CNKD issued together with this Circular to each individual business. The Public Disclosure Form No. 01/CKTT-CNKD is prepared according to the guidance in sub-clause a.1 point a Clause 9 Article 6 of this Circular.

During implementation, if there are any difficulties, organizations and individuals are requested to promptly report them to the Ministry of Finance (General Department of Taxation) for study and resolution./.