VietnameseCircular No. 160/2009/TT-BTC dated August 12, 2009, of the Ministry of Finance guiding the exemption from personal income tax in 2009 under the Government’s Resolution No. 32/2009/QH12 of June 19, 2009
ATTRIBUTE
Circular No. 160/2009/TT-BTC dated August 12, 2009, of the Ministry of Finance guiding the exemption from personal income tax in 2009 under the Government’s Resolution No. 32/2009/QH12 of June 19, 2009
| Issuing body: | Ministry of Finance | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 160/2009/TT-BTC | Signer: | Do Hoang Anh Tuan |
| Type: | Circular | Expiry date: | Updating |
| Issuing date: | 12/08/2009 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Enterprise , Labor - Salary , Tax - Fee - Charge |
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THE MINISTRY OF FINANCE --------------------- No. 160/2009/TT-BTC | SOCIALIST REPUBLIC OF VIETNAM Independence- Freedom- Happiness ----------------------- Hanoi, August 12, 2009 |
CIRCULAR
Guiding the exemption from personal income tax in 2009 under the Government’s Resolution No. 32/2009/QH12 dated June 19, 2009
Pursuant to November 21, 2007 Law No. 04/2007/QH12 on Personal Income Tax;
Pursuant to Article 4 of the Government’s Resolution No. 32/2009/QH12 dated June 19, 2009, on adjustment of the overall objective and some economic and state budget targets, additional issuance of government bonds in 2009 and exemption from personal income tax in 2009;
On the basis of the Prime Minister’s directing opinion in the Government Office’s Official Letter No. 5048/VPCP-KTTH dated July 27, 2009, guiding the implementation of the National Assembly’s Resolution No. 32/2009/QH12 dated June 19, 2009, on personal income tax;
The Ministry of Finance guides the exemption from and reduction of personal income tax under the National Assembly’s Resolution No. 32/2009/QH12 dated June 19, 2009, as follows:
Article 1.
Persons eligible for personal income tax exemption and exemption period
1. Persons eligible for personal income tax exemption from January 1, 2009, through December 31, 2009, include residents and non-residents having incomes from capital investment; capital transfer (including also securities transfer); copyright; and franchising.
From January 1, 2010, onwards, residents and non-residents having incomes from capital investment; capital transfer (including also securities transfer); copyright; and franchising shall pay personal income tax under regulations.
2. Persons eligible for personal income tax exemption from January 1, 2009, through June 30, 2009, include residents having incomes from business; salaries and remuneration; inheritances; and gifts.
From July 1, 2009, onwards, residents having incomes from business, salaries and remuneration, inheritances, and gifts shall pay personal income tax under regulations.
Article 2.
Incomes used as a basis for determining personal income tax amounts to be exempted
Incomes used as a basis for determining personal income tax amounts to be exempted for persons defined in Article 1 of this Circular are incomes liable to personal income tax on which personal income tax in the first 6 months of 2009 is allowed to be paid later, and incomes liable to personal income tax originating in the tax-exempt period, specifically as follows:
1. For income from business:
1.1. For business individuals implementing accounting regulations with sufficient invoices and documents, able to account their turnovers and expenses and paying tax according to declaration, income used as a basis for determining the personal income tax amount to be exempted is taxable income corresponding to turnover and expenses arising in the first 6 months of 2009.
If business individuals cannot accurately determine their taxable incomes arising in the first 6 months of 2009, taxable income used as a basis for determining the personal income tax amount to be exempted shall be determined as follows:
- For those doing business for full 12 month of 2009, it is equal to 50% of the taxable income of the whole 2009.
- For those doing business for less than 12 months of 2009:
Tax income used as a basis for determining the personal income tax amount to be exempted | = | Actual business turnover of the first 6 months of 2009 Business turnover of the whole 2009 | x | Taxable income of the whole 2009 |
1.2. For business individuals only able to account their business turnover but not expenses and paying tax according to declaration, income used as a basis for determining the personal income tax amount to be exempted is the fixed and turnover-based income arising in the first 6 months of 2009 and the fixed percentage of taxable income.
1.3. For business individuals paying tax by the stable presumption method, the personal income tax amount to be exempted is the presumptive tax amount to be paid for the fist 6 months of 2009 as notified by tax agencies.
Turnover and expenses used as a basis for determining taxable incomes of the group of business individuals defined at Points 1.1 and 1.2, Clause 1 of this Article are turnover and expenses actually arising in the first 6 months of 2009. The method of determining turnover and expenses is guided in the Ministry of Finance’s Circular No. 84/2008/TT-BTC dated September 30, 2008.
2. For income from salaries and remuneration
Incomes from salaries and remuneration used as a basis for determining the personal income tax amount to be exempted is taxable income from salaries and remuneration to be paid by employing units to individuals in the first 6 months of 2009, regardless of the time of payment, specifically as follows:
2. 1. If the income payer has fully paid incomes from salaries and remuneration from January to the end of June 2009 (first 6 months of 2009) to laborers (according to contracts or salary decisions) during the tax-exempt period under the guidance in Clause 2, Article 1 of this Circular, incomes used as a basis for determining tax amounts to be exempted are actually paid incomes.
2.2. If the income payer has accounted as expenses salaries and remuneration of the first 6 months of 2009 under labor contracts or has issued salary decisions but actually paid them to laborers after the tax-exempt period under the guidance in Clause 2, Article 1 of this Circular, such salaries and remuneration will be still determined as tax-exempt incomes, provided they are paid not later than December 31, 2009.
2.3. For bonuses for the whole 2009 (such as annual bonus and 13th-month bonus salary), incomes used as a basis for determining tax amounts to be exempted will be equal to 50% of these bonuses, provided these bonuses are paid not later than March 31, 2010.
Example: In 2009, Mr. A enjoyed an annual bonus of VND 10 million. He will be exempt from paying income tax on VND 5 million (50% of the annual bonus).
2.4. For quarterly bonuses, tax-exempt incomes will be bonuses of the first and second quarters of 2009 under decisions of heads of income payers, provided they are paid not later than December 31, 2009.
Example: In August 2009, Mr. B enjoyed a bonus for outstanding performance in the second quarter of 2009 under a decision of the income payer. Then he will be exempt from paying income tax on this bonus.
2.5. For such incomes as holiday, summer vacation and uniform allowances and other benefits, tax-exempt incomes are those actually paid in the tax-exempt period under the guidance in Clause 2, Article 1 of this Circular.
2.6. Salaries and remuneration of 2008 which are paid in the tax-exempt period under the guidance in Clause 2, Article 1 of this Circular, are also tax-exempt.
3. For income from capital investment:
Income used as a basis for determining the personal income tax amount to be exempted is that earned from capital investment in 2009, specifically:
For incomes from profits and dividends from contributed shares, they are dividends and profits of 2009 divided under law.
- For incomes from loan interests, they are interests actually received in 2009 at the interest rates stated in loan contracts.
Individuals who receive incomes in advance for more than one year will be exempt from personal income tax on the portion of income of 2009.
- For income received from the added amount of the contributed capital value upon dissolution of enterprise, change of form of operation, merger, consolidation of enterprises or withdrawal of capital, it is the received added amount of the contributed capital value compared with the initial contributed capital. The time for determining the tax-exempt income is the time the income payer or the individual legal procedures for determining the received value of the contributed capital corresponding to the tax-exempt period under the guidance in Clause 1, Article 1 of this Circular.
4. For income from capital transfer (including also securities transfer), income used as a basis for determining the personal tax amount to be exempted is the money amount received by an individual from completed capital transfer under the guidance in Clause 2, Section II, Part B of the Ministry of Finance's Circular No. 84/2008/TT-BTC dated September 30, 2008, corresponding to the tax-exempt period under the guidance in Clause 1, Article 1 of this Circular.
5. For income from copyright or franchising, income used as a basis for determining the personal tax amount to be exempted is the money amount paid under contract corresponding to the tax-exempt period under the guidance in Clause 1, Article 1 of this Circular.
Individuals who receive incomes in advance for more than one year will be exempt from personal income tax on the portion of income of 2009.
6. For income from inheritances or gifts, the time for determining the tax-exempt income is the time an individual receiving inheritance or gifts submits a valid dossier to a competent state management agency corresponding to the tax exempt period under the guidance in Clause 2, Article 1 of this Circular.
7. If incomes exempt from personal income tax under the guidance in Clause 1, Article 1 of this Circular are paid after 2009, such incomes must be paid not later than June 30, 2010, otherwise they will not be tax-exempt.
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