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THE MINISTRY OF FINANCE
THE GENERAL DEPARTMENT OF TAXATION
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 937/TCT/TNCN
On 2006 personal income tax finalization
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Hanoi, March 06, 2007
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To: Provincial/municipal Tax Departments
The finalization of income tax on high-income earners (hereinafter referred to as personal income tax – PIT) shall be carried out under the provisions of the Ordinance on Income Tax on High-Income Earners and current guiding documents. Besides, the Ministry of Finance and the General Department of Taxation issued in 2006 a number of documents specifically guiding the determination of taxable income, non-taxable income and income for tax calculation, etc., for a number of business lines and professions. To ensure that the 2006 PIT finalization is conducted consistently according to regulations, the General Department of Taxation requires Tax Departments to pay attention to the following matters:
1. The determination of working mission allowances not liable to PIT:
Working mission allowances not liable to PIT are regulated in the Ministry of Finance’s Circulars No. 118/2004/TT-BTC of December 8, 2004, and No. 91/2005/TT-BTC of October 18, 2005. For units currently applying the levels of allowance (for domestic and overseas working missions) suitable to their operation or production and business characteristics and when those allowances are accepted to be accounted as their reasonable expenditures, working mission allowances paid to their employees are not liable to PIT provided that they do not exceed the level specified in the above two Circulars of the Ministry of Finance.
Particularly for projects or programs signed between the Vietnamese Government and foreign governments or organizations and for each of those projects or programs the Vietnamese Government has approved the specific working mission allowance limits, working mission allowances paid to their employees are also not liable to PIT.
