I. TAX POLICY
1. Refunding the tax amount that is eligible for refund to the taxpayer, without waiting for the results of the verification of the entire tax refund dossier
Official Letter No. 4922/TCT-CS dated October 31, 2024 of the General Department of Taxation on value added tax
The General Department of Taxation received Official Letter No. 8360/CTQNI-TTKT2 dated September 4, 2024 of the Quang Ninh Provincial Tax Department on VAT. Regarding this issue, the General Department of Taxation has the following opinions:
Pursuant to Article 76 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019, regulating the authority to decide on tax refunds;
Pursuant to Point c, Point d, Clause 1, Article 34, Clause 5, Article 35 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance guiding the settlement of tax refund dossiers and applying professional measures in settling tax refund dossiers.
Pursuant to the above provisions and instructions:
In the process of settling tax refund dossiers, if the Quang Ninh Provincial Tax Department determines that the tax amount is eligible for refund, it will refund the eligible tax amount to the taxpayer without waiting for the results of the verification of the entire tax refund dossier; for the tax amount that needs to be verified or the taxpayer is required to explain and supplement the dossier, the tax refund will be processed when the conditions are met according to regulations.
2. If an individual has authorized the Company to settle taxes on his/her behalf, and it is discovered that this individual is subject to direct tax settlement with the tax authority, the Company will not adjust the personal income tax settlement, and at the same time issue a tax deduction certificate for the individual to make tax settlement according to regulations.
Official Letter No. 4917/TCT-DNNCN dated October 29, 2024 of the General Department of Taxation on personal income tax policy
The General Department of Taxation received Official Letter No. 3717/CTTNG-HKDCN dated August 20, 2024 of the Thai Nguyen Provincial Tax Department, raising concerns about the 2023 personal income tax refund dossier of the individual taxpayer (NNT), Mr. Nguyen Van Phong (Mr. Phong), Tax code: 8764028434. Regarding this issue, the General Department of Taxation has the following comments:
– In Clause 2, Article 4 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government regulating invoices and documents, it is stipulated that:
“Article 4. Principles of making, managing and using invoices and documents
2. When deducting personal income tax, when collecting taxes, fees and charges, the tax deducting organization, Fee and charge collection organizations and tax collection organizations must prepare tax deduction documents, tax, fee and charge receipts and give them to people whose income is subject to tax deduction, taxpayers, fee and charge payers, and must fully record the contents as prescribed in Article 32 of this Decree. In case of using electronic receipts, they must follow the standard data format of the tax authority. In case an individual authorizes tax settlement, personal income tax deduction documents shall not be issued.”
– At point d.2, clause 6, Article 8 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration stipulates:
“d.2) Resident individuals with income from salaries and wages authorize tax settlement for organizations and individuals to check income, specifically as follows:
Individuals with income from salaries and wages who sign labor contracts for 03 months or more at one place and are actually working there at the time the organization or individual pays the income shall make tax settlement, including cases where they have not worked for 12 months in the year. In case the individual is an employee transferred from the old organization to the new organization according to the provisions of point d.1 of this clause, the individual is authorized to make tax settlement for the new organization.
Individuals with income from salaries and wages who sign labor contracts for 3 months or more at one place and are actually working there at the time the organization or individual pays income for tax settlement, including cases where they do not work for 12 months in the year; and at the same time have irregular income in other places with an average monthly income in the year of no more than 10 million VND and have had personal income tax deducted at a rate of 10% if there is no request for tax settlement for this income”.
– Official Dispatch No. 636/TCT-DNNCN dated March 12, 2021 and Official Dispatch No. 883/TCT-DNNCN dated March 24, 2022 of the General Department of Taxation on guidance on personal income tax settlement.
Based on the above regulations and records and documents provided by the Thai Nguyen Provincial Tax Department, in the case that Mr. Nguyen Van Phong has authorized Samsung Electronics Vietnam Thai Nguyen Company Limited to settle taxes on his behalf, if it is discovered that Mr. Phong is subject to direct tax settlement with the tax authority, Samsung Electronics Vietnam Thai Nguyen Company Limited will not adjust the personal income tax settlement, and at the same time issue tax deduction certificates for Mr. Phong to make tax settlement according to regulations.
3. Individuals are allowed to declare additional dependents when making personal income tax finalization
Official Letter No. 7761/TCT-DNNCN dated October 23, 2024 of the General Department of Taxation on personal income tax policy
The General Department of Taxation received Document No. 43087 dated August 23, 2024 of Ms. Nguyen Thi Nhu Hoa (MST 8012046444) on calculating family deductions for dependents who are biological children when making personal income tax finalization in 2023. Regarding this issue, the General Department of Taxation has the following opinions:
– Points c and h, Clause 1, Article 9 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance stipulate:
– Clause 4, Article 7 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government stipulates:
– Article 1, Circular No. 79/2022/TT-BTC dated December 30, 2022 of the Ministry of Finance stipulates:
Based on the above regulations and instructions, in case Ms. Nguyen Thi Nhu Hoa has not calculated the family deduction for dependents who are biological children in the tax year 2023, the deduction for dependents will be calculated from the month when the obligation to support arises when she performs tax settlement and registers for deduction.
In case Ms. Nguyen Thi Nhu Hoa makes a supplementary declaration that does not change her tax obligations, she only has to submit a Supplemental Declaration Explanation and related documents as prescribed in Point a, Clause 4, Article 7 of Decree No. 126/2020/ND-CP.
4. In the tax year, taxpayers with income from two or more places, including irregular income that has not been deducted from personal income tax at the rate of 10%, are not eligible to authorize tax settlement to other organizations or individuals
Official Letter No. 4846/TCT-DNNCN dated October 25, 2024 of the General Department of Taxation on personal income tax policy
The General Department of Taxation has received the Petition for Reflection and Recommendation with code ΡΑΚΝ.20240826.0131 from reader Nguyen Viet Anh (hereinafter referred to as “Reader”) on personal income tax policy. Regarding this issue, the General Department of Taxation has the following opinions:
Based on the provisions of Point d, Clause 6, Article 8 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government;
Pursuant to the guidance in Clause 1, Article 1 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance (amended and supplemented by Article 2 of Circular No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance).
Pursuant to the above provisions and guidance, in the case where a taxpayer has income from two or more places in the tax year, including irregular income that has not been deducted from personal income tax at the rate of 10%, he/she is not eligible to authorize tax settlement to another organization or individual as prescribed in Section d.2, Point d, Clause 6, Article 8 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government mentioned above. Accordingly, taxpayers directly declare and settle personal income tax with the tax authority (when there is additional tax payable or excess tax payable that needs to be refunded or offset in the next tax declaration period) and fully declare all personal income taxable income received during the period as prescribed in Clause 1, Article 1 of Circular No. 111/2013/TT-BTC (amended and supplemented by Article 2 of Circular No. 119/2014/TT-BTC) mentioned above.
5. If construction activities occur outside the province where the head office is located, the corporate income tax of these construction works shall not be allocated to the construction works outside the province
Official Letter No. 4864/TCT-KK dated October 28, 2024 of the General Department of Taxation on difficulties and proposals for determining the allocation of corporate income tax (CIT)
The General Department of Taxation received Official Letter No. 5642/CTBTH-TTKT3 dated September 11, 2024 of the Binh Thuan Provincial Tax Department reporting difficulties and proposing the determination of CIT allocation. Regarding this issue, the General Department of Taxation has the following opinions:
Pursuant to Clause 3, Article 42 of the Law on Tax Administration No. 38/2019/QH14 stipulating the principles of tax declaration and calculation;
Pursuant to Point b, Clause 4, Article 45 of the Law on Tax Administration No. 38/2019/QH14 stipulating the location for submitting tax declaration dossiers;
Pursuant to Clause 2, Article 11 of Decree 126/2020/ND-CP dated October 19, 2020 of the Government regulating the place for submitting tax declaration dossiers;
Pursuant to Article 12, Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government detailing and guiding the implementation of the Law on Corporate Income Tax regulating the place for tax payment;
Pursuant to Decision No. 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister promulgating the system of economic sectors of Vietnam;
Pursuant to Article 12, Circular 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance regulating the principles for determining the allocation of corporate income tax;
Pursuant to Clause 1, Clause 2, Article 12 of Circular 80/2021/TT-BTC dated September 27, 2021 of the Ministry of Finance regulating the distribution of tax obligations of centrally accounting taxpayers with dependent units and business locations in provinces other than the head office;
Pursuant to Article 17 of Circular 80/2021/TT-BTC dated September 27, 2021 of the Ministry of Finance regulating tax declaration, tax calculation, tax finalization, allocation and payment of corporate income tax.
In case an enterprise has its head office located outside Binh Thuan province, operates in the construction industry according to the provisions of the law on the Vietnamese economic sector system in Decision No. 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister and generates construction activities in Binh Thuan province, the corporate income tax of these construction works shall not be allocated according to the case of dependent units, the business location is a production facility according to the provisions of Article 17 of Circular No. 80/2021/TT-BTC of the Ministry of Finance.
II. SOCIAL INSURANCE
1. In which cases is it possible to temporarily suspend compulsory social insurance contributions?
Article 37 of the Law on Social Insurance 2024 (effective from July 1, 2025) stipulates:
1. Temporary suspension of contributions to the pension and death benefit fund is stipulated as follows:
a) In case the employer encounters difficulties and has to temporarily suspend production and business, leading to the employee and the employer being unable to pay social insurance, the contribution to the pension and death benefit fund may be temporarily suspended for a maximum period of 12 months;
b) After the suspension period specified in Point a of this Clause, the employer and the employee shall continue to pay compulsory social insurance and make up for the period of suspension.
The deadline for making up contributions is no later than the last day of the month following the month in which the suspension ends. The amount of compensation is equal to the amount payable for the months of temporary suspension of payment.
2. Employees participating in compulsory social insurance who are detained or temporarily suspended from work shall temporarily suspend compulsory social insurance payments; in cases where employees are entitled to receive full salary, the employees and employers shall make compensation payments for the time of detention or temporary suspension of work equal to the amount payable for the months of temporary suspension of payment.
3. The Government shall detail this Article; and prescribe other cases of temporary suspension of compulsory social insurance payments.
Thus, from July 1, 2025, temporary suspension of compulsory social insurance payments is regulated as above.
2. Are part-time workers eligible for compulsory social insurance?
Ms. Ha Minh Chau (Long An) signed a labor contract as a part-time worker. Ms. Chau asked, can she buy compulsory social insurance for an individual? If so, how is the contribution calculated?
Regarding this issue, Vietnam Social Security responded as follows:
Current social insurance laws do not have regulations for employees to voluntarily participate in compulsory social insurance.
Therefore, in the case of a part-time labor contract signed by you and not subject to compulsory social insurance, you can contact the social insurance agency at your place of residence to participate in voluntary social insurance. Source: Chinhphu.vn
