Some Notes on Finalization of Personal Income Tax for 2016

1. Legal Basis

The 2016 personal income tax finalization will be based on the following documents:

a. Law

- Law on Personal Income Tax 2007- Amended Law on Personal Income Tax 2012- Law Amending and Supplementing a Number of Articles of the Laws on Tax 2014- Law on Tax Administration 2006- Amended Law on Tax Administration 2012

b. Decree

- Decree 83/2013/ND-CP guiding the Law on Tax Administration and the Amended Law on Tax Administration- Decree 65/2013/ND-CP guiding the Law on Personal Income Tax and the Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax- Decree 91/2014/ND-CP amending the decrees on tax regulations- Decree 12/2015/ND-CP guiding the Law Amending and Supplementing a Number of Articles of the Laws on Tax and amending and supplementing a number of articles of the decrees on tax

c. Circular

- Circular 111/2013/TT-BTC guiding the Law on Personal Income Tax and Decree 65/2013/ND-CP issued by the Minister of Finance- Circular 119/2014/TT-BTC amending Circular 156/2013/TT-BTC, 111/2013/TT-BTC, 219/2013/TT-BTC, 08/2013/TT-BTC, 85/2011/TT-BTC, 39/2014/TT-BTC and 78/2014/TT-BTC to reform and simplify administrative procedures on tax issued by the Minister of Finance- Circular 151/2014/TT-BTC guiding the implementation of Decree 91/2014/ND-CP amending and supplementing a number of articles of the decrees on tax regulations issued by the Minister of Finance- Circular 92/2015/TT-BTC guiding the implementation of Value Added Tax and Personal Income Tax for resident individuals with business activities; guiding the implementation of some contents amending and supplementing Personal Income Tax according to the Law Amending and Supplementing a Number of Articles of the Laws on Tax (71/2014/QH13) and Decree 12/2015/ND-CP stipulating the detailed implementation of the Law Amending and Supplementing a Number of Articles of the Laws on Tax and amending and supplementing a number of articles of the decrees on tax issued by the Minister of Finance- Circular 156/2013/TT-BTC guiding the Law on Tax Administration; the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration and Decree 83/2013/ND-CP issued by the Minister of Finance- Circular 128/2014/TT-BTC guiding personal income tax reduction for individuals working in economic zones issued by the Minister of Finance- Circular 26/2015/TT-BTC guiding Value Added Tax and tax management in Decree 12/2015/ND-CP, amending Circular 39/2014/TT-BTC on invoices for selling goods and providing services issued by the Minister of Finance- Circular 95/2016/TT-BTC guiding taxpayer registration issued by the Minister of Finance

d. Other documents

- Decision 905/QD-TCT of 2011 on the tax refund procedure issued by the General Director of the General Department of Taxation- Decision 329/QD-TCT of 2014 on the taxpayer registration management procedure issued by the General Director of the General Department of Taxation- Official Dispatch 3228/TCT-KK of 2014 on amending the tax refund procedure attached to Decision 905/QD-TCT issued by the General Department of Taxation- Other guiding documents of the Ministry of Finance- Other guiding documents of the General Department of Taxation- Other guiding documents of the Tax Departments

1. Guiding Documents for the 2016 Tax Finalization

Typically, each year the General Department of Taxation and/or the Provincial/City Tax Departments will issue documents guiding the implementation of personal income tax finalization. For example:

- Official Dispatch 7850/CT-TNCN of 2015 guiding the 2014 Personal Income Tax finalization and the issuance of tax identification numbers for dependents issued by Hanoi City Tax Department;- Official Dispatch 336/TCT-TNCN guiding the 2013 personal income tax finalization;- Official Dispatch 801/TCT-TNCN of 2016 guiding the 2015 personal income tax finalization and issuance of tax identification numbers for dependents issued by the General Department of Taxation

1. Reference Document

On March 02, 2016, the General Department of Taxation issued Official Dispatch 801/TCT-TNCN of 2016 guiding the 2015 personal income tax finalization and issuance of tax identification numbers for dependents, which includes specific guidance on the following contents:

- Subjects required to finalize personal income tax: Individuals with income from salaries and wages; organizations paying income from salaries and wages;- Forms of personal income tax finalization: Individuals authorize tax finalization through income-paying organizations; individuals finalize tax directly with the tax authorities; cases of adjustment after authorizing tax finalization- Other contents: Taxable income; monthly average taxable income; conversion of non-taxable income to taxable income; deductions; deadline for submitting tax finalization dossiers; tax refund; application of IT to support 2015 personal income tax finalization; issuance of tax identification numbers for dependents in the 2015 tax finalization dossier; forms of submitting 2015 tax finalization dossiers;

Readers can refer to the content in the above Official Dispatch to carry out the 2016 tax finalization.

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