(Refer to Official Dispatch No. 4217 /CT-TTHT of Ho Chi Minh Department of Taxation as follows)
GENERAL DEPARTMENT OF TAXATION |
SOCIALIST REPUBLIC OF VIETNAM |
No : 4217 /CT-TTHT Re: Personal income tax |
Ho Chi Minh City, May 26, 2015 |
Kind attention to: Adecco Vietnam Joint Stock Company
Address: 11th Floor, Empire Building, No. 26-28 Ham Nghi Street, District 1, HCMC
Tax Code: 0311285460
Responding to the Company’s document dated April 13, 2015 on personal income tax (PIT); The City Department of Taxation has the following comments:
Pursuant to Point i, Clause 1, Article 25 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding personal income:
“Tax deduction for some other cases:
Organizations and individuals that pay wages, remunerations and other expenses to resident individuals who do not sign labor contracts (under the guidance at Points c, d, Clause 2, Article 2 of this Circular) or sign labor contracts of less than three (03) months with a total income of two million (2,000,000) VND/time or more must withhold tax at the rate of 10% of their income before paying them to individuals.
…”
In case the Company signs a labor contract of less than 3 months with Mr. Nguyen Van A, the Company is responsible for withholding at the tax rate of 10% on the total payment of 2 million VND or more (not allowed to deduct mid-shift meals allowances, overtime pay). For example: in March Mr. A has a salary of 10,000,000 VND, a meal allowance of 680,000 VND, and 227,272 VND overtime, then the Company declares and deducts 10% PIT on the total payment of 10,907,272 VND.
The City Department of Taxation notifies the Company to comply with the provisions of the legal documents cited in this document.
Recipients: – As above; – P.KT2; – PC Department; – Save: VT, TTHT. 939-3636720/2015-ntn |
PP. HEAD OF DEPARTMENT Tran Thi Le Nga |