On August 4, 2011, The Ministry of Finance issued Circular No. 113/2011/TT- BTC to amend and supplement the guidance of PIT Law mentioned in Circular No. 62/2009/TT-BTC dated March 27, 2009 and Circular No. 84/2008/TT-BTC dated September 30, 2008. This Circular will take effect from September 19, 2011.
Accordingly, Organizations shall withhold the PIT from incomes such salaries, wages, remuneration to individuals from VND 1,000,000/payment upward (instead of VND 500,000/payment as current) as per below tariff:
• 10% from the total income for who have personal tax code.
• 20% from the total income for who does not have personal tax code (instead of 10% as a current).
In case individuals have only one source of income and total incomes are not exceed the minimum taxable income, they shall make written commitments according to a form 23/BCK-TNCN
In case organizations or individuals that employ labors under seasonal contracts of a terms between over 03 months and under 12 months, the tax rate as above shall not apply. The temporary tax withholding will be made on monthly incomes according to the Partially Progress Tariff.
The tax rate taxed incomes applies to individuals earning incomes from transfers of real estate, houses, apartment which are supplied certificates of land use rights, and house and apartment ownership is 25% on the transfer revenue (Transfer price – Cost price).
In case cost price (buying price and related expenses) does not have sufficient proving invoices and vouchers, the tax rate of 2% of the transfer price will apply; in case it is found that the transfer price is not stated in the contract and or declared lower than the land price and registration fee calculation set by the provincial-level People’s Committee, tax shall be calculated at the tax rate of the land price and registration fee calculation set by the provincial-level People’s Committee.
Circular 113 also provides amendments on property transfer under Circular 02 and Circular 12 and takes effect on September 19, 2011 and annuls all guidance on personal income tax against this Circular.