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How to finalize PIT for fiscal 2009 |
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Tuesday, 05 January 2010 10:08 |
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After one year applied PIT law, in the end of year is time that all organizations as well as personal Who related to the personal taxable income are looking forward to specific instructions how do the yearly finalization PIT will be implemented as per the spirit of PIT law?
In December 2009, the Ministry of Finance has been drafting guidelines for the implementation of year 2009 PIT finalization. Pursuant to the drafting guideline for 2009 PIT finalization on the February 12, 2009 shall: | 1. | Participate of PIT finalization are including: | | | | a. | Organizations and individuals to pay income; | | b. | Personal who have income from salary, wages, income from business paid PIT more than his PIT payable; | | c. | Personal who have request for reimbursement or compensate PIT overpaid in next year ; | | | 2. | Declaration of income on 2009 PIT finalization (apply for income from salary and wage) | | | Organizations have just declared on employee’ incomes which are not subject to PIT exemption according to guidance in Circular No. 160/2009/TT-BTC on August 12, 2009 of Ministry of Finance. | | | | 2.1. | Taxable income from salary and wage must be declared as follows: | | | | a. | Applicable for resident employee: (Who are subject of PIT exemption in first 6 month of year 2009): Organizations have just declare taxable income and PIT paid from July 1 st, 2009 to December 31 st, 2009 only, namely: | | | | i. | For salaries, wages of 2009 under the employment contract or salary decisions will be exempted based on monthly payment sheet to pay out from January to end of June 2009.
In case of salary and wage of January to end of June, 2009 to be paid out after the right payment time (June 30 th, 2009) . It’s included in PIT exemption. | | ii. | For salaries, wages, bonuses for 2008 and earlier, but pay in the first 6 months of 2009 will still be exempted from personal income tax; organization do not declare on yearly PIT finalization. | | iii. | Bonus in year 2009: in case of monthly bonus (from January to June, 2009) or quartly 1 & 2 of year 2009 pay out in year 2009 do not declared on year 2009 PIT finalization. If It pay out later on December 31st, 2009. It will not be liable to personal income tax exemption and Organization must not declare for 2009 PIT finalization which will be charged to taxable income of employees in 2010 .
In case of organization pay bonus of year 2009 (once a year), then ½ of the yearly bonus will be exempt from PIT (organization do not declare on the PIT finalization), ½ the amount of yearly bonus are not PIT exemption, organization must be declared in 2009 PIT finalization. And If bonus of year 2009 pay out in the first quarter of 2010, the bonuses are exempt ½ (organization do not to declare on the 2010 PIT finalization); ½ of the bonus must be declared in the 2010 PIT finalization. | | iv. | For other benefits: ( in cash or not in cash) if It was paid for the first 6 months of 2009 shall not be declared in the year 2009 Pit finalization, if It to be paid for last 6 months of 2009, they must be declared in 2009 PIT finalization . | | | b. | For Non-resident employee is not subject to personal income tax exemption stipulated on Circular 160/2009/TT-BTC on August 12, 2009 of Ministry of Finance. | | | 2.2. | Duration of filing 2009 PIT finalization : no later than March 31, 2010 | | 2.3. | Deductions on PIT finalization are defined: | | | | a. | Deductions for contributions to social insurance, health insurance, liability insurance required : the insurance has contributed once for the whole year to declare deductions equal to 50% of the total contribution; if It contribute by monthly, the deductions are declared by the actual contribution of the last 6 months 2009 . | | b. | Deductions for dependants (family circumstances): the amount of deductions are the actual deduction for dependants of the last 6 months in 2009; as follows: | | | | i. | Deductions for him-self: amount of deduction is 24 million dong (6 months x 4 million per month). | | ii. | Deductions for dependants: The deductions are calculated on the number of dependants, and the months are deductions and amount deduction rate for a one month (1.6 million VND per month).
The evidence for dependant of employee must be showed on PIT finalization (if It haven’t submitted to the tax office yet ). | | | c. | Deductions for charitable, humanitarian, study encouragement contributions : The deductions calculated according to the actual number in the last 6 months of year 2009 and the taxpayer must show contributed documentation. | | |  Reference Source: 1 |
Last Updated on Tuesday, 05 January 2010 11:50
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How to finalize PIT for fiscal 2009