1. The letter details the way to determine the amount of payable personal income tax (PIT) for employee due to income from salary, wage and other income from business activities in 2011 as follow:

PIT = average monthly taxable income * the tax rate of the scale of progressive tax tariff * 12 months

Total PIT to be deducted from income from salary and wage and other income from business activities in the first tax bracket of the Progressive Tax Tariff from August, 2011 to December 2011 is calculated as below:

Total income tax exemption = (2011 tax payable * 5 months)/ 12 months

The process of PIT declaration after deduction: the total amount of PIT should be noted at item [32_Accrued tax] of the form 09/KK-TNCN attached to Circular No. 28/2011/TT-BTC.

2. This Official Letter points out regulations and guidance on PIT finalization and authority to receive the PIT finalization submission. Moreover, pursuant to Resolution No. 08/2011/QH 13 General Department of Taxation has informed that Appendix: Income Tax Exemption, which is form 25/MGT-TNCN that attached Circular No. 154/2011/TT-BTC dated November 11, 2011 of Ministry of Finance, will be supplemented in tax declaration software and PIT finalization software.

On January 18, 2012, General Department of Taxation announced that they have upgraded the tax declaration software (HTKK 3.1.0) and PIT finalization software (QTTNCN 3.0). Those softwares have been upgraded and added new forms applied to the personal income tax and the enterprise income tax in accordance with Circular No. 28/2011/TT-BTC dated February 28, 2011.

Brief by NVM Group

Reference link: http://www.gdt.gov.vn/