Independence - Freedom - Happiness
No. 1318/TC/TCT
On implementation of the ordinance on income tax on high-income earners
Hanoi, February 1, 2005
To: - Ministries, ministerial-level agencies and Government-attached agencies
- Provincial/municipal People’s Committees
The Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Income Tax on High-Income Earners (personal income tax for short) was adopted on March 24, 2004 by the National Assembly Standing Committee and takes effect as from July 1, 2004. To detail and guide the implementation of this Ordinance, the Government promulgated Decree No. 147/2004/ND-CP of July 23, 2004 and the Finance Ministry issued Circular No. 81/2004/TT-BTC of August 3, 2004.
In implementation of the regulations on personal income tax according to the Ordinance of the National Assembly Standing Committee and the Government’s Decree, the Finance Ministry requests the ministries and provincial/municipal People’s Committees to direct and inspect the implementation of the Ordinance on Income Tax on High-Income Earners by their respective ministries, branches and localities, focusing on the following issues:
1. Ministries, branches and provincial/municipal People’s Committees shall issue legal documents directing their attached units to fully grasp and strictly observe the regulations on tax registration, declaration, payment and finalization under the provisions of the Ordinance on Income Tax on High-Income Earners as well as guiding documents of the Finance Ministry, the General Department of Taxation and local tax offices.
2. The provincial/municipal People’s Committees shall direct tax offices at all levels to enhance the inspection of tax declaration and finalization settlement by income-paying agencies, and urge these agencies to submit tax finalization declarations on time (by February 28, 2005, at the latest, income-paying agencies and individuals must submit the 2004 tax finalization declarations to tax offices).
3. With regard to singers, artists, footballers and athletes in their localities or under their management, ministries, branches and local administrations shall have to adopt measures directing these subjects to strictly adhere to the regulations on personal income tax registration, declaration, payment and settlement. Meanwhile, the provincial/municipal People’s Committees must direct functional branches such as provincial/municipal Culture and Information Services and Physical Training and Sport Services to closely coordinate with provincial/municipal Tax Departments in monitoring these subjects together with income-paying agencies which are organizations operating in the fields of culture, information or sports in order to categorize them into taxpayer groups for management. On this basis, every Tax Department shall send a tax identification number declaration form to each taxpayer and concurrently guide in detail the relevant procedures at the year-end. To ensure that the 2004 income declaration and income tax finalization comply with the prescribed regime, in February 2005, every Tax Department must issue an official letter specifying the contents of declaration of taxable incomes in the year, income tax already withhold in the year and payable (or refundable) income tax amounts which have already been notified to income-paying organizations and individuals as well as taxpayers upon tax settlement, and concurrently work out a plan to urge the submission of the 2004 tax finaliation declarations, ensuring that all declarations are submitted  before February 28, 2005. Where after being notified of such an official letter, taxpayers still fail to submit tax finaliation declarations, the concerned Tax Department shall make announcement on the mass media.
The Finance Ministry requests the ministries, branches and local People’s Committees to pay due attention to, and promptly direct organizations and individuals in localities and branches under their respective management in, the implementation of the provisions of tax law in general and personal income tax law in particular.

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Truong Chi Trung

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