| THE MINISTRY OF FINANCE ------- | THE SOCIALIST REPUBLIC OF VIETNAM Independence– Freedom – Happiness --------------- |
| No. 5307/TCT-CS Re: Remunerations for tax-withholding organizations and individuals | Hanoi, December 29, 2009 |
To: Provincial-level Tax Departments
The Ministry of Finance has received opinions of some Tax Departments and enterprises on tax-withholding by organizations and individuals and remunerations for organizations and individuals in charge of tax withholding. Regarding this matter, the General Department of Taxation gives the following opinions:
Clause 3, Article 2, Chapter I of Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration regarding taxpayers, stipulates: “3. Organizations and individuals that withhold tax; organizations and individuals that carry out tax procedures on behalf of taxpayers.”
Under the above provisions, the Ministry of Finance has issued Official Letter No. 5229/BTC-TCT of May 7, 2008, guiding remunerations for tax-withholding organizations and individuals: “tax-withholding organizations and individuals (including organizations and individuals acting as agency principles and responsible for withholding enterprise income tax of agents being business households and individuals) are taxpayers that shall pay 100% of withheld tax amounts into the state budget and will not be entitle to remunerations deducted before tax payment.”
Tax Departments should inform and guide withholding organizations and individuals to make them aware of their tax-withholding responsibilities and obligations under the provisions of legal documents on tax administration and Official Letter No. 5229/BTC-TCT.
Above is the General Department of Taxation’s guidance for Tax Departments.-
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| FOR THE GENERAL DIRECTOR OF TAXATION DEPUTY GENERAL DIRECTOR Pham Duy Khuong |
