Procedures for tax exemption and reduction of personal income tax. Conditions for exemption and reduction of personal income tax. Let us learn about this topic with LSX law firm as follow:
5 incomes from salaries and wages are exempt from PIT
Besides the taxes that foreigners must pay under Vietnamese Law, there are some that are exempted from. According to Clauses 9, 10 and 15, Article 4 of the Law on Personal Income Tax 2007 (amended and supplemented in 2012; 2014), 05 incomes from salaries and wages are exempt from personal income tax, including:
– Firstly, the part of the night work salary; paid higher than the daytime working salary as prescribed by law.
– Secondly, the part of overtime salary is; paid higher than the hourly wage as prescribed by law.
– Thirdly, the pension is; paid by the Social Insurance Fund.
– Moreover, the pension is paid by the voluntary pension fund every month.
– In addition, incomes from salaries and wages of Vietnamese seafarers working for foreign shipping lines; or Vietnamese shipping lines for international transport.
The amount of income is reduced personal income tax
According to Article 4 of Circular 111/2013/TT-BTC, taxpayers face difficulties due to natural disasters, fires or accidents; Critical illness affecting the ability to pay tax shall be; considered for tax reduction corresponding to the extent of damage but not exceeding the payable tax amount.
Conditions for exemption and reduction of personal income tax
Employees earning income from salaries and wages are exempted; or reduced from personal income tax if the accountant at the place of salary payment (usually a company or enterprise); has the correct file and declaration of the exempted or reduced tax amount.
Note: For people who do not earn income from salaries or wages; they must determine the tax exempt amount by themselves; tax reduction in tax declaration dossiers or tax exemption or reduction dossiers sent to tax authorities directly managing them. If the declaration is incorrect, or the tax exemption; or reduction is; not declared, the tax exemption or reduction will not be granted.
Procedures for tax exemption and reduction of personal income tax
According to Clause 1, Article 46 of Circular 156/2013/TT-BTC, the tax authority directly examines the dossier and issues a decision on tax exemption or reduction of personal income tax, specifically:
A dossier of tax exemption or reduction for each case is as follows:
Taxpayers facing difficulties due to natural disasters, fires
– Firstly, a written request for tax reduction, made according to form No. 18/MGT-TNCN, certified by the commune-level local government where the disaster or fire occurs.
– Secondly, a written record of determining the extent and value of property damage; issued by a competent agency and certified by the local government at the commune level where the disaster or fire occurs, made according to form No. 02/MGTH;
Besides, the agency competent to determine the extent and value of damage is a financial agency or an assessment agency that determines the extent and value of property damage…
– In addition, indemnity documents of the insurance agency (if any) or the compensation agreement of the person causing the fire (if any).
– Moreover, vouchers directly related to the overcoming of natural disasters and fires.
– Also, personal income tax finalization declaration (if subject to tax finalization).
Taxpayers facing difficulties due to an accident
– A written request for tax reduction, made according to form No. 18/MGT-TNCN.
– A written or written record of accident certification certified by a police agency or certified by a medical agency.
– Papers confirming the compensation of the insurance agency or the compensation agreement of the person causing the accident (if any).
– Expenses directly related to the recovery of the accident.
– Personal income tax finalization declaration (if subject to tax finalization).
Taxpayer suffering from serious illness
– A written request for tax reduction, made according to form No. 18/MGT-TNCN.
– A copy of the medical record or medical examination book.
– Documents evidencing medical examination and treatment expenses issued by health agencies; or medical bills with a doctor’s prescription.
– Personal income tax finalization declaration (if subject to tax finalization).
Where to apply for tax exemption or reduction
For taxpayers facing difficulties due to natural disasters, fires, accidents or fatal diseases; the place where tax exemption or reduction documents are submitted is the tax office where the individual resides.
The above are the personal income tax exemption and reduction regulations that taxpayers with income from salaries and wages need to understand to avoid unfairly losing tax money.
If you want to know more about Dossiers and procedures for a personal income tax refund for foreigners, LSX Law firm are happy to help.
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Related questions
Depend on the situation, the penalty may vary from 0,05% per day to 0,07% per day.
Accordingly, businesses could pay taxes in the following places: the State Treasury, tax management department, organizations authorized by tax authorities to collect taxes, commercial banks, other credit institutions, and service organizations.
Conclusion: So the above is Procedures for tax exemption and reduction of personal income tax. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
