Công văn 47484/CT-TTHT năm 2018 về khấu trừ thuế thu nhập cá nhân trong thời gian thử việc do Cục thuế thành phố Hà Nội ban hành

Dear Silver Mountain Logistics (Viet Nam) Co., Ltd.

Addr.: 6th Floor, Viet A Building, Duy Tan Street, Dich Vong Hau Ward, Cau Giay District, Hanoi; TIN: 0107273271

In reply to your Official Correspondence No. 01CV/2017 dated June 25, 2018 including your queries about PIT withholding during probation period, Tax Department of Hanoi would like to give you advice as follows: 

- Pursuant to Article 25 in the Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, providing instructions about tax withholding and tax withholding documents:

 “1. Tax withholding

Tax withholding is the income payer’s calculating and withholding the tax payable from the taxpayer’s income before paying the income to the tax payer in the following specific cases:

... b) Incomes from salaries and wages

b.1) The income payer shall deduct taxes from incomes of residents that sign labor contracts for 03 months or longer according to the progressive tax table, including the persons that sign such contracts at various places.

b.2) The income payer shall still withhold tax from the incomes earned residents that sign labor contracts for 03 months but resign before such labor contracts expire according to the progressive tax table.

.... i) Withholding tax in other cases

The organization or person that pays a total income from 2 million VND to a resident that does not sign a labor contract (as guided in Point c and Point d Clause 2 Article 2 of this Circular) or that signs a labor contract for less than 03 months shall withhold 10% tax on the income before it is paid to that resident.

For the person that earns only a taxable income as stated above but the total taxable income estimated after personal deductions are made does not reach the taxable level, the person shall make and send a commitment (the form is provided in the guiding documents on tax administration) to the income payer as the basis for temporarily exempting the income from personal income tax.

Based on the commitment made the income earner, the income payer shall not withhold tax.  At the end of the tax year, the income payer shall make a list of persons that earn incomes below that taxable level (the form is provided in the guiding documents on tax administration) and send it to the tax authority. The persons are responsible for the commitments they made. Any deceit discovered shall be penalized in accordance with the Law on Tax Administration.

The persons that make commitments as guided in this Point shall obtain tax registration and have tax codes when the commitments are made”.

- Pursuant to the Appendix No. 02 - List of forms applicable to sole proprietors and PIT forms to the Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance:

If a labor contract effected for at least three (03) months is signed after termination of a probationary employment contract with an employee, you will be responsible for withholding PIT, calculated according to the progressive taxation table, from income paid to that employee before making wage or salary payment, including PIT on income that he/she earns during his/her probation period.

If you refuse to sign a labor contract after termination of a probationary employment contract with an employee, you will have to withhold PIT at 10% rate from his/her total probationary income of at least 2 million dong/payment. 

If your employee earns only one source of income to be withheld as PIT at the 10% rate, but his/her estimated total income subject to family relief-inclusive PIT does not reach the taxable amount in the tax year, he/she will have to sign a commitment prepared by completing the Form No. 02/CK-TNCN annexed to the Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance, and submit it to you. Based on such commitment, you can temporarily suspend withholding of 10% PIT on wages or salaries paid to that employee. In this case, the employee will be legally liable for his/her commitment and will ensure that they have had his/her TIN at the signature date. He/she will be subject to penalties prescribed in the Law on Tax Administration in case of any fraudulent act. 

For your information and compliance./.

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