Circular No. 10/2009/TT-BTC dated January 21, 2009 of the Ministry of Finance guiding personal income tax registration, withholding tax, and tax declaration and finalization applicable to individuals being insurance agents

In accordance with this Circular,income subject to personal income tax from IA activities shall comprise agent’s commission, bonuses in all forms, and other subsidies and payments receivable from the establishment which is the principal of IA.

Insurance business establishments (hereinafter referred to as principals) shall be responsible to withhold PIT on income from agency activities payable to the principal’s agents at the appropriate percentage. Particularly, provisional percentage to be collected on monthly income payable to the agent is 0%, 5%, 10% in the case of monthly income of the agent is up to VND 4 million, above VND 4 to VND 15 million, above VND 15 million, respectively.

An agent’s income in accordance with the above tariff means the agent’s income without deductions for dependants, for compulsory insurance premiums or for contributions to charitable funds and so forth.

Individuals acting as agents and who have income subject to PIT must make a tax finalization declaration if the amount of tax payable born by them in a year is greater than the amount provisionally withheld or paid, or they have income arising in the year for which tax has not been provisionally withheld or paid; or they claim a tax refund or a set-off in the following tax period of tax already paid.

This Circular has been of full force and took effect from the 7 March 2009, and applies to income of insurance agents as from 1 January 2009.