According to Official letter, in case an enterprise pays bonuses to an employee in which including the house rents, the house rents included in the bonuses shall be also subject to PIT but they must not exceed 15% of total taxable income in accordance with the aforesaid regulations.
Accordingly, in case a Company signs service contracts with individuals (who do not carry out the business registration) in order to provide the drilling counseling, these individuals are regarded as having no labor contract and therefore the Company has to withhold 10% PIT on incomes paid to such individuals.
At the end the year, these individuals have to summarize their whole incomes from salary, wage in order to make PIT accounting with tax authority (if they are subject to the making of PIT accounting).
The actually - received incomes are tax - exclusive salary, wage the employee receives every month, excluding tax - exempt incomes.
Similar to the above – mentioned case, if the Company of the same Corporation is located in a country which signed an Agreement on double taxation avoidance with Vietnam, the amount of tax already paid outside Vietnam shall be deducted from the tax amount payable in Vietnam. The deductible tax amount must not exceed the amount payable according to Vietnam's tax table calculated proportionally upon the incomes generated at the Company outside Vietnam (Clause 2 Article 26 of Circular No. 111/2013/TT-BTC).
Accordingly, in the case individuals receive incomes from compensation for breaching contracts on sale and purchase of apartment, because such incomes do not belong to 10 aforesaid types of incomes, they must not be liable to PIT.
However, incomes of owner cum Director General of a single-member limited liability company owned by an individual earned after the payment of enterprise income tax are determined the incomes from capital investment according to the regulations provided in Clause 3 Article 2 of Circular No. 111/2013/TT-BTC. If such incomes are generated before January 1st, 2015, they shall be subject to tax on capital investment according to Article 3 of Decree No. 65/2013/ND-CP. In contrast, if such incomes are generated from January 1st, 2015 onwards, they shall be exempt from tax on capital investment according to Clause 4 Article 2 of Decree No. 12/2015/ND-CP (official letter No. 917/TCT-TNCN dated March 17th, 2015).
Accordingly, in the case a company whose head office is located outside economic zones but it assigns employees to come to an economic zone to perform the contract on erecting scaffolding for a contractor there, if this contractor is an organization operating investment, business, and production in the economic zone, these employees shall be considered for reduction of PIT.
PIT amount to be reduced for the employees working in the economic zone shall be determined according to the guidelines provided in Article 3 of Circular No. 128/2014/TT-BTC.