Official Letter No. 1285/TCT-DNNCN (OL 1285) about the determination of the reduced personal income tax (PIT) for individuals working in the economic zones in 2018

On 8 April 2019, the General Department of Taxation issued OL 1285 with the following content:

According to Decree No. 82/2018/ND-CP dated 22 May 2018, the reduced PIT of individuals working in the economic zones, border-gate economic zones for the tax year of 2018 is calculated as follows:

Reduced PIT   Total PIT payable in the year   Taxable income that individuals received from their works in the economic zones for the period from 01/01/2018 to 09/07/2018    
= x  ________________ x 50%
    Total taxable income in the year    

In which:

– Total PIT payable in the year is determined based on the taxable income from salaries and wages in the year according to the current personal income tax regulations.

– Total taxable income in the year is total taxable income from salaries and wages that individuals received in the year which includes income from inside and outside economic zones/border-gate economic zones.


Official Letter No. 6547/CT-TT&HT (OL 6547) about procedures on profit remittance abroad

On 23 April 2019, Binh Duong Department of Taxation issued OL 6547 about procedures on profit remittance, which handles the case that a company fully completed its financial obligations to the government in Vietnam and already submitted audited financial statements as well as CIT finalizations to the tax office. In this case, in case the company remits its profit abroad:

– The company shall send the form named “Notification on the profit remittance abroad” as guided in Circular No. 186/2010/TT-BTC dated 18 November 2010 by the Ministry of Finance to the tax office. On the notification form, the company must state clearly the amount of profits which is shared and remitted in each year.

– The company itself determines the profit to be remitted abroad based on regulations at Circular No. 186/2010/TT-BTC, however it must ensure that the remitted profit is the profit after offsetting with any accumulated losses.

– The company performs remittance after 7 working days from the date it sends the notification to the tax office. The company must declare and pay PIT on behalf of the investor who is individual before remitting profit abroad.