b) Dividends;

c) Income generated by other forms of capital investment, including the case where capital contribution is made in form of exhibits, reputation, land use right, or invention; except for income generated by interest of Government bond, income with deducted corporate income tax of a private enterprise or a single-member limited liability company owned by an individual/individuals.”

- Pursuant to Clause 1 Article 6 on entry into force and responsibilities for implementation:

“Article 6. Entry into force and responsibilities for implementation

1. This Decree comes into force from the date on which the Law on amendment to the Laws on tax dated November 26, 2014 comes into force.”

Pursuant to Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance guiding corporate income tax under Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government elaborating to the Law on amendment to the Laws on tax and amendment to Decrees on tax and Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25, 2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of Ministry of Finance:

- Pursuant to Article 4 amending Article 6 of Circular No. 78/2014/TT-BTC (amended under Clause 2 Article 6 of Circular No. 119/2014/TT-BTC and Article 1 of Circular No. 151/2014/TT-BTC):

“2. Non-deductibles in calculation of taxable income include:

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d) Salaries and wages of owners of private enterprises, single-member limited liability companies (owned by individuals); wages for founding members, members of boards of members, boards of directors who do not directly engage in production process.”

Pursuant to Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding the Law on Personal Income Tax, Law on amendment to the Law on Personal Income Tax, and Decree No. 65/2013/ND-CP of the Government elaborating to the Law on Personal Income Tax and the Law on amendment to the Law on Personal Income Tax; taxable income includes:

“Article 2. Taxable income

Pursuant to Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013/ND-CP, taxable incomes include:

1. Business income

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2. Employment income

Employment income means the income which an employee receives from an employer, including:

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b) Benefits and allowances, except…”

Pursuant to Official Dispatch No. 727/TCT-CS dated March 3, 2015 of the General Department of Taxation guiding corporate income tax policies.

Pursuant to Official Dispatch No. 917/TCT-TNCN dated March 17, 2015 of the General Department of Taxation guiding personal income tax policies.

Based on all regulations above, the Hanoi Department of Taxation:

- Regarding corporate income tax:

+ Employment payment of owner(s) of a single-member limited liability company (owned by an individual) regardless of level of engagement in production process shall be non-deductibles in calculation of corporate income tax in accordance with Article 4 of Circular No. 96/2015/TT-BTC.

- Regarding personal income tax:

+ Salaries and wages of owner(s) of a single-member limited liability company are incomes liable to personal income tax in accordance with Article 2 of Circular No. 111/2013/TT-BTC.

+ From January 1, 2015, profits gained by owner(s) of a single-member limited liability after paying corporate income tax shall not be liable to personal income tax.

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PP. DIRECTOR GENERAL
DEPUTY DIRECTOR




Mai Son