Question:
Some employees in our company believe that the company does not allow delegation of PIT settlement, so we have issued PIT deduction certificates (Form CTT56) to employees for them to settle on their own. Most employees can do the settlement themselves, but some employees, when settling at tax offices, are required to provide a Yearly Income Confirmation Letter (in the form of Form 20/TXN-TNCN), according to Circular No. 20/2011/TT-BTC dated February 28, 2011, issued by the Ministry of Finance. According to the instructions, this letter is only meant for individuals with income from international organizations, embassies, consulates, and foreign income.
I would like to ask:
1. Is the request from the tax offices for additional confirmation letters (Form 20/TXN-TNCN) reasonable?
2. Can domestic businesses provide this confirmation letter?
3. If domestic businesses can provide the confirmation letter, can they provide both the PIT deduction certificate and the confirmation letter at the same time?
Answer:
In accordance with Point b, Clause 3, Article 21 of Circular No. 92/2015/TT-BTC dated June 15, 2015, issued by the Ministry of Finance, providing guidance on certain amendments and supplements to personal income tax (PIT) regulations in the law amending and supplementing some articles of tax laws No. 71/2014/QH13 and Decree No. 12/2015/ND-CP dated February 12, 2015, of the Government detailing the implementation of laws amending and supplementing some articles of tax laws (applicable to tax periods from 2015 onward), amending and supplementing Point 2 of Article 16 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance, which provides guidance on PIT. The regulations stipulate the required documents for PIT settlement:
In the case of a resident individual with income from salary or wages not subject to delegation of tax settlement to an organization, they shall settle their taxes directly with the tax authorities based on the prescribed documents and procedures in Section b.2.1 of Point b.2, Clause 3b, Article 21 of Circular No. 92/2015/TT-BTC.
