Personal income tax finalization service in Vietnam

Personal income tax (PIT) finalization is one of the important financial obligations that employees and organizations must fulfill in accordance with the provisions of Vietnamese law. However, the tax finalization process is often complicated, requiring an understanding of legal regulations, forms and declaration methods, making it difficult for many individuals and businesses. In that context, PIT finalization service was born as an effective solution, helping to reduce pressure, save time and ensure accuracy in the fulfillment of tax obligations. The following article of Viet An Tax Agent will provide necessary information about personal income tax finalization services.

Subjects subject to personal income tax finalization in Vietnam

Individuals earning income from salaries and wages must directly finalize PIT with the tax authority without authorizing the income-paying unit to make the finalization on their behalf in the following cases:

• Individuals who meet the conditions for authorization but have already been issued a Personal Income Tax withholding certificate by the income-paying entity.
• Individuals who worked at a business under a labor contract for 3 months or more and are no longer working at that business at the time of tax finalization.
• Individuals who worked under a labor contract for 3 months or more and have occasional income that has not been taxed or has been insufficiently taxed.
• Individuals who worked under labor contracts for 3 months or more in multiple places.
• Individuals who only have occasional income that has been taxed at a rate of 10%.
• Individuals who have not registered for a tax code.
• Individuals with a tax code who need to pay additional tax or have overpaid and request a Personal Income Tax refund or offset it against the next tax declaration period.
• Foreigners who end their labor contracts in Vietnam must file tax finalization with the tax authority before exiting the country to return home.

Deadline for submission of personal income tax finalization dossiers in Vietnam

Pursuant to Clause 2, Article 44 of the Law on Tax Administration 2019, the deadline for declaring PIT finalization dossiers for income generated in 2024 is as follows: “No later than the last day of the 4th calendar month for personal income tax finalization dossiers of individuals directly finalizing tax (February 30, 2025).” At the same time, Pursuant to the provisions of Clause 5, Article 148 of the Civil Code 2025, it is stipulated that when the last day of the deadline is a weekend or a public holiday, the deadline for ending the next working day of that holiday day.

Conditions for individuals authorized to finalize PIT in Vietnam

• Individuals who only earn income from salaries or wages who sign labor contracts for 03 months or more at an income-paying organization and are actually working at that organization at the time of tax finalization, even if the individual has worked for less than 12 months in a year at the organization, at the same time, having current income in other places in other places with an average month of not more than VND 10 million in a year has been fully deducted 10% tax by the income-paying unit without requiring tax finalization for this income
• In case the income-paying organization reorganizes the enterprise (division, separation, consolidation, merger, transformation) and the employee is transferred from the old organization to the new organization formed after the reorganization of the enterprise, if the employee does not have any additional income from salaries in the year, remuneration in another place shall be authorized to finalize tax on behalf of the new organization, and the new organization shall have to collect PIT deduction vouchers issued to employees by the old organization to sum up income, deducted tax amounts and finalize PIT on behalf of employees.
• In case of transferring employees between organizations in the same system such as corporations, corporations, parent-subsidiary companies, head offices and branches, the principle of tax finalization authorization is also applied as for the case of enterprise reorganization

Determination and submission of tax finalization dossiers

• Individuals earning incomes from salaries and wages who directly declare tax in the year shall submit the tax finalization dossier to the tax authority where the individual submits the tax declaration dossier in the year
• Individuals who are calculating family circumstance deductions for themselves at any income-paying organization shall submit tax finalization dossiers to the tax agency directly managing such income-paying organization
• In case an individual changes his or her place of work and at the organization that pays the last income with family circumstance deduction, he or she shall submit the tax finalization dossier to the tax agency managing the organization that pays the last income

Individuals who submit tax finalization dossiers at the Sub-department of Taxation of the locality where the individual resides (where permanent residence or temporary residence is registered) include:

• Individuals who change their workplace and at the organization that pays the final income do not calculate the family circumstance deduction for themselves
• Individuals who have not calculated the family circumstance deduction for themselves at any income-paying organization
• Individuals who do not sign labor contracts, or sign labor contracts for less than 03 months, or sign contracts for provision of services with income in one or more places with a deduction of 10%
• Individuals in the year who earn income from salaries and wages in one or more places but at the time of finalization do not work at any income-paying organization
• In case an individual resides in many places and is subject to tax finalization at the tax authority of the locality where the individual resides, the individual shall choose a place of residence for tax finalization

What does the PIT finalization dossier include in Vietnam?

In Section 4 of Official Letter 2783/CTTPHCM-TTHT in 2024, it is clearly stated that the PIT finalization declaration dossier includes:

• For individuals declaring PIT finalization directly with tax authorities, PIT finalization dossiers
  • PIT finalization declaration form No. 02/QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC
  • Appendix to the list of family circumstance deductions for dependents, form No. 02-1/BK/QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC
  • Copies (photocopies from the originals) of documents proving the tax amount deducted, temporarily paid in the year, tax amount paid abroad (if any).
  • A copy of the tax deduction certificate (clearly stating which income tax return has been paid) issued by the income-paying agency or a copy of the bank voucher for the tax amount paid abroad certified by the taxpayer in case of compliance with the provisions of foreign law, The foreign tax authority does not issue a certificate of the paid tax amount
  • Copies of invoices and documents proving contributions to charity funds, humanitarian funds, study promotion funds (if any)
  • Documents proving the amount paid by the overseas income-paying unit or organization in the case of individuals receiving incomes from international organizations, embassies, consulates and receiving incomes from abroad
  • Dossier of registration of dependents under the guidance at Point a, Clause 3, Section III of this Official Letter (if deduction for dependents is calculated at the time of tax finalization for dependents who register dependents)
• For income-paying organizations and individuals, PIT finalization declaration dossiers
• Personal income tax finalization declaration form No. 05/QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC
• Appendix to the detailed list of individuals subject to tax calculation according to the partial progressive table form No. 05-1/BK-QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC
• Appendix to the detailed list of individuals subject to tax calculation according to the full tax rate, form No. 05-3/BK-QTT-TNCN issued together with Appendix II of Circular 8-/2021/TT-BTC
• In case an individual authorizes an income-paying organization to make a final settlement on behalf of
• Individuals make a Power of Attorney for personal income tax finalization from the tax period of 2021 according to form 08/UQ-QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC

Personal income tax finalization service of Viet An Tax Agent

• Consult clients on tax laws in general and personal income tax law in particular
• Advise clients on regulations, procedures, and documentation for personal income tax finalization
• Perform personal income tax finalization with the client’s authorization, including: preparing, completing, and submitting the tax finalization dossier to competent state authorities
• On behalf of the client, amend and supplement dossiers, and work directly with the competent authority when required
• Perform other tax finalization-related services when clients have a need

If you have any difficulties or questions related to personal income tax finalization services, please contact Viet An Tax Agent for the most specific advice.