Individuals with taxable income from salaries and wages must make personal income tax finalization. Individuals can make their own settlement or authorize an organization to make a settlement on their behalf. In order to support and accompany organizations and individuals, Viet An Tax Agent advises and guides personal income tax finalization service in Vietnam as follows.
Identify subjects who must finalize personal income tax
- Resident individuals with income from salaries and wages are responsible for declaring tax finalization if there is additional tax to be paid.
- Individuals with overpaid tax amounts can request a refund or offset in the next tax declaration period.
- Resident individuals earning incomes from salaries or wages are eligible for tax reduction due to natural disasters, fires, accidents, or fatal diseases.
- Foreigners who terminate their working contracts in Vietnam must make tax finalization declarations with tax authorities before leaving the country.
Determine the deadline for submitting personal income tax finalization documents
- Individuals who have tax amounts to pay have an additional deadline to submit tax finalization documents no later than March 30 of the following year.
- Individuals who have overpaid tax and request a tax refund or tax offset in the next tax declaration period can submit their application at any time from the end of the tax year.
Conditions for an individual to be authorized to finalize personal income tax for an organization
- Individuals who only have income from salaries or wages sign a labor contract of 3 months or more at an income-paying organization and are actually working at that organization at the time of authorization for tax finalization, including in cases where individual works for less than 12 months in a year at an organization, and at the same time has current income elsewhere in the year with an average monthly income of no more than 10 million VND, the income-paying unit has fully deducted 10% tax without requiring tax finalization for this income.
- In case the income-paying organization carries out the enterprise reorganization (dividing, splitting, merging, acquisition, transforming) and the employees are transferred from the old organization to the new organization formed after the reorganizing the enterprise if in the year the employee does not have any additional income from salary or wages at another place, he/she may authorize the new organization to settle tax on behalf of the new organization, the new organization must collect the documents. PIT deduction issued by the old organization to the employee to aggregate income withheld tax amount, and PIT on behalf of the employee.
- In case of transferring employees between organizations in the same system such as a group, Corporation, Parent-Subsidiary Company, Head Office, or Branch, the same principle of QTT authorization as in case of business reorganization.
Determined to submit tax finalization documents
- If an individual has income from salary or wage that directly declares tax during the year, the place to submit the tax finalization dossier is the tax agency where the individual submits the tax declaration dossier during the year.
- Individuals who are calculating family deductions for themselves at any income-paying organization must submit tax finalization documents to the tax agency directly managing that income-paying organization.
- In case an individual changes his/her workplace and the organization that pays the final income with family deductions for himself/herself, submit the tax finalization dossier to the tax agency managing the organization that pays the final income.
Individuals submit tax finalization documents at the Tax Department where the individual resides (place of permanent or temporary residence registration), including:
- Individuals who change their place of work and the organization that pays their final income do not count family deductions for themselves.
- Individuals have not calculated family deductions for themselves at any income-paying organization.
- Individuals who do not sign a labor contract, or sign a labor contract for less than 3 months, or sign a service provision contract with income at one place or many places have deducted 10%.
- Individuals in the year who have income from salaries or wages at one place or many places but at the time of settlement 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 office where the individual resides, the individual shall choose a place of residence for tax finalization.
Prepare personal income tax finalization documents
- Tax finalization declaration form No. 02/QTT-TNCN issued together with Circular No. 80/2021/TT-BTC.
- Appendix form No. 02-1/BK-QTT-TNCN issued together with Circular 80/2021/TT-BTC if there is registration of family circumstance-based deduction for dependents.
- Photocopies of documents proving the amount of tax deducted, temporarily paid in the year, or tax paid abroad (if any). The individual commits to be responsible for the accuracy of the information on that photocopy. In case the income-paying organization fails to issue tax withholding documents to individuals because the income-paying organization has ceased to operate, the tax authority shall base on the tax branch’s database to consider and process the final settlement dossier. Tax for individuals without requiring tax deduction documents.
- Photocopies of invoices and documents proving contributions to charity funds, humanitarian funds, and study promotion funds in the tax year (if any).
- In case an individual receives income from international organizations, embassies, or consulates and receives income from abroad, there must be documents proving the amount paid by the unit or organization paying the income abroad.
- Individuals submit personal income tax finalization declaration XML files via the system http://canhan.gdt.gov.vn/ then send hard documents to the place where tax finalization dossiers are submitted.
Personal income tax finalization service of Viet An Tax Agent:
- Advise customers on tax laws in general and personal income tax laws in particular;
- Advise customers on regulations, procedures, and documents on personal income tax finalization;
- Perform personal income tax finalization with customer authorization, including preparing, completing, and submitting finalization documents to competent state agencies;
- On behalf of customers, amend and supplement documents, directly work with competent authorities when required;
- Perform other tax finalization-related services when customers need them.
Customers who need legal advice, and support in terms of procedures related to personal income tax finalization in particular and other tax areas, please contact Viet An Tax Agent to Get timely advice and support!