In 2025, in which cases are individuals required to conduct their own personal income tax (PIT) finalization in Vietnam?

In 2025, in which cases are individuals required to conduct their own personal income tax (PIT) finalization in Vietnam? (Image from the Internet)

1. In 2025, in which cases are individuals required to conduct their own personal income tax (PIT) finalization in Vietnam?

According to Point d.3, clause d, Clause 6, Article 8 of Decree 126/2020/ND-CP and Official Dispatch 636/TCT-DNNCN in 2021, individuals must self-declare personal income tax if they are in one of the following cases:

- Resident individuals with income from wages and salaries must directly declare and settle personal income tax with tax authorities in the following cases:

+ There is additional tax payable, or an overpaid tax amount to request a refund or carry forward to the next tax declaration period, except in the following cases:

++  Individuals  with  additional  tax  payable  of  50,000  VND  or  less  after  annual  tax  settlement.

++  Individuals  whose  payable  tax  is  less  than  the  prepaid  tax  amount  and  do  not  request  a  refund  or  to  carry  forward  to  the  next  tax  declaration  period.

++  Individuals  with  income  from  wages  under  a  labor  contract  of  three  months  or  more  at  one  entity,  and  having  additional  freelance  income  averaging  no  more  than  10  million  VND  per  month,  which  has  already  been  subjected  to  a  personal  income  tax  deduction  at  a  rate  of  10%  without  a  request  for  settlement  for  this  income.

++  Individuals  whose  life  insurance  (excluding  voluntary  retirement  insurance)  and  non-compulsory  insurance  premiums  bought  by  the  employer  have  been  deducted  personal  income  tax  at  10%  on  the  insurance  premium,  the  income  derived  from  these  insurances  need  not  be  settled  by  the  employee.

+ Individuals present in Vietnam for less than 183 days during the first calendar year, but 183 days or more within 12 consecutive months from their first day in Vietnam.

+ Foreign individuals concluding their employment contracts in Vietnam must declare and settle tax with tax authorities before departure. If tax settlement procedures have not been completed, authority may be delegated to the entity paying the income or another organization or person to settle taxes as per individual tax settlement regulations. The authorized entity must be responsible for any additional personal income tax payable or refund of overpaid tax for the individual.

+ Resident individuals with income from wages and salaries eligible for tax reduction due to natural disasters, fires, accidents, or serious illness impacting tax payment ability must directly declare and settle taxes with tax authorities without delegating authority to income-paying entities or individuals.

Thus, individuals qualifying under the aforementioned categories must personally settle personal income tax with tax authorities and cannot delegate this responsibility to income-paying entities or individuals.

2. Guidance on self-declaration of personal income tax returns directly

- Documents required for preparation:

According to subsection 1, Section IV of Official Dispatch 13762/CTHN-HKDCN in 2023, the personal income tax declaration dossier for individuals directly declaring salary and wage income taxes with tax authorities includes:

+ Personal income tax finalization return form No. 02/QTT-TNCN, issued with Appendix II of Circular 80/2021/TT-BTC.

+ Appendix of the dependent deduction list form No. 02-1/BK-QTT-TNCN, issued with Appendix II of Circular 80/2021/TT-BTC.

If the income-paying organization ceases operations and does not provide tax deduction certificates, the tax authority may use the tax sector’s data to process the individual’s tax settlement dossier without requiring deduction certificates.

In case the income-paying organization or person utilizes electronic personal income tax deduction certificates, taxpayers can use printed versions of these electronic deduction certificates (printed by taxpayers from the original electronic certificates sent by the income-paying party).

+ A copy of the tax deduction certificate (clearly stating the tax declared) issued by the income-paying agency or a copy of the bank document for tax paid abroad with taxpayer confirmation in cases where the foreign tax authority does not issue tax payment certificates as per foreign regulations.

+ Copies of invoices and documents proving donations to charity, humanitarian, or scholarship funds (if applicable).

+ Documents proving the payment amounts by foreign income-paying entities if the individual receives income from international organizations, embassies, consulates, and from abroad.

+ Documents registering dependents as per instructions at point a, clause 3, section III of Official Dispatch 13762/CTHN-HKDCN in 2023 (if calculating deductions for dependents at the time of tax finalization for dependents not yet registered).

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