Does the personal income tax finalization require the signature of a tax agent employee in Vietnam?

Does the personal income tax finalization require the signature of a tax agent employee in Vietnam?

Based on Article 3 of Circular 10/2021/TT-BTC, the regulation regarding tax agent employees is as follows:

Explanation of Terms

Certain terms in this Circular are defined as follows:

1. A tax agent is an enterprise or a branch of an enterprise that meets all conditions and is granted a certificate of eligibility to conduct tax procedure services.

2. Tax procedure services are activities provided by a tax agent, executing services as regulated in Clause 1, Article 104 of the Law on Tax Administration under the service contract signed with the taxpayer. Services as specified at Points a, b of Clause 1, Article 104 of the Law on Tax Administration are called tax services; services as specified at Point c of Clause 1, Article 104 of the Law on Tax Administration are called accounting services for super small enterprises.

3. A tax agent employee is a person holding a practice certificate for tax procedure services issued by the General Department of Taxation, working at a tax agent, and notified by the Tax Department as eligible to practice tax procedure services.

According to Clause 1, Article 104 of the 2019 Law on Tax Administration, regulations on providing tax procedure services are as follows:

Provision of Tax Procedure Services

1. Services provided by a tax agent to the taxpayer under contract include:

a) Procedures for taxpayer registration, tax declaration, tax payment, tax finalization, preparation of application for tax exemption, tax reduction, tax refund, and other tax procedures on behalf of the taxpayer;

b) Tax consulting services;

c) Accounting services for super small enterprises as provided for in Article 150 of this Law. Super small enterprises are defined according to legal regulations on support for small and medium enterprises.

2. A tax agent has the following rights and obligations:

a) Implement services with the taxpayer under the contract agreement;

b) Comply with the regulations of this Law, tax laws, and other relevant legal provisions when practicing tax procedure services;

c) Be responsible before the law and the taxpayer for the content of the services provided.

3. The Minister of Finance shall regulate the management of business activities of tax procedure services.

Thus, based on the above-stated provisions, there is no legal basis or specific regulation mandating that the PIT finalization declaration must have the signature of a tax agent employee.

Does the personal income tax finalization require the signature of a tax agent employee in Vietnam? (Image from the Internet)

Which income is exempted from PIT in Vietnam?

According to Article 4 of the 2007 Law on Personal Income Tax as supplemented by Clause 3, Article 2 of the 2014 Law on Amendments to Tax Laws and amended by Clause 2, Article 1 of the 2012 Amended Law on Personal Income Tax, the individual incomes exempt from PIT are specified as follows:

- Income from transferring real estate between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; siblings.

- Income from transferring residential houses, the right to use homestead land, and assets attached to homestead land of individuals in the case where they own only one residential house or one homestead land plot.

- Income from the value of land use rights assigned by the State to individuals.

- Income from inheritance or gifts that are real estate between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; siblings.

- Income of households or individuals directly engaged in agricultural, forestry, salt production, aquaculture, fishing activities that have not been processed into other products or only undergone conventional preliminary processing.

- Income from agricultural land conversion by households or individuals assigned by the State for production.

- Income from interest on deposits in credit institutions and interest from life insurance contracts.

- Income from remittances.

- The portion of night shift or overtime wages paid higher than the day shift or regular working hours wages as stipulated by law.

- Pension paid by the Social Insurance Fund; pension paid monthly by voluntary pension funds.

- Income from scholarships, including:

+ Scholarships granted from the state budget;

+ Scholarships granted by domestic and foreign organizations under their scholarship support programs.

- Income from indemnities for life insurance, non-life insurance contracts, labor accident compensations, state compensations, and other compensations as regulated by law.

- Income received from charitable funds allowed to be established or recognized by competent state agencies operating for charitable, humanitarian, non-profit purposes.

- Income received from foreign aid for charitable or humanitarian purposes in the form of governmental and non-governmental organizations approved by competent state agencies.

- Income from wages, salaries of Vietnamese crew members working for foreign shipping companies or Vietnamese shipping companies in international transport.

- Income of individuals who are ship owners or possessors, and individuals working on ships from providing goods and services directly serving offshore fishing and exploitation.

What are regulations on the PIT calculation period in Vietnam?

According to Article 7 of the 2007 Law on Personal Income Tax as amended by Clause 3, Article 1 of the 2012 Amended Law on Personal Income Tax, the PIT Calculation Period is regulated as follows:

- The tax calculation period for resident individuals is stipulated as follows:

+ Annual calculation period applies to income from business activities; income from wages, salaries;

+ Calculation period per income occurrence applies to income from capital investment; income from capital transfer, except for income from securities transfer; income from real estate transfer; winnings; royalties; franchising; inheritance; gifts;

+ Calculation period per transfer occurrence or annually for securities transfer income.

- The tax calculation period for non-resident individuals is calculated per income occurrence for all taxable income.