How to fill in Criterion 16 on the monthly personal income tax declaration in Vietnam?

What is the Form for personal income tax declaration applicable to income payers in Vietnam?

The personal income tax declaration form for income from salaries and wages is Form 05/KK-TNCN issued together with Circular 80/2021/TT-BTC, and it is as follows:

Download Form 05/KK-TNCN: Here

Note:

- This declaration is only applicable to organizations and individuals generating income payments from salaries and wages to individuals within a month/quarter, regardless of whether tax withholding arises or not.

- Monthly tax declaration applies to organizations and individuals paying income with total revenue from goods and services sales in the preceding year exceeding VND 50 billion or when the organization/individual chooses monthly tax declaration.

- Quarterly tax declaration applies to organizations and individuals paying income with total revenue from goods and services sales in the preceding year of VND 50 billion or less, including those not generating revenue from goods and services sales.

How to fill in Criterion 16 on the monthly personal income tax declaration in Vietnam? (Image from the Internet)

How to fill in Criterion 16 on the monthly personal income tax declaration in Vietnam?

According to the annotation guide in Form 05/KK-TNCN issued together with Circular 80/2021/TT-BTC:

- Criterion [16] Total number of employees: This is the total number of individuals with income from salaries and wages paid by the organization, individual in the period.

This means in the quarter (or month) income is paid to how many people -> Enter that total number of personnel. (including temporary workers, probation, contract workers, collaborators...)

How much is the fine for late submission of a personal income tax declaration in Vietnam?

According to the provisions of Article 13 of Decree 125/2020/ND-CP regulating penalties for late submission of tax declarations corresponding to the delay period and arising tax amount as follows:

- Warning for submitting tax declaration documents past the deadline from 01 to 05 days with mitigating circumstances. (In this case, no monetary penalty will be imposed)

- A monetary fine ranging from VND 2,000,000 to VND 5,000,000 for submitting tax declaration documents past the deadline from 01 to 30 days, except for the case specified in clause 1 Article 13 of Decree 125/2020/ND-CP.

- A monetary fine ranging from VND 5,000,000 to VND 8,000,000 for submitting tax declaration documents past the prescribed deadline from 31 to 60 days.

- A monetary fine ranging from VND 8,000,000 to VND 15,000,000 for one of the following acts:

+ Submitting tax declaration documents past the prescribed deadline from 61 to 90 days;

+ Submitting tax declaration documents past the prescribed deadline from 91 days or more but no payable tax arises;

+ Not submitting tax declaration documents but no payable tax arises;

+ Not submitting appendices as prescribed on tax management for enterprises with related transactions accompanying corporate income tax settlement documents.

- A monetary fine ranging from VND 15,000,000 to VND 25,000,000 for submitting tax declaration documents more than 90 days late from the deadline date of submission, with payable tax arising, and the taxpayer has fully paid the tax amount and late payment interest to the state budget before the tax authority announces a decision to check or inspect the tax or before the tax authority records the act of late tax declaration submission as prescribed in clause 11 Article 143 of the Law on Tax Administration 2019.

Furthermore, individuals or organizations in violation are forced to implement corrective measures as follows:

- They must pay the full late payment interest on the tax amount into the state budget for violations specified in clauses 1, 2, 3, 4, and 5 Article 13 of Decree 125/2020/ND-CP in case the taxpayer submits tax documents late leading to late tax payment.

- They must submit tax documents and appendices accompanying tax declaration documents for the acts specified in point c, d clause 4 Article 13 of Decree 125/2020/ND-CP.

Note: The above monetary penalty is applicable to organizations. The penalty rate for individuals is 1/2 of that for organizations.