How to write form 05/KK-TNCN - Personal income tax declaration for income from salaries, wages in Vietnam?

What is the Form 05/KK-TNCN - Personal income tax declaration for income payers in Vietnam?

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

Download form 05/KK-TNCN: Here

Note:

- This declaration applies only to organizations and individuals that occur in paying income from salaries and wages for individuals within the month/quarter, regardless of whether tax deduction arises or not.

- Monthly tax declaration is applied to income payers with total sales of goods and service provision from the previous year exceeding 50 billion Dong or in case organizations or individuals choose to declare taxes monthly.

- Quarterly tax declaration applies to income payers with total sales of goods and service provision from the previous year not exceeding 50 billion Dong, including entities not generating sales from goods and service provision.

How to write form 05/KK-TNCN - Personal income tax declaration for income from salaries, wages in Vietnam? (Image from Internet)

How to write Form 05/KK-TNCN - Personal income tax declaration for income from salaries, wages in Vietnam?

Below is detailed guidance on writing form number 05/KK-TNCN following Circular 80/2021/TT-BTC:

First: For general information

[01] Tax period: Record according to the month, year or quarter, year of the tax declaration implementation period. In the case of monthly tax declaration, cross out the quarter; for quarterly tax declaration, cross out the month. (Tax period is monthly or quarterly. Check the existence on the monthly/quarterly declaration).

[02] First time: If it is the first tax declaration, mark "x" in the square.

[03] Supplementary number: If declared after the first time, this is identified as supplementary declaration and the supplementary declaration number is written into the square.

[04] Name of taxpayer: Clearly and fully record the name of the organization or individual paying income according to the Establishment Decision or Business Registration Certificate or taxpayer registration certificate.

[05] Tax identification number: Clearly and fully record the tax identification number of the organization or individual paying income according to the taxpayer registration certificate or Tax Code Notification or Tax Code Card issued by the tax authority.

[06], [07], [08] Address: Clearly and fully record the organization or individual's headquarters' address paying income according to the Business Registration Certificate, or permanent address (for individuals) registered with the tax authority.

[09], [10], [11] Phone, fax, email: Clearly and fully record the phone number, fax number, email address of the organization or individual paying income (leave blank if none).

[12] Tax agent name (if any): If the organization or individual paying income authorizes tax declaration to a Tax Agent, clearly, fully record the name of the Tax Agent according to the establishment decision or business registration certificate of the Tax Agent.

[13] Tax identification number: Clearly and fully record the tax identification number of the Tax Agent according to the taxpayer registration certificate or Tax Code Notification or Tax Code Card issued by the tax authority.

[14] Tax agent contract: Clearly and fully record the number, date of the tax agent contract between the income-paying organization or individual and the Tax Agent (current valid contract).

[15] Allocation of tax due to having a dependent accounting unit in a provincial locality different from headquarters: If applicable, mark "x" in the square.

Second: For declaring the criteria of the table

[16] Total number of employees: Is the total number of individuals receiving income from salaries and wages that the organization or individual paid income for in the period.

[17] Resident individuals with labor contracts: Is the total number of resident individuals receiving income from salaries and wages according to labor contracts of 03 months or more that the organization or individual paid income for in the period.

[18] Total number of individuals with tax deducted: Indicator [18] = [19] + [20].

[19] Resident individuals: Is the number of resident individuals with income from salaries and wages that the organization or individual paid income for, from whom tax has been deducted.

[20] Non-resident individuals: Is the number of non-resident individuals with income from salaries and wages that the organization or individual paid income for, from whom tax has been deducted.

[21] Total taxable income paid to individuals: Indicator [21] = [22] + [23].

[22] Resident individuals: Are the taxable income amounts from salaries, wages and other taxable incomes with the nature of salaries, wages that the organization or individual paid to resident individuals in the period.

[23] Non-resident individuals: Are the taxable income amounts from salaries, wages and other taxable incomes with the nature of salaries, wages that the organization or individual paid to non-resident individuals in the period.

[24] Total taxable income from life insurance or other voluntary insurance premiums of an insurer not established in Vietnam for employees: Is the amount of money that the organization or individual paying income buys life insurance, other voluntary insurance accumulating on insurance premiums of an insurer not established in Vietnam for employees.

[25] Total taxable income exempt under petroleum contract provisions: Declare total taxable income exempt under provisions of petroleum contract (if incurred).

[26] Total taxable income paid to individuals subject to tax deduction: Indicator [26] = [27]+[28].

[27] Resident individuals: Are the taxable income amounts from salaries, wages and other taxable incomes with the nature of salaries, wages that the organization or individual paid to resident individuals subject to tax deduction within the period.

[28] Non-resident individuals: Are the taxable income amounts from salaries, wages and other taxable incomes with the nature of salaries, wages that the organization or individual paid to non-resident individuals subject to tax deduction within the period.

[29] Total personal income tax deducted: Indicator [29] = [30] + [31].

[30] Resident individuals: Is the amount of personal income tax that the organization or individual paying income deducted from resident individuals in the period.

[31] Non-resident individuals: Is the amount of personal income tax that the organization or individual paying income deducted from non-resident individuals in the period.

[32] Total personal income tax deducted on life insurance premiums or other voluntary insurance of an insurer not established in Vietnam for employees: Is the total personal income tax that the organization, individual paying income deducted on the insurance premiums of life insurance, other voluntary insurance accumulating on insurance premiums of an insurer not established in Vietnam for employees. Indicator [32] = [24] x 10%.

What are cases of exemption of the personal income tax declaration in Vietnam?

According to Clause 3 Article 7 of Decree 126/2020/ND-CP (amended by Clause 2 Article 1 of Decree 91/2022/ND-CP), cases where it is not necessary to submit a personal income tax declaration include:

Case 1:

Individuals with income exempt from tax as specified by the personal income tax law and provisions at point b Clause 2 Article 79 of Tax Administration Law 2019 except for individuals receiving inheritance, gifts being real estate; real estate transfer.

Case 2:

Taxpayers temporarily suspend activities, businesses according to provisions in Article 4 of Decree 126/2020/ND-CP.

Case 3:

Taxpayers submit documentation terminating the taxpayer identification number except in cases of terminating activities, terminating contracts, reorganizing enterprises according to Clause 4 Article 44 of Tax Administration Law 2019.

Case 4:

The person declaring personal income tax is an organization, individual paying income subject to monthly, quarterly personal income tax declarations in months, quarters where no personal income tax deduction of income recipients arises.

Note: It is not required to submit a personal income tax declaration if there is no income payment or personal income tax deduction in that month/quarter.

However, in practice, it is advisable to submit a blank declaration to avoid having to explain the lack of submission of a personal income tax declaration.