Is a certificate of personal income tax withholding issued in the case of an individual authorizing tax finalization in Vietnam?

Is a certificate of personal income tax withholding issued in the case of an individual authorizing tax finalization in Vietnam?

Based on Clause 2, Article 4 of Decree 123/2020/ND-CP, the regulations are as follows:

Principle of preparing, managing, and using invoices and records

1. When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods and services are used for promotion, advertising, sample goods; goods and services used for gifts, donations, exchanges, payments in place of salary for employees, and internal consumption (except for internally circulated goods to continue the production process); exporting goods under forms of lending, borrowing or returning goods) and must fully record the content specified in Article 10 of this Decree. In the case of using electronic invoices, it must comply with the data format standard stipulated by the tax authority as provided in Article 12 of this Decree.

2. When withholding personal income tax, collecting taxes, fees, and charges, the tax withholding organization, fee-collecting organization, and tax-collecting organization must issue a tax withholding certificate, tax receipt, fee, and charge receipt to the person whose income is subject to tax withholding, the taxpayer, fee, and charge payer and must fully record the content as stipulated in Article 32 of this Decree. In the case of using electronic receipts, it must comply with the data format standard stipulated by the tax authority. In the case of individuals authorizing tax finalization, a certificate of personal income tax withholding is not issued.

For individuals who do not sign labor contracts or sign labor contracts under three months, the organization or individual paying the income can choose to issue a tax withholding certificate for each tax withholding instance or issue a single tax withholding certificate for multiple tax withholding instances in a tax period. For individuals signing labor contracts for three months or more, the organization or individual paying the income only issues one tax withholding certificate within a tax period.

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For individuals authorizing tax finalization, no certificate of personal income tax withholding is issued.

Is a certificate of personal income tax withholding issued in the case of an individual authorizing tax finalization in Vietnam? (Image from the Internet)

What are prohibited acts of tax officials in invoices and records in Vietnam?

Based on Article 5 of Decree 123/2020/ND-CP, the regulations are as follows:

Prohibited acts in the field of invoices and records

1. For tax officials

a) Causing trouble or difficulties for organizations and individuals coming to purchase invoices and records;

b) Actively cover up or collude with organizations and individuals to use illegal invoices and records;

c) Accepting bribes while inspecting and examining invoices.

2. For organizations and individuals selling and providing goods and services, organizations and individuals with related rights and obligations

a) Conducting fraudulent acts such as using illegal invoices, using invoices illegally;

b) Obstructing tax officials from performing their duties, specifically actions that harm the health and dignity of tax officials while inspecting and examining invoices and records;

c) Unauthorized accessing, altering, or destroying the information system about invoices and records;

d) Offering bribes or taking other actions related to invoices and records for illegitimate gains.

Tax officials are strictly prohibited from performing the following acts in the field of invoices and records:

- Causing trouble or difficulties for organizations and individuals coming to purchase invoices and records;

- Actively covering up or colluding with organizations and individuals to use illegal invoices and records;

- Accepting bribes while inspecting and examining invoices.

When are individuals entitled to request a certificate of personal income tax withholding in Vietnam?

Based on Article 25 of Circular 111/2013/TT-BTC (amended by Clauses 1 and 2, Article 20 of Circular 92/2015/TT-BTC), individuals are entitled to request a certificate of personal income tax withholding if subjected to tax withholding under one of the following cases:

- Withholding for non-resident individual income.

- Withholding for income from wages and salaries.

- Withholding for income from acting as insurance agents, lottery agents, multi-level marketing; income from renting property to businesses or economic organizations.

- Withholding for income from capital investment.

- Withholding for income from securities transfer.

- Withholding for income from transferring capital contributions of non-resident individuals.

- Withholding for income from winnings.

- Withholding for income from royalties, franchise fees.

- Withholding for other cases (withholding 10% at source before paying income).

In specific cases, the issuance of a certificate of personal income tax withholding is regulated as follows:

+ For individuals not signing labor contracts or signing labor contracts under three months: Individuals have the right to request the organization or individual paying the income to issue a certificate for each tax withholding instance or issue one certificate for multiple tax withholding instances within a tax period.

+ For individuals signing labor contracts for three months or more: The organization or individual paying the income only issues one tax withholding certificate within a tax period.