Is benefit for senior officers a personal income tax payable in Vietnam?

Is benefit for senior officers a personal income tax payable in Vietnam?

According to Article 2 of Circular 111/2013/TT-BTC regulating taxable income as follows:

Taxable Income

According to Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable personal income includes:

1. Income from business activities

Income from business activities is income derived from production and business activities in the following fields:

a) Income from the production, business of goods, services in all areas, industries according to legal regulations such as: production, business of goods; construction; transportation; catering business; service business, including house rentals, land use rights, water surface, other assets.

b) Income from independent practice activities of individuals in fields, industries granted practicing certificates according to legal regulations.

c) Income from agricultural, forestry, salt production, aquaculture, and fishing activities that do not meet the tax exemption conditions guided in point e, clause 1, Article 3 of this Circular.

2. Income from wages, salaries

Income from wages, salaries is the income an employee receives from an employer, including:

a) Wages, salaries, and allowances in the form of money or non-monetary forms.

b) Allowances, subsidies, except for the following allowances, subsidies:

b.1) Monthly preferential subsidies and one-time subsidies according to regulations on preferential treatment for people with merits.

b.2) Monthly allowances, one-time subsidies for those participating in the resistance, national defense, international missions, young volunteers who have completed their tasks.

b.3) National defense, security allowances; allowances for armed forces.

b.4) Hazardous, dangerous allowances for sectors, professions, or jobs in environments with hazardous, dangerous factors.

b.5) Attraction allowances, regional allowances.

b.6) Unexpected hardship allowances, occupational accident allowances, one-time childbirth or adoption allowances, maternity leave policies, health restoration after childbirth, percentage-based health recovery due to labor ability reduction, one-time retirement allowances, monthly pensions, unemployment allowances, and other allowances as prescribed by the Labor Code and Social Insurance Law.

b.7) Allowances for socially protected individuals as prescribed by law.

b.8) Benefit for senior officers.

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Benefit for senior officers are not subject to personal income tax.

Is benefit for senior officers a personal income tax payable in Vietnam? (Image from the Internet)

When is personal income tax finalized annually in Vietnam?

According to the regulations in Article 28 of Decree 65/2013/ND-CP, monthly, workers will have their income temporarily deducted by the organization for tax payment According to their wages and salaries.

According to clause 1 of Article 55 of the 2019 Tax Administration Law regulated as follows:

Tax Payment Deadlines

1. In case the taxpayer calculates the tax, the tax payment deadline is the latest day of the tax declaration filing deadline. In the case of supplementary tax declarations, the tax payment deadline is the tax declaration deadline of the tax period required to be corrected.

For corporate income tax, it is paid quarterly, and the tax payment deadline is no later than the 30th of the first month of the next quarter.

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Additionally, according to clause 2 of Article 44 of the 2019 Tax Administration Law concerning the tax finalization filing deadline:

Tax Declaration Filing Deadlines

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2. The tax declaration filing deadline for annual tax returns is specified as follows:

a) The latest is the last day of the third month following the end of the calendar year or fiscal year for the annual tax finalization return; the latest is the end of the first month of the calendar year or fiscal year for the annual tax return;

b) The latest is the last day of the fourth month following the end of the calendar year for personal income tax finalization returns filed by individuals directly finalizing taxes;

c) The latest is December 15th of the previous year for business household, business individuals filing tax according to the presumptive method; for newly established business households, individuals, the latest is 10 days from the start of business operations.

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Thus, the personal income tax finalization deadline is divided into two milestones for two cases:

- The latest is the last day of the third month following the end of the calendar year or fiscal year for tax finalization returns filed by enterprises on behalf of the employees.

- The latest is the last day of the fourth month following the end of the calendar year for individual personal income tax finalization returns filed directly by the individuals.

What is the current personal income tax refund time in Vietnam?

According to Article 75 of the 2019 Tax Administration Law regulated as follows:

Tax Refund Processing Deadlines

1. For pre-refund inspection cases, no later than 06 working days from the date the tax authority notifies the acceptance of the application and the time for refund processing, the tax authority must decide on the refund to the taxpayer or notify the transfer of the taxpayer's file for pre-refund inspection according to clause 2, Article 73 of this Law, or notify no refund if the conditions are not met.

If the information declared in the tax refund application differs from the tax authority's management information, the tax authority will notify in writing for the taxpayer to explain, supplement the information. The explanation, information supplementation time is not accounted in the refund processing time frame.

2. For pre-refund inspection cases, no later than 40 days from the date the tax authority notifies in writing the acceptance of the application and the time for refund processing, the tax authority must decide on the refund to the taxpayer or notify no refund if the conditions are not met.

3. Past the deadlines specified in clauses 1 and 2 of this Article, if the delay in issuing the refund decision is due to the tax authority's fault, besides the refund amount, the tax authority must also pay interest at a rate of 0.03% per day on the refund amount and the number of delayed days. The interest payment source is covered by the central budget according to the state budget law.

Thus, the personal income tax refund time is regulated as follows:

- For pre-refund inspection cases, no later than 06 working days from the date the tax authority notifies the acceptance of the application and the time for refund processing, the tax authority must decide on the refund.

- For post-refund inspection cases, no later than 40 days from the date the tax authority notifies in writing the acceptance of the application and the time for refund processing, the tax authority must decide on the refund.