Is there Official Dispatch 154/CTSTR-KK regarding personal income tax finalization for the tax period of 2024 in Vietnam?

Is there Official Dispatch 154/CTSTR-KK regarding personal income tax finalization for the tax period of 2024 in Vietnam?

On February 10, 2025, the Tax Department of Soc Trang Province issued Official Dispatch 154/CTSTR-KK providing guidance on the personal income tax finalization for the tax period of 2024.

See details of Official Dispatch 154/CTSTR-KK regarding the personal income tax finalization for the tax period of 2024... Download

In Section 1 of Official Dispatch 154/CTSTR-KK, the Tax Department of Soc Trang Province provides guidance on the entities required to finalize Personal Income Tax (PIT) as follows:

(1) For individuals directly finalizing tax with the Tax authority

- Resident individuals with income from salaries or wages from two or more places who do not meet the conditions to authorize tax finalization as prescribed must directly file PIT finalization with the Tax authority if they have additional tax payable or wish to claim a tax refund or offset into the next tax declaration period.

- Resident individuals who are foreigners ending their work contract in Vietnam must file PIT finalization with the Tax authority before leaving the country.

- Resident individuals with income from salaries or wages paid from abroad and those with income from international organizations, embassies, and consulates not deducted in the year must finalize directly with the Tax authority.

- Resident individuals with income from salaries or wages who are eligible for tax reduction due to natural disasters, fires, accidents, or severe illness affecting their ability to pay taxes shall not authorize entities or individuals paying income to finalize on their behalf; they must directly file finalization with the Tax authority as prescribed.

Note: Individuals present in Vietnam under 183 days within the first calendar year, but 183 days or more in 12 consecutive months starting from the first day of presence in Vietnam, the first finalization year is 12 consecutive months from the first day of presence in Vietnam.

(2) Organizations and individuals paying income from salaries and wages

- Organizations and individuals paying income from salaries and wages are responsible for filing PIT finalizations regardless of whether tax deduction arises and finalizing on behalf of individuals who have authorized. If an individual authorizes PIT finalization to an organization and has additional tax payable after finalization of 50,000 VND or less and is exempt from tax, the organization, individual paying income still declares the information of that individual on the PIT finalization declaration of the organization and does not aggregate the amount of additional tax due from individuals with additional tax payable of 50,000 VND or less after finalization.

- In cases where an individual employee (NLD) is transferred from an old organization to a new organization due to mergers, consolidations, splits, separations, transformation of enterprise types, or if both the old and new organizations belong to the same system, the new organization is responsible for PIT finalization as authorized by the individual for income paid by both the old and new organizations, and the new income paying organization retrieves PIT deduction certificates previously issued to the NLD from the old income paying organization (if any).

- If an organization or individual paying income dissolves, goes bankrupt, ceases operations, terminates contracts, or reorganizes the enterprise, they must file PIT finalizations up to the time of such events. In the cases of transformation of enterprise types (excluding equitization of state enterprises) where the transforming enterprise inherits all tax obligations of the enterprise being transformed, it is not required to file PIT finalizations up to the time of the transformation decision; the enterprise files the finalizations at the end of the year.

Is there Official Dispatch 154/CTSTR-KK regarding personal income tax finalization for the tax period of 2024 in Vietnam? (Image from Internet)

When shall tax finalization for the 2024 tax period be authorized in Vietnam?

According to Section 3 of Official Dispatch 154/CTSTR-KK ... Download, individuals can authorize PIT finalization to organizations or individuals paying income under the following circumstances:

- Individuals with income from salaries or wages who have signed labor contracts of 3 months or more at one place and are actually working there at the time the organization, individual paying income performs the tax finalization, even if not working full 12 months in the calendar year. In the case of individuals who are employees transferred from an old to a new organization due to mergers, consolidations, splits, separations, transformation of enterprise types, or if both old and new organizations belong to the same system, individuals can authorize PIT finalization to the new organization.

- Individuals with income from salaries or wages who have signed labor contracts of 3 months or more at one place and are actually working there at the time the organization, individual paying income performs the finalization, even if not working the full 12 months in the calendar year; concurrently receiving casual income elsewhere not exceeding 10 million VND monthly on average and have been deducted PIT at a rate of 10% if they do not request tax finalization for this income.

Note: in cases where individuals have income from salaries or wages signing labor contracts of 3 months or more at one entity, and concurrently have casual income which is not yet deducted or inadequately deducted (including cases where it does not meet the deduction threshold and cases where it meets the deduction threshold but not deducted), they are not allowed to authorize organizations or individuals paying income to perform tax finalization on their behalf.

- Individuals who are foreigners ending their work contract in Vietnam and have not completed PIT finalization with the Tax authority shall authorize income-paying organizations or other organizations or individuals to finalize tax according to the regulations on PIT finalization for individuals. Should the income-paying organization or another organization or individual receive the authorization to finalize tax, they must be responsible for the additional PIT payable or refund the overpaid tax to the individual.

What are the procedures for personal income tax finalization for the 2024 tax period in Vietnam?

According to Section 5 of Official Dispatch 154/CTSTR-KK ... Download, the Tax Department provides guidance on the procedures for PIT finalization for 2024 as follows:

(1) Tax finalization declaration documents

- The PIT finalization declaration documents for 2024 shall follow the guidance at point b of subclause 9.2 and point b of subclause 9.9, clause 9 of Appendix 1 issued together with Decree 126/2020/ND-CP on October 19, 2020, stipulating the PIT finalization declaration documents.

- The form for the PIT finalization declaration is as follows per Circular 80/2021/TT-BTC dated September 29, 2021, specifically:

+ For organizations paying income:

++ Form 05/QTT-TNCN for the tax finalization declaration;

++ Appendix 05-1/BK-QTT-TNCN (if any);

++ Appendix 05-2/BK-QTT-TNCN (if any);

++ Appendix 05-3/BK-QTT-TNCN (if any);

+ For individuals directly finalizing tax:

++ Form 02/QTT-TNCN for the tax finalization declaration;

++ Appendix 02-1/BK-QTT-TNCN (if any).

++ Accompanying documents as specified at point b of subclause 9.2, clause 9, Appendix 1 issued together with Decree 126/2020/ND-CP dated October 19, 2020 (if any).

- Data files should be imported and exported by taxpayers using the declaration support software (HTKK) in *.XML format or declared online on the e-Tax website at http://thuedientu.gdt.gov.vn.

(2) Supplemental declaration for PIT finalization documents

- In cases where organizations or individuals file supplements that do not change the tax obligation, they are only required to submit an Explanatory form for supplemental declaration and relevant documents without submitting a supplemental declaration.

- If organizations or individuals have not submitted the annual PIT declaration documents, taxpayers must file supplemental declarations for erroneous data in monthly or quarterly declarations, incorporating the supplemental data into the annual PIT declaration documents.

- If organizations or individuals have submitted the annual PIT declaration documents:

+ For individuals directly declaring and finalizing taxes, they only need to file supplemental annual PIT declaration documents.

+ For organizations or individuals paying income from salaries and wages, they must simultaneously file supplemental annual PIT declaration documents and supplemental monthly or quarterly declarations where errors occurred correspondingly.