Vietnam: What are the required documents for finalizing PIT on income from salaries and remunerations?

What are the required documents for finalizing PIT on income from salaries and remunerations in Vietnam?

Under Subsection 1, Section 4 of Official Dispatch 13762/CTHN-HKDCN in 2023 issued by the Hanoi Tax Department guiding the PIT finalization for the 2022 tax period as follows:

PIT Finalization Dossier:

- For individuals filing PIT finalization directly with the tax authority, the PIT finalization dossiers include:

+ PIT Finalization Declaration Form 02/QTT-TNCN issued together with Appendix 2 of Circular 80/2021/TT-BTC.

+ Appendix of personal deduction for dependents Form 02-1/BK-QTT-TNCN issued together with Appendix 2 of Circular 80/2021/TT-BTC.

+ Copies (scanned from the originals) of documents proving the taxes already withheld, temporarily paid during the year, and taxes paid overseas (if any). In cases where the income payer does not issue tax deduction certificates due to the termination of operations, the tax authority will rely on the tax sector's database to process the tax finalization dossier for individuals without requiring the tax deduction certificates.

In cases where organizations or individuals use electronic PIT deduction vouchers, taxpayers can use the printout of the electronic PIT deduction voucher (a paper version self-printed from the original electronic PIT deduction voucher sent by the income payer).

+ Copies of Tax Deduction Certificates (clearly stating which income tax declaration the tax was paid according to) issued by the income-paying agency or certified bank transcripts for the taxes paid overseas if the foreign tax agency does not issue tax payment certificates.

+ Copies of invoices and documents proving contributions to charitable funds, humanitarian funds, and education promotion funds (if any).

+ Documents proving the amounts paid by foreign paying entities for individuals receiving income from international organizations, embassies, consulates, and income from overseas.

+ A dependent registration dossier as guided at point a, clause 3, section 3 of this official dispatch (if claiming dependent deductions during tax finalization for dependents not yet registered).

- For organizations and individuals paying income, the PIT finalization dossiers are as follows:

+ PIT Finalization Declaration Form 05/QTT-TNCN issued together with Appendix 2 of Circular 80/2021/TT-BTC.

+ Detailed appendix of individuals subject to progressive tax rates Form 05-1/BK-QTT-TNCN issued together with Appendix 2 of Circular 80/2021/TT-BTC.

+ Detailed appendix of individuals subject to full tax rates Form 05-2/BK-QTT-TNCN issued together with Appendix 2 of Circular 80/2021/TT-BTC.

+ Detailed appendix of dependents for personal deduction Form 05-3/BK-QTT-TNCN issued together with Appendix 2 of Circular 80/2021/TT-BTC.

- In cases where individuals authorize the income payer to finalize tax on their behalf, the individuals should prepare a PIT Finalization Authorization Letter Form for the 2022 tax period according to Form 08/UQ-QTT-TNCN issued together with Appendix 2 of Circular 80/2021/TT-BTC.

What are the required documents for finalizing PIT on income from salaries and remunerations in Vietnam? (Image from Internet)

What are the places to submit PIT finalization dossiers in Vietnam?

Under Subsection 2, Section 4 of Official Dispatch 13762/CTHN-HKDCN in 2023, the regulations are as follows:

2. Place to submit tax finalization dossiers

The place to submit PIT finalization dossiers is specifically guided in Clause 8, Article 11 of Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam. In cases where individuals file and submit their PIT finalization forms on the website https://canhan.gdt.gov.vn, the system will support determining the tax agency finalizing Under the information related to tax obligations incurred during the year declared by the individual.

The place to submit PIT finalization dossiers is specifically determined as follows:

2.1. For income payers, the PIT finalization dossiers are submitted to the tax authority directly managing the income payer.

2.2. For individuals directly finalizing with the tax authority:

- Residents who earn salaries and wages at one place and who declare their own taxes during the year must submit their tax finalization dossiers to the tax authority where they declared their taxes during the year according to point a, Clause 8, Article 11 of Decree No. 126/2020/ND-CP. In cases where individuals have salaries and wages from two or more places, including those who have income both declared directly and withheld by paying organizations, individuals must submit tax finalization dossiers to the tax authority where the highest income was received during the year. If the highest income source cannot be determined, individuals can choose to submit the finalization dossiers at the tax authority managing the paying organization or where they reside.

- Residents who earn salaries and wages withheld at the source from two or more places must submit tax finalization dossiers as follows:

+ Individuals who have claimed personal deductions for themselves at the income payer must submit their tax finalization dossiers to the tax authority directly managing that organization. If an individual changes jobs and at the final income payer, personal deductions have been claimed for themselves, then they should submit the tax finalization dossiers to the tax authority managing the final income payer. If the individual changes jobs and at the final income payer, personal deductions have not been claimed for themselves, then tax finalization dossiers should be submitted to the tax authority where they reside. If no personal deductions for themselves have been claimed at any income payer, they should submit the tax finalization dossiers to the tax authority where they reside.

+ Residents who do not sign employment contracts, or sign contracts under 3 months, or sign service contracts with income from one or multiple places that have been subject to 10% withholding must submit tax finalization dossiers to the tax authority where they reside.

+ Residents who have income from salaries and remunerations from one or multiple places but at the finalization time are not employed at any income payer, must submit the tax finalization dossiers to the tax authority where they reside.

- Residents with income from salaries and remunerations directly finalizing PIT with the tax authority and have a request for tax reduction due to natural disasters, fire, accidents, or serious illness, must submit the tax finalization dossiers to the tax authority where they submit the tax reduction request. The tax authority processing the tax reduction request will also process the tax finalization dossiers.

...

Thus, the place to submit PIT finalization dossiers is specifically regulated as above.

When is the deadline for submitting PIT finalization dossiers in Vietnam?

According to Clause 2, Article 44 of the Law on Tax Administration 2019, the regulations are as follows:

Deadlines for submission of tax declaration dossiers

...

2. For taxes declared annually:

a) For annual tax statement dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year

b) For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;

c) For presumptive tax declarations prepared by household businesses and individual businesses: the 15th of December of the preceding year. For new household businesses and individual businesses: within 10 days from the date of commencement of the business.

...

Thus, the PIT finalization deadline in 2024 is regulated as follows:

- No later than March 31, 2024, for annual tax finalization dossiers.

- No later than May 4, 2024, for PIT finalization dossiers submitted directly by individuals.