Vietnam: What does the PIT finalization application include?

Vietnam: What does the PIT finalization application include?

Based on Article 43 of the Tax Administration Law 2019 and Circular 80/2021/TT-BTC, there are regulations regarding the application for PIT finalization declaration. Furthermore, pursuant to Subsection 1, Section 4 of Official Dispatch 13762/CTHN-HKDCN of 2023 by Hanoi Tax Department which also guides personal income tax finalization.

Based on the aforementioned regulations, the application for PIT finalization declaration includes:

(1) For persons declaring PIT finalization directly with the tax authority, the PIT finalization application includes:

+ Personal income tax finalization declaration form No. 02/QTT-TNCN issued along with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Appendix listing deductions for dependents form No. 02-1/BK-QTT-TNCN issued along with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Copies (photocopies from originals) of documents proving the withheld and temporarily paid taxes during the year, taxes paid abroad (if any). If the income-paying organization does not issue withholding documents for the individual due to cessation of operations, the tax authority considers the application based on the tax sector data without requiring withholding documents.

If income-paying organizations or persons use electronic PIT withholding documents, taxpayers use printed copies of the electronic PIT withholding documents (paper versions self-printed by taxpayers from original electronic withholding documents sent by income-paying organizations or persons).

+ Copies of Tax Withholding Certificates (specifying the tax return the tax was paid on) issued by the income-paying agency or copies of bank documents for taxes paid abroad verified by the taxpayer in cases where foreign laws do not issue tax payment confirmations.

+ Copies of invoices and documents proving contributions to charity funds, humanitarian funds, and study encouragement funds (if any).

+ Documents proving the amount paid by overseas income-paying entities, organizations in cases where persons receive income from international organizations, embassies, consulates, and receive income from abroad.

+ Dependent registration application as per point g, clause 1, Article 9 of Circular 111/2013/TT-BTC amended by Article 1 of Circular 79/2022/TT-BTC (if claiming deductions for dependents at the time of finalization for unregistered dependents).

(2) For organizations and persons paying income, the PIT finalization application includes:

+ Personal income tax finalization declaration form No. 05/QTT-TNCN issued along with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Appendix detailing persons subject to progressive tax calculation form No. 05-1/BK-QTT-TNCN issued along with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Appendix detailing persons subject to flat tax rate form No. 05-2/BK-QTT-TNCN issued along with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Appendix listing dependents for family deductions form No. 05-3/BK-QTT-TNCN issued along with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

(3) In the case of persons authorizing organizations to finalize on their behalf, the individual prepares the PIT finalization authorization form for the 2024 tax period according to form No. 08/UQ-QTT-TNCN issued along with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

Vietnam: What does the PIT finalization application include? (Image from the Internet)

When is the deadline for submitting the tax finalization application in Vietnam?

Based on point a, point b, clause 2, Article 44 of the Tax Administration Law 2019, the deadlines for submitting PIT finalization applications are as follows:

(1) For income-paying organizations: The deadline for submitting the tax finalization declaration is the last day of the 3rd month after the end of the calendar year.

(2) For persons directly finalizing tax: The deadline for submitting the tax finalization application is the last day of the 4th month after the end of the calendar year.

In cases where persons have a PIT refund request but delay submitting the tax finalization declaration, administrative fines for late submission are not applied.

- If the deadline for submitting the tax finalization application coincides with a public holiday, the deadline is extended to the next working day following the holiday, according to the provisions of the Civil Code 2015.

What are procedures for the personal income tax refund for persons who have authorized a company to finalize taxes in Vietnam?

Based on clause 2, Article 28 of Circular 111/2013/TT-BTC, the regulations on tax refunds are as follows:

Tax Refund

1. Personal income tax refunds apply to persons who have registered and have a tax code at the time of submitting the tax finalization application.

2. For persons who have authorized an organization to finalize taxes on their behalf, the individual’s tax refund is processed through the income-paying organization. The income-paying organization handles offsets for excess or deficient tax amounts among persons. After offsets, any remaining excess tax can be carried forward to the next period or refunded if there is a request for reimbursement.

3. persons filing directly with the tax authority may choose to receive a tax refund or offset the amount for the next period with the same tax authority.

4. If an individual has a PIT refund request but delays submitting the tax finalization declaration as per the regulations, administrative penalties for late submission are not applied.

Therefore, if an individual has authorized tax finalization to an organization, the tax refund is processed through the income-paying organization. Accordingly:

- The organization offsets any excess or deficient tax amounts of persons.

- After offsets, any remaining excess tax can be carried forward to the next period or refunded if there is a request for reimbursement.