Vietnam: What is the PIT declaration form - Form 02/KK-TNCN in 2024 about?

What is the PIT declaration form - Form 02/KK-TNCN in 2024 in Vietnam about?

The PIT declaration form for salary earners directly finalizing taxes with tax authoritiesis Form 02/KK-TNCN stipulated in Appendix 2 issued together with Circular 80/2021/TT-BTC as follows:

Download the PIT declaration form - Form 02/KK-TNCN here: Here

What is the PIT declaration form - Form 02/KK-TNCN in 2024 in Vietnam about? (Image from Internet)

What are the instructions for filling out the PIT declaration form - Form 02/KK-TNCN for individuals directly with the tax authority?

Instructions for completing the PIT declaration form - Form 02/KK-TNCN for salary earners directly finalizing taxes with tax authorities can be referenced as follows:

General information section:

[01] Tax period: Enter the month/quarter-year of the tax declaration period. In case of quarterly tax declaration that is not a full quarter, full details must be provided from month... to month... within the quarter of the declared tax period.

According to points a, b clause 2 Article 9 of Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam, individuals can choose to declare tax on a monthly or quarterly basis and maintain it throughout the calendar year at each tax authority. An individual who has chosen quarterly tax declaration may adjust to monthly declaration within the year if they change their choice.

[02] First time: If declaring tax for the first time, mark an “x” in the square box.

[03] Amended times: If declaring after the first time, it is considered an amendment and the number of amended declarations must be entered in the blank space. The number of amended declarations is written in natural numerical order (1, 2, 3…).

[04] Taxpayer's name: Clearly specify the individual's full name according to the tax code registration sheet or identity card/citizen identification/passport.

[05] Tax code: Clearly specify the individual's tax code according to the taxpayer registration certificate or tax notification issued by the tax authority or tax code card issued by the tax authority.

[06] Address: Clearly specify the full address of the house number, ward/commune where the individual resides.

[07] District: Specify the district, in the province/city where the individual resides.

[08] Province/City: Specify the province/city where the individual resides.

[09] Phone: Clearly specify the individual's phone number.

[10] Fax: Clearly specify the individual's fax number.

[11] Email: Clearly specify the individual's email address.

[12] Name of income-paying organization: Clearly specify the full name of the income payer(according to the establishment decision or business registration certificate or taxpayer registration certificate) where the individual receives taxable income.

[13] Tax code: Clearly specify the tax code of the income payerwhere the individual receives taxable income (if [12] is completed).

[14] Address: Clearly specify the address of the income payerwhere the individual receives taxable income (if [12] is completed).

[15] District: Clearly specify the district name of the income payerwhere the individual receives taxable income (if [12] is completed).

[16] Province/City: Clearly specify the province/city name of the income payerwhere the individual receives taxable income (if [12] is completed).

[17] Name of tax agent (if any): If the individual delegates tax declaration to a tax agent, clearly specify the full name of the tax agent according to the establishment decision or business registration certificate or taxpayer registration certificate.

[18] Tax code: Fully specify the tax code of the tax agent (if [17] is completed).

[19] Tax agent contract: Clearly specify the number and date of the active tax agent contract between the individual and the tax agent (if [17] is completed).

[20] Total taxable income accrued in the period: It is the total taxable income from salary, wages, and other taxable income of a similar nature received by the individual during the period, including income exempt from tax according to double taxation agreements (if any).

[21] Of which taxable income is exempt according to the agreement: It is the total taxable income from salary, wages, and other taxable income of a similar nature covered by double taxation agreements (if any).

[22] Total deductions: Indicator [22] = [23] + [24] + [25] + [26] + [27]

[23] For self: It’s the self-deduction according to the tax period regulations.

In case the individual submits tax declaration dossiers at different tax authorities within a tax period, the individual chooses to apply the self-family deduction at one place.

[24] For dependents: It’s the dependent deduction according to the tax period regulations.

[25] For charity, humanitarian, and educational sponsorship: According to the actual amount contributed to charity, humanitarian, and educational sponsorship during the tax period.

[26] Deductible insurance contributions: It’s the total contributions to social insurance, health insurance, unemployment insurance, professional liability insurance for certain professions according to the regulations in the tax period.

[27] Deductible voluntary pension fund contributions: It’s the total contributions to a voluntary pension fund not exceeding 1 million VND per month during the tax period.

[28] Total taxable income: Indicator [28] = [20]-[21]-[22]

[29] Total personal income tax accrued during the period: Indicator [29] = [28] x Tax rate according to the progressive tax schedule.

[30] Total taxable income: It’s the total income from salaries, wages, and other taxable income of a similar nature that non-resident individuals receive during the period.

[31] Tax rate: 20%

[32] Total personal income tax payable: Indicator [32] = [30] x 20% tax rate

Note: The above information is for reference only.

What is the case of payment of PIT in Vietnam?

According to the definition in Personal Income Tax Law 2007, personal income tax (PIT) is a compulsory contribution to the state budget for individuals with taxable income as per the PIT law.

Under Article 21 of Personal Income Tax Law 2007 (amended by clause 5 Article 1 of Law on Amendments to Law on Personal Income Tax Law 2012, Article 1 of Resolution 954/2020/UBTVQH14 on family deduction, point i clause 1 Article 25 of Circular 111/2013/TT-BTC on PIT withholding, and Article 4 of Circular 40/2021/TT-BTC:

When an individual has no dependents, they must pay income tax when the total salary income exceeds 11 million VND/month after deducting mandatory insurance contributions and other contributions like charity and humanitarian.

In certain cases where individuals do not sign employment contracts or sign employment contracts under 03 months with a total payable income of 2 million VND per instance or more, personal income tax must be paid.

Note: Individuals with taxable income according to regulations will have specific provisions for each type of income.

Moreover, PIT is not only applicable to individuals but also to business households. Business households and individuals with annual revenue from production and business activities exceeding 100 million VND are subject to PIT.