What are 03 cases of authorization for personal income tax finalization in Vietnam in 2025?

What are 03 cases of authorization for personal income tax finalization in Vietnam in 2025?

Based on point d.2, clause 6, Article 8 of Decree 126/2020/ND-CP and sub-item 1, Section 3 of Official Dispatch 154/CTSTR-KK of 2025 from the Tax Department of Soc Trang Province Download, individual residents earning income from salaries and wages are allowed to authorize the finalization of personal income tax to organizations or individuals paying the income in the following three cases:

- Case 1: Individuals who have income from salaries or wages and have signed a labor contract of 3 months or more at one place and are physically working there at the time the organization or individual paying the income carries out the tax finalization, including cases where they do not work a full 12 months in a calendar year. In cases where the individual is an employee transferred from an old organization to a new organization due to mergers, consolidations, divisions, separations, or changes in the type of enterprise, or if the old and new organizations are within the same system, the individual can authorize the new organization to finalize the tax.

- Case 2: Individuals employed under a labor contract of 3 months or more at one place and actually working there at the time the organization or individual paying income conducts the tax finalization, even in cases of not working for the full 12 months in the calendar year; simultaneously earning irregular income elsewhere with a monthly average not exceeding 10 million dong and having had personal income tax (PIT) withheld at a rate of 10% unless there is a request for tax finalization on this income.

Note: In cases where the individual has income from salaries or wages under a labor contract of 3 months or more with one entity and also has irregular income which has not been tax-withheld or the withholding is insufficient (including cases where it is not subject to withholding and those subject to withholding but not withheld), they are not authorized to have the organization or individual paying income finalize the tax on their behalf.

- Case 3: Foreign individuals concluding their work contract in Vietnam and have not carried out tax finalization with the tax authority may authorize the income-paying organization or other organizations or individuals to finalize the tax according to regulations on tax finalization for individuals. The entity receiving authorization for tax finalization from the income-paying organization or another must shoulder the responsibility for any additional PIT payable or obtain a refund of overpaid taxes for the individual.

What is the Form for Personal Income Tax Finalization Authorization in 2025?

The form for the 2025 Personal Income Tax Finalization Authorization is form 08/UQ-QTT-TNCN, Appendix II issued along with Circular 80/2021/TT-BTC.

Form 08/UQ-QTT-TNCN, Personal Income Tax Finalization Authorization Form is as follows:

>>> Download Form 08/UQ-QTT-TNCN: Personal Income Tax Finalization Authorization Download

What are 03 cases of authorization for personal income tax finalization in Vietnam in 2025? (Image from Internet)

Which entity is exempt from personal income tax finalization in Vietnam in 2025?

Based on Section II of Official Dispatch 154/CTSTR-KK of 2025 from the Tax Department of Soc Trang Province Download, guidelines for entities exempted from personal income tax finalization are as follows:

(1) For individuals with income from salaries and wages:

- Individuals with a personal income tax liability post-finalization of each year of 50,000 dong or less. Individuals exempt from tax in this case self-determine the exempted tax amount, are not required to submit personal income tax finalization documents, and do not need to submit a tax exemption file. For finalization periods from 2019 and earlier, finalized before the effective date of Decree 126/2020/ND-CP, there is no retrospective adjustment;

- Individuals whose payable personal income tax is less than the tax already paid without requesting a refund or offsetting against the next taxable period;

- Individuals earning income from salaries and wages under a labor contract of 3 months or more at one entity, concurrently with irregular income elsewhere with a monthly average not exceeding 10 million dong and having had PIT withheld at 10% rate, if there is no request, there is no need to finalize tax on this income;

- Individuals whose employers purchase life insurance (excluding voluntary retirement insurance), other non-mandatory insurance with accumulated premiums where employers or insurers have withheld PIT at a 10% rate on the insurance premium corresponding to the part employers purchase or contribute for employees do not need to finalize PIT on this income.

(2) For organizations or individuals paying income from salaries and wages:

Organizations or individuals paying income from salaries and wages are not required to finalize PIT if they: have not incurred income payments during the year; temporarily cease operation or trade for the entire calendar year.