What are cases where employees declare personal income tax directly to tax authorities in Vietnam?

What are cases where employees declare personal income tax directly to tax authorities in Vietnam?

Based on section 1 of Official Dispatch 883/TCT-DNNCN of 2022 guiding personal income tax statement by the General Department of Taxation, individuals must self-declare personal income tax with the tax authority if they fall under the following cases:

(1) Resident individuals with income from salaries and wages from two or more places that do not meet the conditions for authorization of statement according to the regulation must directly declare personal income tax statement with the tax authority if there is additional tax payable or excess tax paid with a request for a refund or carried forward to the next tax declaration period.

(2) Individuals present in Vietnam for less than 183 days during the first calendar year, but for 183 days or more in 12 consecutive months from the first day of presence in Vietnam, will have their first statement year as the 12 consecutive months from the first day of presence in Vietnam.

(3) Foreign individuals whose work contract in Vietnam ends must declare tax statement with the tax authority before leaving the country. If the individual has not conducted tax statement with the tax authority, they must authorize the income-paying organization or another organization/individual to finalize taxes according to the regulations on individual tax statement. If the income-paying organization or another organization/individual acts on behalf of the individual, they must bear responsibility for the additional personal income tax payable or refund the excess tax paid for the individual.

(4) Resident individuals with income from wages paid from abroad and resident individuals with income from wages paid by International organizations, Embassies, or Consulates not taxed throughout the year must directly finalize with the tax authority if there is additional tax payable or excess tax paid with a request for a refund or carried forward to the next tax declaration period.

(5) Resident individuals with income from salary, wages and fall under the category for tax reduction due to natural disasters, fire, accidents, and severe illness affecting tax payment capability, should not authorize income-paying organizations or individuals to finalize taxes on their behalf but must directly declare tax statement with the tax authority according to the regulation.

What are cases where employees declare personal income tax directly to tax authorities in Vietnam? (Image from the Internet)

How to prepare the application for self-declaration of personal income tax in Vietnam?

According to clause 1 of section IV in Official Dispatch 13762/CTHN-HKDCN of 2023, guidance for applications to perform self-declaration of personal income tax is as follows:

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

- Appendix of family deduction list for dependents form No. 02-1/BK-QTT-TNCN issued with Appendix II Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.

- Copies (photos from originals) of documents proving deducted or temporarily paid tax during the year, tax paid abroad (if any). If the income-paying organization does not issue a tax deduction certificate to the individual due to ceasing operations, then the tax authority will review and process the tax statement documents based on the tax sector's database without requiring a tax deduction certificate. If the income-paying organization/individual uses electronic personal income tax deduction vouchers, the taxpayer uses a representation of the electronic personal income tax deduction voucher (a paper version self-printed by the taxpayer converting from the original electronic personal income tax deduction voucher sent by the income-paying organization/individual).

- Copy of tax deduction certificate (clearly stating tax paid for which tax declaration) issued by the income-paying authority or a copy of the bank document for tax paid abroad confirmed by the taxpayer in cases where foreign law doesn't issue a tax confirmation certificate.

- Copies of invoices or documents proving donations to charity funds, humanitarian funds, and study promotion funds (if any).

- Documents proving the amount paid by income-paying units or organizations abroad in the case of individuals receiving income from international organizations, embassies, consulates, and income from abroad.

- Registration documents for dependents according to guidance at point a, clause 3, section III of Official Dispatch 13762/CTHN-HKDCN of 2023 (if applying deductions for dependents at the time of tax statement for dependents not yet registered).

Personal income tax statement declaration form - Download

Appendix of family deduction list for dependents - Download

What is personal income tax statement in Vietnam?

According to clause 10, Article 3 of the Law on Tax Administration 2019, it is stipulated as follows:

Terminology explanation

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10. Tax statement declaration is the determination of the payable tax amount of the tax year or the period from the beginning of the tax year to the cessation of activities incurring tax obligations or the period from when obligations arise to the cessation of activities incurring obligations according to the regulation of law.

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Thus, personal income tax statement can be understood as the undertaking to determine the tax amount an individual must pay for the tax year through tax statement declaration.

Tax statement allows verifying the entire volume, and validity of the data within the taxes for individuals conducting tax statement.