What are the instructions for finalizing PIT by employees earning income from two different sources in Vietnam?

What are the instructions for finalizing PIT by employees earning income from two different sources in Vietnam?

Under point d.2, clause d, section 6, Article 8 Decree 126/2020/ND-CP and according to the guidance of the General Department of Taxation  in Vietnam in Official Dispatch 636/TCT-DNNCN of 2021, employees earning income from two different sources can finalize taxes in one of the following ways:

- Authorize the employer where they have an employment contract of 03 months or more:

Sign an employment contract of 03 months or more for one employer that they are working at the time of tax finalization.

Have an average monthly casual income in the year not exceeding VND 10 million at other places and have been deducted.

- Self-finalize the tax if they wish to self-finalize tax with casual income or when the individual no longer works at the employer that they have an employment contract of 03 months or more at the time of authorization...

What are the instructions for finalizing PIT by employees earning income from two different sources in Vietnam? (Image from the Internet)

What does the PIT finalization dossier for income from salaries and remuneration in Vietnam include?

Under subsection 1, Section 4 Official Dispatch 13762/CTHN-HKDCN of 2023 as guided by the Hanoi Tax Department, the PIT finalization dossier is as follows:

PIT finalization dossier includes:

- If an individual directly finalizes PIT with the tax authority, the PIT finalization dossier includes:

+ The PIT return made using Form No. 02/QTT-TNCN in Appendix II enclosed with Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam.

+ The list of qualifying dependents made using Form No. 02-1/BK-QTT-TNCN in Appendix II enclosed with Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam.

+ Copies (photocopies) of documents proving the PIT amount deducted, provisionally paid in the year, or paid overseas (if any). If the income payer does not issue the PIT deduction document to the taxpayer because the income payer has been shut down, the tax authority shall consider processing the taxpayer’s PIT finalization dossier based on the database of tax authorities without requesting the taxpayer to submit a PIT deduction document. In case of electronic PIT deduction document, the taxpayer shall submit the printed physical copy of the original electronic PIT deduction document provided by the income payer.

+ The copy of the PIT deduction certificate (specifying the PIT return number) issued by the income payer or the copy of a bank’s notice of overseas PIT payment which must bear the taxpayer's certification in case a foreign tax authority is not required to issue a certificate of PIT payment in accordance with the domestic law of that foreign country.

+ Copies of invoices proving the contributions to charity funds, humanitarian funds, or scholarship funds (if any).

+ Documents proving amounts paid by overseas income payer, if the taxpayer earns income from an international organization, Embassy, Consulate and other income from abroad.

+ Application for registration of dependents as prescribed in Point a Clause 3 Section III hereof (if the taxpayer claims dependency exemptions for unregistered dependents when following PIT finalization procedures).

- The PIT finalization dossier submitted by an income payer includes:

+ The PIT return made using Form No. 05/QTT-TNCN in Appendix II enclosed with Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam.

+ List of employees paying progressive PIT, made using Form No. 05-1/BK-QTT-TNCN in Appendix II enclosed with Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam.

+ List of employees paying proportional PIT, made using Form No. 05-2/BK-QTT-TNCN in Appendix II enclosed with Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam.

+ The list of employees claiming dependency exemptions, made using Form No. 05-3/BK-QTT-TNCN in Appendix II enclosed with Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam.

c) If an individual authorizes the income payer to finalized PIT, he/she shall make a letter of authorization to finalize PIT for the tax period of 2022, using Form No. 08/UQ-QTT-TNCN in Appendix II enclosed with Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam.

What is the deadline for submission of PIT finalization dossiers for 2024 in Vietnam?

Based on point a and point b, clause 2, Article 44 of the Law on Tax Administration 2019 as follows:

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 PIT 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.

The deadline for submission of PIT finalization dossiers for 2024 is determined as follows:

- For income payers: no later than March 31, 2024.

- For individuals directly finalizing taxes: April 30, 2024.