What is the place for submission of the application for personal income tax self-settlement in Vietnam?

What is the place for submission of the application for personal income tax self-settlement in Vietnam?

According to Subsection 2.2, Section 4 of Official Dispatch 883/TCT-DNNCN in 2022 providing guidelines on personal income tax settlement issued by the General Department of Taxation, the place to submit personal income tax settlement documents for individuals who self-declare taxes with the tax authority is specified as follows:

- Resident individuals with wage and salary income at one place and who declare taxes themselves during the year shall submit tax settlement documents to the tax office where the individual directly declared taxes in the year according to the month or quarter.

In cases where individuals have wage and salary income from two or more places, including cases where there is both directly declared income and income for which tax has been deducted by the paying organization, the individual shall submit the tax settlement documents to the tax office where the highest source of income was received during the year.

In cases where the highest income source during the year cannot be determined, the individual may choose to submit the tax settlement documents to the tax office managing the paying organization or the place where the individual resides.

- Resident individuals with wage and salary income subject to tax deduction at source from two or more places shall submit tax settlement documents as follows:

+ Individuals who have calculated personal family deductions at the paying organization or individual shall submit tax settlement documents to the tax office directly managing that paying organization or individual.

In cases where an individual changes their place of work and the final paying organization implements the family deduction, the individual shall submit the tax settlement documents to the tax office managing the final paying organization.

In cases where an individual changes their place of work and the final paying organization does not implement the family deduction, the individual shall submit the tax settlement documents to the tax office where they reside.

In cases where an individual has not calculated family deductions at any paying organization or individual, they shall submit the tax settlement documents to the tax office where they reside.

+ Resident individuals who do not sign a labor contract, or sign a labor contract for less than 03 months, or sign a service provision contract, have income from one place or multiple places where 10% has been deducted, shall submit the tax settlement documents to the tax office where they reside.

+ Resident individuals who have wage and salary income from one place or multiple places during the year but do not work at the final payment organization at the time of finalization shall submit tax settlement documents to the tax office where they reside.

- Resident individuals with wage and salary income subject to direct personal income tax settlement with the tax office and have tax reduction requests due to natural disasters, fires, accidents, or serious illnesses shall submit the tax settlement documents to the tax office where they submitted the tax reduction request. The tax office handling the tax reduction documents is responsible for processing the tax settlement documents as prescribed.

- In cases where individuals declare and submit individual income tax settlement forms via the website https://canhan.gdt.gov.vn, the system has a function to support the identification of the tax settlement office based on the information related to the tax obligations arising during the year declared by the individual.

What is the place for submission of the application for personal income tax self-settlement in Vietnam? (Image from the Internet)

What is the deadline for submission of the application for personal income tax self-settlement in Vietnam?

According to Section 5 of Official Dispatch 883/TCT-DNNCN in 2022 providing guidelines on personal income tax settlement issued by the General Department of Taxation, the guidance is as follows:

- In cases of self-assessment of personal income tax, the deadline for submitting tax settlement documents is no later than the last day of the 04th month from the end of the calendar year.

If an individual has a personal income tax refund arising but submits the tax settlement declaration late, no penalty will be applied for the administrative violation of late tax settlement .

- If the deadline for submitting tax settlement documents coincides with a statutory holiday, the deadline is the next working day following the holiday, as prescribed by the Civil Code 2015.

In which cases shall individuals self-assess personal income tax in Vietnam?

According to Section 1 of Official Dispatch 883/TCT-DNNCN in 2022 providing guidelines on personal income tax settlement issued by the General Department of Taxation, individuals must self-assess personal income tax with the Tax authority if they fall under the following cases:

- Resident individuals with wage and salary income from two or more places who do not meet the conditions for authorization of finalization as prescribed must directly declare personal income tax settlement with the tax office if there is additional tax payable or tax overpayment requesting a refund or carryover to the next tax declaration period.

- Individuals present in Vietnam for less than 183 days in the first calendar year, but present in Vietnam for 183 days or more within 12 consecutive months from the first day of presence in Vietnam, will have their first finalization year calculated from the 12 consecutive months from the first day of presence in Vietnam.

- Foreign individuals terminating employment contracts in Vietnam must declare tax settlement with the tax office before leaving the country.

In cases where an individual has not completed tax settlement with the tax office, they may authorize the income-paying organization or another organization or individual to finalize taxes according to the regulations on tax settlement for individuals.

If the income-paying organization or another organization or individual is authorized to finalize taxes, they must take responsibility for the additional personal income tax payable or the refund of overpayment for the individual.

- Resident individuals with wage and salary income paid from abroad, and resident individuals with wage and salary income paid from International organizations, Embassies, and Consulates that have not deducted taxes during the year, must finalize directly with the tax office if there is additional tax payable or tax overpayment requesting a refund or carryover to the next tax declaration period.

- Resident individuals with wage and salary income subject to tax reduction assessment due to natural disasters, fires, accidents, or serious illnesses affecting their tax payment capability shall not authorize the income-paying organization or individual to finalize taxes on their behalf but must directly declare tax settlement with the tax office as prescribed.