When shall certificates of personal income tax withholding be prepared in Vietnam? What is the format for e-certificate of personal income tax withholdings?

When shall certificates of personal income tax withholding be prepared in Vietnam?

According to Article 31 of Decree 123/2020/ND-CP prescribing the timing of the preparation of records as follows:

Timing for preparation of records

At the time of personal income tax withholding, tax collection, fees, charges, the organization performing personal income tax withholding, tax, fees, and charges collection must prepare a record, a receipt to be delivered to the individual whose income is subject to tax withholding, the person paying tax, fees, and charges.

At the moment the organization or individual pays income and performs the personal income tax withholding for an individual, a certificate of personal income tax withholding must be prepared.

The certificate of personal income tax withholding must be delivered to the individual whose income is subject to tax withholding.

When must certificate of personal income tax withholdings be prepared? What is the format for e-certificate of personal income tax withholdings? (Image from the Internet)

What is the format for e-certificate of personal income tax withholdings in Vietnam?

According to Article 33 of Decree 123/2020/ND-CP prescribing the format of e-records as follows:

Format of e-records

1. Format of e-receipts:

The types of receipts prescribed at point b clause 1 Article 30 of this Decree must be implemented according to the following format:

a) The format of e-receipts uses the XML record format language (XML is an abbreviation of the English term "eXtensible Markup Language" created with the purpose of sharing e-data between information technology systems);

b) The format of e-receipts includes two components: the component containing the business data of the e-receipt and the component containing digital signature data;

c) The General Department of Taxation develops and announces components containing business data of e-receipts, components containing digital signature data, and provides tools to display the contents of e-receipts as per this Decree.

2. Format of e-certificate of personal income tax withholdings:

The organization performing personal income tax withholding, when utilizing records as per point a clause 1 Article 30 of this Decree in e-form, must self-develop software systems to use e-records ensuring necessary content as per clause 1 Article 32 of this Decree.

3. e-records, e-receipts must be displayed fully and accurately so as not to cause misunderstanding and to ensure that they can be read by e-means.

The format of e-certificate of personal income tax withholdings is implemented as follows:

Organizations performing personal income tax withholding, when using certificate of personal income tax withholdings in e-form, must self-develop software systems to use e-records ensuring the mandatory content of certificate of personal income tax withholdings.

Vietnam: What does the content of certificate of personal income tax withholdings include?

According to Article 32 of Decree 123/2020/ND-CP prescribing the content of records as follows:

Content of records

1. The tax withholding record includes the following:

a) Name of the tax withholding record, code of the tax withholding record form, tax withholding record code, serial number of the tax withholding record;

b) Name, address, tax code of the payer;

c) Name, address, tax code of the taxpayer (if the taxpayer has a tax code);

d) Nationality (if the taxpayer is non-Vietnamese);

e) Income amount, time of income payment, total taxable income, amount of tax withheld; remaining income amount;

f) Date, month, year the tax withholding record is prepared;

g) Full name, signature of the income payer.

In the case of using e-tax withholding records, the signature on the e-record is a digital signature.

2. Receipt

a) Type of receipt: Receipt for tax, fee, charge collection without pre-printed face value; receipt for tax, fee, charge with pre-printed face value; receipt for tax, fee, charge collection.

b) Receipt form code and receipt code.

Receipt form code refers to information showing the type of receipt, receipt series, and order number of a type of receipt (a type of receipt may have multiple forms).

Receipt code is a distinguishing mark of a receipt by the system of Vietnamese alphabets and the last 02 digits of the year.

For custom-printed receipts, the last 02 digits of the year are the year the custom-printed receipt is printed. For self-printed and e-receipts, the last 02 digits of the year are the year the receipt starts being used as per the issuance notice or the year the receipt is printed out.

c) The receipt number is the sequence number shown on the tax, fee, charge collection receipt. The receipt number is recorded in Arabic numerals with a maximum of 7 digits. For self-printed and custom-printed receipts, the receipt number starts from 0000001. For e-receipts, the e-receipt number starts from number 1 on January 01 or the starting date of using e-receipt and ends on December 31 each year.

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The certificate of personal income tax withholding includes the following mandatory content:

- Name of the tax withholding record, record form code, tax withholding record code, serial number of the tax withholding record;

- Name, address, tax code of the payer;

- Name, address, tax code of the taxpayer (if the taxpayer has a tax code);

- Nationality (if the taxpayer is non-Vietnamese);

- Income amount, time of income payment, total taxable income, amount of tax withheld; remaining income amount;

- Date, month, year the tax withholding record is prepared;

- Full name, signature of the income payer.

In the case of using e-tax withholding records, the signature on the e-record is a digital signature.