Where should individuals with taxable income from salaries and wages that require tax finalization submit their tax returns in Vietnam?

Where should individuals with taxable income from salaries and wages that require tax finalization submit their tax returns in Vietnam?

Based on Clause 8, Article 11 of Decree 126/2020/ND-CP, the location for submitting tax returns for individuals with taxable income from salaries and wages requiring personal income tax finalization is as follows:

- Individuals directly submitting monthly or quarterly tax returns as stipulated in Clause 1, Article 8 and Article 9 of Decree 126/2020/ND-CP, including:

+ Resident individuals with income from salaries and wages paid by organizations or individuals in Vietnam subject to personal income tax but for whom tax has not been withheld shall submit tax returns to the tax authority directly managing those organizations or individuals paying the income.

+ Resident individuals with income from salaries and wages paid from abroad shall submit tax returns to the tax authority managing the location where the individual performs their work in Vietnam.

In cases where the individual’s place of work is not in Vietnam, the individual shall submit tax returns to the tax authority at their residence.

- Individuals directly submitting tax finalization as stipulated in Clause 6, Article 8 of Decree 126/2020/ND-CP, including:

+ Resident individuals with income from salaries and wages at one place subject to self-declaration of tax within the year shall submit tax finalization returns at the tax authority where the individual directly submitd tax within the year as stipulated in Point a, Clause 8, Article 11 of Decree 126/2020/ND-CP.

In cases where individuals have income from salaries and wages at two or more places, including instances where they have both directly declared income and income for which organizations have withheld tax, they shall submit tax finalization returns at the tax authority where the largest income source is located within the year.

If the largest income source cannot be determined, the individual may choose to submit tax finalization returns to the tax authority managing the income-paying organization or where the individual resides.

+ Resident individuals with income from salaries and wages from multiple sources where tax is withheld at the source from two or more places shall submit tax finalization returns as follows:

Individuals who have applied dependent allowances at an income-paying organization shall submit tax finalization returns to the tax authority directly managing that organization.

In cases where individuals change jobs and apply dependent allowances at the last income-paying organization, they shall submit tax finalization returns to the tax authority managing the last income-paying organization.

In cases where individuals change jobs but do not apply dependent allowances at the last income-paying organization, they shall submit tax finalization returns to the tax authority where they reside.

In cases where individuals have not applied dependent allowances at any income-paying organization, they shall submit tax finalization returns to the tax authority where they reside.

In cases where resident individuals do not sign labor contracts, sign labor contracts of less than 3 months, or sign service provision contracts with income from one or multiple sources subject to 10% withholding, they shall submit tax finalization returns to the tax authority where they reside.

Resident individuals within the year with income from salaries and wages from one or multiple places but who, at the time of finalization, are not working at any income-paying organization, shall submit tax finalization returns to the tax authority where they reside.

Where should individuals with taxable income from salaries and wages that require tax finalization submit their tax returns in Vietnam? (Image from the Internet)

Is it possible to extend the deadline for submitting tax returns for individuals with taxable income from salaries and wages in Vietnam?

Based on Article 46 of the Tax Administration Law 2019, the regulations are as follows:

Extension of tax return submitting deadline

1. Taxpayers who are unable to submit tax returns on time due to natural disasters, disasters, epidemics, fires, or unexpected accidents may be granted an extension by the head of the direct managing tax authority.

2. The extension period shall not exceed 30 days for submitting monthly, quarterly, annual tax returns, or tax returns for each tax obligation arising; 60 days for submitting tax finalization returns from the due date of the tax return submitting.

3. Taxpayers must submit a written request for an extension to the tax authority before the tax return submitting deadline, clearly stating the reason for the extension request, with confirmation from the commune-level People's Committee or commune police where the event occurred as stipulated in Clause 1 of this Article.

4. Within 03 working days from the date of receiving the written request for an extension, the tax authority must respond in writing to the taxpayer regarding the acceptance or rejection of the extension.

Thus, individuals with taxable income from salaries and wages that require personal income tax finalization may extend the tax return submitting deadline if they are unable to submit tax returns on time due to natural disasters, disasters, epidemics, fires, or unexpected accidents.

Vietnam: What does taxable personal income from salaries and wages include?

Based on Clause 2, Article 3 of the Personal Income Tax Law 2007 amended by Clause 1, Article 1 of the Amended Personal Income Tax Law 2012, taxable personal income from salaries and wages includes the following incomes:

- Salaries, wages, and amounts of similar nature to salaries and wages;

- Allowances and subsidies, except for the following allowances and subsidies:

+ Allowances and subsidies as prescribed by law for individuals with merits;

+ National defense and security allowances;

+ Hazardous and dangerous allowances for occupations or jobs in workplaces with hazardous and dangerous factors;

+ Attraction allowances, regional allowances as prescribed by law;

+ Irregular hardship allowances, labor accident allowances, occupational disease allowances, one-time childbirth or adoption allowances, allowances for labor capacity loss, one-time pension allowances, monthly survivor allowances, and other allowances as prescribed by social insurance laws;

+ Severance allowances and job loss allowances as prescribed by the Labor Code;

+ Social protection-related allowances and other allowances and subsidies not of a salary or wage nature as prescribed by the Government of Vietnam.