Who are exempt from PIT finalization in Vietnam in 2025?

Who must finalize personal income tax (PIT) directly in Vietnam in 2025?

Pursuant to the provisions in Subsection 1, Section 1 of Official Dispatch 883/TCT-DNNCN of 2022, individuals required to directly finalize the PIT 2025 with the tax authorities include:

[1] Resident individuals with income from wages and salaries from two or more places that do not meet the conditions for authorizing finalization as per regulations must directly declare PIT finalization with the tax authorities if there is additional tax payable or if they have overpaid and seek a refund or offset for the next tax declaration period.

[2] Individuals present in Vietnam for less than 183 days in the first calendar year, but for 183 days or more in a continuous 12-month period from the first day of presence in Vietnam, the first finalization year is the continuous 12-month period from the first day present in Vietnam.

[3] Foreign individuals terminating their contracts in Vietnam must finalize their taxes with the tax authorities before departing the country. If individuals have not finalized taxes with the tax authorities, they must authorize their income-paying organization or another organization or individual to finalize taxes according to the regulations on tax finalization for individuals. If the income-paying organization or another organization/individual receives the authorization to finalize, they must bear responsibility for any additional PIT due or any refund of overpaid tax of the individual.

[4] Resident individuals with income from wages and salaries paid from abroad and resident individuals with income from wages and salaries paid from International Organizations, Embassies, or Consulates that have not had tax withheld during the year must finalize directly with the tax authorities if there is additional tax payable or if they have overpaid and seek a refund or offset for the next tax declaration period.

[5] Resident individuals with income from wages and salaries who are eligible for a tax reduction due to natural disasters, fires, accidents, or severe illnesses affecting their tax payment capability must not authorize organizations or individuals that pay their income to finalize on their behalf, and must directly declare finalization with the tax authorities as per regulations.

Who are exempt from PIT finalization in Vietnam in 2025? 

Who are exempt from PIT finalization in Vietnam in 2025?

According to the provisions in Subsection 1, Section 2 of Official Dispatch 883/TCT-DNNCN of 2022, individuals with income from wages and salaries under the following circumstances are not required to finalize PIT 2025:

- Individuals with PIT due after finalization of 50,000 VND or less per year. These individuals are exempted from the tax in this case, self-assess the exempted tax amount, are not required to submit PIT finalization dossiers, and do not need to submit exemption dossiers. For finalization periods from 2019 and earlier that were finalized before the effective date of Decree 126/2020/ND-CP, no retroactive adjustments are made;

- Individuals with PIT payable less than the tax temporarily paid and do not request a refund or offset for the next tax declaration period;

- Individuals with income from wages and salaries with a labor contract of 3 months or more with a unit, and concurrent irregular income from other places with a monthly average not exceeding 10 million VND which has been withheld for PIT at the rate of 10%, if not requesting, do not need to finalize tax for this portion of income;

- Individuals for whom employers purchase life insurance (excluding voluntary pension), and other non-compulsory insurances with an accumulated insurance premium which the employer or insurer has deducted PIT at the rate of 10% on the premium amount correlating to the part purchased or contributed by the employer do not need to finalize PIT for this income portion.

Who is authorized to finalize PIT in Vietnam in 2025?

Pursuant to the provisions in Subsection 3, Section 1 of Official Dispatch 883/TCT-DNNCN of 2022, resident individuals with income from wages and salaries authorize their PIT finalization to the organization or individual paying their income. Specifically:

[1] Individuals with income from wages and salaries with a labor contract of 3 months or more at one place and are actually working there at the time the organization or individual paying income finalizes taxes, even if not working for a full 12 months in the calendar year.

If an individual is an employee transferred from an old organization to a new one due to merger, consolidation, division, separation, conversion of corporate type, or if the old and new organizations are within the same system, the individual may authorize tax finalization to the new organization.

[2] Individuals with income from wages and salaries with a labor contract of 3 months or more at one place and are actually working there at the time the organization or individual paying income finalizes taxes, even if not working for a full 12 months in the calendar year; concurrently having irregular income from other places with a monthly average not exceeding 10 million VND which has been subjected to PIT withholding at the rate of 10%, if not requesting to finalize tax for this income portion.

[3] After an individual has authorized tax finalization, if the income-paying organization has finalized taxes for the individual, and it is later discovered that the individual needs to directly finalize taxes with the tax authorities, the income-paying organization will not adjust the PIT finalization of the organization, only issue a tax withholding certificate to the individual according to the finalization amount and note the following at the bottom left corner of the tax withholding certificate for the individual to directly finalize taxes with the tax authorities:

"Company ... has finalized PIT on behalf of Mr./Ms. ... (as per authorization) at line (serial number) ... of Appendix Schedule 05-1/BK-TNCN"

If the organization or individual paying the income uses electronic PIT withholding certificates, the printed conversion from the original electronic PIT withholding certificate should be annotated with the above content and provided to the taxpayer.