Who is required to finalize personal income tax in Vietnam for 2025? What is the deadline for submitting the 2025 PIT finalization declaration in Vietnam?

Who is required to finalize personal income tax in Vietnam for 2025?

Pursuant to Point d Clause 6 Article 8 of Decree 126/2020/ND-CP and according to the guidelines of the Soc Trang Province Tax Department in Section 1 of Official Dispatch 154/CTSTR-KK ...Download, regulations on entities required to finalize PIT are as follows:

(1) For individuals directly finalizing taxes with the Tax Authority

- Resident individuals with income from salaries or wages from two or more sources who do not meet the conditions for authorized finalization must directly declare PIT finalization with the tax authority if there are additional taxes owed or if excess taxes previously paid are requested for refund or offset to the next tax declaration period.

- Resident individuals who are foreign nationals ending their working contracts in Vietnam must declare PIT finalization with the tax authority before exiting the country.

- Resident individuals with income from salaries or wages paid from abroad and resident individuals with income from salaries or wages paid from International Organizations, Embassies, Consulates where tax has not been deducted during the year must personally finalize directly with the tax authority.

- Resident individuals with income from salaries or wages who are subject to tax reduction due to natural disasters, fires, accidents, or severe illnesses affecting tax payment capacity must not authorize the income-paying organizations or individuals to declare on their behalf but must personally declare finalization with the tax authority as regulated.

Note: Individuals residing 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, will have their first finalization period considered as 12 continuous months from the first day of presence in Vietnam.

(2) Organizations and Individuals Providing Salaries or Wages

- Organizations and individuals providing income from salaries or wages are responsible for declaring PIT finalizations regardless of whether or not tax deduction occurs and for declaring PIT finalizations on behalf of individuals who have authorized them.

In cases where individuals authorize PIT finalization to the organization and have additional payable tax amounts after finalization of 50,000 VND or less, which are exempt, the income-paying organization must still declare the individual's income information in the PIT declaration file and not aggregate additional payable tax amounts after finalization of 50,000 VND or less.

- In cases where an employee is transferred from an old organization to a new one due to merger, consolidation, division, separation, change of business type, or where the old and new organizations are in the same system, the new organization is responsible for PIT finalization authorized by the individual for both the income paid by the old organization and for collecting tax deduction documents issued by the old income paying organization to the employee (if applicable).

- In cases where the organization or individual providing income is dissolved, bankrupt, terminated, contracts concluded, or reorganized, they must declare PIT finalization up to the point of dissolution, bankruptcy, termination of operations, or reorganization. In cases of conversion of business type (excludes state enterprises transformed into joint-stock companies), where the converted business inherits all tax obligations of the converted business, PIT finalization declaration up to the point of decision on business conversion is not required, and the business declares finalization at the end of the year.

Who is required to finalize personal income tax in Vietnam for 2025? (Image from the Internet)

What is the deadline for submitting the 2025 PIT finalization declaration in Vietnam?

Pursuant to Points a, b Clause 2 Article 44 of the Tax Administration Law 2019, the deadline for submitting PIT finalization declaration is as follows:

(1) For individuals directly finalizing taxes: The deadline for submitting the tax finalization declaration is the last day of the 4th month from the end of the calendar year.

In cases where the individual must refund PIT but delays the submission of the tax finalization declaration, administrative penalties for late tax finalization declaration submissions are not applied.

- In the event the tax finalization submission deadline coincides with official holidays, the deadline is considered the next working day following the holiday according to the Civil Code 2015

(2) For Income-Paying Organizations: The deadline for submitting the tax finalization is the last day of the third month from the end of the calendar year.

Vietnam: What does the 2025 PIT finalization declaration Include?

According to Article 43 of the Tax Administration Law 2019 and Circular 80/2021/TT-BTC, the PIT finalization declaration is outlined as follows. Furthermore, according to Subsection 1 Section 4 of Official Dispatch 13762/CTHN-HKDCN in 2023 by the Hanoi Tax Department, guidelines for PIT finalization are as follows:

(1) For individuals declaring PIT finalizations directly with tax authorities, the PIT declaration file includes:

+ Personal Income Tax finalization Declaration Form No. 02/QTT-TNCN issued with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Family Circumstance Reduction Declaration Appendix No. 02-1/BK-QTT-TNCN issued with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Photocopy (copy from original) of documents proving tax deductions, provisional payments during the year, and taxes paid abroad (if any). In cases where the income-paying organization does not issue tax deduction documents to individuals because the income payer has ceased operations, the tax authority will base finalization verification on the tax sector's dataset, not requiring tax deduction documents.

If the income-paying organization or individual uses electronic PIT deduction documents, the taxpayer will use the printed version of the electronic PIT deduction document (a paper printout by the taxpayer converted from the original electronic PIT deduction document sent by the income-paying organization to the taxpayer).

+ A copy of the Tax Deduction Certificate (specifying which tax declaration the tax was paid under) provided by the income payer, or a copy of the bank document for taxes paid abroad with taxpayer affirmation in cases where foreign law or tax authorities do not provide tax payment certificates.

+ Copies of invoices and documents proving contributions to charity funds, humanitarian funds, or scholarship funds (if applicable).

+ Documents proving amounts paid by foreign income-paying organizations, in cases where individuals receive income from international organizations, embassies, consulates, and income from abroad.

+ Dependent registration dossier as prescribed at Point g Clause 1 Article 9 of Circular 111/2013/TT-BTC amended by Article 1 of Circular 79/2022/TT-BTC (if applying deductions for dependents at the time of tax finalization for unregistered dependents).

(2) For organizations and individuals declaring income, the PIT finalization declaration includes:

+ Personal Income Tax finalization Declaration Form No. 05/QTT-TNCN issued with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Detailed Appendix for Individuals Calculating Tax by Progressive Tariff Sheet Form No. 05-1/BK-QTT-TNCN issued with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Detailed Appendix for Individuals Calculating Tax by a Flat Tax Rate Sheet Form No. 05-2/BK-QTT-TNCN issued with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

+ Detailed Appendix for Family Circumstance Reduction for Dependents Sheet Form No. 05-3/BK-QTT-TNCN issued with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.

(3) In cases where individuals authorize the income-paying organization to finalize on their behalf, they must complete the Authorization for PIT finalization Form No. 08/UQ-QTT-TNCN for the 2024 tax year, issued with Appendix 2 of Circular 80/2021/TT-BTC dated September 29, 2021, by the Ministry of Finance.