Conditions for authorizing personal income tax finalization in 2023 are regulated how?
Time Frame for Personal Income Tax Finalization for Individuals Self-Finalizing Their Taxes
Based on Clause 2, Article 44 of the 2019 Law on Tax Administration, the regulations are as follows:
Deadline for Tax Declaration Submission
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2. The deadline for submitting tax declaration dossiers for annual taxable tax types is specified as follows:
a) No later than the last day of the third month from the end of the calendar year or fiscal year for the annual tax finalization dossier; no later than the last day of the first month of the calendar year or fiscal year for the annual tax declaration dossier;
b) No later than the last day of the fourth month from the end of the calendar year for personal income tax finalization dossiers for individuals directly finalizing personal income taxes;
c) No later than December 15 of the preceding year for the tax declaration dossier of business households, individuals paying taxes using presumptive tax methods; if business households, individuals who start a business, the deadline for submitting the tax declaration dossier is no later than 10 days from the start of business.
Thus, for individuals directly finalizing their personal income taxes, the tax finalization deadline is determined as follows:
+ No later than the last day of the fourth month from the end of the calendar year.
Note: If the tax finalization submission deadline coincides with a holiday, the deadline for submitting the tax finalization dossier is the next working day.
Conditions for authorizing personal income tax finalization for 2023?
Conditions for Authorizing Personal Income Tax Finalization for 2023
The conditions for authorizing personal income tax finalization for 2023 are specified in Clause 6, Article 8 of Decree 126/2020/ND-CP, specifically, resident individuals with wage or salary income may authorize tax finalization to organizations or individuals paying their income if they fall under the following cases:
- An individual with wage or salary income signs a labor contract for 03 months or more at one place and is actually working there at the time the income-paying organization or individual finalizes the tax, even if they did not work for a full 12 months in the calendar year.
If the individual is an employee transferred from the former organization to the new organization due to merger, consolidation, division, separation, conversion of enterprise type, or if the former and new organizations are within the same system, the individual may authorize the tax finalization to the new organization.
- An individual with wage or salary income signs a labor contract for 03 months or more at one place and is actually working there at the time the income-paying organization or individual finalizes the tax, even if they did not work for a full 12 months in the calendar year; and has other casual income not exceeding 10 million VND per month on average and has had the personal income tax deducted at 10% rate if there is no request for tax finalization on this portion of income.
- A foreign individual who ends their working contract in Vietnam must declare tax finalization with the tax authority before leaving the country.
If the individual has not completed tax finalization with the tax authority, they must authorize the income-paying organization or another individual/organization to finalize the tax according to the regulations for individual tax finalization.
The income-paying organization or another individual/organization authorized to finalize taxes must be responsible for any additional personal income tax payable or the refund of any overpaid tax of the individual.
Procedures for Authorizing Personal Income Tax Finalization for 2023
According to Item d.2, Point d, Clause 6, Article 8 of Decree 126/2020/ND-CP and Official Dispatch 636/TCT-DNNCN 2021, resident individuals with wage or salary income who are authorized to finalize their taxes according to the specified cases must follow these 02 steps:
Step 1: Prepare the authorization form for tax finalization.
Download and fill out the information according to Form No. 08/UQ-QTT-TNCN, issued together with Circular 80/2021/TT-BTC.
Step 2: Send the authorization letter to the income-paying organization or individual.
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