Vietnam: Answering questions about personal income tax finalization 2023? PIT finalization guidelines 2023?
Answering questions about personal income tax finalization 2023 in Vietnam?
Question 1: I am working for company B, until July 2022 I moved to company C (company C is the parent company of company B). Please ask how to settle for this school?
Answer:
According to provisions of Article 8 of Decree 126/2020/ND-CP stipulates: In case an individual being an employee is transferred from the old organization to the new organization because the old organization merges, consolidates, divides, separates or converts the type of enterprise or old organization and the new organization in the same system, the individual is authorized to finalize taxes for the new organization.
Thus, you can authorize the settlement to Parent Company to make the settlement for you.
Question 2: Does my company that does not generate salary have to submit an annual PIT finalization declaration?
Answer:
Pursuant to Point d.1, Clause 6, Article 8 of Decree 126/2020/ND-CP stipulates that in case organizations or individuals do not incur income payment, they are not required to declare personal income tax finalization.
Thus, your company does not have to declare personal income tax finalization if it does not incur salary payments, items of salary nature.
Question 3: Students who practice at the company for about 3 months, salary over 2 million VND/month, do they deduct 10% PIT or calculate it according to the progressive tax tier?
Answer:
According to Point i, Clause 1, Article 25 of Circular 111/2013/TT-BTC, organizations and individuals shall pay wages, remuneration and other expenditures to resident individuals who do not sign labor contracts (as guided at Points c, d, Clause 2, Article 2 of this Circular) or sign labor contracts for less than three (03) months with a total income payment of two million (2,000,000) VND or more/time then tax must be deducted at the rate of 10% on income before paying to the individual.
Thus, in case students practice for about 3 months and have not signed a labor contract, PIT deduction in Vietnam at the rate of 10% for payments of 2 million or more before paying to individuals.
Question 4: I have both an identity card and a citizen ID, when I check the PIT code, I find that the PIT code is not synchronous, so what should I do?
Answer: You contact the tax office to carry out the procedure of canceling the tax code of the identity card to avoid affecting your rights and obligations.
Question 5: I worked at company A for 4 months and switched to company B, so when finalizing, company A settled for 4 months or company B settled for 12 months?
Answer:
- In case company A and company B are in the same system, company B will settle 12 months' income for you.
- In case 2 companies are not in the same system, you are subject to self-finalization with tax authorities. Company A and Company B will issue you PIT withholding documents.
Question 6: Is it exempt for individuals after settlement to pay an additional amount of VND 50,000 or less?
Answer:
According to Point d.3, Clause 6, Article 8 of Decree 126/2020/ND-CP, in case an individual has an additional tax payable after finalization of VND 50,000 or less , they are exempt from tax for the additional tax payable annually after personal income tax finalization from salary and wages of VND 50,000 or less.
Question 7: I am receiving a pension of 3 million VND a month and am working at a company with a salary of 7 million VND. So do you have to declare tax finalization?
Answer:
According to Point k, Clause 1, Article 3 of Circular 111/2013/TT-BTC:
The pension shall be paid by the Social Insurance Fund in accordance with the Law on Social Insurance; pension received monthly from the Voluntary Pension Fund.
Thus, the pension amount is exempt from personal income tax. In addition, if he works and has a salary income of 7 million VND, he does not have to pay personal income tax and does not have to finalize taxes.
Question 8: If an individual signs a labor contract for more than 03 months but has only worked for 2 months, does he apply for tax deduction?
Answer:
According to Point b, Clause 1, Article 25 of Circular 111/2013/TT-BTC stipulates the deduction of income from wages and wages as follows:
For resident individuals who sign labor contracts for three (03) months or more but take time off work before the end of the labor contract, income-paying organizations and individuals shall still make tax deductions according to the Partial Progressive Tariff.
Thus, the company makes tax deductions according to the Partial Progressive Tariff.
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Vietnam: Answering questions about personal income tax finalization 2023? PIT finalization guidelines 2023?
How to finalize personal income tax online in Vietnam?
Accordingly, taxpayers make tax finalization according to detailed instructions in the article:
Guide individuals to self-finalize personal income tax online in 2023
What is the personal income tax finalization deadline in 2023 in Vietnam?
Clause 2, Article 44 of the Law on Tax Administration in Vietnam 2019 stipulates the time limit for filing tax returns for taxes with annual tax periods as follows:
- For annual tax statement dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year
- For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;
- For presumptive tax declarations prepared by household businesses and individual businesses: the 15th of December of the preceding year. For new household businesses and individual businesses: within 10 days from the date of commencement of the business.
(Because April 29 and April 30 fall on Saturdays and Sundays. Therefore, the deadline for personal income tax finalization will be moved to the first working day after the holiday period.)
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