Vietnam: What are the regulations on the form of personal income tax finalization declaration for individuals who finalize tax themselves?
Where is the location receiving personal income tax declaration dossiers?
Pursuant to Article 45 of the 2019 Law on Tax Administration in Vietnam stipulating as follows:
Receiving authorities
1. Taxpayers shall submit tax declaration dossiers at their supervisory tax authorities.
2. Receiving authorities of tax declaration dossiers submitted through the single-window system shall be specified by the regulations of the single-window system.
3. Receiving authorities of customs dossiers of exports and imports are specified by the Law on Customs.
4. The Government shall specify receiving authorities of tax declaration dossiers submitted by:
a) A taxpayer who has more than one business activities;
b) A taxpayer who is running business in more than one administrative division; tax declared upon incurrence
c) Taxpayers who incur tax on revenue from land; grant of the right to water resource extraction or mineral extraction;
d) Taxpayers who have to complete their own personal income tax returns;
dd) Taxpayers who declare tax electronically, and other cases.
Thus, taxpayers shall submit personal income tax declaration dossiers at their supervisory tax authorities.
Vietnam: What are the regulations on the form of personal income tax finalization declaration for individuals who finalize tax themselves?
What are the regulations on the form of personal income tax finalization declaration for individuals who finalize tax themselves?
The form of personal income tax finalization declaration form for salary earners is form 02/QTT-TNCN issued together with Circular No. 80/2021/TT-BTC as follows:
Download the form of personal income tax finalization for salary earners: Click here.
Who is responsible for the annual personal income tax finalization declaration in Vietnam?
Pursuant to Point d, Clause 6, Article 8 of Decree No. 126/2020/ND-CP as follows:
Taxes declared monthly, quarterly, annually, separately; tax finalization
...
6. The following taxes and amounts shall be declared annually and finalized when an enterprise is dissolved, shuts down, terminates a contract or undergoes rearrangement. In case of conversion (except equitized state-owned enterprises) where the enterprise after conversion inherits all tax obligations of the enterprise before conversion, tax shall be finalized at the end of the year instead of the issuance date of the decision on conversion. Tax shall be finalized at the end of the year):
...
d) Personal income tax for salary payers; salary earners that authorize salary payers to finalize tax on their behalf; salary earners that finalize tax themselves. To be specific:
d.1) Salary payers shall finalize tax on behalf of authorizing individuals, whether tax is deducted or not. Tax finalization is not required if an individual does not earn any income. In case an employee is re-assigned to a new organization after the old organization is acquired, consolidated, divided or converted, or to a new organization that is in the same system as the old organization, the new organization shall finalize tax as authorized by such employee, including the income paid by the old organization, and collect documents about deduction of personal income tax issued by the old organization to the employee (if any).
d.2) A resident salary earner may authorize the salary payer to finalize tax if:
The salary earner has an employment contract with duration of at least 03 months and is working for the salary payer in reality when the tax is finalized by the salary payer, even if the salary earner has not worked for full 12 months in the year. In case the salary earner is reassigned to a new organization as prescribed in Point d.1 of this Clause, he/she may authorize the new organization to finalize tax.
The salary earner has an employment contract with a duration of at least 03 months and is working for the salary payer in reality when tax is finalized by the salary payer, even if the salary earner has not worked for full 12 months in the year, and earns an average monthly irregular income not exceeding 10 million VND which on which 10% personal income tax has been deducted and does not wish to have this income included in the tax finalization dossier.
d.3) A resident salary earner shall directly submit the personal income tax finalization dossier to the tax authority in the following cases:
Tax is underpaid or overpaid and the individual claims a refund or has it carried forward to the next period, unless: the tax arrears is not exceeding 50.000 VND; the amount of tax payable is smaller than the amount provisionally paid but the individual does not claim a refund or does not have it carried forward to the next period; the individual has an employment contract with a duration of at least 03 months and earns an average monthly irregular income not exceeding 10 million VND which on which personal income tax has been deducted at 10% and does not wish to have this income included in the tax finalization dossier; the individual’s life insurance (except voluntary retirement insurance) or any other voluntary insurance with insurance premium accumulation is purchased by the individual’s employee and 10% personal income tax on the part purchased or contributed by the taxpayer.
The individual has been present in Vietnam for fewer than 183 days in the first calendar year but more than 183 days in 12 consecutive months from the arrival date.
An individual that is a foreigner whose employment contract in Vietnam has ended shall submit a tax finalization dossier to the tax authority before exit or authorize the income payer or another organization or individual to prepare and submit the tax finalization dossier as per regulations. The income payer or the authorized organization/individual must pay tax arrears if tax is underpaid or will receive a refund in case tax is overpaid.
Resident salary earners who are eligible for tax reduction due to a natural disaster, fire, accident or serious illness shall finalize tax themselves instead of authorizing income payers to perform this task.
Thus, according to the above regulations, there are 03 entities responsible for making personal income tax finalization declaration in Vietnam:
- Salary payers;
- Salary earners that authorize salary payers to finalize tax on their behalf;
- Salary earners that finalize tax themselves.
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