Vietnam: What is personal income tax finalization? What is the deadline and implementation of personal income tax finalization procedures in 2022?
- When is the deadline for personal income tax finalization in Vietnam?
- Who is required to finalize personal income tax in Vietnam?
- What cases are not subject to personal income tax finalization in Vietnam?
- How is the personal income tax finalization procedure carried out in Vietnam?
- What does the personal income tax finalization file include in Vietnam?
- What is the penalty for late income tax finalization in Vietnam?
When is the deadline for personal income tax finalization in Vietnam?
Clause 2, Article 44 of the Law on Tax Administration 2019 stipulates the time limit for finalization of personal income tax (PIT) for the specific tax period as follows:
Article 44. Deadlines for submission of tax declaration dossiers
…
2. For taxes declared annually:
a) 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
b) For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;
c) 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.
Pursuant to Official Dispatch 636/TCT-DNNCN in 2021, the latest deadline for tax finalization for income received in 2021 is 02/5/2022. However, it should still be done before 30/4/2022 to avoid the case of not being able to settle in time due to the accumulation of documents.
Vietnam: What is personal income tax finalization? What is the deadline and implementation of personal income tax finalization procedures in 2022?
Who is required to finalize personal income tax in Vietnam?
Pursuant to the provisions of Point d Clause 6 Article 8 of Decree 126/2020/ND-CP and Official Dispatch 636/TCT-DNNCN in 2021, the following subjects subject to PIT finalization include:
(1) Organizations and individuals that pay wages and wages;
(2) Authorization for PIT finalization;
(3) The individual directly settles with the tax authority.
What cases are not subject to personal income tax finalization in Vietnam?
According to section d.3 point d Clause 6 Article 8 of Decree 126/2020/ND-CP and Official Dispatch 636/TCT-DNNCN in 2021, if it falls into one of the following cases, pit will not be decided:
(1) Organizations and individuals that pay income from wages and wages that do not arise to pay income are not required to declare PIT finalization.
(2) Individuals whose PIT amount must be paid additionally after the settlement of each year is 50,000 VND or less. Tax-exempt individuals in this case determine for themselves the amount of tax exempted, are not required to submit PIT finalization documents and do not have to submit tax exemption documents.
How is the personal income tax finalization procedure carried out in Vietnam?
Individuals directly finalize taxes at tax authorities
Procedures for personal income tax finalization for individuals directly finalizing tax at tax authorities include 02 steps:
Step 1: Apply
In case the resident individual has salary and wage income at a place and is subject to self-declaration during the year, he/she shall submit a tax finalization return at the tax office where the individual directly declares tax during the year.
Step 2: Receiving and processing applications
Individuals who make PIT finalization online
Tax finalization procedures for income-paying organizations and individuals
Accountants perform PIT finalization through the unit's accounting software or through the declaration support software of the General Department of Taxation.
What does the personal income tax finalization file include in Vietnam?
Pursuant to the provisions of the Appendix issued together with Decree 126/2020/ND-CP and the declaration form issued together with Circular 80/2021/TT-BTC, pit finalization dossiers are prescribed as follows:
In the case of organizations and individuals paying wages and wages
(1) Pit math theory declaration according to form 05/QTT-TNCN.
(2) Appendix to the detailed list of individuals subject to tax calculation according to the partial progressive schedule according to form No. 05-1/BK-QTT-TNCN.
(3) Appendix to the detailed list of individuals subject to tax calculation at the full tax rate according to form No. 05-2/BK-QTT-TNCN.
(4) Appendix to the detailed list of dependents for family deduction according to form No. 05-3/BK-QTT-TNCN.
In case of individuals with income from wages and wages
In case an individual has income from salary and wages, that individual directly declares tax with the tax authority
What is the penalty for late income tax finalization in Vietnam?
According to the provisions of Article 13 of Decree 125/2020 / ND-CP, depending on the time of delay in settlement, a warning or a fine may be imposed with a minimum of VND 02 million and the highest rate of VND 25 million.
In case an individual has a personal income tax refund but is late in submitting the tax finalization declaration as prescribed, no penalty shall be imposed for administrative violations of tax finalization declaration beyond the time limit.
Above is some of the information we provide to you. Best regard!
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