What are the regulations on timing for preparing a certificate of personal income tax withholding in Vietnam? When is a certificate of personal income tax withholding issued?
What are the regulations on timing for preparing a certificate of personal income tax withholding in Vietnam?
According to the provisions in Article 31 of Decree 123/2020/ND-CP, the timing for preparing a withholding tax document is as follows:
Timing for preparing the document
At the time of personal income tax withholding, at the time of tax, fee, and charge collection, the organization withholding personal income tax, collecting tax, fees, and charges must prepare and issue the document, receipt to the income receiver who has tax withheld, the taxpayer paying taxes, fees, and charges.
Thus, the timing for preparing a certificate of personal income tax withholding is determined at the time the individual has personal income tax withheld.
What are the regulations on timing for preparing a certificate of personal income tax withholding in Vietnam? When is a certificate of personal income tax withholding issued? (Image from the Internet)
When is a certificate of personal income tax withholding issued in Vietnam?
According to the regulations on withholding documents in Clause 2, Article 25 of Circular 111/2013/TT-BTC as follows:
Withholding tax and withholding tax documents
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2. Withholding documents
a) Organizations and individuals paying income that has been withheld according to the guidance in Clause 1 of this Article must issue a withholding document at the request of the individual who has been withheld. In cases where the individual authorizes tax finalization, no withholding document is issued.
b) Issuing withholding documents in specific cases as follows:
b.1) For individuals who do not sign a labor contract or sign a labor contract for less than three (03) months: these individuals have the right to request the organization or individual paying income to issue withholding documents for each tax withholding time or issue one withholding document for multiple tax withholding times within one tax period.
Example 15: Mr. Q signs a service contract with company X to take care of ornamental plants on the company premises once a month from September 2013 to April 2014. Mr. Q’s income is paid monthly by the company, amounting to 03 million VND. In this case, Mr. Q can request the company to issue a withholding document for each month or issue one document reflecting the tax deducted from September 2013 to December 2013 and another for the time from January 2014 to April 2014.
b.2) For individuals signing a labor contract for three (03) months or more: the organization or individual paying income issues only one withholding document within one tax period.
Example 16: Mr. R signs a long-term labor contract (from September 2013 to August 2014) with company Y. In this case, if Mr. R is required to finalize tax directly with the tax authority and requests the company to issue a withholding document, the company will issue one document reflecting the tax withheld from September 2013 to December 2013 and one document for the time from January 2014 to August 2014.
Thus, certificates of personal income tax withholding are issued at the request of the individual whose tax is withheld, except in cases where the individual authorizes tax finalization. Specifically:
- For employees who do not sign a contract or sign a contract for less than 3 months:
+ Issuing certificates of personal income tax withholding for each tax withholding time;
+ Issuing one certificate of personal income tax withholding for multiple tax withholding times within one tax period.
- For employees signing a contract for 3 months or more:
Issuing only one certificate of personal income tax withholding for the employee within one tax period.
Vietnam: What contents should an electronic certificate of personal income tax withholding include?
According to the provisions in Clause 2, Article 33 of Decree 123/2020/ND-CP, regarding the format of electronic certificates of personal income tax withholding, as follows:
Format of electronic documents
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2. Format of electronic certificates of personal income tax withholding:
Organizations withholding personal income tax when using documents as prescribed in point a Clause 1 Article 30 of this Decree in electronic form should independently build software systems to use electronic documents ensuring the mandatory contents as prescribed in Clause 1 Article 32 of this Decree.
By referring to Clause 1, Article 32 of Decree 123/2020/ND-CP, the content of electronic certificates of personal income tax withholding must include the following:
Document contents
1. Withholding tax documents include the following contents:
a) Name of the withholding tax document, template symbol of the withholding tax document, symbol of the withholding tax document, serial number of the withholding tax document;
b) Name, address, tax identification number of the payer;
c) Name, address, tax identification number of the taxpayer (if the taxpayer has a tax identification number);
d) Nationality (if the taxpayer is not a Vietnamese national);
dd) Income amount, time of income payment, total taxable income, withheld tax amount; amount of income to be received;
e) Date, month, year of preparing the withholding tax document;
g) Name and signature of the income payer.
In cases of using electronic withholding tax documents, the signature on the electronic document is a digital signature.
Thus, electronic certificates of personal income tax withholding must include the contents as defined above.
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