What cases can individuals be allocated expense for paying PIT in Vietnam? What are the calculation methods of PIT allocated? What are the regulations on declaring and paying PIT?
What cases can individuals be allocated expense for paying PIT in Vietnam?
According to Clause 1, Article 19 of Circular 80/2021/TT-BTC, cases of allocation for paying PIT are as follows:
a) Deduction of PIT on income from salaries and remunerations paid at the headquarters to employees working at dependent units or business locations in other provinces.
b) Deduction of PIT on individuals' income from computerized lottery prizes.
Thus, if the employee is deducted PIT at the enterprise from his/her salary or wages, he/she is allowed to allocate personal income tax payment.
What are the calculation methods of PIT allocated in Vietnam?
Pursuant to Clause 2, Article 19 of Circular 80/2021/TT-BTC on calculation methods of expense allocation for paying PIT as follows:
Article 19. Declaring, calculating, distributing and paying personal income tax (PIT)
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2. Distribution methods:
a) Distribution of PIT on income from salaries and remunerations:
The taxpayer shall determine the PIT on salaries and remunerations of individuals working in each province according to the PIT deducted in reality from income of each individual. In case an employee is reassigned or seconded, PIT shall be paid in the province in which the employee is working at the time of income payment.
b) Distribution of PIT on individuals' income from computerized lottery prizes:
The taxpayer shall determine the PIT on income from computerized lottery prizes earned by the individual in each province where the individual participates by phone or internet and the where computerized lottery tickets are issue via terminal devices according to the PIT deducted in reality.
Thus, personal income taxpayers must base on salaries, wages and the PIT deducted in reality as prescribed in each province to determine the PIT allocated.
What are the regulations on declaring and paying tax for taxpayers having income from salaries and remunerations in Vietnam?
According to the provisions of Clause 3, Article 19 of Circular 80/2021/TT-BTC, declaring and paying tax for taxpayers having income from salaries and remunerations are as follows:
- The taxpayer that pays salaries and remunerations to employees who work at dependent units and business locations in provinces other than the province where the taxpayer is headquartered shall deduct PIT from salaries and remunerations, submit tax declaration dossiers according to Form No. 05/KK-TNCN, the PIT distribution sheet according to Form No. 05-1/PBT-KK-TNCN in Appendix II hereof to the supervisory tax authority; pay PIT in the provinces where the employees work in accordance with Clause 4 Article 12 of this Circular. PIT payable in each province shall be determined monthly or quarterly and shall not be adjusted during PIT finalization.
- The taxpayer is the income payer that deducts PIT from the individual's prize, submit the PIT declaration dossier according to Form No. 06/TNCN, the PIT distribution sheet according to Form No. 05-1/PBT-KK-TNCN in Appendix II hereof to the supervisory tax authority; pay PIT in the provinces where individual participates in computerized lottery by phone or internet and where computerized lottery tickets are distributed via terminal devices according to Clause 4 Article 12 of this Circular.
- Individuals who earn income from salaries and remunerations and have to declare tax directly to tax authorities include:
+ resident individuals whose salaries and remunerations are paid from foreign countries;
+ non-resident individuals whose salaries and remunerations are earned in Vietnam but paid from foreign countries;
+ individuals whose salaries and remunerations are paid by international organizations, Embassies, Consulates in Vietnam but PIT has not been deducted;
+ individuals receiving bonus shares from paying organizations.
The entire above contents is information on declaration, calculation and distribution for PIT. Best regard!
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