When do residents with income from wages and salaries directly file personal income tax finalization with the tax authority?
9 types of income not eligible for family circumstance deductions when calculating the latest 2024 personal income tax?
According to the provisions of Clause 1, Article 19 of the 2007 Personal Income Tax Law (amended and supplemented by Clause 4, Article 1 of the 2012 Amended Personal Income Tax Law) and Clause 4, Article 6 of the 2014 Law Amending and Supplementing a Number of Articles of Tax Laws, family circumstance deductions are amounts deducted from taxable income before calculating tax on income from salaries and wages of the taxpayer who is a resident individual.
Therefore, the following types of income will not be eligible for family circumstance deductions:
(1) Income from business activities, including:
- Income from the production and business activities of goods and services.
- Income from independent professional practice by individuals who hold licenses or practice certificates as required by law.
Note: Business income stipulated in this clause does not include the income of business individuals with annual revenues not exceeding 100 million VND.
(2) Income from capital investment, including:
- Loan interest.
- Share dividends.
- Income from other forms of capital investment, excluding income from the interest on Government bonds.
(3) Income from capital transfer, including:
- Income from the transfer of capital in economic organizations.
- Income from the transfer of securities.
- Income from other forms of capital transfer.
(4) Income from real estate transfer, including:
- Income from the transfer of land use rights and assets attached to land.
- Income from the transfer of ownership or use rights of houses.
- Income from the transfer of land lease rights and water surface lease rights.
- Other incomes received from real estate transfers in any form.
(5) Income from winnings, including:
- Lottery winnings.
- Prizes in promotions.
- Prizes in betting.
- Prizes from games, competitions with prizes, and other forms of prize-winning.
(6) Income from royalties, including:
- Income from the transfer or licensing of intellectual property rights.
- Income from technology transfer.
(7) Income from franchising.
(8) Income from inheritance such as securities, capital contribution in economic organizations, business establishments, real estate, and other assets required to be registered for ownership or use rights.
(9) Income from gifts such as securities, capital contribution in economic organizations, business establishments, real estate, and other assets required to be registered for ownership or use rights.
Under what circumstances do resident individuals with income from salaries and wages directly file personal income tax finalization with tax authorities?
Under what circumstances do resident individuals with income from salaries and wages directly file personal income tax finalization with tax authorities?
Based on Point d.3, Clause 6, Article 8 of Decree 126/2020/ND-CP, which stipulates the obligation to finalize personal income tax for individuals with income from salaries and wages who directly finalize tax with tax authorities as follows:
- Having additional tax payable or having overpaid tax to request a refund or offset into the next tax declaration period, except for the following cases:
+ Individuals with additional tax payable after finalization of each year not exceeding 50,000 VND;
+ Individuals with tax payable less than the tax already temporarily paid and do not request a refund or offset into the next tax declaration period;
+ Individuals with income from salaries and wages under labor contracts of 03 months or more with one organization while having irregular income from other places averaging not more than 10 million VND per month during the year and have had personal income tax deducted at a rate of 10% without requesting finalization for this part of the income;
+ Individuals whose employers purchase life insurance (excluding voluntary pension insurance) and other non-compulsory insurance with an accumulated premium that the employer or insurer has deducted personal income tax at a rate of 10% on the insurance premium corresponding to the amount the employer has purchased or contributed for the employee, then the employee does not need to finalize personal income tax for this part of the income.
- Individuals present in Vietnam in the first calendar year for less than 183 days, but present in Vietnam for 183 days or more in 12 consecutive months from the first day of presence in Vietnam.
- Foreign individuals who terminate their working contracts in Vietnam must finalize tax with tax authorities before leaving the country.
In cases where individuals have not yet completed tax finalization procedures with tax authorities, they can authorize the income-paying organization or other organizations/individuals to finalize tax on their behalf according to regulations on tax finalization for individuals. If the income-paying organization or other organizations/individuals are authorized to finalize tax, they must be responsible for any additional personal income tax payable or for refunding the excess tax paid by the individual.
- Resident individuals with income from salaries and wages who are eligible for tax reduction due to natural disasters, fires, accidents, or serious diseases affecting their tax payment capacity must directly finalize tax with tax authorities instead of authorizing the income-paying organization to do so.
What is the current family circumstance deduction level?
According to the provisions of Article 1 of Resolution 954/2020/UBTVQH14, the current family circumstance deduction level:
- The deduction for taxpayers is 11 million VND/month (132 million VND/year);
- The deduction for each dependent is 4.4 million VND/month.
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