Any tax liability arising in Vietnam is required to register personal tax code

The General Tax Office said that all individuals in Vietnam who incur personal income tax obligations must register their personal tax identification numbers and declare and pay tax in accordance with the law on personal income tax.

The Tax industry has continuously innovated to accompany and support taxpayers in Vietnam to  be able to make tax declaration, file tax declaration easily. Photo: Thuy Linh.

According to the regulations, individuals in Vietnam must register their personal tax identification numbers and make tax returns and payments.

Specifically, in case the resident individual signs the labor contract for three months or more, the organization or individual paying the income shall temporarily deduct the tax when paying the income according to the Partial Progressive Tariff after deducting the deductions as prescribed.

In case an individual residing in Vietnam does not sign a labor contract or sign a labor contract for less than three months with a total income payment of VND 2 million/time or more, the organization or individual paying the income shall temporarily deduct tax at the rate of 10% on the income before paying to the individual.

In case that the individual has only one source of income subject to tax deduction according to the above rate; however, if the total taxable income of the individuals after family circumstance deduction has not reached the taxable amount, then the individuals will submit the commitment form (in accordance with the implemented formed issued with the guidance on tax management) to the organization paying salary to make legal basis for not deducting Personal income tax.

At the end of the tax year, the individual taxpayer will be re-determined the amount of personal income tax payable by the tax year.

In case the individual taxpayer in Vietnam has a tax payable greater than the tax deducted in the tax year, the individual will have to pay the missing tax to the state budget.

However, in order to reduce administrative procedures for taxpayers and reduce the pressure to process settlement documents for tax authorities, according to the provisions of the Law on Tax Management No. 38/2019/ ND-CP and Decree 126/2020/ND-CP , personal income tax exemption must be added for individuals with additional tax payable after the final settlement of each year of VND 50,000 or less.

Individuals in Vietnam are exempt from tax in this case to determine the amount of tax exempt, not required to submit personal income tax finalization documents and not required to submit tax exemption documents.

In case the settlement period from 2019 onwards has been finalized before the effective date of Decree 126/2020/ND-CP, it shall not be handled retroactively.

In particular, for individual taxpayers in Vietnam whose tax payable is less than the tax deducted in the tax year, the individual taxpayer will be entitled to a personal income tax refund if the tax code is available at the time of submitting the tax finalization dossier.

In case an individual incurs a personal income tax refund but is late in submitting the tax finalization declaration as prescribed, the fine shall not be applied for administrative violations of tax finalization declaration beyond the time limit.

According to this Decree, where in the tax period in which individuals in Vietnam have not submitted tax settlement declarations to request tax refunds, individual taxpayers may submit tax settlement declarations to request tax refunds at any time without being handled for administrative violations of taxation.

It is known that in the past time, the Tax sector has continuously innovated to accompany and support taxpayers to be able to make tax returns, file tax returns easily and conveniently.

Specifically, for the declaration of personal income tax finalization, the Tax sector has built an application to support tax declaration (supporting to declare tax in the latest version) and provide free for taxpayers to use for many years at

Using this application, taxpayers in Vietnam will be supported to properly and fully declare each indicator on the declaration, support the calculation and determination of the tax payable in accordance with regulations, support the production of declarations so that taxpayers can submit tax declaration dossiers in the form of paper dossiers or electronic dossiers.

For individuals in Vietnam directly settling tax electronically, in addition to using the tax declaration support application mentioned above, taxpayers can declare tax directly on the Tax General Administration's web portal at

In order to submit tax declaration documents electronically, taxpayers in Vietnam need to register their electronic tax transaction accounts with the Tax authorities.

Thuy Linh

Source: Báo Hải quan Online

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