Deadline for personal income tax finalization in 2025 for individuals directly settling taxes in Vietnam
What is the deadline for personal income tax finalization in 2025 for individuals directly settling taxes in Vietnam?
Based on Section 5 of Official Dispatch 883/TCT-DNNCN 2022 guiding the deadline for submitting tax finalization declaration dossiers:
V. DEADLINE FOR SUBMITTING TAX FINALIZATION DECLARATION DOSSIERS
Based on the provisions at points a and b, Clause 2, Article 44 of the Tax Administration Law No. 38/2019/QH14 of the National Assembly, the deadline for declaring, submitting personal income tax finalization dossiers is as follows:
- For income-paying organizations: The deadline for submitting tax finalization declaration dossiers is no later than the last day of the third month from the end of the calendar year.
- For individuals filing directly: The deadline for submitting tax finalization dossiers is no later than the last day of the fourth month from the end of the calendar year. In cases where individuals have a personal income tax refund but submit the tax finalization declaration late, no penalty is applied for late submission of tax finalization declarations.
- In cases where the deadline for submitting tax finalization dossiers coincides with a holiday according to regulations, the submission deadline is considered the next working day after the holiday according to the Civil Code.
According to the above provisions, the deadline for personal income tax finalization for individuals filing directly is no later than the last day of the fourth month from the end of the calendar year.
Therefore, the deadline for the personal income tax finalization for the year 2025 for individuals filing directly is May 2, 2025. (as April 30 and May 1 are public holidays).
Deadline for personal income tax finalization in 2025 for individuals directly settling taxes in Vietnam (Image from the Internet)
What is taxable income from wages and salaries for non-resident individuals in Vietnam?
Based on Article 26 of the Personal Income Tax Law 2007 regulating tax on income from wages and salaries:
Article 26. Tax on Income from Wages and Salaries
- Tax on income from wages and salaries of non-resident individuals is determined by the taxable income from wages and salaries stipulated in clause 2 of this Article multiplied by the tax rate of 20%.
- Taxable income from wages and salaries is the total wage and salary income that a non-resident individual receives for work performed in Vietnam, regardless of the place paying the income.
Thus, taxable income from wages and salaries for non-resident individuals is defined as the total wage and salary income that a non-resident individual receives for performing work in Vietnam, regardless of the place paying the income.
Who is required to pay personal income tax in Vietnam?
Based on Article 2 of the Personal Income Tax Law 2007 stipulating tax subjects:
Article 2. Tax Subjects
- The subjects required to pay personal income tax are resident individuals with taxable incomes stipulated in Article 3 of this Law arising within and outside the territory of Vietnam, and non-resident individuals with taxable income stipulated in Article 3 of this Law arising within the territory of Vietnam.
- A resident individual is a person who meets one of the following conditions:
a) Is present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day present in Vietnam;
b) Has a regular place of residence in Vietnam, including a registered place of permanent residence or a rented house in Vietnam according to a term lease.
- A non-resident individual is a person who does not meet the conditions stipulated in clause 2 of this Article.
According to these regulations, the subjects required to pay personal income tax include:
[1] Resident individuals with taxable income arising within and outside the territory of Vietnam
Note: A resident individual is someone who meets one of the following conditions:
- Is present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day present in Vietnam
- Has a regular place of residence in Vietnam, including a registered place of permanent residence or a rented house in Vietnam according to a term lease
[2] Non-resident individuals with taxable income arising within the territory of Vietnam
