Who must directly settle personal income tax with the tax authority in Vietnam?

What is tax statement in Vietnam?

Pursuant to Clause 10, Article 3 of the Law on Tax Administration 2019, regulations on tax declaration are as follows:

Explanation of words

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10. “Tax statement” means the calculation of tax accrued in a tax year or over the period from the beginning of a tax year to the termination of taxable activities, or over the period during which taxable activities occur as prescribed by law.

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According to this Article in Vietnam, it can be understood that tax finalization declaration is the determination of the tax amount payable in the tax year or the period from the beginning of the tax year until the end of the activity giving rise to the tax liability or the time from the time it arises until the tax liability arises. When terminating operations, tax obligations arise according to regulations in Vietnam.

Who must directly settle personal income tax with the tax authority in Vietnam? (Image from the Internet)

Who must directly settle personal income tax with the tax authority in Vietnam?

Pursuant to Subsection 1, Section 1 of Official Dispatch 9188/CTHN-HKDCN of 2022, the subjects who must directly settle personal income tax with the tax authority are individuals with taxable income from salaries and wages, specifically as follows:

- Resident individuals with income from salaries or wages have an additional tax amount to pay, except for cases where the additional tax amount payable after tax finalization each year is 50,000 VND or less.

- Individuals with overpaid tax amounts need to request a refund or offset in the next tax declaration period.

- Resident individuals with income from salaries and wages are also considered for tax reduction due to natural disasters, fires, accidents, and serious diseases.

- Resident individuals who are foreigners and end their working contract in Vietnam must declare tax finalization with the tax authority before leaving the country.

Note: Individuals who are present in Vietnam for less than 183 days in the first calendar year, but calculated for 12 consecutive months from the first day of presence in Vietnam for 183 days or more, then the first settlement year is 12 consecutive months from the first date of presence in Vietnam.

Where do individuals submit personal income tax finalization in Vietnam?

Pursuant to Subsection 2, Section 4 of Official Dispatch 9188/CTHN-HKDCN of 2022, if an individual directly settles personal income tax with the tax authority, the place to submit tax settlement is determined as follows:

[1] Resident individuals who earn salary or wages in one place and are subject to self-declaration of taxes during the year shall submit tax finalization declaration dossiers to the tax agency where the individual directly declares taxes during the year.

- In case an individual has income from salaries or wages from 02 or more places, including cases where both income is declared directly and income is deducted by the paying organization, the individual submits an application. Tax finalization declaration at the tax agency where the largest source of income is during the year.

- In case the largest source of income in the year cannot be determined, the individual chooses where to submit the finalization dossier at the tax agency directly managing the paying organization or where the individual resides.

[2] Resident individuals with income from salaries and wages subject to payment deductions at source from two or more places shall submit a tax finalization declaration as follows:

- Individuals who have calculated family deductions for themselves at any organization or individual paying income must submit a tax finalization declaration to the tax agency directly managing the organization or individual paying that income.

- In case an individual changes his or her workplace and at an organization, the individual pays the final income with family deductions for himself/herself, then submit a tax finalization declaration dossier to the tax agency managing the organization or individual. final income payment.

- In case the individual changes the workplace and the organization, the individual pays the final income without calculating family deductions for himself/herself, then submit the tax finalization declaration dossier to the tax agency where the individual resides.

- In case an individual has not calculated family deductions for himself or herself at any income-paying organization or individual, submit a tax finalization declaration dossier to the tax office where the individual resides.

- In case the resident individual does not sign a labor contract, or signs a labor contract of less than 03 months, or signs a contract to provide services with income at one place or many places with 10% deducted, then submit the application. Declare tax finalization at the tax agency where the individual resides.

- Individuals residing during the year have income from salaries or wages in one or many places but at the time of finalization do not work at any organization or individual paying income, then the place to submit the tax finalization declaration dossier. is the tax authority where the individual resides.

[3] Resident individuals with income from salaries and wages are subject to direct personal income tax settlement with the tax authority and have a dossier requesting tax reduction due to natural disasters, fires, accidents, and serious diseases. The place to submit the tax finalization dossier is the tax agency where the individual submits the tax reduction dossier.

Best regards!