Form 02/KK-TNCN Personal Income Tax Declaration according to Circular 80
Form 02/KK-TNCN Personal Income Tax Declaration According to Circular 80?
Based on Form 02/KK-TNCN, Appendix 2, List of tax declaration forms issued together with Circular 80/2021/TT-BTC stipulating the form of personal income tax declaration.
Note: Form 02/KK-TNCN personal income tax declaration applies to resident individuals and non-resident individuals with income from wages and salaries directly declaring tax to the tax authority.
Form 02/KK-TNCN personal income tax declaration according to Circular 80? (Image from Internet)
Who are the subjects liable for personal income tax?
Based on Article 2 of the Law on Personal Income Tax 2007 defining the subjects liable to tax:
Subjects liable to tax
- Individuals liable to personal income tax are resident individuals with taxable income as stipulated in Article 3 of this Law arising within and outside the territory of Vietnam and non-resident individuals with taxable income as stipulated in Article 3 of this Law arising within the territory of Vietnam.
- A resident individual is someone who meets one of the following conditions:a) Being present in Vietnam for 183 days or more in a calendar year or within 12 consecutive months from the first day of arrival in Vietnam;b) Having a regular place of residence in Vietnam, including having a registered permanent residence or a rented house to stay in Vietnam according to a lease contract with a term.
- A non-resident individual is someone who does not meet the conditions stipulated in Clause 2 of this Article.
According to the above regulations, subjects liable for personal income tax are resident individuals with taxable income arising within and outside the territory of Vietnam and non-resident individuals with taxable income arising within the territory of Vietnam.
Who must directly finalize personal income tax?
Based on Clause 6, Article 8 of Decree 126/2020/ND-CP amended by Clauses 3, 4, 5, Article 1 of Decree 91/2022/ND-CP regulating types of taxes declared monthly, quarterly, annually, per each arising tax obligation, and tax finalization:
Types of taxes declared monthly, quarterly, annually, per each arising tax obligation, and tax finalization...6. Types of taxes, collections declared annually and finalized at the time of dissolution, bankruptcy, termination of operations, termination of contracts or reorganization of enterprises.In the case of conversion of the type of enterprise (excluding state-owned enterprises equitized), where the converted enterprise inherits all tax obligations of the converted enterprise, no tax finalization is required until the decision on conversion is issued, and the enterprise finalizes taxes at the end of the year. Specifically:a) Resource tax.b) Corporate income tax (excluding corporate income tax from capital transfers of foreign contractors; corporate income tax declared according to the rate-based method on turnover arising per occasion or monthly as stipulated in point d, Clause 4 of this Article). Taxpayers must self-determine the quarterly provisional corporate income tax to be paid (including provisional allocation of the corporate income tax to provinces where they have dependent units, business locations, or real estate transfers different from the head office) and deduct the provisional tax paid from the annual tax finalization.Taxpayers required to prepare quarterly financial statements according to the Accounting Law base the provisional corporate income tax to be paid on the quarterly financial statements and tax laws.Taxpayers not required to prepare quarterly financial statements according to the Accounting Law base the provisional corporate income tax on the quarterly production and business results and tax laws....
Therefore, the subjects who must directly finalize personal income tax include:
[1] Resident individuals having income from salaries or wages from two or more places who do not meet the conditions for authorization to finalize tax and have additional tax payable or wish to claim tax refund or offset excess tax for the next declaration period.[2] Individuals present in Vietnam in the first calendar year for less than 183 days, but present for 183 days or more within 12 consecutive months from the first day of arrival in Vietnam, then the first finalization year is 12 consecutive months from the first day of arrival in Vietnam.[3] Foreign individuals ending their working contract in Vietnam must finalize tax with the tax authority before leaving the country. If the individual has not finalized tax with the tax authority, they can authorize the income paying organization or another individual/organization to finalize the tax. If the income paying organization or other individual/organization accepts the authorization, they are responsible for any additional tax payable or tax refund of the individual.[4] Resident individuals with income from wages or salaries paid from abroad and resident individuals with income from wages or salaries paid by International organizations, Embassies, Consulates without tax deductions during the year having additional tax payable or wishing to claim a tax refund or offset excess tax for the next declaration period.[5] Resident individuals with income from wages or salaries subject to tax reduction due to natural disasters, fires, accidents, severe diseases affecting their tax payment ability.
