Is Personal Income Tax Declaration Required If No Tax Arises?

According to Point a Clause 1 Article 16 of Circular 156/2013/TT-BTC stipulating the principles of tax declaration as follows:

- Organizations and individuals paying income with tax deduction arising from personal income tax shall declare tax monthly or quarterly. In the case where in a month or quarter, organizations and individuals paying income do not incur any personal income tax deduction, they are not required to declare tax.

- Monthly or quarterly tax declaration is determined once from the first month in which tax deduction arises and is applied for the entire year. To be specific:

+ Organizations and individuals paying income with tax deduction amounting to VND 50 million or more in a month for at least one type of personal income tax return shall declare tax monthly, except for cases where organizations and individuals paying income are subject to quarterly value-added tax declaration.

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Therefore, if in the first quarter the company does not incur any tax to be paid (i.e., no employees are subject to personal income tax), then it is not required to declare personal income tax.

Respectfully!