What is the sample tax finalization declaration form for personal income tax for employees finalizing personal income tax themselves in 2024 in Vietnam?

What is the sample tax finalization declaration form for personal income tax for employees finalizing personal income tax themselves in 2024 in Vietnam?

Residents having income from salaries and wages who finalize tax themselves are required to file tax finalization declaration form for personal income tax using Form 02/QTT-TNCN - Appendix 2 issued with Circular 80/2021/TT-BTC.

You can download the personal income tax finalization declaration form here.

What is the sample tax finalization declaration form for personal income tax for employees finalizing personal income tax themselves in 2024 in Vietnam? - image from internet

Who shall finalize personal income tax themselves in Vietnam?

Pursuant to Clause 6.d Article 8 of the Decree 126/2020/ND-CP, people shall finalize personal income tax themselves in Vietnam, including:

- Individuals who are residents and have income from wages and salaries from two or more sources, but do not meet the conditions for authorized tax finalization, and have an additional tax liability or excess tax paid, can request for refund or offset in the next tax period.

- Individuals who are present in Vietnam for less than 183 days in the first calendar year, but for a continuous period of 12 months from the first day of presence in Vietnam, counting from 183 days or more, the first finalization year will be a continuous 12-month period from the first day of presence in Vietnam.

- Foreign individuals who terminate their employment contract in Vietnam must finalize their tax obligations with the tax authority before departing the country. In cases where individuals have not completed the tax finalization procedure with the tax authority, they must authorize another organization or individual to finalize the tax obligations as required. In situations where another organization or individual is authorized to finalize the tax obligations, they will be responsible for any additional tax liability or tax refund for the individual.

- Individuals who are residents and have income from wages and salaries paid from abroad, as well as individuals who are residents and have income from wages and self-employment paid by international organizations, embassies, and consulates without tax deductions, and have an additional tax liability or excess tax paid in the year, can request for refund or offset in the next tax period.

- Individuals who are residents and have income from wages and salaries, and also qualify for tax reduction due to natural disasters, fires, accidents, or severe illnesses affecting their ability to pay taxes.

The determination of residents and non-residents is in accordance with Article 2 of the Law on Personal Income Tax in 2007. To be specific:

- Resident means a person who satisfies one of the following conditions:

+ Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of their presence in Vietnam;

+ Having a place of habitual residence in Vietnam, which is a registered place of permanent residence or a rented house for dwelling in Vietnam under a term rent contract.

- Non-resident means a person who does not satisfy any of the conditions for resident.

When shall a person be entitled to tax refund in Vietnam?

Pursuant to Clause 2 Article 8 of the Law on Personal Income Tax in 2007 stipulating tax refund for individuals:

Tax administration and tax refund

...

2. Individuals are entitled to tax refund in the following cases:

a/ Their paid tax amounts are larger than payable tax amounts;

b/ They have paid tax but their taxed incomes do not reach a tax-liable level;

c/ Other cases decided by competent state agencies.

Pursuant to Article 32 of the Decree 65/2013/ND-CP stipulating tax refund:

Tax refund

Individuals are entitled to tax refund in cases specified in clause 2 Article 8 of the Law on personal income tax dated November 21, 2007 and they have request for tax refund.

Procedures for and dossier of tax refund shall comply with law on tax administration.

As regulated above, individuals are entitled to tax refund in the following cases:

- Their paid tax amounts are larger than payable tax amounts;

- They have paid tax but their taxed incomes do not reach a tax-liable level;

- Other cases decided by competent state agencies.

In addition, individuals must request for tax refund to be entitled to tax refund. If individuals do not request for tax refund, they will not be entitled to tax refund.

Best regards!