Who must directly finalize personal income tax for the year 2024 in Vietnam?

Who must directly finalize personal income tax for the year 2024 in Vietnam?

Based on point d clause 6 Article 8 of Decree 126/2020/ND-CP on personal income tax settlement, there are 05 following subjects who are required to directly finalize personal income tax for the year 2024, including:

[1] Resident individuals with income from two or more sources that do not meet the conditions for authorized settlement and have additional tax to pay or excess tax to be refunded or offset against the next tax period.

[2] Individuals present in Vietnam for less than 183 days in the first calendar year, but present continuously for 12 consecutive months from the first day of presence in Vietnam for 183 days or more, the first settlement year is 12 consecutive months from the first day of presence in Vietnam.

[3] Foreign individuals terminating employment contracts in Vietnam settle tax with the tax authority before leaving the country. In case the individual has not settled tax with the tax authority, they shall authorize the organization paying income or other organizations, individuals to settle tax as prescribed. In case the organization paying income or other organizations, individuals receive authorization to settle tax, they shall be responsible for the additional personal income tax to be paid or the excess tax to be refunded by the individual.

[4] Resident individuals with income from wages, salaries paid from abroad and resident individuals with income from wages, salaries paid by international organizations, embassies, consulates without tax deduction in the year having additional tax to pay or excess tax to be refunded or offset against the next tax period.

[5] Resident individuals with income from wages, salaries simultaneously eligible for tax reduction due to natural disasters, fires, accidents, serious illnesses affecting the ability to pay tax.

Who must directly finalize personal income tax for the year 2024 in Vietnam? (Image from the Internet)

Who is eligible for tax reduction in personal income tax in Vietnam?

Based on Article 5 of the Law on Personal Income Tax 2007, tax reduction is regulated as follows:

Tax reduction

Taxpayers who face difficulties caused by natural disasters, fires, accidents or severe diseases and affecting their tax payment ability may be considered for tax reduction corresponding to the extent of damage they suffer from but not exceeding payable tax amounts.

Therefore, individuals subject to personal income tax can receive tax reduction if they encounter difficulties due to natural disasters, fires, accidents or severe diseases and affecting their tax payment ability.

The amount of tax reduction shall be considered corresponding to the extent of damage but not exceeding the amount of tax payable.

In what cases can individuals be refunded personal income tax in Vietnam?

Based on clause 2 of Article 8 of the Law on Personal Income Tax 2007, the tax administration and tax refund is regulated as follows:

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.

In addition, Article 32 of Decree 65/2013/ND-CP also regulates the refund of personal income tax as follows:

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.

Therefore, individuals with taxable income who have registered and have a tax identification number at the time of submitting tax settlement documents to the tax authority and have documents requesting tax refund fall into one of the three cases mentioned above shall be refunded personal income tax.

Best Regards!