Vietnam: Form 02/QTT-TNCN - PIT finalization declaration form (income from salary and wages)

Vietnam: Form 02/QTT-TNCN - PIT finalization declaration form (income from salary and wages) (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. PIT finalization declaration form in Vietnam (income from salary and wages)

PIT finalization declaration form (Form 02/QTT-TNCN) applicable to individuals earning income from salaries and wages as prescribed in Circular 80/2021/TT-BTC.

Form 02/QTT-TNCN

2. Cases of resident salary earner submitting the personal income tax finalization dossier to the tax authority in Vietnam

According to the provisions of Decree 126/2020/ND-CP, a resident salary earner shall directly submit the personal income tax finalization dossier to the tax authority in the following cases:

Tax is underpaid or overpaid and the individual claims a refund or has it carried forward to the next period, unless:

- The tax arrears is not exceeding 50.000 VND;

- The amount of tax payable is smaller than the amount provisionally paid but the individual does not claim a refund or does not have it carried forward to the next period;

- The individual has an employment contract with a duration of at least 03 months and earns an average monthly irregular income not exceeding 10 million VND which on which personal income tax has been deducted at 10% and does not wish to have this income included in the tax finalization dossier;

- The individual’s life insurance (except voluntary retirement insurance) or any other voluntary insurance with insurance premium accumulation is purchased by the individual’s employee and 10% personal income tax on the part purchased or contributed by the taxpayer.

The individual has been present in Vietnam for fewer than 183 days in the first calendar year but more than 183 days in 12 consecutive months from the arrival date.

An individual that is a foreigner whose employment contract in Vietnam has ended shall submit a tax finalization dossier to the tax authority before exit or authorize the income payer or another organization or individual to prepare and submit the tax finalization dossier as per regulations.

The income payer or the authorized organization/individual must pay tax arrears if tax is underpaid or will receive a refund in case tax is overpaid.

Resident salary earners who are eligible for tax reduction due to a natural disaster, fire, accident or serious illness shall finalize tax themselves instead of authorizing income payers to perform this task.

3. Deadlines for Personal income tax declaration in Vietnam 2023

According to Clause 2, Article 44 of the Law on Tax Administration 2019, For taxes declared annually:

- For annual tax statement dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year

- For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;

Nguyen Nhu Mai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE