Is Authorization Permitted for Personal Income Tax Finalization?

According to the guidelines in Circular 92/2015/TT-BTC, individuals with income from wages or salaries can authorize the income-paying organization to settle their personal income tax (PIT), meaning the company or enterprise where the individual is employed will be responsible for settling the PIT on behalf of their employees.

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Individuals authorized to settle PIT must fall under one of the following cases:

- Individuals with income from wages or salaries who have signed labor contracts (LDC) for 03 months or more with one income-paying organization and are actually working there at the time of tax settlement authorization (including cases where the individual has not worked a full 12 months during the year).- In case the income-paying organization undergoes a corporate reorganization (including division, separation, merger, consolidation, conversion), and the employee is transferred from the old organization to the new one, if during the year the employee has no additional income from wages or salaries at any other place, they can authorize the new organization to settle taxes on behalf of them for the income paid by the old organization. If employees are transferred between organizations within the same system, such as Groups, Corporations, Parent Companies – Subsidiaries, Headquarters and branches, the principle of tax settlement authorization is similarly applied as for corporate reorganization.- Individuals with income from wages or salaries who have signed an LDC for 03 months or more with one income-paying organization and have incidental income elsewhere with an average monthly income during the year not exceeding 10 million VND, which has already had the tax withheld at 10%, if the individual does not request a tax settlement for the incidental income, they can authorize the tax settlement at the income-paying organization. If the individual requires a tax settlement for the incidental income, they must directly settle with the tax authorities.

Cases where PIT tax settlement authorization is not allowed:

- Individuals who have signed LDCs for 3 months or more from 02 or more workplaces;- Individuals who have been issued tax withholding certificates by organizations or individuals who pay income and do not authorize the tax settlement to the income-paying organization or individual (except for organizations or individuals that collect and cancel the issued tax withholding certificates);- Individuals who only have incidental income with tax withheld at 10% are not authorized to settle taxes;- Individuals with income from wages or salaries who have signed LDCs for 03 months or more at one entity, while having incidental income that has not been withheld, are not authorized to settle taxes;- Individuals with income from wages or salaries who have signed LDCs for 03 months or more at one entity, with incidental income elsewhere averaging no more than 10 million VND per month on which tax has been withheld; and those having rental income from houses or land with an average monthly revenue of no more than 20 million VND per month on which PIT has already been paid at the place of rental, are not authorized to settle taxes through the income-paying organization or individual.

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