General Department of Taxation: Entities not required to finalize PIT in Vietnam

According to the Official Dispatch, the General Department of Taxation stipulates entities that are not required to finalize PIT as follows:

*** For individuals directly finalizing PIT with tax authorities in Vietnam

- After finalizing PIT, the PIT arrears is not exceeding 50.000 VND. In this case, the salary earner shall himself/herself determine the tax exempt and is not required to submit the PIT finalization dossier and application for tax exemption. If PIT for the tax year 2019 and earlier has been finalized before the effective of Decree No. 126/2020/ND-CP, no retrospective treatment will apply;

- The amount of PIT 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;

- In case an individual has entered into an employment contract with a duration of at least 03 months with an employer and earns an average monthly irregular income not exceeding 10 million VND on which 10% PIT has been deducted, the PIT on this income shall not be finalized if not requested by that individual.

- If an individual’s life insurance (except voluntary retirement insurance) or any other voluntary insurance with insurance premium accumulation is purchased by the individual’s employer and 10% PIT on the part purchased or contributed by the employer has been deducted, that individual must not finalize PIT on this part.

*** For income payers in Vietnam: PIT finalization is not required if an organization does not pay any income.

More details can be found in Vietnam's Official Dispatch 636/TCT-DNNCN issued on 12/3/2021.

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