On March 12, 2021, the General Department of Taxation issued Official Dispatch 636/TCT-DNNCN on guidelines for personal income tax finalization, in which taxpayers should be aware of the approaching deadline for personal income tax finalization.
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NOTICE: Deadline for PIT finalization is coming in Vietnam (Illustration)
According to the Official Dispatch, the General Department of Taxation stipulates that PIT finalization dossiers must be submitted by the following deadlines:
**Income payers shall submit PIT finalization dossiers by the last day of the 03rd month from the end of the calendar year or fiscal year.
>>> Thus, the deadline for submitting tax declarations and finalizations for income payers is March 31, 2021.
**Individuals who themselves finalize PIT shall submit PIT finalization dossiers by the last day of the 04th month from the end of the calendar year. If the deadline for submission of PIT finalization dossier falls on days off or holidays as prescribed, the deadline shall be the following business day.
>>> Thus, the deadline for submitting tax finalization documents for individuals who directly finalize taxes is May 2, 2021 (because the last day of April 2021 falls on a public holiday, April 30 and there is a public holiday on May 1, so the deadline will be moved to May 2, 2021.
Note: If an individual has PIT refund but fails to submit the PIT finalization dossier by the prescribed deadline, no administrative penalty for such late submission will be imposed.
Submission of PIT finalization dossiers is stipulates as follows:
**Income payers shall submit PIT finalization dossiers to their supervisory tax authorities.
**For individuals directly finalizing PIT with tax authorities
(1) Resident individuals who earn salary in one location and declare tax themselves shall submit tax finalization dossiers to the tax authorities to which tax declarations are submitted during the year as prescribed in Point a Clause 8 Article 11 of Decree No. 126/2020/ND-CP.
In case an individual earns salary in more than one location, including salary on which tax is declared directly and salary on which tax has been deducted by the income payer, the tax finalization dossier shall be submitted to the tax authority of the area where the biggest source of income is located.
In case the area where the biggest source of income is located cannot be identified, the tax finalization dossier shall be submitted to the supervisory tax authority of the income payer or the area where the individual resides.
(2) In case a resident individual earning salary from more than one sources on which tax has been deducted by salary payers:
(i) The tax finalization dossier shall be submitted to the supervisory tax authority of the salary payer where the taxpayer’s personal and family circumstance deduction are claimed.
In case the individual’s workplace is changed and the personal deduction is claimed at the last salary payer, the tax finalization dossier shall be submitted to the supervisory tax authority of such salary payer.
In case the individual’s workplace is changed and the taxpayer’s personal and family circumstance deduction are not claimed at the last salary payer, the tax finalization dossier shall be submitted to the tax authority of the area where the individual resides.
In case the taxpayer’s personal and family circumstance deduction have not been claimed at any salary payer, the tax finalization dossier shall be submitted to the tax authority of the area where the individual resides.
(ii) In case a resident individual does not have an employment contract or has an employment contract of less than 03 months or has a service provision contract and earns income at one location or more from which 10% PIT has been deducted, the tax finalization dossier shall be submitted to the tax authority of the area where the individual resides.
(iii) In case a resident individual earns salary at one location or more but is not working for the salary payer when the tax finalization dossier is being prepared, the tax finalization dossier shall be submitted to the tax authority of the area where the individual resides.
