March 31, 2021 is the deadline for individuals to complete their 2020 Tax declaration. Here are the three important notes for customers when finalizing personal income tax for 2020.
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Vietnam: 03 remarkable points on PIT finalization in 2020 (Illustration)
1. Deadline for submission of PIT finalization documents in 2020
According to Clause 2, Article 44 of Vietnam's Law on Tax Administration, for annual PIT declaration dossiers, the deadline is the last day of the first month from the end of the calendar year or fiscal year which is March 31, 2021.
Particularly for individuals who directly finalize taxes with tax authorities, the deadline for finalization is the last day of the 4th month from the end of the calendar year, ie April 30, 2021.
Note: For individuals who have tax amounts requested for refund, they can pay at any time and will not be sanctioned for administrative violations for late filing.
2. Re-determined the Personal exemption according to the new regulations
In Clause 1, Article 2 of Vietnam's Resolution 954/2020/UBTVQH14, the personal exemption will be applied from the tax period 2020.
If the months/quarters are in the tax year 2020, taxpayers have temporarily paid personal income tax from salaries and wages according to the old family deduction (9 million VND/month for taxpayers and 3.6 million VND/month for each dependent). Upon finalization of PIT, taxpayers can re-determine the payable personal income tax amount for the tax period 2020 according to the new family deduction level .
Specifically, Vietnam's Resolution 954/2020/UBTVQH14 also stipulates a new personal exemption of 11 million VND/month for individual taxpayers and 4.4 million VND/month for each dependent.
3. Cases that qualify for PIT exemption
In Clause 2, Article 79 of the Law on Tax Administration, PIT exemption is provided in the following cases:
- Households and individuals that are subject to non-agricultural land use tax with annual payable tax amounts of VND 50,000 or less;
- Individuals whose tax amounts incurred must be paid annually after finalization of personal income tax from salaries and wages are VND 50,000 or less.
If an individual is exempt from tax, he/she must submit a tax exemption dossier to the tax administration agency, including
- Tax declaration;
- Documents related to the determination of the amount of tax exempted or reduced.
>>> Note: Notable point on PIT finalization 2020 for enterprises in Vietnam
Le Vy
