Cases where individuals shall directly submit and authorize the salary payer to finalize PIT finalization dossier in Vietnam 2023

Cases where individuals shall directly submit and authorize the salary payer to finalize PIT finalization dossier in Vietnam 2023 (Internet image)

Regarding this issue, LawNet responded as follows:

1. Individuals who directly submit the PIT finalization dossier to the tax authority in Vietnam 2023

According to Point d.3 Clause 6 Article 8 of Decree 126/2020/ND-CP, a resident salary earner in Vietnam 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.

2. Individual who may authorize the salary payer to finalize PIT in Vietnam 2023

According to Point d.2 Clause 6 Article 8 of Decree 126/2020/ND-CP, a resident salary earner may authorize the salary payer to finalize tax if:

- The salary earner has an employment contract with duration of at least 03 months and is working for the salary payer in reality when the tax is finalized by the salary payer, even if the salary earner has not worked for full 12 months in the year.

In case the salary earner is reassigned to a new organization as prescribed in Point d.1 of this Clause, he/she may authorize the new organization to finalize tax.

- The salary earner has an employment contract with a duration of at least 03 months and is working for the salary payer in reality when tax is finalized by the salary payer, even if the salary earner has not worked for full 12 months in the year, and earns an average monthly irregular income not exceeding 10 million VND which on which 10% personal income tax has been deducted and does not wish to have this income included in the tax finalization dossier.

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