Deadlines for submission of personal income tax declaration dossiers in Vietnam 2023

Deadlines for submission of personal income tax declaration dossiers in Vietnam 2023 (Internet image)

1. Deadlines for submission of personal income tax declaration dossiers in Vietnam 2023

Clause 2, Article 44 of the Law on Tax Administration 2019 stipulates that the deadlines for submission of tax declaration dossiers for taxes declared annually are as follows:

- The last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year

- For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;

* Note: In case the deadline for submitting the finalization dossier coincides with a holiday, the deadline for submitting the tax finalization dossier is the next working day.

Thus, the last day of submission of personal income tax finalization documents in 2023 will be calculated as follows:

* Authorize tax declaration for income payers

The last date for submission of settlement documents is March 31, 2023.

* Self-declaration of tax:

Normally, it will be May 2 because April 30 and May 1 every year are public holidays. However, on the last day of April 2023, there are 03 holidays which are the death anniversary of Hung Vuong (March 10 of the lunar calendar), April 30 and May 1. In particular, Hung Kings' Anniversary and April 30 fall on a Saturday and Sunday, leading to the state agencies having two days off to compensate.

Therefore, the deadline for submitting the 2023 tax self-finalization dossier is May 4, 2023, which is the next day after the compensatory leave period.

2. Individuals to directly submit the personal income tax finalization dossier in Vietnam

According to point d.3 clause 6 Article 8 of Decree 126/2020/ND-CP stipulates a resident salary earner 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.

3. Location of directly submitting the personal income tax finalization dossier in Vietnam

Clause 8, Article 11 of Decree 126/2020/ND-CP stipulates the salary earners shall submit tax declaration dossiers at the locations as follows:

(1)  The following individuals shall declare tax monthly or quarterly in accordance with Clause 1 Article 8 and Article 9 of Decree 126/2020/ND-CP, including:

- Resident individuals who earn salaries in Vietnam and have not had personal income tax deducted shall submit tax declaration dossiers to supervisory tax authorities of the salary payers.

- Resident individuals whose salaries are paid overseas shall submit tax declaration dossiers to supervisory tax authorities of the areas where they work. In case their working locations are not in Vietnam, tax declaration dossiers shall be submitted to the tax authorities of the areas where they reside.

(2) The following individuals shall submit tax finalization dossiers in accordance with Clause 6 Article 8 of Decree 126/2020/ND-CP:

- 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 of this Clause.

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 salary payer or the area where the individual resides.

- In case a resident individual earning salary from more than one sources on which tax has been deducted by salary payers:

The tax finalization dossier shall be submitted to the supervisory tax authority of the salary payer where personal exemption is claimed.

In case the individual’s workplace is changed and personal exemption 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 personal exemption is NOT claimed at the last salary payer, the tax finalization dossier shall be submitted to the supervisory tax authority of the area where the individual resides.

In case personal exemption has not been claimed at any salary payer, the tax finalization dossier shall be submitted to the supervisory tax authority of the area where the individual resides.

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% tax has been deducted, the tax finalization dossier shall be submitted to the tax authority of the area where the individual resides.

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.

Do Thanh Long

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