Personal income tax finalization handbook for directors

Personal income tax finalization handbook for directors
Personal income tax finalization handbook for directors

This article will help business managers understand and understand the following issues:

1. Who must finalize personal income tax?

2. Deadline for finalization of personal income tax

3. Authorization to finalize personal income tax

4. The payable PIT amount for income received in 2019

5. Dossiers and procedures for finalization of personal income tax

6. Personal income tax refund

1. Who must finalize personal income tax?

According to the provisions of the law on personal income tax, the persons subject to personal income tax finalization include income-paying organizations and individuals and laborers earning incomes in the tax period.

TT

Object

Settlement obligations

1

Income-paying organizations and individuals (enterprises - companies) Settlement for the income that the enterprise has paid in the year or authorized by the employee.

2

Individuals with income (workers). Settlement for the income received in the year.
Note: Individuals are allowed to authorize the enterprise to finalize their behalf if they are eligible for authorization (authorization conditions are presented in the following section).

2. Deadline for finalization of personal income tax

Bases: Point d, Clause 3, Article 10 and Clause 4, Article 8 of Circular 156/2013 / TT-BTC, specifically:

Point d, Clause 3, Article 10 of Circular 156/2013 / TT-BTC provides:

"The deadline for submission of annual tax finalization dossiers is the 90th (ninety) day, counting from the end of the calendar year or fiscal year."

Clause 4, Article 8 of Circular 156/2013 / TT-BTC stipulates:

"If the last day of the time limit for handling administrative procedures coincides with the holiday as prescribed, the last day of the time limit is counted as the next working day of that holiday."

Accordingly, the deadline for finalization of personal income tax in 2019 is March 30, 3.

3. Authorization to finalize personal income tax

3.1. Cases authorized

* Conditions for enterprises to authorize the settlement

According to Article 16 of Circular 156/2013 / TT-BTC (amended and supplemented by Article 21 of Circular 92/2015 / TT-BTC), individuals earning incomes from salaries and wages authorizing organizations and individuals income multipliers shall be tax finalized on behalf of:

- An individual who only has income from salaries or wages signs a labor contract for 03 months or more at an income-paying organization or individual and is actually working there at the time of authorizing tax finalization, including cases of not working full 12 months of the year.

- Individuals having income from salaries or wages, sign labor contracts for 03 months or more at an income-paying organization or individual and are actually working there at the time of authorizing tax finalization, counting from: In the case of not working full 12 months in a year, and having current income in other places, the average monthly income in the year does not exceed VND 10 million and has been deducted 10% by the income paying unit without requiring tax finalization for this portion of income.

- Individuals are employees who are transferred from the old organization to the new organization in case the old organization conducts division, splitting, consolidation, merger or conversion of enterprises. At the end of the year, if an employee is authorized to make tax finalization, the new organization must collect the personal income tax withholding documents issued by the former organization to the employee (if any) as a basis for summarizing income. deducted tax amount and tax finalization on behalf of employees.

note:

- Income-paying organizations and individuals shall only make tax finalization on behalf of individuals for the income from salaries and wages that individuals receive from income-paying organizations and individuals.

- In case the organization pays after dividing, splitting, consolidating, merging, converting enterprises and settling tax according to the authorization of the workers transferred from the old organization to the new organization is responsible for finalizing tax on the income paid by the old organization.

* Authorization record

According to Clause 2, Article 16 of Circular 156/2013 / TT-BTC (amended by Clause 3, Article 21 of Circular 92/2015 / TT-BTC), individuals prepare an authorization dossier as follows:

- Authorization form using the form No. 02 / UQ-QTT-TNCN;

- Photocopies of invoices and documents proving charity, humanitarian or study encouragement contributions (if any).

3.2. The case is not authorized

According to Official Letter 5749 / CT-TNCN, employees are not authorized to finalize personal income tax for businesses in the following cases:

- An employee who meets the conditions for authorization but has been issued with an income tax withholding certificate by the enterprise is not authorized to finalize tax for the enterprise, unless the enterprise has revoked and canceled the withholding voucher. tax deduction granted to employees.

- An employee who earns income from wages or wages signs a labor contract of 03 months or more at an enterprise but at the time of authorized tax finalization no longer works at that enterprise.

- The employee has income from salaries and wages, signed a labor contract of 03 months or more in an enterprise, and has current income not deducted or deducted tax is sufficient (including cases less than deductible and reached deductible but not deductible).

- Laborers earning income from salaries and wages, signing labor contracts of 03 months or more in many enterprises.

- The employee only has a current income with deduction of tax at the rate of 10% (including the case of only one current income).

- The employee has not registered his tax code.

- An employee who earns income from wages and wages and is also considered for tax reduction due to natural disasters, fires, accidents or dangerous diseases is not authorized to make tax finalization but he / she himself declares tax together with According to the application for tax reduction consideration as guided in Clause 1, Article 46 of Circular 156/2013 / TT-BTC.

4. The payable PIT amount for income received in 2019

4.1. Tax bases

According to Article 7 of the Circular 111 / 2013 / TT-BTC, the basis for calculating tax on incomes from salaries and wages is assessable income and tax rates, specifically:

Assessable income is determined by taxable income minus (-) the following deductions:

+ Deductions for family circumstances;

+ Insurance premiums, voluntary retirement funds;

+ Charitable, humanitarian and study promotion contributions.

4.2. Tax calculation formula

Personal income tax payable = Taxable income x Tax

Inside:

Taxable income = Income taxes

Deductions

Taxable income is determined as follows:

Income taxes = total income Items exempted

See details at: Instruction for calculating personal income tax from the latest salary.

5. Dossiers and procedures for finalization of personal income tax

5.1. For organizations and individuals paying income (enterprises)

* Tax finalization declaration file

Bases: Sub-sections b.2.1, Item b.2, Point b Clause 1 Article 16 of Circular 156/2013 / TT-BTC; Clause 2, Article 21 and Clause 7, Article 24 of Circular 92/2015 / TT-BTC.

Organizations and individuals paying incomes from salaries or wages, regardless of whether tax deduction arises or not, withholding tax returns, shall make tax finalization according to the following forms:

- A sample declaration form 05 / KK-TNCN attached to Circular 92/2015 / TT-BTC.

- A list of samples No. 05-1 / BK-TNCN enclosed with Circular 92/2015 / TT-BTC.

- A list of samples No. 05-2 / BK-TNCN enclosed with Circular 92/2015 / TT-BTC.

- A list of samples No. 05-3 / BK-TNCN enclosed with Circular 92/2015 / TT-BTC.

* Place of submission

According to Point c Clause 1 Article 16 of Circular 156/2013 / TT-BTC, the place for submitting tax finalization declaration for 2019 is prescribed as follows:

- Income-paying organizations and individuals that are production and / or business establishments shall submit tax declaration dossiers to tax agencies directly managing organizations and individuals.

- Income-paying organization is a central agency; agencies under, attached to ministries, branches and provincial-level People's Committees; The provincial agency submits the tax declaration file to the Department of Taxation where the organization is headquartered.

- Income-paying organizations are agencies attached to and attached to district-level People's Committees; District-level agencies shall submit tax declaration dossiers to district-level Tax Departments of the localities where their headquarters are located.

- Income-paying organizations are diplomatic missions, international organizations, representative offices of foreign organizations submitting tax declaration dossiers at the Tax Department of the locality where they are headquartered.

* Deadline for tax payment

The deadline for personal income tax payment in 2019 is March 30, 3.

5.2. For individuals directly tax settlement

According to Clause 2, Article 16 of Circular 156/2013 / TT-BTC amended by Clause 3, Article 21 of Circular 92/2015 / TT-BTC, individuals earning incomes from salaries or wages do not fall under authorized cases. For organizations and individuals paying incomes and settling tax on their behalf, they shall make tax finalization directly with tax offices according to the following form:

- A tax finalization return, made according to form No. 02 / QTT-TNCN provided in Circular 92.

- Appendix form 02-1 / BK-QTT-TNCN attached to Circular No. 92 if there is registration for family allowances for dependents.

- Photocopies of documents proving the tax amount deducted, temporarily paid in the year, tax amount already paid overseas (if any).

The individual undertakes to take responsibility for the accuracy of the information on that snapshot. In case income-paying organizations do not issue tax withholding vouchers to individuals because their income-paying organizations have terminated their operation, tax offices shall base themselves on tax database databases to consider and handle settlement dossiers. tax is not required for an individual with tax deduction vouchers.

If, according to foreign laws, foreign tax authorities do not issue a certificate of tax payment, the taxpayer may submit a copy of the certificate of tax withholding (clearly stating that the tax has been paid according to the declaration). income tax)) issued by the income payer or a scanned copy of a bank document for the amount of tax paid overseas, certified by the taxpayer.

- Photocopies of vouchers and vouchers proving contributions to charity funds, humanitarian funds and study promotion funds (if any).

- In case an individual receives income from international organizations, embassies, consulates and receives income from abroad, there must be documents proving the amount paid by the unit or organization paying the income in foreign.

6. Personal income tax refund

Pursuant to Article 28 of Circular 111/2013 / TT-BTC and Article 53 of Circular 156/2013 / TT-BTC amended by Article 23 of Circular 92/2015 / TT-BTC.

6.1. Tax refund conditions

- The refund of personal income tax only applies to individuals who have a tax code at the time of request for tax refund.

- For individuals who have authorized tax settlement for income-paying organizations and individuals to perform tax finalization, their tax refunds may be made through income-paying organizations and individuals.

- Individuals directly settling tax offices, if having overpaid tax amounts, shall be refunded or cleared against payable tax amounts of the subsequent period.

Thus, in order to receive a refund of personal income tax, the following conditions must be met:

- There is an overpaid tax amount;

- Have a personal income tax code at the time of request for tax refund;

- Request for tax refund.

6.2. Personal income tax reimbursement records

* Tax refund for income-paying organizations and individuals that perform tax finalization on behalf of individuals authorized to tax settlement

In case organizations and individuals pay income after clearing overpaid or overpaid tax amounts of individuals who have overpaid tax amounts, if they request the tax agencies to refund them, they shall pay them tax refund dossiers for tax agencies directly managing them.

Tax refund documents include:

- A written request for refund of state budget revenues, made according to form No. 01 / ĐNHT.

- Copies of personal income tax receipts and receipts and legal representatives of income-paying organizations and individuals shall sign commitments to take responsibility therefor.

* Tax refund for individuals directly tax settlement

For individuals having income from salaries and wages directly settling tax with tax offices, if there is an overpaid tax amount, they do not have to submit tax refund dossiers, but only write the proposed tax amount to the target. [47] - "Tax amount refunded to NNT account" or norm [49] - "Total tax offset for arising amounts of the following period" in the tax finalization return according to form No. 02 / QTT-TNCN when tax settlement. ”

See more https://expertis.vn/lich-nop-cac-loai-to-khai-thue-nam-2020/



Leave a Reply