On March 12, 3, the General Department of Taxation issued Official Letter 2021 / TCT-DNNCN guiding the finalization of personal income tax (PIT) with many notable points as follows:
I. OBJECTS TO BE TAX SETTLEMENT #
1. For individuals making direct settlement with tax offices
Resident individuals with income from salary or wages shall directly declare PIT finalization with the tax authority if they have additional tax or have overpaid tax to request refund or offset in the next tax period.
If an individual who is present in Vietnam is 183 days or more in the first calendar year, but 12 days or more from the first day of his / her presence in Vietnam, the first settlement year is 183 months. continuously from the first day of presence in Vietnam.
The foreign individual who terminates the contract to work in Vietnam shall declare the tax finalization with the tax authority before leaving the country. In case individuals have not completed tax finalization procedures with tax agencies, they shall authorize income-paying organizations or other organizations or individuals to make tax finalization according to regulations on tax finalization applicable to individuals. In case the income-paying organization or other organizations or individuals are authorized to finalize, they must be responsible for the additional PIT payable or refunded for the overpaid amount of the individual.
Resident individuals earning incomes from salaries or wages and concurrently being considered for tax reduction due to natural disaster, fire, accident or fatal disease affecting their ability to pay tax shall not authorize organizations or individuals. pay tax settlement income on behalf of the tax agency but must directly declare the finalization with the tax agency according to regulations.
2. For organizations paying income from salaries or wages
Organizations and individuals paying income from salaries or wages are responsible for declaring PIT finalization regardless of whether withholding tax or not, and making PIT finalization on behalf of authorized individuals. . In case an individual authorized to finalize PIT for the organization and has an additional payable tax amount of 50.000 VND or less after the final settlement, and is eligible for tax exemption, the income paying organization still declares personal information to be paid. enter it in the organization's personal income tax finalization declaration dossier and do not aggregate the additional tax payable of the individuals with the additional tax payable after the settlement of VND 50.000 or less. In case the income payer has settled the PIT before the effective date of Decree No. 126/2020 / ND-CP, no retrospective processing is required.
In case the employee is transferred from the old organization to the new one and the old organization merges, consolidates, divides, separates, or converts the type of enterprise or the old organization and the new organization. In the same system, the new organization is responsible for the PIT finalization under the authorization of the individual for both the income paid by the old organization and the new income paying organization to recover the PIT withholding vouchers of the organization. the old income payment function granted to the employee (if any).
3. For authorized personal income tax finalization
Resident individuals earning incomes from salaries or wages shall authorize the finalization of personal income tax to income-paying organizations and individuals, specifically as follows:
- Individuals having income from salaries or wages sign labor contracts for 03 months or more at one place and are actually working there at the time the income-paying organizations or individuals perform tax finalization. , including the case of not working for the full 12 months in a calendar year. In case the employee is transferred from the old organization to the new one and the old organization merges, consolidates, divides, separates, or converts the type of enterprise or the old organization and the new organization. In the same system, individuals are authorized to make tax finalization for new organizations.
- Individuals having income from salaries or wages sign labor contracts for 03 months or more at one place and are actually working there at the time the income-paying organizations and individuals pay tax finalization, including in case of not working for 12 months in a calendar year; At the same time, the current income in other places in other places, on average, the month of the year does not exceed 10 million VND and has been deducted 10% PIT if there is no request for tax finalization for this income.
- After the individual has authorized tax settlement, the income-paying organization has made tax finalization on behalf of the individual.If detecting that the individual is directly subject to tax settlement with the tax agency, the income-paying organization. do not adjust the PIT finalization of the income payer, only issue the tax withholding voucher to the individual according to the settlement number and write in the lower left corner of the withholding document with the content: "The company ... was Finalization of PIT on behalf of Mr. / Ms…. (as authorized) in line (ordinal number)… of Appendix List 05-1 / BK-TNCN ”for individuals to directly make tax finalization with tax authorities.
II. SUBJECTS THAT DOESN'T HAVE TAX SETTLEMENT required #
1. For individuals making direct settlement with tax offices
Individuals earning incomes from wages or salaries in the following cases are not required to finalize personal income tax:
- Individuals who have an additional payable personal income tax amount after the annual settlement of VND 50.000 or less. In this case, individuals eligible for tax exemption determine the exempted tax amounts by themselves, are not required to submit personal income tax finalization dossiers and are not required to submit tax exemption dossiers. In case the settlement period from 2019 and earlier has been settled before the effective date of Decree No. 126/2020 / ND-CP, no retrospective processing is required;
- Individuals whose payable personal income tax amount is smaller than the temporarily paid tax amount without claiming tax refund or offset against the next tax declaration period;
- Individuals having income from salaries or wages and signing labor contracts from 03 months or more in a unit, and having current income in other places on average monthly in the year does not exceed 10 million VND and has to be deducted 10% PIT at the rate of XNUMX%. If there is no request, there is no tax finalization for this income;
- The individual whose life insurance is purchased by the employer (except voluntary pension insurance), other optional insurance with accumulated premium that the employer or insurance company has deducted deducting PIT at the rate of 10% on the premium amount corresponding to the part that the employer buys or contributes to the employee, the employee is not required to finalize PIT on this income.
2. For organizations and individuals that pay income from salaries or wages
If the organization does not pay any income, it is not required to make PIT finalization.
III. FAMILY ALLOWANCES #
1. The level of family deductions
Pursuant to Resolution No. 954/2020 / UBTVQH14 dated June 02, 6 of the Standing Committee of the National Assembly, accordingly, adjusting the family deduction rate specified in Clause 2020, Article 1 of the Law on Personal Income Tax 19 has to amend and supplement a number of articles according to the 2007 amended Personal Income Tax Law as follows:
- The deduction level for the taxpayer is 11 million VND / month (132 million VND / year);
- The deduction level for each dependent is 4,4 million / month.
The family family deduction rate will be applied from the tax period of 2020. Cases in which tax has been temporarily paid according to the family circumstance-based deduction rate specified in Clause 1, Article 19 of the Law on personal income tax No. 04/2007 / QH12, have been amended. amending and supplementing a number of articles according to Law No. 26/2012 / QH13, the amount of personal income tax payable under the family circumstances reduction rate specified in Resolution No. 954/2020 / UBTVQH14 upon finalization of personal income tax by 2020.
2. Dependent deductions
In order to be able to calculate the deduction for a dependent, the taxpayer must register for a dependent deduction as prescribed. In case the taxpayer has not yet calculated family allowances for their dependents in the tax year, the dependent deduction is calculated from the month when the nurturing obligation arises when the taxpayer performs tax finalization and registration. family deductions for dependents. For other dependents as guided in Item d.4, point d, Clause 1, Article 9 of Circular No. 111/2013 / TT-BTC dated August 15, 8 of the Ministry of Finance, the registration deadline is reduced. family circumstances deduction no later than December 2013 of a tax year, past the above time limit, family circumstances shall not be calculated for that tax year.
In cases where the taxpayer is authorized to make the final settlement without calculating family allowances for the dependents in the tax year, the deduction for the dependents is also calculated from the month when the nurturing obligation arises when the taxpayer performs Authorization finalization and registration of family allowances for dependents through the income-paying organization.
IV. TAX SETTLEMENT PROCEDURES #
1. Tax finalization declaration
1.1. PIT finalization declaration dossiers
PIT finalization declaration dossiers comply with the guidance in Circular No. 92/2015 / TT-BTC dated June 15, 6 of the Ministry of Finance until there are alternative legal documents.
1.2. Additional declaration of PIT finalization declaration
- If the additional declaration does not change the tax liability, only the explanation of the additional declaration and relevant documents is required, no additional declaration is required.
- If the organization or individual has not yet submitted the annual tax finalization declaration, the taxpayer shall make an additional declaration in the monthly or quarterly tax declaration with errors, and concurrently aggregate additional declaration data into the declaration. Annual tax finalization.
- If the organization or individual has submitted the annual tax finalization declaration:
+ For individuals directly declaring tax or directly settling tax, only additional declarations of annual tax finalization declaration.
+ For organizations and individuals that pay income from salaries or wages, at the same time, they must also make additional declarations in the annual and monthly and quarterly tax finalization declarations with corresponding errors and errors.
2. Places to submit tax finalization declaration dossiers
Places for submitting personal income tax finalization dossiers comply with specific instructions in Clause 8, Article 11 of the Government's Decree No. 126/2020 / ND-CP of October 19, 10. In case the individual declares and submits the PIT finalization return at the website https://canhan.gdt.gov.vn, the system has the function to assist in determining the tax authority to make the final settlement based on information related to the meaning the tax incurred in the year is declared by the individual.
The place to submit the personal income tax finalization dossier is determined as follows:
2.1. For the income payer, submit the PIT finalization declaration to the tax office directly managing the income paying organization.
2.2. For individuals making direct settlement with tax offices
- Resident individuals who earn income from wages or salaries at one place and self-declare tax in the year shall submit tax finalization declaration dossiers to the tax office where they directly declare tax during the year according to the provisions at Point. a Clause 8 Article 11 of Decree No. 126/2020 / ND-CP. In case an individual has wage or wage income at two or more places, including both directly declaring income and withholding income from the paying organization, the individual shall submit the dossier. Tax finalization declaration at the tax office where the largest income source is generated in the year. In case the biggest source of income in the year cannot be determined, the individual shall choose the place to submit the finalization dossier at the tax agency directly managing the paying organization or the place where the individual resides.
- Resident individuals with salary or wage income who are with withholding organizations at source from two or more places shall submit a tax finalization declaration dossier as follows:
+ Individuals who have calculated family deduction for themselves at the income paying organization or individual shall submit the tax finalization declaration dossier to the tax agency directly managing the income-paying organization or individual. In case an individual changes the workplace and at the organization or individual paying the final income with family circumstances deductions for himself, he / she shall submit the tax finalization declaration dossier at the tax agency managing the organization or individual. pay final income. In case the individual changes the workplace and at the organization or individual that pays the final income without deduction of family circumstances for himself, he / she shall submit the tax finalization declaration dossier at the tax office of the locality where he / she resides. In case the individual has not yet calculated the family deduction for himself in any income-paying organization or individual, he / she shall submit the tax finalization declaration dossier at the tax office where he / she resides.
+ In case the resident individual does not sign a labor contract, or signs a labor contract of less than 03 months, or signs a contract to provide services with income in one or more places, 10% deduction is made, the application shall be submitted. Tax finalization declaration at the tax office where the individual resides.
+ Individuals residing in the year earning income from salaries or wages in one place or many places but at the time of settlement, they do not work at any income-paying organizations or individuals, the place where the tax finalization declaration is submitted is the tax authority where the individual resides.
V. DATE OF SUBMITTING TAX DECLARATION DOSSIERS
Pursuant to the provisions of Points a and b, Clause 2, Article 44 of the Law on Tax Administration No. 38/2019 / QH14 of the National Assembly, prescribing the time limits for declaration and submission of PIT finalization dossiers are as follows:
- For organizations paying income: The deadline for submitting tax declaration dossiers for tax finalization is the last day of the third month from the end of the calendar year or fiscal year.
- For individuals directly making tax finalization: The deadline for submission of tax finalization dossiers is the last day of the 04th month from the end of the calendar year. In case the deadline for submission of tax finalization dossiers coincides with the prescribed days-off, the deadline for submission of tax finalization dossiers is the following working day. In case individuals have incurred PIT refund but delayed submitting the tax finalization declaration as prescribed, the penalty for administrative violations of tax finalization declaration is not imposed.
BECAUSE. RESPONSIBILITY FOR RECEIVING AND HANDLING DOSSIERS OF PERSONAL INCOME TAX OF TAX AGENCIES #
- Tax authorities shall propagate, guide and urge taxpayers to make tax finalization and payment according to regulations in order to avoid taxpayers from handling violations according to law provisions.
- Tax offices shall organize the receipt of personal income tax finalization dossiers on the principle of creating favorable conditions for the location, personnel and time of receipt to ensure the receipt of all finalization dossiers. personal income tax within the prescribed time limit.
- After accepting the personal income tax finalization dossiers, after accepting the personal income tax finalization dossiers, they shall review and handle the dossiers of tax finalization declaration which have not yet been recorded on the IT application system of the tax branch; to handle the dossiers according to regulations without being returned to the tax finalization dossiers if individuals do not request adjustments to the tax settlement agencies.
guiding the implementation of electronic tax transaction account registration and Official Letter No.535 / TCT-DNNCN dated 03/03/2021 of the General Department of Taxation guiding the receipt of declaration 02 / QTT-TNCN according to the above electronic method. web portal of General Department of Taxation.
Above is the guidance of the General Department of Taxation on a number of contents of personal income tax finalization according to the current provisions of the PIT law. In the course of implementation, if any problems arise, the Tax Departments are requested to report them to the General Department of Taxation for timely handling guidance./.