The new guidelines from the General Department of Taxation state that: Organizations and individuals who do not generate taxable income for personal income tax purposes in any given month/quarter are not required to file a personal income tax return for that month/quarter.
However, this carries the risk that if the business discovers the error at the end of the year, resubmitting the tax return for that month/quarter will result in administrative penalties for late personal income tax filing.
This is noteworthy content at Official document 2393/TCT/DNNCN regarding personal income tax declaration. The regulations on personal income tax declaration issued by the General Department of Taxation on July 1, 2021.
Accordingly, the procedures for filing personal income tax returns for organizations and individuals that do not generate income are as follows:
– Based on Clause 6, Article 1 of the amended Personal Income Tax Law 2012 and Clause 1, Article 9 Decree 126/2020/ND-CP provides guidance on the 2019 Law on Tax Administration. On October 19, 2020:
Only organizations and individuals that generate income subject to personal income tax are required to file personal income tax returns.
+ In cases where organizations or individuals do not generate taxable income subject to personal income tax, they are not subject to the regulations of the Personal Income Tax Law.
Therefore, organizations and individuals that do not generate taxable income for personal income tax purposes in a given month/quarter are not required to file a personal income tax return for that month/quarter.
Furthermore, this document also provides guidance on cases where state administrative agencies, public service agencies, Party organizations, etc., generate income from salaries and wages but do not generate revenue from the sale of goods or services, and are therefore subject to quarterly personal income tax declaration.
Official document 2393/TCT-DNNCN issued on July 1, 2021.