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1. What is personal income tax finalization?
According to Clause 10, Article 3 of the 2019 Tax Administration Law, personal income tax final settlement is the process of determining the amount of tax payable for the tax year, or the period from the beginning of the tax year until the cessation of activities giving rise to tax obligations, or the period from the inception to the cessation of activities giving rise to tax obligations as prescribed by law.
2. Guide to quick personal income tax settlement
2.1 Direct settlement of personal income tax
- Documents to prepare
Based on sub-item 1, Section IV of Official Letter 13762/CTHN-HKDCN of 2023, the personal income tax final settlement declaration dossier is as follows:
* For individuals filing tax returns based on salaries and wages directly with the tax authorities.
+ Personal income tax final settlement declaration form No. 02/QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix to the list of personal deductions for dependents, form No. 02-1/BK-QTT-TNCN, issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Copies (photocopies of the originals) of documents proving the amount of tax withheld, tax provisionally paid during the year, and tax paid abroad (if any).
In cases where the income-paying organization does not issue a tax deduction certificate to the individual because the organization has ceased operations, the tax authority will use the tax sector's database to review and process the individual's tax return without requiring a tax deduction certificate.
In cases where organizations or individuals paying income use electronic personal income tax withholding certificates, taxpayers shall use a printed copy of the electronic personal income tax withholding certificate (a paper copy printed by the taxpayer and converted from the original electronic personal income tax withholding certificate sent by the organization or individual paying the income).
+ A copy of the Tax Deduction Certificate (clearly stating which income tax return the tax was paid according to) issued by the income-paying agency, or a copy of the bank statement for taxes paid abroad, certified by the taxpayer, in cases where, according to foreign law, the foreign tax authority does not issue a certificate confirming the amount of tax paid.
+ Copies of receipts or documents proving contributions to charitable funds, humanitarian funds, or scholarship funds (if any).
+ Documentation proving the amount paid by the unit or organization paying the income abroad in cases where the individual receives income from international organizations, embassies, consulates, and income from overseas.
+ Dependent registration documents as guided in point a, clause 3, section III of Official Letter 13762/CTHN-HKDCN of 2023 (if calculating deductions for dependents at the time of tax settlement for dependents who have not yet registered as dependents).
* For organizations and individuals paying taxable income from salaries and wages
+ Personal income tax final settlement declaration form No. 05/QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix: Detailed list of individuals subject to tax calculation according to the progressive tax rate schedule, form No. 05-1/BK-QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix: Detailed list of individuals subject to tax at the full tax rate, form No. 05-2/BK-QTT-TNCN, issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix: Detailed list of dependents eligible for personal allowance deduction, form No. 05-3/BK-QTT-TNCN, issued together with Appendix II of Circular 80/2021/TT-BTC.
Note: In cases where an individual authorizes the income-paying organization to settle their tax on their behalf, the individual must prepare a Power of Attorney for Personal Income Tax Settlement for the 2022 tax year using form No. 08/UQ-QTT-TNCN issued with Appendix II of Circular 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance .
2.2 Online Personal Income Tax Settlement
View the instructions for filing your personal income tax return online.
2.3 Where to submit personal income tax return
The place for submitting personal income tax finalization documents follows the specific instructions in Clause 8, Article 11 of Decree 126/2020/ND-CP.
In cases where individuals declare and submit their personal income tax return on the website https://canhan.gdt.gov.vn, the system has a function to help determine the tax authority responsible for tax settlement based on information related to tax obligations arising during the year as declared by the individual.
The specific location for submitting personal income tax returns is as follows:
- Organizations paying income must file their personal income tax returns with the tax authority that directly manages that organization.
- For individuals who directly settle their tax obligations with the Tax authorities.
+ Individuals residing in Vietnam who receive salary or wage income in one location and are subject to self-declaration of tax during the year shall submit their tax return to the tax authority where they directly declare their taxes during the year, as stipulated in point a, Clause 8, Article 11 of Decree 126/2020/NĐ-CP.
In cases where an individual has income from salaries and wages from two or more sources, including both income subject to direct declaration and income from organizations that have already deducted taxes, the individual must submit their tax return to the tax authority where they have the largest source of income for the year.
If the largest source of income for the year cannot be determined, the individual can choose to file their tax return at the tax authority directly managing the paying organization or at their place of residence.
Individuals residing in Vietnam who receive salary or wage income subject to withholding tax from two or more sources must submit their tax return as follows:
Individuals who have claimed personal deductions for themselves at a particular organization or individual paying their income should submit their tax return to the tax authority directly managing that organization or individual.
If an individual changes their workplace and the last income-paying organization or individual applies personal deductions, they should submit their tax return to the tax authority managing the last income-paying organization or individual.
If an individual changes their workplace and the organization or individual paying the final income does not apply personal deductions, the individual should file their tax return at the tax authority where they reside.
If an individual has not claimed personal deductions for themselves at any organization or individual paying income, they should submit their tax return to the tax authority where they reside.
++ In cases where a resident individual does not have an employment contract, or has an employment contract for less than 3 months, or has a service contract with income earned from one or more sources where 10% has been withheld, they must submit their tax return to the tax authority where they reside.
++ Individuals residing in Vietnam who have earned income from salaries and wages at one or more places during the year, but are not employed by any organization or individual paying the income at the time of tax settlement, should file their tax return with the tax authority in their place of residence.
+ Individuals residing in Vietnam who earn income from salaries and wages and are subject to direct personal income tax settlement with the tax authorities, and who have submitted a request for tax reduction due to natural disasters, fires, accidents, or serious illnesses, should submit their tax settlement application to the same tax authority where they submitted their tax reduction application. The tax authority processing the tax reduction application is responsible for processing the tax settlement application according to regulations.
3. Look up the latest date of issuance of your personal tax identification number.
This guide shows individuals how to quickly and accurately look up their tax identification number issuance date!
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