Provisions for individuals directly performing tax settlement

March is the peak month for businesses and taxpayers to complete procedures for corporate income tax and personal income tax (PIT). In order to help individuals who have to directly complete tax settlement with tax authorities understand the regulations, Khanh Hoa Newspaper reporters interviewed Ms. Nguyen Ngoc Thuy - Head of Propaganda and Support Department for Taxpayers, Provincial Tax Department.

- Could you please tell me in which cases must directly perform personal income tax settlement?

Mrs. Nguyen Ngoc Thuy.

- Resident individuals with income from salaries and wages from two or more places who do not meet the conditions for authorized settlement according to regulations, have additional tax payable or overpaid, requesting a refund or offset in the next tax declaration period. Individuals present in Vietnam in the first calendar year for less than 183 days, but calculated in 12 consecutive months from the first day of presence in Vietnam for 183 days or more, the first settlement year is 12 consecutive months from the first day of presence in Vietnam. Resident individuals with income from salaries and wages paid from abroad and resident individuals with income from salaries and wages paid from international organizations, embassies, consulates who have not deducted tax in the year, have additional tax payable or overpaid, requesting a or offset in the next tax declaration refund period. Resident individuals with income from salaries and wages who are eligible for tax reduction due to natural disasters, fires, accidents, or serious illnesses that affect their ability to pay taxes must not authorize organizations or individuals who pay income to make tax settlements on their behalf, but must directly make tax settlements with the tax authorities according to regulations. Foreign individuals who terminate their employment contracts in Vietnam must make tax settlements with the tax authorities before leaving the country.

- What documents and papers do individuals need to make personal income tax settlement, madam?

- Tax settlement dossiers of individuals declared directly to the tax authority, including: Personal income tax settlement declaration form No. 02 issued with Appendix II of Circular No. 80/2021 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020 of the Government detailing a number of articles of the Law on Tax Administration; appendix of the list of family deductions for dependents; copies of documents proving the amount of tax deducted, temporarily paid in the year, the amount of tax paid abroad (if any); copies of invoices and documents proving contributions to charity funds, humanitarian funds, and education promotion funds (if any); dependent registration dossier (if deductions are calculated for dependents at the time of tax settlement for dependents who have not yet registered as dependents).

- Can you tell us about the location and deadline for submitting personal income tax finalization dossiers for 2023 for individuals directly settling taxes?

- For individuals who directly settle settlement taxes, the deadline for submitting tax dossiers is no later than the last day of the 4th month from the end of the calendar year. This year, the last day of the 4th month from the end of the calendar year is April 30, but it coincides with a holiday according to regulations, so the deadline for submitting personal income tax settlement dossiers for 2023 to the tax authority is no later than May 2. Taxpayers can submit dossiers directly to the tax authority or declare and submit at the Electronic Information Portal of the Tax Industry. In case declare individuals and submit tax settlement declarations at the website: https://canhan.gdt.gov.vn, the system has the function of supporting the determination of the tax authority for settlement based on information related to tax obligations arising in the year declared by the individual.

Taxpayers learn about tax settlement procedures on the afternoon of March 23 at the Provincial Tax Department.

Taxpayers learn about tax settlement procedures at the provincial Tax Department on the afternoon of March 22.

According to current law, the place to submit the tax finalization dossier is specifically determined as follows: Individuals reflect with salary and wage income at one place and subject to self-declaration of tax during the year, submit the tax finalization declaration dossier at the tax authority directly managing the income paying agency. Individuals reflect with salary and wage income subject to source deduction from 2 or more places, the individual has calculated family deductions for himself at the organization or individual paying the income, then the individual will submit the tax finalization dossier at the tax authority directly managing the organization or individual paying that income. In case the individual changes his/her workplace and the organization or individual paying the last income has family deductions for himself/herself, the tax finalization declaration dossier shall be submitted at the tax authority managing the organization or individual paying the last income. In case the organization or individual paying the last income does not calculate family deductions for himself/herself, the tax finalization declaration dossier shall be submitted at the tax authority where the individual resides; If an individual has not yet calculated family deductions for himself/herself at any organization or individual paying income, he/she shall submit the tax finalization declaration to the tax authority where the individual resides. In case the resident individual does not sign a labor contract, or signs a labor contract for less than 3 months, or signs a service contract with income at one or more places where 10% has been deducted, he/she shall submit the tax finalization declaration to the tax authority where the individual resides. In case the resident individual has income from salary or wages at one or more places during the year but at the time of finalization does not work at any organization or individual paying income, the place to submit the tax finalization declaration is the tax authority where the individual resides.

- What should taxpayers pay attention to when making personal income tax finalization in 2023, madam?

- When changing workplaces, employees must register and submit documents proving dependents at the new workplace as the first registration and reduce dependents at the old organization. In case an individual has a personal income tax refund but submits a late tax settlement settlement according to regulations, no administrative penalty will be applied for late tax settlement declaration. In case an individual discloses as a foreigner terminates his/her employment contract in Vietnam but has not completed tax settlement procedures with the tax authority before leaving the country, he/she can authorize the income-paying unit or another organization or individual to settle the tax according to regulations according to the provisions of the Civil Code. The deadline for submitting personal income tax settlement dossiers in this case is no later than the 45th day from the date the individual leaves the country.

During the implementation process, if support is needed, taxpayers should contact tax branches or the Department of Propaganda and Support for Taxpayers, Provincial Tax Department at phone number 0258.3822028 or relevant functional departments .

Thank you!

CAM VALVE (Implementation)

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