Among the questions regarding personal income tax settlement recently sent to the Ministry of Finance , there is the case of Ms. Nguyen Thi Thanh in Ho Chi Minh City.

Ms. Thanh stated that from 2018 to the present, she has had only one employment contract at one workplace and has had occasional income from a fee at another company of less than 10 million VND/month, after which 10% tax has been deducted at source.

Ms. Thanh authorized the company she is employed by to handle her tax settlement and signed a commitment stating that she did not wish to settle any of her occasional income. When the company performed the tax settlement, they did not include other income (which had already been settled from other sources).

However, when checking the information on the eTax Mobile software, Ms. Thanh was worried to see the notification indicating a shortfall in personal income tax (estimated amount of tax still payable) for 2021 (6.4 million VND) and 2022 (4.647 million VND).

Ms. Thanh wants guidance on how to properly file and pay taxes and other tax declaration procedures to avoid receiving tax debt notices on eTax Mobile.

Tax settlement.jpg
Clause 6 of Article 8 of Decree No. 126 clearly stipulates the cases in which tax settlement can be delegated. Photo: Thach Thao

In response to Ms. Nguyen Thi Thanh, the Ho Chi Minh City Tax Department cited the provisions of Clause 6, Article 8 of Decree No. 126/2020/ND-CP, which provides detailed guidance on some articles of the Law on Tax Administration.

Specifically, point d2 regarding "resident individuals with income from salaries and wages who authorize the income-paying organization or individual to settle their tax obligations" stipulates the case where "Individuals with income from salaries and wages who have signed a labor contract of 3 months or more at one place and are actually working there at the time the income-paying organization or individual settles their tax obligations, even if they have not worked for a full 12 months in the year; and also have incidental income from other places averaging no more than 10 million VND per month in the year and have already had personal income tax deducted at a rate of 10% if they do not request tax settlement for this portion of income."

Based on the above regulations, if Ms. Thanh is currently working at an organization and has occasional income from other sources averaging no more than 10 million VND per month during the year, and has already had personal income tax deducted at a rate of 10%, then, in principle, she can authorize the company with which she has an employment contract to handle her tax settlement and only settle the tax on the income paid by the company.

If, upon checking the data on the eTax Mobile application, Ms. Thanh finds that the amount of tax payable is incorrect, she can contact the tax authorities directly for specific guidance.