Amending regulations on the time of tax declaration and payment on behalf of individuals receiving dividends and bonuses in form of securities

VCN - To facilitate taxpayers, the Ministry of Finance has amended and supplemented regulations on declaring tax on behalf of individuals who receive dividends or receive bonuses in form of securities.
Ministry of Finance has amended and supplemented regulations on declaring tax on behalf of individuals who receive dividends or receive bonuses in form of securities.
Ministry of Finance has amended and supplemented regulations on declaring tax on behalf of individuals who receive dividends or receive bonuses in form of securities.

According to the Ministry of Finance, several regulations in Decree No. 126/2020/ND-CP currently cause difficulties for taxpayers. Accordingly, about the time when making tax declarations on behalf of individuals who receive dividends or receive bonuses in securities.

Specifically, at point d.1, clause 5 Article 7 Decree No. 126/2020/ND-CP stipulates the organization of tax declaration and tax payment on behalf of individuals who receive dividends in the form of securities and individuals who are existing shareholders receive bonuses in the form of securities. This new regulation facilitates securities investors and ensures the timely collection of taxes arising into the state budget.

To implement this regulation, securities companies have built information technology application software to track the income of individual investors for tax deductions. However, up to now, the software development of securities companies has not been completed, so to help securities companies to be eligible to meet the requirements of declaring and paying taxes on behalf of individuals specified in Decree No. No. 126/2020/ND-CP, it is necessary to amend to delay the application period of point d.1 Clause 5 Article 7 of Decree No. 126/2020/ND-CP.

Therefore, in the draft Decree amending Decree No. 126/2020/ND-CP that the Ministry of Finance is consulting has supplemented Clause 4, Article 43 of Decree No. 126/2020/ND-CP to stipulate the organization of tax declaration and tax payment on behalf of individuals receiving dividends in the form of securities, individuals being existing shareholders receiving bonuses in the form of securities has been implemented since January 1, 2023. From the effective date of Decree No. 126/2020/ND-CP (December 5, 2020) to the end of December 31, 2022, individuals who declare and pay personal income tax will not be sanctioned for administrative violations of late submission of tax declaration dossiers. No late payment interest shall be charged.

In addition, another provision in Decree No. 126/2020/ND-CP that taxpayers are facing difficulties with is the personal income tax declaration of organizations and individuals that do not incur a deduction of personal income tax. Specifically, according to the provisions of Clauses 1 and 2, Article 8 of Decree No. 126/2020/ND-CP, organizations and individuals that pay incomes from salaries and wages are responsible for declaring tax and paying tax on behalf of individuals monthly or quarterly. However, Decree No. 126/2020/ND-CP does not stipulate that in case income is paid, it does not incur tax deductions of individuals, whether income-paying organizations or individuals must declare tax on behalf.

Therefore, according to the Ministry of Finance, it is necessary to supplement the provision that if the personal income tax deduction is not incurred, income-paying organizations and individuals do not have to declare tax for clarity in the implementation.

To overcome these problems, the draft Decree amending and supplementing Decree No. 126/2020/ND-CP has added point e, Clause 3, Article 7 of Decree No. 126/2020/ND-CP stipulating the case of organizations and individuals that do not incur personal income tax deduction are not required to submit a dossier of personal income tax declaration.

By Thùy Linh/Thanh Thuy

Related News

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

VCN - According to the representative of the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Finance and the National Assembly Committees are urgently collecting opinions to complete the draft Law amending seven Laws, to ensure that the issued regulations are reasonable and remove difficulties for businesses.
Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading

Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading

VCN - The issuance of Circular 68/2024/TT-BTC by the Ministry of Finance is considered a solution to remove a major bottleneck in upgrading the stock market related to the abolition of the regulation on pre-trading margin requirement for foreign institutional investors.
Ministry of Finance reports on personal income tax debt

Ministry of Finance reports on personal income tax debt

VCN - Regarding the issue of personal income tax debt, the Ministry of Finance said that the Tax agency has actively notified taxpayers of proactively installing and registering to use the eTax Mobile application, providing email information and promptly updating the Tax authorities with the latest information so that taxpayers can promptly get information about the tax debt situation.

Latest News

"One law amending four laws" on investment to decentralize and ease business challenges

"One law amending four laws" on investment to decentralize and ease business challenges

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") focuses on amending conflicting regulations that are causing obstacles, to facilitate investment, production, and business activities.
One law amending seven financial laws: New driving force for economic growth

One law amending seven financial laws: New driving force for economic growth

VCN - Draft 1 of the Law amending 7 laws in the financial sector has been officially submitted and discussed at the 8th session of the 15th National Assembly. According to the Law-making program, the Law will be developed and promulgated following a simplified procedure and will be approved at this session. The simultaneous amendment of many provisions in the laws in the financial sector and their early approval demonstrate the determination and great efforts of the National Assembly, the Government, and the Ministry of Finance in creating a system of open and appropriate policies, promoting investment resources in the economy, thereby promoting economic growth in the new period.
Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

VCN - In the short term, applying 5% VAT on fertilizers may increase selling prices, but in the long term, farmers will benefit from this policy. When the fertilizer manufacture is deducted input tax, it will help reduce investment cost and production cost.
Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Recently, the implementation of a series of policies on tax, fee, and land rent exemption, reduction, and deferral has provided timely support for businesses to recover and develop, thereby making positive contributions to economic growth.

More News

Revamping commodity management and trade protection

Revamping commodity management and trade protection

VCN - Completing commodity management policies combined with applying trade defense measures plays an important role in protecting the interests of businesses and the Vietnamese economy. Close coordination between management agencies not only helps prevent trade fraud but also creates favorable conditions for exporting businesses, minimizing risks from anti-dumping lawsuits.
Tax support policy is a "lift" for business bounceback

Tax support policy is a "lift" for business bounceback

VCN- Sharing with Customs Magazine, economic expert, Associate Professor, Dr. Dinh Trong Thinh highly appreciated the effectiveness of tax and fee reduction measures implemented by the Government and the Ministry of Finance. These policies not only enable businesses to reduce input costs and increase profits, but also promote consumption and production of businesses.
VAT policy for on-the-spot imports

VAT policy for on-the-spot imports

VCN- The General Department of Vietnam Customs has instructed Dong Nai Food Industry Corporation on VAT policy for imported tobacco leaves separated from stems.
Applying tax on animal feed ingredient faces problems due to specialized regulations

Applying tax on animal feed ingredient faces problems due to specialized regulations

VCN - The unified application of regulations of specialized legal documents related to value-added tax (VAT) policies on imported raw materials for animal feed has caused many problems. Notably, the accurate identification for imported raw materials for animal feed not only causes difficulties for the enterprise but also for the enforcement authority.
Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

VCN - The Ministry of Finance has just completed the draft Decree of the Government regulating the reduction of land rent in 2024. Accordingly, in the latest Draft, the Ministry of Finance directly proposed to choose the reduction level according to option 2 of 30%.
Ensuring global trade security requires cooperation, exchange and processing of information before the goods arrive

Ensuring global trade security requires cooperation, exchange and processing of information before the goods arrive

VCN - As import and export activities increase, security risks also increase. Therefore, to meet the requirements of both strict security control and shortening clearance time, facilitating trade, one of the effective solutions is to cooperate, exchange and process information before the goods arrive.
New regulations on foreign indirect investment in Vietnam drafted

New regulations on foreign indirect investment in Vietnam drafted

The State Bank of Vietnam (SBV) is drafting a circular to better manage foreign investment protocols and hopefully make them speedier.
Considering amending regulations on suspension from exit due to tax arrears

Considering amending regulations on suspension from exit due to tax arrears

VCN - To facilitate the implementation of suspension from exit, the General Department of Taxation directs specialized units to study and amend and supplement current regulations to ensure both improving the efficiency of tax debt collection and creating conditions for enterprises and taxpayers to develop stable production and business as well as facilitate travel and trade activities.
How to handle export processing enterprises forgetting to open a corresponding import declaration

How to handle export processing enterprises forgetting to open a corresponding import declaration

VCN - From 2014 to 2019, Dragonjet Vietnam Co., Ltd. (headquartered in Que Vo Industrial Park, Bac Ninh) opened 17 on-site export declarations of domestic enterprises, however, the company “forgot” to open a corresponding import declaration. Dragonjet Vietnam Co., Ltd proposed the Customs authority to instruct tax procedures and policies and whether failure to register a corresponding declaration will result in tax imposition?
Read More

Your care

Latest Most read
"One law amending four laws" on investment to decentralize and ease business challenges

"One law amending four laws" on investment to decentralize and ease business challenges

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") fo
One law amending seven financial laws: New driving force for economic growth

One law amending seven financial laws: New driving force for economic growth

VCN - Draft 1 of the Law amending 7 laws in the financial sector has been officially submitted and discussed at the 8th session of the 15th National Assembly. According to the Law-making program, the Law will be developed and promulgated following a simpl
Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

VCN - The representative of the Vietnam Fertilizer Association cites data from the Ministry of Finance, as saying that about VND10,000 billion of VAT has not been deducted from business expenses from 2015 to present.
Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Recently, the implementation of a series of policies on tax, fee, and land rent exemption, reduction, and deferral has provided timely support for businesses to recover and develop, thereby making positive contributions to economic growth.
Revamping commodity management and trade protection

Revamping commodity management and trade protection

Completing commodity management policies combined with applying trade defense measures plays an important role in protecting the interests of businesses and the Vietnamese economy.
Mobile Version