Ho Chi Minh Tax Department removes shortcomings on Personal Income Tax Finalization

VCN- According to Ho Chi Minh City Customs Tax Department, the deadline of Personal Income Tax payment is 1 April 2019. During supporting taxpayers, the Tax sector answered many questions on Personal Income Tax (PIT) finalization.
ho chi minh tax department removes shortcomings on personal income tax finalization Ho Chi Minh City: Establish 25 sites to support personal income tax finalization
ho chi minh tax department removes shortcomings on personal income tax finalization HCMC: First day of supporting PIT finalization: few taxpayers, fast implementation
ho chi minh tax department removes shortcomings on personal income tax finalization Ha Noi Tax Department answered about Tax policies for over 300 enterprises
ho chi minh tax department removes shortcomings on personal income tax finalization
Individuals participate in support program for Personal Income Tax Finalization.

What income must be finalized?

According to the Tax law, there are 10 incomes subject to Personal Income Tax. So which income must be implement PIT finalization? Which cases do income-paying organizations have to finalize PIT? These questions are often asked by individuals.

According to the representative of the PIT Department, only the income from salaries must be subject to annual PIT finalization. Income paying organizations regardless of whether raising tax deduction or not, must be responsible for declaring tax finalization, and tax finalization on behalf of authorized individuals.

For the time limit of submitting the PIT finalization documents in 2018, Ho Chi Minh City Customs Tax Department said that, for the cases that must make additional payment, the deadline is 1 April 2019. For the case of over payment, requesting for tax refund or tax offset, the documents may be submitted after 1 April 2019.

Answering the question from many individuals of, "whether all individuals earning an income have to implement PIT finalization or not ?" Ho Chi Minh City Tax Department answered that not all individuals finalize PIT, only resident individuals having income from salaries shall be responsible for declaring PIT finalization with the Tax authority when they have to pay additional tax upon tax finalization; or have an overpaid tax, requiring for tax refund or tax offset in the next tax declaration period.

How to implement PIT finalization?

An individual asked that, “from May 2018 until now, I have been working for the company and the company has deducted monthly PIT. However, in February 2019, the company sent a list of staff who have worked for 1 year, and requested them to write a letter from an attorney for finalization. I have worked for the company less than 1 year, while the company deducted my PIT amount, so do I have to submit PIT finalization?

For this question, Ho Chi Minh City Tax Department guides that if the individual only has income at the company in 2018 (including the case that he has not yet worked for 12 months), the employee can authorize the company to make the finalization. If the individual has income from 2 or more places in 2018, he must directly make tax finalization with the tax authority and the income-paying company shall provide documents on deduction of personal income tax to that individual.

Answering questions of individuals who have income from salaries from two or more places subject to tax self-finalization, where to apply for tax finalization documents; Ho Chi Minh City Tax Department said that for individuals receiving income from two or more places are subject to tax finalization at the tax authority, the place for submitting tax finalization is as follows: Individuals subject to family circumstance deduction for themselves at any income-paying organization shall submit tax finalization documents at the tax office directly managing the income-paying organization. If an individual changes the workplace and the organization paying their final income implement the family circumstance deduction for that individual, the PIT documents shall be submitted to the tax agency directly managing the organization paying the final income.

"The foreigner entering to Vietnam for the first time since March 2018. Shall the PIT finalization of the foreigner include incomes of January and February or not? If deducting, shall the PIT be implemented for 10 months or 12 months?

Responding this anwer, Ho Chi Minh City Tax Department stated that according to regulations, if a resident individual is a citizen of a foreign country or territory which has signed an agreement with Vietnam on avoiding double taxation and preventing income tax evasion, the PIT obligation is calculated from the month of arrival in Vietnam for the individual entering Vietnam for the first time until the end of the labor contract and leaving Vietnam (tax calculation for the whole month). Thus, if this foreigner is a resident individual of a citizen of a country that has signed an Agreement with Vietnam, then the PIT finalization for that individual will be calculated from the month of entering Vietnam (March) and is deducted for family circumstance for 10 months. If this foreigner is a resident individual of a country which has not signed the Agreement to avoid double taxation with Vietnam, this individual must synthesize income abroad in January and February into his total income in Vietnam for tax finalization and 12-month family circumstance deduction.

What documents must be prepared by the individual who make direct finalization with the Tax authority? Ho Chi Minh City Tax Department requires individuals to prepare documents as follows:

Tax finalization declaration form No. 02 / QTT-TNCN, Appendix form No. 02-1/ BK-QTTTNCN, if registering family circumstance deduction for dependents (Form issued together with Circular No. 92/2015/ TT-BTC dated June 15, 2015 of the Ministry of Finance);

Documents proving that the tax amount has already been deducted, temporarily paid in the year, the tax amount already paid overseas (if any) (the copy), the individual commits to take responsibility for the accuracy of the information in that copy.
Invoices and documents proving contributions to charity funds, humanitarian funds and promotion funds (if any).

If individuals receive income from international organizations, embassies, consulates and from abroad, they must have documents proving the amount paid by those units and organisations.

By Le Thu/Ngoc Loan

Related News

No direct intervention in salary and bonus policies of state-owned enterprises

No direct intervention in salary and bonus policies of state-owned enterprises

VCN - The draft Law on Management and Investment of State Capital in Enterprises stipulates that enterprises decide on their own salary and bonus policies, and the State does not directly intervene in the salary and bonus policies of enterprises.
Important innovation in the draft Law on Management and Investment of State Capital at Enterprises

Important innovation in the draft Law on Management and Investment of State Capital at Enterprises

VCN - Continue to collect comments on the draft Law on Management and Investment of State Capital at Enterprises, representatives of state-owned enterprises all said that the work of developing the Law needs to pay attention to avoid overlap when implementing with other related laws.
Investing in wages is investing in development

Investing in wages is investing in development

VCN - According to Dr. Bui Sy Loi (photo), senior expert of the Ministry of Labor, War Invalids and Social Affairs, former Deputy Chairman of the National Assembly's Committee on Social Affairs, the National Assembly's adoption of the reform policy salaries, resource decisions and salary reform policies on July 1, 2024 is a suitable time, both historical and topical, contributing to ensuring life, creating peace of mind for staff, civil servants, public employees and workers.
Surveying salary of 2,000 businesses to consider raising regional minimum wage in 2023

Surveying salary of 2,000 businesses to consider raising regional minimum wage in 2023

VCN - The Ministry of Labor, Invalids and Social Affairs will survey at 2,000 businesses across the country to collect information on the labor situation and salary as a basis for proposing adjustments to regional minimum wages. 2023. The survey will be carried out from April 1, 2022 within 60 days.

Latest News

Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - Slow credit demand and fierce competition have forced banks to seek ways to increase non-interest revenue, especially when there is a lot of support from the digital transformation of the entire banking system.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.

More News

Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Read More

Your care

Latest Most read
Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - In the first 9 months of 2024, the group of banks leading in profit has focused on increasing the ratio of non-term deposits (CASA) to help reduce operating costs, resulting in positive credit growth.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Mobile Version