Recommendation for security of Personal tax code

	Upgrading e-tax system to support for Personal Income Tax finalization
	Ha Noi deploys month of accompanying with taxpayer
	Taxpayers are satisfied with the new venue for tax finalization

The press conference. Photo: T.L

Tax policies are not amended

At the press conference, Ms. Ly Hoai Huong, Deputy Director for Department of Personal Income Tax Management said that in recent years, with the efforts of the Tax sector, Personal Income Tax policies has applied to reality. Thereby, since 2015 to present day, the General Department of Taxation has not issued the official guidance on Personal Income Tax Finalization, but it has focused on developing databases and upgrading the IT application to support taxpayers in implementing Personal Income Tax declaration and finalization.

“Personal Income Tax policies in 2017 have not been amended. The current documents have specified contents related to Personal Income Tax finalization, including tax payers subject to Personal Income Tax finalization, receiving places for finalization dossier, form of tax finalization, tax payers subject to tax deduction for family circumstance , the deadline for submitting Tax finalization dossier and method of Personal Income Tax Finalization” Ms. Huong said.

Regarding the Personal Income Tax Finalization in 2017, representative of the General Department of Taxation noted that residents who have income from salaries or wages, had to declare tax finalization if they have additional payable tax amounts or overpaid tax amounts to be proposed for Tax refund or tax offset in the next tax declaration period. The Personal Income Tax Finalization also excluded individuals who have taxable amount lower temporarily paid amount without the request for tax refund or tax offset in the next period.

Besides, the other persons who are not subject to tax finalization are individuals who have income from salaries and wages and sign labor contract for 3 months or more in a unit and have additional income in other units with monthly average income of not more than VND 10 million. The personal income tax of these persons were deducted at unit at rate of 10%. Individuals who do not require, are not subject to tax finalization for this income.

According to provisions, income payers and individuals subject to tax finalization declaration shall submit tax finalization dossiers no later than the 90th date since the ending day of the calendar year (31st March). However, the 31st March of this year is Saturday, thereby, the leader of the General Department of Taxation said that the deadline for the finalization would be 2nd April 2018.

Ms. Huong also said that if the finalization report was submitted late, the sanction was only applied to finalization dossiers with additional tax amount, the dossier with tax refund amount would not be fined for late submission.

Personal tax code secured

Facing the information individuals who are abused and listed to the tax declaration by an enterprise without taxable income in that enterprise, Mr. Nguyen Van Phung, Deputy Director of Department for Tax administration at large enterprises recommended that all individuals should strictly manage their Personal tax code.

According to Phung's explanation, in reality, some individuals lost their IDs so the tax code were revealed. Enterprises abused it and made fake documents for wage and salary payment and then listed to their expense statement. In principle, when the enterprise makes declaration of deducting the payment of salaries to the income tax, that amount will be transferred to the employee's personal income.

“When receiving the information about individuals, the Tax authority will handle immediately to calculate accurately and fully income for employees” Mr. Phung affirmed.

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Some individuals only received the announcement on tax arrears after finalization season more than 1 year, the representative of the General Department of Taxation said that there were some individuals who did not remember their income. If the income was subject to tax finalization, the Tax authority would implement Tax arrears. In some cases, income payers declare late, 6 months, 7 months and even 1 year later, they send database to the Tax authority, at that time the Tax authority recalculate to inform an additional payment.