On the Ministry of Finance Information Portal, reader L.T. K. O asked:
My business in 2024 hires short-term workers and deducts 10% personal income tax, and long-term workers apply progressive tax in installments, declared quarterly.
On March 25, 2025, the service unit finalized personal income tax for 2024 for the enterprise and paid the full amount of tax deducted. However, by April 15, 2025, only 11 tax deduction receipts were issued to employees for them to finalize themselves.
Is issuing receipts after the time the enterprise finalizes the accounts in accordance with regulations, will the enterprise be penalized? If violated, how much is the estimated amount of money the enterprise will be fined according to regulations?
Regarding this question, Ho Chi Minh City Tax Department answers as follows:
Article 1 of Decree No. 70/2025/ND-CP dated March 20, 2025 of the Government amending and supplementing a number of articles of Decree No. 123/2020/ND-CP on invoices and documents:
When deducting personal income tax, organizations or individuals paying income must prepare tax deduction documents and hand them over to people with tax deductible income.
In case individuals self-finalize taxes, it is not mandatory to have deduction documents for personal income tax.
For individuals who do not sign labor contracts or labor contracts of less than 3 months, the income-paying organization issues deduction vouchers for each tax deduction or issues one voucher for multiple deductions in a tax year if the individual requests.
For individuals with labor contracts of 3 months or more, the income-paying organization only issues the individual a tax deduction voucher for one tax year.
Thus, current regulations determine that enterprises are responsible for issuing tax deduction documents to employees in accordance with the applicable case, but do not stipulate that it must be completed before the time the enterprise submits the personal income tax finalization dossier for the year.
Therefore, the case where the enterprise has finalized personal income tax for 2024 on March 25, 2025 and then issued 11 tax deduction vouchers on April 15, 2025 for employees to use for the purpose of finalization is in accordance with the above regulations.
According to the guidance cited, businesses are not penalized just because the time of issuing tax deduction documents is after the year's finalization date, if the deduction, declaration and tax payment have been fully carried out.
