According to guidance document No. 1296/CT-NVT on personal income tax finalization for income from salaries and wages, the Tax Department has clearly pointed out cases where personal income tax (PIT) finalization is not required.
For income-paying organizations and individuals:
Organizations and individuals paying income from salaries and wages that are not subject to personal income tax finalization include:
- Organizations and individuals who do not incur income repayment in the year.
- Organizations and individuals paying income temporarily suspend operations and business in the calendar year.
In case of enterprise type conversion (excluding equitized state-owned enterprises), if the converted enterprise declares all tax obligations of the converted enterprise, it is not required to declare personal income tax finalization until the time of the decision on enterprise conversion, and the enterprise declares finalization at the end of the year.
For individuals with income from salaries and wages:
Individuals with income from salaries and wages in the following cases are not subject to personal income tax finalization:
- Individuals with an additional personal income tax payable after finalization of the whole year from 50,000 VND or less. Individuals are exempt from tax in this case from determining the amount of tax exempted, are not required to submit personal income tax finalization dossiers and are not required to submit tax exemption dossiers.
- Individuals with personal income tax payable less than the tax paid temporarily without a tax refund or compensation request in the next tax declaration period.
- Individuals with income from salaries and wages who have signed labor contracts for 03 months or more at one unit, and also have temporary income from other places averaging no more than 10 million VND per month in the year and have been deducted PIT at a rate of 10% and authorized PIT finalization to the income-paying organization at the place of signing the labor contract.
- Individuals who are purchased life insurance by employers (except for voluntary retirement insurance), other non-compulsory insurance with accumulated insurance premiums that employers or insurance companies have deducted PIT at a rate of 10% on the premium amount corresponding to the part that employers purchased or contributed to employees, employees are not required to finalize PIT for this income portion.
Notably, for organizations and individuals who pay income and have income from salaries and wages not on the above list, personal income tax finalization must be carried out according to regulations.
In which, the deadline for submitting tax returns is the last day of the third month from the end of the calendar year.
In case the deadline for submitting tax finalization dossiers coincides with the prescribed holiday, the deadline for submitting tax finalization dossiers is calculated as the next working day of that holiday according to the provisions of the Civil Code.
However, before the finalization time, the number of submitted dossiers increased sharply, concentrated in the last days of the deadline, which may lead to system overload or slow dossier processing; to be mobile in declaring and avoid the risk of late declaration, it is proposed that individuals and organizations paying tax income should present dossiers early, not waiting until close to the deadline.
