Ho Chi Minh City is a very developed city. Therefore, there are many individuals and organizations that are subject to tax. Tax is a complicated issue, in Vietnam the regulations on tax policy are quite complicated and often change. So, if you do not have the knowledge, it is difficult to enter the information and can complete the tax finalization by yourself. Therefore, Ho Chi Minh City personal income tax finalization service will perform the settlement procedures on your behalf quickly. Take a look at the article below
Legal grounds
- Decree 126/2020/ND-CP
- Law on Tax Administration 2019
What is PIT finalization?
Personal income tax finalization means an individual’s declaration of tax in a tax year on matters of additional tax to be paid, refund of overpaid tax, and tax offset in the next period. follow.
If the personal income tax finalization is not done, the individual will most likely encounter the following problems:
For individuals who have to pay more tax but fail to declare and finalize on time, if the tax agency detects it, they will be administratively sanctioned.
For individuals who overpay but fail to declare and finalize tax on time, they will not be refunded the overpaid tax amount and will not be able to apply the clearing system in the next tax period.
Subjects of PIT finalization
Subjects subject to personal income tax finalization as prescribed by law include:
- Individuals must make tax finalization that they receive from salaries and wages.
- Individuals include individuals who are Vietnamese and individuals who are foreigners residing in Vietnam
- Organizations, individuals and enterprises shall make the final settlement for the part of income that is the salary and wages of employees that the enterprise has paid.
If the income-paying organization is divided, split, consolidated, merged, restructured, dissolved or bankrupt, it must make tax finalization with tax authorities and tax withholding documents for employees. within 45 days from the date of division, separation, consolidation, merger, restructuring, dissolution or bankruptcy.
An individual may authorize an organization or enterprise to pay money to make the final settlement on his or her behalf in case the following conditions are met:
Individuals who have only one source of income from salaries and wages through a contract of 3 months or more at an organization or enterprise and are working for that organization or enterprise at the time of authorizing the finalization of personal income tax.
If the enterprise reorganizes the enterprise, the individual is transferred from the old organization to the newly formed organization and the individual does not generate income from salaries or wages at another place, he/she is authorized to make the final settlement. personal income tax for new organization.
Individuals who are transferred between organizations of the same system such as corporations, corporations, parent-subsidiaries, and head office-branches, are entitled to authorize tax finalization at the new organization.
Deadline for submission of PIT finalization documents in Ho Chi Minh City
Accordingly, the Tax Department of Ho Chi Minh City provides guidance on the deadline for submission of personal income tax finalization documents in 2022 as follows:
For organizations paying income
The deadline for submitting tax declarations and finalizations is the last day of the 3rd month from the end of the calendar year or fiscal year.
Organizations paying income for division, separation, consolidation, merger, transformation, dissolution or bankruptcy in accordance with the Law on Enterprises shall have to finalize tax on the withheld personal income tax by the latest date. 45th day from the date of division, separation, consolidation, merger, transformation, dissolution or bankruptcy.
For individuals who directly finalize tax with tax authorities
The deadline for submitting tax finalization dossiers is the last day of the fourth month from the end of the calendar year. In case the deadline for submitting tax finalization dossiers coincides with a prescribed holiday, the time limit for submitting tax finalization dossiers is the next working day.
Dossier of declaration of PIT finalization
Tax finalization declaration form No. 02/QTT-TNCN, Appendix form No. 02-1/BK-QTT-TNCN if there is registration of family circumstance-based deduction for dependents issued together with Circular 80/2021/TT- BTC.
Copies of documents proving the amount of tax withheld (specify which income tax declaration has been paid), temporarily paid in the year, and tax paid abroad (if any).
Invoices and vouchers evidencing contributions to charity funds, humanitarian funds, study promotion funds (if any)
In case individuals receive income from international organizations, embassies, or consulates and receive income from abroad, they must have documents proving the amount of money paid by the income-paying unit or organization in the country. outside.
Where to submit PIT finalization documents
At the Tax Department of the place of residence
Individuals have not yet calculated family deductions for themselves in any income-paying organizations or individuals
Individuals who do not sign a labor contract, or sign a labor contract of less than 3 (three) months, or sign a contract to provide services with income at one place or many places have deducted 10%.
Individuals in the year that have incomes from salaries or wages at one place or many places but at the time of settlement do not work at any organizations or individuals that pay any income.
Individuals who change their workplace and at organizations or individuals pay their final income, excluding family circumstances deductions.
At the Tax Office (Tax Department or Tax Department) directly managing the organization that pays income
Individuals who have calculated deductions for their family circumstances at any income-paying organization shall submit a tax finalization dossier at the tax agency directly managing such income-paying organization.
In case an individual changes his/her workplace and at an organization or individual that pays the final income with deduction for his/her family circumstances, he/she shall submit a tax finalization dossier at the tax authority managing the paying organization or individual final income
Individuals earning salary or wages at two or more places, including the case where both income is directly declared and deducted by the paying organization:
Individuals submit tax finalization declarations at the tax authority where the biggest source of income is in the year.
In case the largest source of income cannot be determined in the year, the individual shall choose the place to submit the finalization dossier at the tax agency directly managing the paying organization or the place where the individual resides.
Related articles:
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Representing clients to amend and supplement dossiers, directly work with competent authorities upon request;
Perform other services related to tax finalization when required by customers.
Contact LSX Lawfirm
Finally, we hope this article is useful for you to answer the question about: “Personal income tax finalization service in Ho Chi Minh City”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Frequently asked questions
Failure to perform income tax finalization obligations, individuals will face the following troubles:
For individuals who have to pay more tax but fail to declare and finalize on time; If the tax authorities detect it, they will be administratively sanctioned.
– For individuals who overpay but fail to declare and finalize tax on time, they will not be refunded the overpaid tax amount and will not be able to apply the clearing system in the next tax period.
The General Department of Taxation issued Official Letter 636/TCT-DNNCN dated 12/03/2021 guiding the finalization of personal income tax (PIT); which clearly states the cases in which the PIT finalization in 2020 is not required, including:
For individuals who directly finalize taxes with the Tax Authority
Individuals earning incomes from wages in the following cases are not required to finalize PIT:
Individuals whose additional PIT payable after the final settlement of each year is 50,000 VND or less.
– Individuals eligible for tax exemption in this case determine the exempted tax amounts themselves, are not required to submit PIT finalization dossiers and are not required to submit tax exemption dossiers.
– In case the settlement period from 2019 and earlier has been settled before the effective date of Decree 126/2020/ND-CP (December 5, 2020), no retroactive processing shall be carried out.
Individuals whose payable PIT amount is smaller than the temporarily paid tax amount without request for tax refund or offset in the next tax period.
Individuals earning incomes from salaries and wages sign labor contracts of 03 months or more at a unit, and at the same time have a monthly average income of not more than VND 10 million in other places in the year, and has been withheld PIT at the rate of 10%, if there is no request, no tax finalization is required for this income;
The individual is purchased by the employer for life insurance (except for voluntary retirement insurance), and other optional insurance with accumulated premiums that the employer or the insurance enterprise has withheld PIT at the rate of 10 % on the premium amount corresponding to the part purchased or contributed by the employer to the employee, the employee is not required to finalize PIT on this income.
**For organizations and individuals paying income from salaries and wages
If the organization does not generate income, it is not required to declare PIT finalization.
Conclusion: So the above is Personal income tax finalization service in Ho Chi Minh City. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
