Tax declaration and finalization is one of the mandatory obligations of taxpayers. According to regulations, the deadline for finalization of personal income tax for individuals who directly submit dossiers is April 30 every year, but this year because it falls on public holidays, this deadline is determined on April 30. 4/5. So what is the deadline for personal income tax finalization? How is the tax settlement for each specific object regulated? To clarify this issue, Lawyer X would like to introduce the article “Time limit for finalization of personal income tax”. We invite you to read along.
Legal grounds
- Law on Personal Income Tax 2007
- Circular 92/2015/TT-BTC
What is personal income tax settlement?
Personal income tax (PIT) is an amount that income earners must deduct; in part of the salary; or from other sources of revenue into the state budget; after having been deducted certain amounts as prescribed by law.
PIT finalization is the activity of re-checking all income; and calculate the personal income tax payable based on family background and income. Finalization of personal income tax means an individual’s declaration of tax amount in a tax year; on matters of additional tax to be paid; refund the overpaid tax and offset tax in the next period.
Persons who have to make PIT finalization are those who have income to the extent that they have to pay tax; at the same time people with income from many different sources; and those whose income is in the taxable group must also make PIT finalization.
Deadline for personal income tax declaration and finalization in 2022
The time limit for PIT declaration and finalization is the period of time that the law stipulates that taxpayers must declare and finalize tax. If the above time is exceeded, the taxpayer is considered a violation.
Deadline for PIT declaration
According to Article 44 of the Law on Tax Administration 2019 and Article 8 of Decree 126/2020/ND-CP; Tax reporting deadlines will be as follows:
Tax declaration for each time it is incurred
No later than the 10th day from the date the tax liability arises
Subjects: Individuals who directly declare tax or organizations and individuals that declare or pay tax on behalf of income from real estate transfer; income from capital transfer; income from capital investment; income from copyrights, franchises, winning prizes from abroad; income from inheritance, gifts.
Tax return and monthly payment
No later than the 20th day of the month following the month in which the tax liability arises.
Subjects: Organizations and individuals that declare personal income tax on a monthly basis (except for tax declarations on a quarterly, yearly basis)
Tax return and quarterly payment
No later than the last day of the first month of the quarter following the quarter in which the tax liability arises.
Subject:
- Credit institutions or third parties authorized by credit institutions to exploit security assets pending the processing of declarations on behalf of taxpayers with secured assets.
- Organizations and individuals that pay income subject to tax withholding according to the provisions of the law on personal income tax, but organizations and individuals that pay such income are subject to quarterly value-added tax declaration and choose to declare such income. quarterly personal income tax;
- Individuals earning incomes from salaries and wages directly declare tax with tax authorities and choose to declare personal income tax quarterly.
Tax return by year
No later than the last day of the first month of the calendar year or fiscal year.
Subjects: Individuals working as lottery agents, insurance agents, multi-level sales agents who have not yet deducted due to the amount of tax payable but at the end of the year determined to be subject to tax.
Time limit for PIT finalization
According to the provisions at Points a and b, Clause 2, Article 44 of the Law on Tax Administration in 2019; the deadline for completing PIT in 2022 is determined as follows:
– No later than the last day of the 3rd month from the end of the calendar year or fiscal year for the annual tax finalization dossier.
- No later than the last day of the 4th month from the end of the calendar year for personal income tax finalization records of individuals who directly finalize tax.
Thus, for the income of 2021, at the beginning of 2022, the settlement shall be made according to the following deadlines:
– If individuals earning incomes from salaries and wages authorize finalization to organizations or individuals paying income, the deadline for tax finalization is March 31, 2022.
– If an individual earns income from salary or wages, he/she directly finalizes personal income tax with the tax agency, the deadline for finalization is April 30, 2022.
However, if it falls on public holidays as prescribed, the last day to submit the PIT finalization dossier is the next working day. Therefore, the deadline for submitting this year’s personal income tax finalization dossier for individuals who directly finalize taxes is May 4, 2022. For cases where individuals have tax refunds but are late in submitting tax finalization declarations as prescribed, no penalties for administrative violations will be applied.
Where is personal income tax finalization?
Many people still wonder where is the finalization of personal income tax? Depending on the taxpayer, the PIT finalization is done in different places. Specifically:
– For those who have one source of income, they will submit the PIT finalization dossier at the tax department/tax department where you have filed your tax return for the year.
– For people with 2 or more sources of income. In case of the deduction for family circumstances, you submit a dossier to the tax agency managing the organization/individual paying your income in that year.
Attention:
Submit a dossier at the Tax Department where he/she is permanently or temporarily residing if at the time and the taxpayer has quit his/her job or has not made any deduction for family circumstances in any organization.
Filed at the Tax Department of the place of permanent residence/temporary residence for individuals who do not have a labor contract or a labor contract of less than 3 months and individuals who have income from many sources but do not work at any organization at the time of writing tax point.
Related articles:
- Procedures for personal income tax finalization in Vietnam
- Vietnamese law on corporate income tax
- Guidance for finalization of PIT from brokerage commissions in Vietnam
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Frequently asked questions
According to Article 7 of the Law on Personal Income Tax 2007 stipulates:
Tax period for resident individuals is prescribed as follows:
a) Tax period by year applicable to income from business; income from salary and wages;
b) The tax period for each time an income is generated applies to income from capital investment; income from capital transfer, minus income from securities transfer; income from real estate transfer; income from winning prizes; income from royalties; income from franchising; income from inheritance; income from gifts;
c) Tax period for each transfer or year for income from securities transfer.
Tax period for non-resident individuals is calculated according to each time of income generation, applicable to all taxable income.
According to the Law on Personal Income Tax 2007; family circumstance deduction is the amount deducted from personal income taxable income before tax calculation for income from business, income from salary and wages according to the provisions of law of taxpayers as follows: resident individual.
Family circumstances deduction is usually applied to two main objects: the person who is subject to personal income tax; taxpayer dependents.
Conclusion: So the above is Time limit for personal income tax finalization in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
