Công văn 2329/CTTPHCM-HKDCN TP.HCM quyết toán thuế TNCN năm 2021

The finalization of personal income tax is conducted in accordance with the Law on Personal Income Tax No. 04/2007/QH12 dated November 21, 2007; Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019 (took effect from July 1, 2020); Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government, detailing a number of articles of the Law on Tax Administration; Circular No. 111/2013/TT-BTC dated August 15, 2013; Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance and documents guiding the Law on Personal Income Tax; Circular No. 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance, guiding the implementation of a number of articles of the Law on Tax Administration and the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, detailing a number of articles of the Law on Tax Administration;

For the proper finalization of personal income tax (PIT) for 2021 in accordance with available laws, Ho Chi Minh City Tax Department provides the following guidance:

I. CASES SUBJECT TO TAX FINALIZATION

1. Organizations paying incomes from salaries or wages

Organizations and individuals paying incomes from salaries or wages shall make PIT finalization declaration, regardless of withholding tax or not, and make PIT finalization on behalf of the authorizing individuals. In case individuals authorizing other organizations to make PIT finalization and having an additional payable tax amount of up to VND 50,000 after tax finalization are entitled to tax exemption, income payers shall declare information of such individuals in their PIT finalization declaration dossiers. In such cases, income payers are not required to summarize the additional payable tax amount of individuals who have an additional payable tax amount of up to VND 50,000 after tax finalization.

In case a worker is transferred from one organization to another because the former is merged, consolidated, divided, split or transformed, or the two organizations belong to the same system, the new organization shall make PIT finalization as authorized by the individual also for the income paid by the old organization and the new organization shall withdraw the PIT withholding document already issued by the old organization to the individual (if any).

If paying no income, they are not required to make PIT finalization declaration.

2. Individuals making tax finalization directly with tax offices

Resident individuals earning incomes from salaries or wages from two or more employers who fail to satisfy the conditions for tax finalization authorization as prescribed and have an additional payable tax amount of more than VND 50,000, or request refund of overpaid tax amounts or clearing of such amounts against payable tax in the subsequent tax period, must make PIT finalization declaration directly with tax offices.

Resident individuals who earn incomes from salaries or wages paid from overseas, and individuals earning incomes from International organizations, Embassies and Consulates whose personal income tax has not yet been withheld, must make tax finalization directly with tax offices, if they have an additional payable tax amount or request refund of overpaid tax amounts or clearing of such amounts against payable tax in the subsequent tax period.

Foreign individuals who have completed their working contracts in Vietnam shall make tax finalization declaration with tax offices prior to their departure from the country.

3. Authorization to make PIT finalization:

Individuals may authorize income payers to make tax finalization on their behalf (they are not required to make tax finalization directly with tax offices)

- Individual only earning incomes from salaries or wages who signs labor contracts of 3 months or more with one employer and is still working for such employer at the time authorizing to make tax finalization, even in case he/she has worked for less than full 12 months in a year, and concurrently earns current incomes from other employers with an average monthly income not exceeding VND 10 million and have his/her tax withheld at the rate of 10% by the income payer but does not request tax finalization for such income.

- In case the income payer reorganizes itself (split, divide, merge, consolidate or transform) and the worker is transferred from old organization to another formed after re-organization, if the worker has no additional income from wages or salaries from another organization, he/she may authorize the new organization to make tax finalization on behalf of him/her. The new organization shall withdraw the PIT withholding document already issued by the old organization to the worker to summarize income and the withheld tax amount and make PIT finalization on behalf of the worker.

II. PROCEDURES FOR TAX FINALIZATION DECLARATION

1/ Dossiers for PIT finalization declaration

- For individuals making PIT finalization declarations directly with tax offices, the dossier must comprise:

+ A tax finalization declaration made according to Form No. 02/QTT-TNCN, Form No. 02-1/BK-QTT-TNCN, in case registering family circumstance-based reductions for dependents, promulgated together with the Ministry of Finance’s Circular No. 80/2021/TT-BTC dated September 29, 2021.

+ Copies of documents proving the withheld tax amount (specifying the PIT declaration that is used as a basis for tax payment), amount temporarily paid in the year, and tax amount paid overseas (if any).

+ Invoices and documents proving the contributions to charity funds, humanitarian funds and study promotion funds (if any).

+ In case an individual earns income from International organizations, Embassies or Consulates, and earns incomes from foreign countries, documents proving the amount paid by overseas income payers are required.

- For income payers, the dossier must comprise:

+ A PIT finalization declaration, made according to Form No. 05/QTT-TNCN to the Ministry of Finance’s Circular No. 80/2021/TT-BTC dated September 29, 2021.

+ A List of individuals subject to tax calculation according to the partially progressive tariff Form No. 05-1/BK-QTT-TNCN to the Ministry of Finance’s Circular No. 80/2021/TT-BTC dated September 29, 2021.

+ A List of individuals subject to tax calculation according to the whole income tariff Form No. 05-2/BK-QTT-TNCN to the Ministry of Finance’s Circular No. 80/2021/TT-BTC dated September 29, 2021.

+ A List of dependents for family circumstance-based reductions, made according to Form No. 05-3/BK-QTT-TNCN to the Ministry of Finance’s Circular No. 80/2021/TT-BTC dated September 29, 2021.

- In case an individual authorizes the income payer to make tax finalization on behalf of him/her, he/she shall make a written authorization to make PIT finalization from the tax period 2021 according to Form No. 08/UQ-QTT-TNCN to the Ministry of Finance’s Circular No. 80/2021/TT-BTC dated September 29, 2021.

2/ Places of dossier submission

2.1. For income payers: Income payers shall submit PIT finalization declaration dossiers to the tax offices directly managing them.

2.2. For individuals making tax finalization directly with tax offices:

a. Submission at Tax Branches of localities where individuals reside:

• If the individual has not yet had family circumstance-based reductions of PIT for himself/herself counted by any income payer

• If the individual does not sign a labor contract or signs a labor contract of a term of under 3 (three) months or signs a service provision contract and earns incomes from one or more than one employer with 10% of such incomes already withheld

• If the individual earns incomes from salaries or wages in a year from one or more than one employer but, at the time of tax finalization, no longer works for any employer

• If the individual works for more than one employer and the last employer has not counted family circumstance-based reductions of personal income tax for him/her

b. Submission at tax offices (Tax Departments or Tax Branches) directly managing the income payers

• An individual who has family circumstance-based reductions of PIT for himself/herself counted by the income payer shall submit a tax finalization declaration dossier to the tax office directly managing such income payer

• In case the individual works for more than one employer and the last employer has counted family circumstance-based reductions of personal income tax for him/her, he/she shall submit a tax finalization declaration dossier to the tax office managing the last employer

c. In case an individual earns incomes from salaries and wages from two or more employers, including incomes subject to direct declaration and incomes on which personal income tax already withheld by the income payers:

• He/she shall submit a tax finalization declaration dossier to the tax office of the locality where he/she earns the largest income in the year

• If it is impossible to determine the largest income in the year, the individual may submit the tax finalization dossier to the tax office directly managing the income payer or tax office of the locality where he/she resides

3/ Time limit for submission of dossiers:

3.1. For income payers:

The deadline for submission of tax finalization declaration dossiers is the last day of the third month from the end of a calendar year or fiscal year.

Income payers split, divided, merged, consolidated, transformed, dissolved or bankrupted under the Enterprise Law shall make tax finalization for the withheld PIT amount no later than the 45th (forty-fifth) day from the date such event occurs.

3.2. For individuals making tax finalization directly with tax offices:

The deadline for submission of tax finalization dossiers is the last day of the fourth month from the end of a calendar year. If the deadline falls on a weekend or holiday as prescribed, it shall be the next working day. Therefore, the deadline for submission of PIT finalization dossiers for individuals making tax finalization directly with tax offices is May 4, 2022.

The individual that has PIT amount to be refunded but delays in submitting tax finalization declaration as prescribed shall not be administratively sanctioned for the act of making tax finalization declaration beyond the prescribed time limit.

III. SUBMISSION OF PIT FINALIZATION DOSSIERS BY ELECTRONIC METHOD

- Income payers with digital signatures shall access the web portal https://thuedientu.gdt.gov.vn to send data to tax offices. Income payers who make electronic tax declarations are not required to submit paper tax finalization dossiers.

- Individuals already granted electronic tax accounts by tax offices shall access the web portal https://thuedientu.gdt.gov.vn, version for individuals (https://canhan.gdt.gov.vn) to submit tax finalization dossiers online.

If an individual has not yet been granted an electronic tax account: He/she shall register an account on the National Public Service Portal at address: https://dichvucong.gov.vn (in such case, he/she is not required to submit a paper dossier at tax office), or register online at http://thuedientu.gdt.gov.vn. Instructions for e-transaction registration are available on Ho Chi Minh City Tax Department's website at https://www.hcmtax.gov.vn/, or on its Facebook page.

Note:

- Organizations and individuals subject to tax finalization dossier submission should submit dossiers before the prescribed deadline to avoid congestion.

- Unpaid tax amount that has not yet been included in the tax finalization declaration shall be remitted to Ho Chi Minh City Tax Department's Account No. 7111.1056.137, opened at State Treasury (No. 37, Nguyen Hue Street, District 1, Ho Chi Minh City) or account of the relevant Tax Branch.

- When making payment: It is required to write Chapter 557 - for dossiers submitted at Tax Departments, or Chapter 757 - for dossiers submitted at Tax Branches; Sub-section (1001), and tax identification numbers of taxpayers, and their names.

Ho Chi Minh City Tax Department hereby informs taxpayers for implementation./.