Latest personal income tax finalization documents 2024

Personal income tax finalization is when an individual carries out procedures to declare the tax amount payable in a tax year to the tax authority. You can do your own personal income tax finalization online right on the e-Tax page. See the following article of SMART SOLUTION FOR BUSINESS COMPANY LIMITED (S4B Vietnam) for details.

1. What is personal income tax finalization?

Finalization of personal income tax is the act of individuals declaring tax amounts in a tax year regarding additional tax issues that need to be paid, refunding overpaid tax amounts, and offsetting taxes in the next period.

2. Why must personal income settlement be settled?

The implementation of personal income tax finalization procedures aims to limit:

  • Tax authorities will impose administrative penalties on individuals who have to pay additional taxes without declaring and finalizing taxes on time.
  • Individuals who have overpaid but do not declare and finalize tax on time will not be refunded the overpaid tax amount. At the same time, the offset regime cannot be applied to the next tax declaration period.


Personal income tax finalization handbook

3. Regulations on personal income tax finalization

3.1. Subjects required to finalize personal income tax

Pursuant to Decree 126/2020/ND-CP and Official Dispatch 883/TCT-DNNCN, subjects required to finalize personal income tax are organizations and individuals that pay income from salaries and wages; Individuals with income from salaries or wages authorize tax finalization to organizations and individuals paying income; Individuals with income from salaries and wages who directly settle taxes with tax authorities are obliged to finalize personal income tax, except in the following cases:

3.1.1 FOR INDIVIDUALS

  • Individuals must add personal income tax after final settlement of each year of VND 50,000 or less
  • Individuals whose personal income tax amount must be paid is less than the tax amount temporarily paid without requesting a tax refund or deduction for the next tax declaration period.
  • Individuals with income from wages and salaries who sign a work contract for 3 months or more, and have an average current income elsewhere of no more than 10 million VND/month, will have 10% personal income tax deducted. If there is no settlement requirement, this income does not have to be settled.
  • Individuals whose employers purchase non-compulsory insurance (life insurance, etc.) with accumulated premiums for which the employer or business has deducted personal income tax 10 % of the corresponding insurance premium. For the income that the employer purchases or contributes to the employee, the employee does not have to finalize personal income tax.

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3.1.2 FOR ORGANIZATIONS AND INDIVIDUALS PAYING INCOME

  • Organizations and individuals do not generate income during the year
  • Organizations and individuals that have temporarily suspended business operations for the entire calendar year

3.2. Deadline for personal income tax finalization

In Article 44 of the Law on Tax Administration 2019, the 2022 personal income tax finalization deadline for individuals who self-finalize taxes is April 30, 2023. However, April 30 falls on a holiday, so the settlement time will be moved to the first working day after the holiday.

In case the employee has a personal income tax refund but is late in submitting the tax finalization declaration according to regulations, no penalty shall be imposed for administrative violations of tax finalization declaration past the deadline (Clause 4, Article 28 of Circular 111/ 2013/TT-BTC)

4. How long does it take to receive money after personal income tax finalization?

Pursuant to Article 75 of the Law on Tax Administration 2019, the time limit for processing tax refund documents is prescribed as follows:

  • 06 working days from the date the tax authority announces the acceptance of the dossier and the time limit for processing tax refund dossiers for dossiers subject to advance tax refund.
  • 40 working days from the date the tax authority issues a written notice of acceptance of the application and time limit for processing the tax refund application for documents subject to pre-refund inspection.

5. Is it okay to not make personal income tax finalization?

Pursuant to Article 13 of Decree 125/2020/ND-CP and Clause 5, Article 5 of Decree 125/2020/ND-CP, the act of not performing personal income tax finalization will be subject to administrative sanctions. Depending on the time of delay in submitting legal documents, there will be corresponding penalties and fines.

The lightest level of punishment will be a warning, while the fine for failure to finalize personal income tax is:

  • For individuals: 2,000,000 VND to 25,000,000 VND
  • For demotion: 4,000,000 VND to 50,000,000 VND

Above is all the information about instructions for online personal income tax finalization and personal income tax finalization forms that you need to know.

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