Vietnam: In 2024, where to download the newest official dispatch template to request the cancellation of the PIT declaration?
- In 2024, what is the newest official dispatch template to request the cancellation of the PIT declaration? Where to download the official dispatch template to request the cancellation of the PIT declaration?
- In Vietnam, shall PIT during 2024 be paid monthly or quarterly?
- Who are PIT payers in Vietnam?
In 2024, what is the newest official dispatch template to request the cancellation of the PIT declaration? Where to download the official dispatch template to request the cancellation of the PIT declaration?
Under current law, there is no provision for cancellation of PIT declarations. However, if the PIT declaration contains errors, the taxpayer can submit supplementary tax documents under the following cases:
- If the taxpayer submits the wrong monthly or quarterly tax declaration but has not yet submitted the annual tax finalization dossier, the taxpayer may submit the revised monthly or quarterly tax declaration, and summarize the supplementarily declared data into the annual tax finalization dossier.
- The taxpayer who makes supplementary declarations resulting in an increase in the amount of tax payable or a decrease in the amount of tax already refunded by the state budget must pay the full increased amount of tax payable or the amount of tax that has been refunded and late payment interest to the state budget (if any)
In addition, if the taxpayer wishes to cancel the PIT declaration for various reasons, he/she can make an official dispatch to request cancellation of the PIT declaration and send it to the competent state agency.
Referring to the official dispatch template to request the cancellation of the PIT declaration here
In Vietnam, shall PIT during 2024 be paid monthly or quarterly?
Under Clause 1 and Clause 2, Article 8 of Decree 126/2020/ND-CP:
Taxes declared monthly, quarterly, annually, separately; tax finalization
1. The following taxes AND other amounts collected by tax authorities have to be declared monthly:
a) Value-added tax (VAT), personal income tax. Taxpayers who satisfy the requirements specified in Article 9 of this Decree may declare these taxes quarterly.
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2. The following taxes and other amounts shall be declared quarterly:
a) Corporate income tax incurred by foreign airliners and foreign reinsurers.
b) VAT, corporate income tax, personal income tax declared on behalf of pledgors by credit institutions and third parties authorized by credit institutions to manage the collateral pending settlement.
c) Personal income tax deducted by income payers that are eligible to declare VAT quarterly and also decide to declare personal income tax quarterly; individuals earning salaries or remunerations (hereinafter referred to as “salary earners”) who decide to declare personal income tax quarterly with tax authorities.
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Compared with the provisions in Clause 1, Article 9 of Decree 126/2020/ND-CP:
Conditions for quarterly declaration of VAT and personal income tax
1. Conditions for quarterly declaration
a) The following taxpayers may declare VAT quarterly:
a.1) Any taxpayer that declares VAT monthly as prescribed in Point a Clause 1 Article 8 of this Decree and has a total revenue from sale of goods and services in the previous year of up to 50 billion VND. The total revenue shall be determined according to the VAT declaration during the calendar year.
In case the taxpayer declares tax for all dependent units and business locations at the headquarters, the total revenue shall also include that of the dependent units and business locations.
a.2) The taxpayer’s business is recently inaugurated. From the calendar year succeeding the first 12 months, the revenue generated in the preceding calendar year (full 12 months) shall be the basis for deciding whether the taxpayer has to declare tax monthly or quarterly.
b) Quarterly declaration of personal income tax:
b.1) A taxpayer who has to declare personal income tax monthly as prescribed in Point a Clause 1 Article 8 of this Decree may declare personal income tax quarterly if all requirements for quarterly declaration are fulfilled.
b.2) Quarterly declaration shall be applied from the first month in which tax is incurred and remain unchanged throughout the calendar year.
Thus, taxpayers in Vietnam must declare and pay PIT monthly, except in the following cases where they can declare PIT quarterly:
- Personal income tax declared on behalf of pledgors by credit institutions and third parties authorized by credit institutions to manage the collateral pending settlement.
- Personal income tax deducted by income payers eligible to declare VAT quarterly and also decide to declare personal income tax quarterly.
- Individuals earning salaries or remunerations (hereinafter referred to as “salary earners”) who decide to declare personal income tax quarterly with tax authorities
- Taxpayers have a total revenue from sale of goods and services in the previous year of up to 50 billion VND.
The total revenue shall be determined according to the tax declaration during the calendar year.
- The taxpayer’s business is recently inaugurated.
Who are PIT payers in Vietnam?
Under Article 2 of the Law on Personal Income Tax 2007 on PIT payers in Vietnam:
Taxpayers
1. Personal income taxpayers include residents who earn taxable incomes specified in Article 3 of this Law inside and outside the Vietnamese territory and non-residents who earn taxable incomes specified in Article 3 of this Law inside the Vietnamese territory.
2. Resident means a person who satisfies one of the following conditions:
a/ Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of their presence in Vietnam;
b/ Having a place of habitual residence in Vietnam, which is a registered place of permanent residence or a rented house for dwelling in Vietnam under a term rent contract.
3. Non-resident means a person who does not satisfy any of the conditions specified in Clause 2 of this Article.
Thus, PIT payers in Vietnam include:
(1) Personal income taxpayers include residents who earn taxable incomes specified in Article 3 of Law on Personal Income Tax 2007 inside and outside the Vietnamese territory and non-residents who earn taxable incomes specified in Article 3 of Law on Personal Income Tax 2007 inside the Vietnamese territory.
(2) Resident means a person who satisfies one of the following conditions:
- Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of their presence in Vietnam;
- Having a place of habitual residence in Vietnam, which is a registered place of permanent residence or a rented house for dwelling in Vietnam under a term rent contract.
(3) Non-resident means a person who does not satisfy any of the following conditions:
- Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of their presence in Vietnam;
- Having a place of habitual residence in Vietnam, which is a registered place of permanent residence or a rented house for dwelling in Vietnam under a term rent contract.
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