Legal News

[Taxation] Information from the General Directorate of Taxation regarding individuals filing a tax return

2024/03/21

On March 15, 2024, the General Administration of Taxation issued information on “cases in which individuals can delegate a company to file their personal income tax returns” and “cases in which individuals can file their own tax returns directly. The details are as follows

1. Cases in which individuals may delegate the filing of tax returns to a company
・Individuals who have signed a labor contract with a company for more than 3 months and are still working for the company.
・In case the individual has a labor contract with one company for more than 3 months and earns temporary income of less than VND10,000,000 per month at another company and withhold tax at the rate of 10%.
・When changing workplaces due to merger, consolidation, separation, or change of corporate form within the same organization. ※The tax return can be delegated to the new company to which the individual belongs.

2. Cases in which an individual directly files a tax return
・The individual does not meet the conditions of 1. above, but has income from multiple salaries (including full-time and part-time workers) and incurs additional tax payments. The individual is not subject to the conditions in 1. above, but has income from multiple payrolls (including full-time and part-time workers) that will result in additional tax payments, or overpayment of taxes for which a refund or offset is requested.
・Income from foreign wages and salaries.
・Residents who receive wages before withholding tax for work performed at international organizations, embassies, or consulates and are subject to additional tax payments or overpayments of tax and apply for a refund or offset.
・Residents earning wages who are eligible for tax reductions due to natural disasters, fire, accidents, incapacitating illnesses, etc. that affect their ability to pay taxes.

※The filing period for individual income tax returns is usually determined according to the calendar year from January to December. However, if a taxpayer stays in Vietnam for less than 183 days in a calendar year, but stays in Vietnam for more than 183 days in a 12-month period starting from the first day of entry, the taxable period for the first year is 12 months from the first day of entry. In this case, the second and subsequent tax years are calendar years, and the portion of tax already paid in the first year is settled in the second year.

Reference: Information dated March 15, 2024 on the website of the General Directorate of Taxation (https://bit.ly/3vltelA)