Official Letter 154/CTSTR-KK on Personal Income Tax Finalization for the 2024 Tax Year.

GENERAL TAX DEPARTMENT SOCTRANG PROVINCE TAX DEPARTMENT No: 154 /CTSTR-KK Regarding: Guidance on key points when performing the Personal Income Tax (PIT) finalization for the 2024 tax year.		SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Soc Trang, February 10, 2025
To:	Organizations, businesses, and individual taxpayers in Soc Trang province.

At the outset, the Sóc Trăng Tax Department would like to express its sincere thanks to all organizations, businesses, and individual taxpayers who have adhered to the tax policies and laws over the past period.

In order to support taxpayers in fulfilling their rights and obligations under the Tax Administration Law and its implementing guidelines, as well as to ensure that the finalization of Personal Income Tax (PIT) for the 2024 tax year is carried out consistently in accordance with the current tax laws, the Sóc Trăng Tax Department provides guidance on key points to pay attention to when performing PIT finalization for the 2024 tax year for organizations, businesses, and individual taxpayers (hereinafter referred to as income-paying organizations, enterprises, and individuals) as follows:

I. SUBJECTS REQUIRED TO FINALIZE PIT

1. Individuals directly finalizing PIT with the Tax Authority

• Residents earning salaries or wages from two or more sources who do not meet the conditions for authorizing PIT finalization must directly declare PIT finalization with the tax authority if they owe additional tax or request a refund or carry forward the overpaid tax to the next tax period.

• Foreign residents who have completed their employment contracts in Vietnam must declare PIT finalization with the tax authority before departing from Vietnam.

• Individuals earning income from foreign salaries or wages and individuals earning income from international organizations, embassies, or consulates that have not withheld tax in the year must finalize directly with the tax authority.

• Residents who earn wages or salaries and are entitled to tax reduction due to natural disasters, fires, accidents, or serious illnesses that affect their ability to pay tax must not authorize income-paying organizations to finalize PIT but must directly declare PIT finalization with the tax authority.

Note: Individuals who are in Vietnam for less than 183 days in the first calendar year but remain in Vietnam for 183 days or more within any continuous 12-month period starting from their first day in Vietnam will have their first PIT finalization year as the 12-month period starting from their first day in Vietnam.

2. Income-paying organizations, enterprises, and individuals

• Organizations and individuals that pay wages or salaries are responsible for declaring PIT finalization, regardless of whether tax has been withheld or not, and for finalizing PIT on behalf of individuals who have authorized them. In cases where an individual authorizes PIT finalization and owes less than or equal to 50,000 VND in additional tax, which is exempt from tax, the income-paying organization does not need to consolidate the additional tax owed.

• When an employee is transferred from one organization to another due to mergers, acquisitions, split-ups, or business restructuring, the new organization must finalize PIT on behalf of the employee for both the income from the previous organization and the new one. The new organization will also collect the PIT withholding certificate from the previous organization (if any).

• When the income-paying organization dissolves, goes bankrupt, terminates its operation, or restructures, it must declare PIT finalization until the time of dissolution, bankruptcy, termination, or restructuring.

II. SUBJECTS NOT REQUIRED TO FINALIZE PIT

1. Individuals directly finalizing PIT with the Tax Authority

Individuals with income from wages or salaries who do not have to finalize PIT include:

• Individuals with additional PIT due of 50,000 VND or less. In this case, they are exempt from declaring PIT finalization.

• Individuals who have paid less tax than what was withheld and do not request a refund or carry forward the excess tax.

• Individuals with income from wages or salaries from contracts of 3 months or more who also have additional casual income under 10 million VND per month that has been taxed at 10%, who do not request PIT finalization.

2. Income-paying organizations or individuals

Organizations or individuals that do not have to finalize PIT include those who did not pay any income during the year or those whose operations were suspended for the entire year.

III. PIT FINALIZATION AUTHORIZATION

1. Authorization by individuals

• Individuals with contracts of 3 months or more who are working at the income-paying organization at the time of PIT finalization can authorize the organization to finalize PIT for them.

• Individuals with additional casual income (under 10 million VND per month) from other sources, who have already had tax withheld at 10%, can also authorize their income-paying organization to finalize PIT on their behalf.

Note: Individuals with casual income who have not had tax withheld, or have had insufficient tax withheld, cannot authorize others to finalize PIT on their behalf.

IV. FAMILY REDUCTION

1. Family Reduction Level

• The reduction for the taxpayer's personal income is 11 million VND per month (132 million VND annually) and for each dependent is 4.4 million VND per month (52.8 million VND annually).

2. Registration of Family Reduction for Dependents

• If individuals directly register their dependents with the tax authority, they must submit:
  • Registration form for dependents,
  • Supporting documents proving dependency,
  • A local government confirmation if the dependent is being cared for by the taxpayer.

3. Key Notes on Family Reduction Registration

• If a taxpayer has not accounted for family reductions in a year or for a full 12 months, they will still be considered eligible for the full year if they perform PIT finalization as required.

V. PIT FINALIZATION PROCEDURE

1.  Tax Filing for Personal Income Tax (PIT) Finalization

   • The PIT finalization filing for the year 2024 follows the guidelines in section b, subsection 9.2, and section b, subsection 9.9, Clause 9, Appendix I attached to Decree No. 126/2020/ND-CP dated October 19, 2020, which specifies the PIT finalization filing documents.

   • The forms for the PIT finalization filing are based on Circular No. 80/2021/TT-BTC dated September 29, 2021, as follows:

   • For organizations paying income:

     ++ PIT finalization form No. 05/QTT-TNCN;

     ++ Appendix 05-1/BK-QTT-TNCN (if applicable);

     ++ Appendix 05-2/BK-QTT-TNCN (if applicable);

     ++ Appendix 05-3/BK-QTT-TNCN (if applicable);

   • For individuals directly filing PIT:

     ++ PIT finalization form No. 02/QTT-TNCN;

     ++ Appendix 02-1/BK-QTT-TNCN (if applicable);

     ++ Supporting documents as per section b, subsection 9.2, Clause 9, Appendix I attached to Decree No. 126/2020/ND-CP (if applicable).

   • The data file should be entered and exported by taxpayers using the Declaration Support Program (HTKK) in *.XML format or filed online via the electronic tax portal: http://thuedientu.gdt.gov.vn.

   2. Supplementary Filing for PIT Finalization

   • If an organization or individual makes supplementary filings that do not affect the tax obligation, only an explanation for the supplementary filing and relevant documents need to be submitted, without needing to submit a supplementary tax form.

   • If an organization or individual has not filed the annual PIT finalization form, they should file supplementary forms for the month or quarter in which there were errors or omissions and combine the supplementary data into the annual PIT finalization file.

   • If an organization or individual has already filed the annual PIT finalization form, then:

   • For individuals filing PIT directly, only the supplementary annual PIT filing needs to be submitted.

   • For organizations or individuals paying income (salary or wages), both the supplementary annual PIT filing and the monthly/quarterly filings for errors or omissions must be submitted.

   3. Methods of Submitting PIT Finalization Forms

   • For organizations paying income that have registered for an eTax account and use digital signatures to file taxes, the PIT finalization form should be submitted via the electronic tax portal: https://thuedientu.gdt.gov.vn.

   • For individuals directly filing PIT who have successfully registered for an eTax account, the PIT finalization form should be submitted electronically via the individual section of the electronic tax portal: https://canhan.gdt.gov.vn.

   • For organizations paying income that do not use digital signatures and individuals who have not registered for an eTax account, they must submit paper forms to the tax authorities (either in person or via postal service), and also submit the exported *.XML file to the tax authorities via the electronic tax portal: https://thuedientu.gdt.gov.vn.

   4. Deadline for Submitting PIT Finalization Forms

   According to the provisions in points a and b, Clause 2, Article 44 of the Tax Administration Law dated June 13, 2019, the deadlines for PIT finalization filings are as follows:

   • For organizations paying income: The deadline for submitting PIT finalization forms is the last day of the third month following the end of the calendar year or fiscal year. Therefore, for the 2024 PIT finalization, the deadline for organizations paying income under the calendar year is March 31, 2025.

   • For individuals directly filing PIT: The deadline for submitting PIT finalization forms is the last day of the fourth month following the end of the calendar year. Therefore, for the 2024 PIT finalization, the deadline for individuals directly filing PIT is May 5, 2025.

   • For cases involving cessation of operations, termination of contracts, or organizational restructuring, the deadline is the 45th day from the date of the event.

   5. Location for Submitting PIT Finalization Forms

   The location for submitting PIT finalization forms is specified in Clause 8, Article 11 of Decree No. 126/2020/ND-CP dated October 19, 2020, as follows:

   • For organizations paying income, the PIT finalization form should be submitted to the tax authority directly managing the organization.

   • For individuals directly finalizing PIT with the tax authority:

     • For residents receiving salary or wage income at one location and required to file taxes directly, they should submit the PIT finalization form to the tax authority where the individual filed taxes during the year, as per point a, Clause 8, Article 11 of Decree No. 126/2020/ND-CP. If an individual receives salary or wage income from two or more places, including income subject to direct tax filing and income subject to withholding by the organization, the individual should submit the PIT finalization form to the tax authority where the largest income source is located. If the largest income source cannot be determined, the individual may choose where to submit the PIT finalization form, either at the tax authority managing the organization or the tax authority where the individual resides.

     • For individuals who receive salary or wage income from two or more places where withholding taxes are applied, the PIT finalization should be filed with the tax authority managing the organization where family deductions were applied. If the individual changed workplaces, the PIT finalization form should be submitted to the tax authority of the last employer that applied family deductions. If no family deductions were applied, the individual should submit the PIT finalization form to the tax authority where they reside.

     • For individuals not signing labor contracts or signing contracts of less than 3 months or service contracts with income subject to a 10% tax rate, the PIT finalization form should be submitted to the tax authority where the individual resides.

     • If an individual has income from salary or wages from one or more sources but is not working at the time of the finalization, the PIT finalization form should be submitted to the tax authority where the individual resides.

   6. Administrative Penalties for Late Submission of PIT Finalization Forms

   In cases of violating the deadlines for submitting PIT finalization forms, as specified in Article 44 of the Tax Administration Law dated June 13, 2019, taxpayers are responsible, and the tax authorities will impose administrative penalties for late filing as per Decree No. 125/2020/ND-CP dated October 19, 2020 (except for cases where an individual files PIT with overpaid taxes). The fines for organizations range from 2,000,000 VND to 25,000,000 VND, while fines for individuals are equivalent to those for organizations.

   The Soc Trang Tax Department requests that organizations, businesses, and individuals file the 2024 PIT finalization forms to the tax authority completely, timely, and according to regulations.

   VII. TAX REFUND

   The tax refund provisions for PIT for organizations paying income on behalf of individuals with tax filing authorization and individuals directly filing PIT for income from salary or wages are regulated in Article 28 of Circular No. 111/2013/TT-BTC dated August 15, 2013, and Article 42 of Circular No. 80/2021/TT-BTC dated September 29, 2021, regarding overpaid tax refunds.

   Above are key points for organizations and individuals submitting PIT finalization for the 2024 tax year. Please inform all employees and workers to ensure that they file PIT finalization properly, completely, and in a timely manner.

   If there are any issues during the process, please contact: The One-Stop Department - Soc Trang Tax Department, phone number: 02993 624604; address: 17 Ly Tu Trong Street, Ward 2, Soc Trang City, Soc Trang Province, for assistance and guidance.

   The Soc Trang Tax Department informs organizations, businesses, and individuals to be aware and comply.

Recipients: As above; Information Technology Department; Taxpayer Support Division; One-Stop Department; IT Department; Tax Departments of districts, towns, and regions; Website of the Tax Department; Archive: Office, Tax Filing.

ON BEHALF OF THE DIRECTOR OF THE TAX DEPARTMENT DEPUTY DIRECTOR   Nguyen Viet Thong

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