Important Notes on Corporate Income Tax (TNDN) & Personal Income Tax (TNCN) Finalization

Finalizing corporate income tax (TNDN) and personal income tax (TNCN) is a crucial stage in fulfilling tax obligations for businesses. To ensure the accuracy and timeliness of tax filing, businesses need to be aware of several important points, as outlined in the General Department of Taxation’s Circulars 2026 and 369.

1. Important Considerations When Finalizing TNDN Tax

In the 03/TNDN tax declaration form, the following key sections should be paid particular attention to:

• [G1] and [G3]:
  Businesses must declare any overpaid TNDN tax from previous periods. This overpaid tax will be carried forward to offset the tax due for the current period, helping to reduce the tax burden.

• [G2], [G4], and [G5]:
  These sections reflect the provisional TNDN tax payments made throughout the year. It is necessary to reconcile these numbers with the final tax payable at year-end to ensure the tax calculation is accurate.

• [E] and [G]:
  For income eligible for special tax incentives, businesses are not required to declare TNDN tax payable. It’s important to check these incentives carefully to ensure compliance with current regulations.

These points will help businesses maintain accurate tax records and ensure that the tax offset and reconciliation process is conducted properly.

2. Important Considerations When Finalizing TNCN Tax

For personal income tax, businesses need to pay attention not only to the main declaration form but also to the accompanying annexes and specific cases, such as:

• Required Annexes:
  Businesses must submit all necessary annexes when finalizing TNCN. Two critical situations require special attention:

  • Probationary contract cases:
    If an employee signs a probationary contract for less than 3 months (with a 10% withholding tax) and later signs a permanent contract for more than 3 months, the income will be recalculated according to the progressive tax rate during the TNCN finalization. This ensures that the final tax rate accurately reflects the employee’s financial capacity.

  • Tax authorization cases:
    If an employee authorizes the business to finalize their tax, the total income and withheld tax amounts should be reported in Annex 05-1. On the other hand, if the employee files their own tax return, the business needs to separately report the 10% withheld income in Annex 05-2, making it easier for the tax authorities to verify the data.

3. Conclusion

The deadline for submitting tax finalization documents is March 31, 2025. Therefore, businesses should promptly review and verify the data on both the TNDN and TNCN forms to avoid errors and ensure a smooth filing process.

• For TNDN tax:
  Businesses should focus on properly recording any overpaid tax and provisional payments, which play a key role in offsetting taxes for the current period.

• For TNCN tax:
  Accurate submission of the necessary annexes, particularly for probationary contracts and tax authorization cases, will help ensure the transparency and accuracy of the final figures.

Tax finalization is not just a legal obligation; it also provides an opportunity for businesses to review, update, and adjust their tax records to ensure accuracy, minimizing risks during tax audits. Businesses should proactively check and prepare well in advance to avoid any complications during the tax finalization process.

Ensure all documents and figures are thoroughly prepared and in order, facilitating a smooth tax finalization process and supporting sustainable business growth.