Personal income tax finalization handbook for directors

This article will help business managers understand and understand the following issues:

1. Who must finalize personal income tax?

2. Deadline for finalization of personal income tax

3. Authorization to finalize personal income tax

4. The payable PIT amount for income received in 2019

5. Dossiers and procedures for finalization of personal income tax

6. Personal income tax refund

1. Who must finalize personal income tax?

According to the provisions of the law on personal income tax, the persons subject to personal income tax finalization include income-paying organizations and individuals and laborers earning incomes in the tax period.

2. Deadline for finalization of personal income tax

Pursuant to: Point dd Clause 3 Article 10 and Clause 4 Article 8 of Circular 156/2013 / TT-BTC, specifically:

Point d, Clause 3, Article 10 of Circular 156/2013 / TT-BTC provides:

"The deadline for submission of annual tax finalization dossiers is the 90th (ninety) day, counting from the end of the calendar year or fiscal year."

Clause 4, Article 8 of Circular 156/2013 / TT-BTC stipulates:

"If the last day of the time limit for handling administrative procedures coincides with the holiday as prescribed, the last day of the time limit is counted as the next working day of that holiday."

Accordingly, the deadline for finalization of personal income tax in 2019 is March 30, 3.

3. Authorization to finalize personal income tax

3.1. Cases authorized

* Conditions for enterprises to authorize the settlement

According to Article 16 of Circular 156/2013 / TT-BTC (amended and supplemented by Article 21 of Circular 92/2015 / TT-BTC), individuals with income from salaries and wages authorize organizations and individuals to Tax payment multiplier for income tax settlement in the following cases:

- Individuals having only income from salaries or wages and signing labor contracts for 03 months or more at an income-paying organization or individual and actually working there at the time of authorized tax finalization, including the case of not working full 12 months in a year.

- Individuals having income from salaries or wages sign labor contracts from 03 months or more at an organization or individual paying income and actually working there at the time of authorization for tax finalization, including In the case of not working for full 12 months in a year and having current income in other places, the average monthly income of the year is not more than 10 million VND, the entity pays 10% withholding tax without any request. tax finalization for this income.

- An employee who is transferred from the old organization to the new one in case the old one is divided, split, amalgamated, merged or transformed. At the end of the year, the employee is authorized to make tax finalization, the new organization must collect the personal income tax withholding vouchers issued by the former organization to the employee (if any) for use as a basis for income aggregation. the tax amount withheld and the tax finalization on behalf of the employee.

Note:

- Income-paying organizations and individuals only conduct tax finalization on behalf of individuals with respect to the income from salaries and wages that individuals receive from the income-paying organizations or individuals.

- In case the paying organization after dividing, splitting, consolidating, merging, transforming the enterprise and making tax finalization under the authorization of the employee is transferred from the old organization to the new one. be responsible for tax finalization for the income paid by the former organization.

* Authorization record

According to Clause 2, Article 16 of Circular 156/2013 / TT-BTC (amended by Clause 3, Article 21 of Circular 92/2015 / TT-BTC), individuals prepare an authorization dossier as follows:

- Authorization form according to form No. 02 / UQ-QTT-TNCN;

- Copies of invoices and vouchers to prove charitable, humanitarian and study promotion contributions (if any).

3.2. The case is not authorized

According to Official Letter 5749 / CT-TNCN, employees are not authorized to finalize personal income tax for enterprises in the following cases:

- Employees who meet the conditions for authorization but have been issued with a personal income tax withholding voucher by the enterprise shall not authorize tax finalization for the enterprise, unless the enterprise has recovered and canceled the withholding voucher. deducting taxes already issued to employees.

- The employee who has income from salaries or wages signed a labor contract of 03 months or more at an enterprise but at the time of authorized tax finalization no longer works at that enterprise.

- The employee has income from salaries or wages signed labor contracts for 03 months or more at an enterprise, and has current income without tax deduction or insufficient tax deduction (including cases level of deduction not reached and level of deduction is reached, but no deduction is reached).

- The employee has income from salaries, wages and signed labor contracts from 03 months or more at many enterprises.

- The employee only has current income with tax deduction at the rate of 10% (including only current income in one place).

- The employee has not registered a tax code.

- The employee has income from salary, wage and is considered for tax reduction due to natural disaster, fire, accident or fatal disease, it is not authorized to make tax finalization but the employee makes tax finalization together. according to a tax reduction consideration dossier under Clause 1, Article 46 of Circular 156/2013 / TT-BTC.

4. The payable PIT amount for income received in 2019

4.1. Tax bases

According to Article 7 of the Circular 111 / 2013 / TT-BTC, the basis for calculating tax on incomes from salaries and wages is assessable income and tax rates, specifically:

Assessable income is determined by taxable income minus (-) the following deductions:

+ Deductions for family circumstances;

+ Insurance premiums, voluntary retirement funds;

+ Charitable, humanitarian and study promotion contributions.

4.2. Tax calculation formula

In which:

Taxable income is determined as follows:

See details at: Latest guide for personal income tax calculation.

5. Dossiers and procedures for finalization of personal income tax

5.1. For organizations and individuals paying income (enterprises)

* Tax finalization declaration file

Bases: Sub-sections b.2.1, Item b.2, Point b Clause 1 Article 16 of Circular 156/2013 / TT-BTC; Clause 2, Article 21 and Clause 7, Article 24 of Circular 92/2015 / TT-BTC.

Organizations and individuals paying incomes from salaries or wages, regardless of whether tax deduction arises or not, withholding tax returns, shall make tax finalization according to the following forms:

- Declaration form No. 05 / KK-TNCN attached to Circular No. 92/2015 / TT-BTC.

- List of form No. 05-1 / BK-TNCN attached to Circular No. 92/2015 / TT-BTC.

- List of form No. 05-2 / BK-TNCN attached to Circular No. 92/2015 / TT-BTC.

- List of form No. 05-3 / BK-TNCN attached to Circular No. 92/2015 / TT-BTC.

* Place of submission

According to Point c Clause 1 Article 16 of Circular 156/2013 / TT-BTC, the place for submitting tax finalization declaration for 2019 is prescribed as follows:

- Income-paying organizations and individuals being production and / or business establishments shall submit tax declaration dossiers to tax offices directly managing them.

- The income payer is the central agency; agencies affiliated to ministries, branches, and provincial People's Committees; The provincial agency shall submit tax declaration dossiers to the Tax Department where the head office of the organization is located.

- The income paying organization is an agency under the district People's Committee; The district-level agency shall submit tax declaration dossiers to the tax office where the organization is headquartered.

- Income payers are diplomatic agencies, international organizations and representative offices of foreign organizations that submit tax declaration dossiers at the Tax Department where the organization is headquartered.

* Deadline for tax payment

The deadline for personal income tax payment in 2019 is March 30, 3.

5.2. For individuals directly tax settlement

According to Clause 2, Article 16 of Circular 156/2013 / TT-BTC amended by Clause 3, Article 21 of Circular 92/2015 / TT-BTC, individuals earning incomes from salaries or wages do not fall under authorized cases. For organizations and individuals paying incomes and settling tax on their behalf, they shall make tax finalization directly with tax offices according to the following form:

- A tax finalization return, made according to form No. 02 / QTT-TNCN enclosed with Circular 92.

- Appendix form No. 02-1 / BK-QTT-TNCN enclosed with Circular No. 92 if there is registration for family deduction for dependents.

- Copies of documents proving the tax amount already withheld, temporarily paid in the year, and the tax amount paid abroad (if any).

The individual undertakes to take responsibility for the accuracy of the information on that snapshot. In case income-paying organizations do not issue tax withholding vouchers to individuals because their income-paying organizations have terminated their operation, tax offices shall base themselves on tax database databases to consider and handle settlement dossiers. tax is not required for an individual with tax deduction vouchers.

If, according to foreign laws, foreign tax authorities do not issue a certificate of tax payment, the taxpayer may submit a copy of the certificate of tax withholding (clearly stating that the tax has been paid according to the declaration). income tax)) issued by the income payer or a scanned copy of a bank document for the amount of tax paid overseas, certified by the taxpayer.

- Copies of invoices and vouchers proving the contribution to the charity fund, the humanitarian fund, the study promotion fund (if any).

- In case individuals receive income from international organizations, embassies, consulates and receive income from abroad, they must have documents proving the amount paid by the unit or organization paying the income in foreign.

6. Personal income tax refund

Pursuant to Article 28 of Circular 111/2013 / TT-BTC and Article 53 of Circular 156/2013 / TT-BTC amended by Article 23 of Circular 92/2015 / TT-BTC.

6.1. Tax refund conditions

- The personal income tax refund is only applicable to individuals who already have a tax code at the time of request for tax refund.

- For individuals who have authorized tax settlement for income-paying organizations or individuals to make settlement on behalf of, individuals' tax refunds shall be made through income-paying organizations or individuals.

- If individuals directly make tax finalization with the tax agency, if they have overpaid tax, they will be refunded or offset against the payable tax amount of the next period.

Thus, in order to receive a refund of personal income tax, the following conditions must be met:

- Having overpaid tax amount;

- Having a personal income tax code at the time of application for tax refund;

- Tax refund request.

6.2. Personal income tax reimbursement records

* Tax refund for income-paying organizations and individuals that perform tax finalization on behalf of individuals authorized to tax settlement

In case organizations and individuals pay income after clearing overpaid or overpaid tax amounts of individuals who have overpaid tax amounts, if they request the tax agencies to refund them, they shall pay them tax refund dossiers for tax agencies directly managing them.

Tax refund documents include:

- A written request for refund of state budget revenues, made according to form No. 01 / ĐNHT.

- Copies of vouchers, receipts for payment of personal income tax and legal representatives of organizations and individuals paying income sign a commitment to take responsibility at that snapshot.

* Tax refund for individuals directly tax settlement

For individuals earning incomes from salaries or wages directly making tax finalization with tax agencies, if they have overpaid tax amounts, individuals are not required to submit tax refund dossiers, but only need to write the tax amounts requested for refund into quotas. [47] - "Tax amount to be refunded to NNT account" or item [49] - "Total tax offset for the next period" in the tax finalization declaration form No. 02 / QTT-TNCN when tax finalization. ”

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