Is it necessary to declare tax when there is no personal income tax?

Updated at 29/03/2022 - 04:55 pm

Taxpayers are obliged to declare tax for tax authorities to manage and collect tax according to regulations. Therefore, the question that many organizations and individuals are interested in is the fact that no personal income tax is required to declare tax?

No personal income tax is incurred, still need to declare tax #

Pursuant to Point b, Clause 3, Article 7 of Decree No. 126/2020/ND-CP promulgating individuals whose incomes are exempt from tax according to the provisions of law specified at Point b, Clause 2, Article 79 of the Law on tax administration except individuals Persons receiving inheritances or gifts being real estate do not need to submit tax returns.

According to the amendments and supplements to Official Letter No. 5189/TCT-CS dated December 7, 12 of the General Department of Taxation, all organizations and individuals that pay income even if they do not incur monthly/quarterly tax deductions, must still declare Tax.


From the above provisions, on July 1, 7, the General Department of Taxation issued Official Letter 2021/TCT-DNNCN with the content that only organizations and individuals paying PIT taxable income are required to declare tax. personal income. If organizations and individuals do not generate and pay personal income tax, they are not subject to regulation of the Law on Personal Income Tax. Accordingly, organizations and individuals that are not required to declare personal income tax of the month/quarter do not generate personal income.

Thus, organizations and individuals that have paid monthly salaries to employees are required to submit PIT declarations even if no employees have to pay PIT. If you do not pay any salary, you do not have to submit that month's declaration.

No salary payment is required to submit the annual finalization declaration? #

Pursuant to Point d, Clause 6, Article 8 of Decree 126/2020/ND-CP stipulating “Organizations and individuals that pay incomes from salaries and wages are responsible for making tax finalization declarations and finalization on behalf of authorized individuals to be paid by income-paying organizations or individuals, regardless of income arising. tax deductible or no tax deduction incurred. In case organizations and individuals do not generate income, they are not required to declare PIT finalization."

If there is no salary payment, do you have to submit the annual finalization declaration?

Thus, whether or not there is a personal income tax, the enterprise still has to submit the PIT finalization declaration by March 30 of each year to make the final settlement for the tax period of the previous year.

In case if the whole year the enterprise does not make any payment, that is, does not pay any employee's salary, the enterprise does not need to submit the PIT finalization declaration.

Penalty for late submission of PIT return #

According to regulations, the deadline to submit the PIT return is March 31, violators who submit the tax return late will have to pay fines with specific penalties applied according to the regulations. Article 13 of Decree 125/2020/ND-CP is as follows:

  • Warning if submission is 1-5 days late and there are extenuating circumstances
  • Administrative fine from 2.000.000 to 5.000.000 VND if the payment is late 1-30 days, except for the above case
  • Administrative fine from 5.000.000 to 8.000.000 VND for late payment 31-60 days
  • An administrative fine of 8.000.000 - 15.000.000 VND if the payment is late 61-90 days; more than 91 days but no tax is incurred; failed to submit the Declaration and did not incur any tax payable; File a Tax Return but failing to submit attached appendices on tax administration for enterprises having associated transactions.
  • An administrative penalty of VND 15.000.000 - VND 25.000.000 will be imposed if the tax is paid more than 90 days late and the taxpayer has paid the full tax amount before the inspection announcement or the tax authority's record is made.

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