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Notes for individuals and businesses when finalizing taxes in 2021

Updated at 29/09/2022 - 10:05 am

Recently, the General Department of Taxation noted a number of changes in the new guidance of Circular 80/2021/TT-BTC on tax finalization in 2021 compared to the previous one. At the same time, the Department also encourages taxpayers to pay through the tax declaration support application ( to be safe during the epidemic season."

The cost of supporting Covid-19 prevention in Vietnam is reduced #

2021 is a difficult year due to the epidemic, so to encourage the timely contribution of businesses in the fight against the epidemic, the Government has issued Decree No. 44/2021 guiding the implementation of expenses. less than when determining taxable revenue. Expenses to be deducted are support and sponsorship expenses in money, in kind of the organization for the prevention of covid 19 epidemic in Vietnam. 

Enterprises need to submit together with documents identifying and evidencing expenses for support and sponsorship, including a written certification made according to the form promulgated together with this Decree with full signatures and stamps of both parties; lawful invoices and documents in accordance with the law on donations and sponsorships.

In addition, the determination of tax reduction declaration of the tax period 2021 according to Decree 92/2021 implementing Resolution No. 406/NQ-UBTVQH15 of the National Assembly Standing Committee promulgating solutions to support the Covid-19 epidemic. corporate income tax will be reduced by 30% if the enterprise has a turnover in the tax period of 2021 not exceeding VND 200 billion and decreases compared to the revenue in the tax period 2019.

Note: In the case of newly established, merged, divided or split-up enterprises in the tax period of 2020 and 2021, the criterion that the revenue in the tax period 2021 will decrease compared to the tax period of 2019 does not apply. .

When making finalization documents, enterprises declaring CIT will be entitled to a reduction on their CIT return and on the reduced CIT Appendix issued together with Decree No. 92/2021/ND-CP dated October 27, 10 of the Government. Government.

The latest deadline for submitting corporate income tax finalization documents is the last day of the third month (March 3, 31.3.2022) from the end of the calendar year or fiscal year.

Other important notes #

In addition to the note that the expenses for supporting the prevention of Covid-19 in Vietnam are reduced, individuals and businesses also need to pay attention to a few points when making tax finalization in 2021:

  • There is no need to enter the declaration 05/KK-TNCN, but the software will update itself in Appendixes PL 05-1BK-TNCN, PL 05-2BK-TNCN and PL 05-3BK-TNCN.
  • If an individual has multiple sources of income, he/she must make the final settlement by himself and is not authorized to finalize PIT.
  • Enterprises paying main income are temporarily taxed according to the fully progressive schedule. Other income-paying enterprises charge 10% from 2 million / time and issue deduction documents for employees to self-settle tax
  • Businesses that pay at the same time only show personal income and withheld tax without checking in the authorization column for finalization on PL 05-1BK-TNCN.
  • The total taxable income is from salaries and wages paid in the period to residents who have signed labor contracts of 03 months or more. Including salaries, wages received from working in economic zones and incomes are exempted and reduced under the Agreement on avoidance of double taxation.
  • The total family deduction is the deduction for the taxpayer himself and the deduction for dependents. Deduction for yourself = 11 million VND/month, deduction for dependents = 4,4 million VND/month.
  • If the individual has income > 2 million/time, when paying salary -> deduct 10% tax on income before paying to employee and issue tax deduction voucher, if income > 2 million/time, make a statement In conclusion 02/BCK-TNCN, it is committed that after deducting deductions that are not yet to be deducted, PIT will not be temporarily deducted and self-correct the employee's deducted amount and then enter it into the software.
  • If no deduction, enter 0 to output without error. Target 19 is the total personal income tax that enterprises have withheld from resident individuals with labor contracts of 03 months or more in the period.

For personal income tax, in case individuals directly make tax finalization, the deadline for submitting tax finalization dossiers is the last day of April 4.2022, in case enterprises are authorized to finalize tax, the deadline for submission of dossiers is the same as the date of tax finalization. CIT finalization is the last day of March, 3.2022.

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