The new guidance of the General Department of Taxation is: Organizations and individuals that do not pay PIT in any month/quarter are not required to declare PIT for that month/quarter.
However, this leads to the risk that if the enterprise discovers errors at the end of the year, the return of the declaration of that month/quarter will lead to an administrative penalty due to the late PIT declaration.
Here's the featured content at Official Letter 2393/TCT/DNNCN on PIT declaration dated July 01, 7 on personal income tax (PIT) declaration issued by the General Department of Taxation.
Accordingly, the personal income tax declaration of organizations and individuals that do not generate income is guided as follows:
– Pursuant to Clause 6, Article 1 of the 2012 Law on Personal Income Tax and Clause 1, Article 9 Decree 126/2020 / ND-CP guiding the Law on Tax Administration 2019 October 19, 10 then:
+ Only organizations and individuals that pay PIT taxable income are subject to PIT declaration.
+ In case organizations and individuals do not generate income to pay PIT, they are not subject to the adjustment of the Law on PIT.
Thus, organizations and individuals that do not pay PIT in any month/quarter are not required to declare PIT for that month/quarter.
In addition, this Official Letter also guides the case of state administrative agencies, administrative and non-business agencies, party agencies, etc., which generate income from salaries and wages but do not generate sales revenue. Goods and services are subject to quarterly PIT declaration.
Official Dispatch 2393/TCT-DNNCN issued on July 01, 7.