PERSONAL INCOME TAX (PIT) – ANNUAL PIT SETTLEMENT KEY NOTES

Personal Income Tax (PIT) - Annual PIT Settlement Key Notes

PERSONAL INCOME TAX (PIT) – ANNUAL PIT SETTLEMENT KEY NOTES

(Last Updated On: August 31, 2021)
Personal Income Tax (PIT) - Annual PIT Settlement Key Notes

Personal Income Tax (PIT) – Annual PIT Settlement Key Notes

Personal income tax declaration, settlement and payment are very important tasks for not only the employer but also the employee, especially when a foreign employee is recruited and working in Vietnam. We would like to remind you some key notes for your annual personal income tax settlement of as follows.

WHO SHOULD DIRECTLY DECLARE ANNUAL PERSONAL INCOME TAX (PIT) AT TAX AUTHORITIES?

  • Some of your staff may not joint your company full 12 months of 2020 or have more incomes from wages /salary from other companies. In this case, these staff cannot request income payer to settle tax on their behalf but directly declare tax at tax authorities.
  • To make the declaration, they must prepare a letter of income confirmation from previous income payer + certificate of tax withheld at source on the incomes (withheld receipt).
  • Based on current income from your company and other incomes with the withheld receipts, they should prepare the annual personal income tax settlement sheet and declare directly to tax department. This task is not employer’s obligation but personal matter of every staff (it means, the annual final settlement sheets of company will not including their sheets). If your staffs have no time to manage the procedure, VIVA BCS can do on behalf.

WHO WILL PAY TAX ON THE PROGRESSIVE METHOD OR APPLYING THE FIXED RATE?

  • To verify a proper method of annual personal income tax (PIT) declaration for expats, please prepare a full pages to copy of your passport + Labor contract / appointment letter / tax withheld receipts.
  • Upon you are resident or non-resident, you should declare and settlement of annual personal income tax (PIT) for the incomes inside Vietnam or either global income. Taxable amount / tax rates of resident and none resident are completely different. Fail to apply properly declaration of PIT will lead to serious fines from tax department in the coming years.
  • Our team will support you to manage standard employee profiles / legal requirement records as well as compliance reports / declaration. We wish to go your files right thing in the first time, clean and clear today and for the next 3 or 5 years.

TAXABLE AND NON TAXABLE INCOMES

  • Some incomes and benefit are none taxable, so you can optimize the payable amount in a lawful way
  • Some benefit is taxable, so you should be careful to avoid tax recollect and fined.

 

WHO WE ARE

  • VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006.
  • The insights and consistent backgrounds in Business Laws - Accounting and Corporate Finance - Tax Management – Labor Relations and Payroll - Secretarial services help us build trust and confidence in the entrepreneurs’ community.
  • We have been successfully providing service for thousands of leading companies from Hong Kong, Japan, US, EU, Singapore, India, China, Korea…. in forms of FDI companies, Foreign representative offices, Foreigner working in Vietnam, Vietnamese SMEs, Chief Operation Officers.
  • VIVA's logo is our Brand name, our signature, it states our faith - independence - transparence - and loyalty for client's interest. The signature is commitment and honor on our outstanding expertise and professionalism. It is the symbol of good standing for our clients whenever they are doing business with customers, partners, the local competent state agencies...

 

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Read more:

Taxable Incomes From Wages And Remunerations

Condition For Personal Income Tax Exemption And Non-Taxable

Important notices regarding the methods of personal income tax declaration in Vietnam



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