VI Binh Duong Tax Department has just issued Official Dispatch 1000/CTBDU-TTHT 2024 on tax reports that need attention in 2024. Through today’s article, let’s learn about this issue with Pham Consult.
Accordingly, the content of the 2024 personal income tax report for income from salaries and wages should be noted as follows:
[1] Taxpayers who declare personal income tax monthly and are eligible to declare value-added tax quarterly can choose to declare personal income tax quarterly.
[2] Taxpayers pay salaries and wages to employees working at dependent units or business locations in provinces other than where the head office is located, and deduct personal income tax for those employees. income from salaries and wages according to regulations and submit tax declaration documents according to form No. 05/KK-TNCN, appendix table determining the amount of personal income tax payable to localities enjoying the revenue according to form No. 05-1/PBT-KK-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC for direct management tax authorities; Pay personal income tax on income from salaries and wages to the state budget for each province where the employee works according to the provisions of Clause 4, Article 12 of Circular 80/2021/TT-BTC. The personal income tax amount is determined for each province on a monthly or quarterly basis corresponding to the personal income tax declaration period and is not determined again when finalizing personal income tax.
[3] Individuals with income from salaries and wages who are subject to direct tax declaration to tax authorities include: resident individuals with income from salaries and wages deducted from abroad; Non-resident individuals have income from salaries and wages arising in Vietnam but deducted from abroad; Individuals with income from salaries and wages paid by international organizations, embassies, and consulates in Vietnam but have not yet deducted taxes; Individual receives bonus shares from the paying unit.
Note:
From October 30, 2022, Decree 91/2022/ND-CP of the Government takes effect, personal income tax declarers are organizations and individuals paying income in the case of income tax declaration. Individuals by month or quarter and in that month or quarter there is no deduction of personal income tax for the recipient of income, the taxpayer does not have to submit a personal income tax declaration.
How to finalize personal income tax monthly and quarterly according to current regulations?
Article 8 of Decree 126/2020/ND-CP regulates taxes declared monthly and quarterly, clearly stating personal income tax as follows:
Taxes declared monthly, quarterly, annually, declared each time a tax liability arises and tax finalization declaration
1. Other taxes and revenues belonging to the state budget collected by tax administration agencies are declared monthly, including:
a) Value added tax, personal income tax. In case the taxpayer meets the criteria prescribed in Article 9 of this Decree, he/she can choose to declare quarterly.
…
2. Other taxes and revenues belonging to the state budget declared quarterly include:
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c) Personal income tax for organizations and individuals paying income subject to tax deduction according to the provisions of personal income tax law, and the organization or individual paying that income is subject to value tax declaration increase quarterly and choose to declare personal income tax quarterly; Individuals with income from salaries or wages directly declare tax to the tax authority and choose to declare personal income tax quarterly.
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Compare with the provisions in Clause 1, Article 9 of Decree 126/2020/ND-CP as follows:
Quarterly tax declaration criteria for value added tax and personal income tax
1. Quarterly tax declaration criteria
a) Quarterly value-added tax declaration applies to:
a.1) Taxpayers are required to declare value-added tax monthly as prescribed in Point a, Clause 1, Article 8 of this Decree if their total revenue from selling goods and providing services in the preceding year is from 50 billion VND or less, you can declare value-added tax quarterly. Revenue from selling goods and providing services is determined as total revenue on value-added tax declarations of tax periods in the calendar year.
…
a.2) In case the taxpayer has just started operating or doing business, he or she can choose to declare value-added tax quarterly…
b) Declare personal income tax quarterly as follows:
b.1) Taxpayers who are required to declare personal income tax monthly as prescribed in Point a, Clause 1, Article 8 of this Decree, if eligible to declare value-added tax quarterly, can choose to declare income tax. individual quarterly.”.
Thus, taxpayers must declare and pay personal income tax monthly, except in the following cases where they can choose to declare quarterly:
– State power agencies, state administrative agencies, specialized agencies under the People’s Committees at all levels, administrative and non-business units, party agencies, socio-political organizations,… There is income payment from salaries and wages but there is no revenue from sales of goods and services.
– Taxpayers whose total revenue from selling goods and providing services in the preceding year is VND 50 billion or less.
– Individuals with income from salaries or wages directly declare taxes to the tax authority.
– Taxpayers who have just started operating or doing business.
How much is the current family deduction?
The current family deduction is implemented according to Resolution 954/2020/UBTVQH14, as follows:
– The deduction level for taxpayers is 11 million VND/month (132 million VND/year);
– The deduction for each dependent is 4.4 million VND/month.
Thus, through the article on Pham Consult, we have helped you learn more information to note about 2024 personal income tax reporting for income from salaries and wages according to the latest instructions. Hope the above information will help your work.
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