Prepare tax returns for individuals, including external declarants

The personal income tax return is one of the important tax obligations of citizens in most countries with a personal income tax regime. This includes self-responsibility for collecting and reporting income information and deductions in a complete and accurate manner. Filing a tax return is one of the important responsibilities of every citizen, not only to comply with the law but also to ensure fairness and transparency in the country’s tax system. However, because there is still a lack of understanding about providing information and preparing tax returns, there are still some cases where legal risks are encountered due to them. Most of the reasons will usually be: not making a personal income tax return to submit to the tax authority, filling in missing or incorrect information, missing income,… Understanding this practical legal issue, PHAM CONSULT would like to provide you with the most professional tax legal services, notably tax return preparation services for individuals, including external declarants. With a team of agility and long-term experience, we will serve you the best experience.

Individual Income Tax Return

An individual’s income tax return is a form issued by the tax authority that taxpayers will use to declare their taxable income in a given tax period. This return helps the tax authority determine the amount of tax that the individual must pay or be refunded.

Subjects who must make tax returns

Pursuant to the provisions of law, the subjects who must declare personal income tax and pay tax include:

• For individuals who are residing and earning income from salaries and wages paid by embassies, international organizations and consulates in Vietnam but these organizations have not yet deducted tax.
• For resident individuals who have income from salaries and wages paid from foreign enterprises, individuals or organizations.
• For individuals who earn income from the transfer of real estate, tax declaration according to arising times includes subjects who have been exempted from tax.
• Organizations or individuals that are paid the income that has been deducted from PIT declaration.
• Income from capital transfers.
• Income from the transfer of securities: Individuals transfer securities or through the trading system of the stock exchange.
• Enterprises that have been authorized to settle personal income on behalf of individuals who are transferred securities.
• For individuals currently residing in the transfer of contributed capital, tax declaration shall be made on a case-by-case basis, including whether or not income is generated.
• For individuals who have income from capital transfer activities in Vietnam even if they do not reside.
• The situation of changing the list of members contributing capital but transferring capital does not have documents to prove that the shareholders transferring capital have fulfilled the tax obligations of the enterprise, and the individuals transferring capital must be responsible for declaring tax or paying tax on behalf of individuals.

Purpose of making income tax returns for individuals

Making a tax return for an individual is the obligation of every citizen. Accordingly, a personal income tax return is made for the following purposes:

• Determine tax liability: The return helps determine the amount of personal income tax a taxpayer must pay based on income and eligible deductions.
• Ensure compliance with the law: Tax declaration is mandatory in accordance with the law, helping individuals comply with regulations and avoid fines.
• Income management and control: Tax authorities use information from declarations to track and control individuals’ sources of income, thereby ensuring transparency and accuracy in the tax system.

Key components of an individual income tax return

The tax form is issued by a competent state agency, people will fill in their personal information (ensuring truthfulness) in the declaration form to submit. Basically, a tax return consists of the following main components:

(1) Personal Information

Full name, identity card number or citizen identification number, personal tax identification number.

Residential address and contact information.

(2) Income information

Total income from sources such as salaries, wages, income from business, investment, and other sources of income.

(3) Deductions

Deductions for social insurance, health insurance, and unemployment insurance.

Family circumstance deduction for yourself and your dependents.

(4) Tax calculation

Total taxable income after deductions.

Payable tax amount or refundable tax amount.

The above are the main components that a tax return needs to have.

Instructions on how to prepare a tax return for an individual

1. Determination of declared income of individuals

Determine the incomes that individuals have to declare:

• Income from salary and wages: It is the amount of money you receive from a contractual business.
• Income from business operations: If you are a sole proprietorship.
• Income from interest and dividends: Income from investments.
• Income from real estate: Income from leasing real estate.
• Income from other amounts: Including incomes such as gifts, inheritances, lottery winnings, etc.

2. Prepare your application

• Personal documents: Identity card, passport (if any), business license (if applicable).
• Income documents: Including salary receipts, invoices, income statements,…

3. Fill out a personal income tax return

Fill in all personal information of the person making the personal income tax return.

4. Filing a personal income tax return

Submit the declaration according to the regulations of the local tax authority.

People can submit in many different forms: face-to-face, online.

Deadline for filing personal income tax returns

• The time to submit a monthly personal income tax return is the 20th day of the month following the month in which the tax obligation arises.
• The time to file a quarterly personal income tax return is no later than the last day of the first month of the quarter following the quarter in which the tax liability arises.

Tax return preparation services for individuals, including external preparers

PHAM CONSULT is proud to provide you with tax return preparation services for individuals, including external preparers, quickly, economically and quickly. The service is provided by experienced professionals to ensure individuals not only meet their tax obligations correctly, but also optimize the tax benefits that can be achieved:

• Gather information: Gather all necessary documents and information such as personal papers, income receipts (W-2, 1099,..), records of deductible expenses, and any other documents related to the individual’s income and expenses.
• Analyze and identify incomes: Give a detailed analysis of incomes from various sources such as salaries, interest rates, dividends, income from business, income from rentals, and other incomes.
• Tax Calculation and Deduction: Calculate the amount of tax payable based on the income and expenses that can be deducted. This includes the application of tax exemptions, tax deductions such as standard deductions, or personal expense deductions.
• Fill out and file tax returns: Fill out tax return forms such as Form 1040 or similar forms in accordance with local tax authority regulations.
• Check and file your tax return: Double-check the information you have filled in to ensure accuracy and complete the filing of your tax return in accordance with the instructions and deadlines of the tax authority.

 

If you have any legal questions that need to be answered, do not hesitate to contact PHAM CONSULT immediately at hotline +84932 103 118 to receive advice from specialists.