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.
Subjects subject to personal income tax
Pursuant to the provisions of Clause 1, Article 2 of the Law on Personal Income Tax 2014, the subjects subject to tax payment include: resident individuals with taxable income under the provisions of Article 3 of the Law on Personal Income Tax 2014 arising inside and outside the territory of Vietnam; for non-resident individuals with income, they will be taxed according to the provisions of Article 3 of the Law on Personal Income Tax 2014 for arising in the territory of Vietnam.
Accordingly, resident individuals need to meet the conditions according to Clause 2, Article 2 of the Law on Personal Income Tax 2014, specifically:
- Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months from the first day of presence in Vietnam;
- Having a permanent residence in Vietnam, including having a registered permanent residence or having a rented house to live in Vietnam under a fixed-term lease contract.
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.
Accordingly, the personal income tax return with income from salaries and wages is Form 05/KK-TNCN issued together with Circular 80/2021/TT-BTC.
Model No.: 05/KK-TNCN
(Promulgated together with Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Minister of Finance)
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
PERSONAL INCOME TAX RETURN
(Applicable to organizations and individuals that pay incomes from salaries and wages)
[01] Tax period: |
Month… year … / quarter … year… |
[02] First time: [03] Second addition: …
[04] Taxpayer’s name:………………………………………………………………………
[06] Address: …………………………………………………………………………………………….
[07] District: ………………… [08] Province/city: ………………………………………………..
[09] Phone:………………..[10] Fax:……………………..[11] Email: …………………..
[12] Name of tax agent (if any):………………………………………………………………………..
[14] Tax agency contract: No. ………………………………. Day:…………………………………..
[15] Tax allocation due to the presence of dependent accounting units in other provincial-level areas where the head office is located:
Currency: Vietnamese Dong
STT |
Quota |
Indicator code |
Units of Calculation |
Number of people/
Amount |
1 |
Total number of employees: |
[16] |
Person |
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In which: Resident individuals with labor contracts |
[17] |
Person |
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2 |
Total number of individuals who have deducted tax [18]=[19]+[20] |
[18] |
Person |
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2.1 |
Resident Individuals |
[19] |
Person |
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2.2 |
Non-resident individuals |
[20] |
Person |
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3 |
Total taxable income paid to individuals [21]=[22]+[23] |
[21] |
VND |
|
3.1 |
Resident Individuals |
[22] |
VND |
|
3.2 |
Non-resident individuals |
[23] |
VND |
|
3.3 |
In which: Total taxable income from premiums for purchase of life insurance and other non-compulsory insurance of insurance enterprises not established in Vietnam for employees |
[24] |
VND |
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4 |
In which, the total taxable income is exempted under the provisions of the petroleum contract |
[25] |
VND |
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5 |
Total taxable income paid to individuals subject to tax deduction [26]=[27]+[28] |
[26] |
VND |
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5.1 |
Resident Individuals |
[27] |
VND |
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5.2 |
Non-resident individuals |
[28] |
VND |
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6 |
Total amount of personal income tax deducted [29]=[30]+[31] |
[29] |
VND |
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6.1 |
Resident Individuals |
[30] |
VND |
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6.2 |
Non-resident individuals |
[31] |
VND |
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6.3 |
In which: The total amount of personal income tax deducted on the purchase fee for life insurance and other non-compulsory insurance of insurance enterprises not established in Vietnam for employees |
[32] |
VND |
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I guarantee that the above declared data is correct and take responsibility before law for the declared data./.
TAX AGENT STAFF
Full name: ……………………
Practice Certificate No.:……….. |
…day… month … year… |
TAXPAYER or
LEGAL REPRESENTATIVE OF TAXPAYERS |
(Signature, clearly stating full name; position and seal (if any)/Electronic signature) |
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Notes:
– This declaration only applies to organizations and individuals that generate income from salaries and wages to individuals in a month/quarter, regardless of whether tax deduction is incurred or not.
– The monthly tax declaration period applies to income-paying organizations and individuals with total turnover from selling goods and providing services in the preceding year of over VND 50 billion or in case income-paying organizations and individuals choose to declare tax on a monthly basis.
– The quarterly tax declaration period applies to income-paying organizations and individuals with total revenue from the sale of goods and provision of services of the preceding year of VND 50 billion or less, including income-paying organizations and individuals that do not generate revenue from the sale of goods and provision of services.