Time limit for PIT declaration from capital investment 2023
Paying PIT is the obligation of each investor. When implementing, taxpayers need to consider the time limit for declaring PIT from capital to comply with the regulations of the State. Pham Consult will provide you with some information about the deadline for PIT declaration from capital investment in 2023.
1. What is PIT from capital investment?
Clause 3, Article 2, Circular 111/2013/TT-BTC, supplemented with Clause 6, Article 11, Circular 92/2015/TT-BTC has regulations on capital investment income. Accordingly, income tax calculated from capital investment is personal income received in the forms:
– Interest received from lending to enterprises or organizations under loan contracts or loan agreements (except interest on deposits received from credit institutions or foreign bank branches).
– Dividends received from capital contribution to buy shares.
– Contribute capital to companies, cooperatives, joint ventures, business cooperation contracts and other forms of business (except for private enterprises, single-member limited liability companies owned by individuals). ); profits received from contributing capital to establish credit institutions; contribute capital to the Securities Investment Fund and other investment funds.
– The increase in the value of contributed capital when the enterprise is dissolved, changed its operating model, divided, split, merged, consolidated or when capital is withdrawn.
– Interests on bonds, bills and other valuable papers issued by domestic organizations (except interest on credit deposits, foreign banks and government bonds).
– Other incomes, including capital contribution in kind, reputation, land use rights, patents and inventions.
– Dividends paid in shares, income from capital gains.
In particular, if you are investing capital in a business and generate income, then in addition to the PIT obligation with income from wages and salaries, you will have to pay PIT.
2. Determine tax return period (month/quarter/times incurred)
PIT declaration period for capital investment income is monthly or quarterly; Particularly, income from receiving stock dividends, capital gains and bonus securities can choose to declare tax on each arising or monthly/quarterly basis.
3. Tax returns
Enterprises paying income from capital investment are responsible for withholding PIT before paying income to individuals (except for individuals who declare tax themselves according to the guidance in Clause 9 Article 26 of Circular 111/2013/TT-BTC). ).
– Monthly/quarterly tax declaration dossiers of organizations and individuals paying tax deductible income for capital investment incomes of resident and non-resident individuals:
+ Personal income tax declaration form 06/TNCN attached to Circular 80/2021/TT-BTC of the Ministry of Finance
+ Appendix of a detailed list of individuals earning income in the tax year (declared in the tax return of the last month/quarter in the tax year) according to form 06-1/BK-TNCN attached to Circular 80/ 2021/TT-BTC of the Ministry of Finance
– Tax declaration dossiers according to each time they arise, for individuals who earn income from capital investment, paid from abroad, and declare directly to the tax office:
+ Personal income tax declaration form 04/NNG-TNCN attached to Circular 80/2021/TT-BTC of the Ministry of Finance
4. Time limit for declaring PIT from capital investment
Tax period based on each time income is generated, applicable to income from the following: capital investment, income from capital transfer, income from real estate transfer, from winning prizes, copyrights, and franchises commercial, inheritance, gift.
5. Deadline for filing tax returns
Time limit for submitting tax declaration dossiers: the 10th day at the latest from the date of arising (if declaration by time). In case of additional declaration of tax declaration dossiers, the tax payment deadline is the time limit for submitting tax declaration dossiers of the tax period with errors or omissions.
6. How to calculate PIT from capital investment
Amount of personal income tax payable = Taxable income x Tax rate of 5%
Taxable income from capital investment is the taxable income received by an individual under item 1 above.
The tax rate for income from capital investment is applied according to the Full Tax Schedule with the tax rate of 5%.
7. Tax return filing location
Individuals and businesses declare and submit tax returns from capital investment at tax agencies directly managing income-generating enterprises.
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