Personal Income Tax (PIT) Finalization for 2020 in Vietnam

DMS Law firm in Vietnam is launching Personal Income Tax (PIT) Finalization advisory applicable for foreign nationals or Vietnamese who are considered tax residents of Vietnam, earned taxable employment income in 2020 but do not authorize the employers to finalize PIT on their behalf.

Advice on PIT finalization procedures:

If you earned income in 2020 from employment contracts of 03 months or more at two or more sources, you might want to be advised on procedures for your PIT return.

Basic information about PIT finalization in Vietnam:

Taxable income:

For a tax resident of Vietnam, taxable income is income earned both inside and outside the territory of Vietnam, regardless of where such income is paid (Article 1, Circular No. 05/VBHN-BTC, dated 14 March 2016).

Tax residency status:

A tax resident of Vietnam is an individual (a Vietnamese or a foreign national) who meets any of the following conditions:

The person was physically present in Vietnam for 183 days or more during a calendar year or 12 consecutive months from the first date of arrival in Vietnam;

The person has a permanent residential place in accordance with law on residence (Article 1, Circular No. 05/VBHN-BTC, dated 14 March 2016).

Basis for PIT calculation:

The basis for calculating PIT on employment income is the Assessable income and Tax rate (Article 7, Circular No. 05/VBHN-BTC, dated 14 March 2016).

Tax rate:

The rates of personal income tax on income from employment are the progressive rates in Article 22 of the Law on Personal Income Tax, ranging from 5% to 35%.

PIT finalization:

A tax resident who has earned employment income shall be responsible to settle, finalize tax when there is underpaid tax or when there is overpaid tax to be refunded or offset against the next period, except for the cases mentioned in points c.1) to c.6) Clause 2 Article 26, Circular No. 05/VBHN-BTC, dated 14 March 2016.

For Consultancy:

Call: 0989 157682 or Email: dmslawfirm@gmail.com

Advisory services for PIT return for 2020 in Vietnam