Important notes for personal income tax payers

TAccording to the provisions of the Law on Personal Income Tax and the Law on Tax Administration, taxpayers subject to personal income tax finalization are responsible for declaring personal income tax finalization within 90 days from the end of the calendar year.

Every day, Thien Son orange farm, Dong Thanh commune harvests dozens of tons of oranges, earning tens of billions of dong.

To ensure timely guidance for organizations and individuals to implement consistently according to the provisions of the personal income tax law, the General Department of Taxation has just issued an official dispatch requesting the Tax Departments of provinces and cities to propagate and disseminate to taxpayers some contents on personal income tax (PIT) finalization in 2015 and tax code issuance for dependents.

The General Department of Taxation clearly states that resident individuals with income from salaries and wages are responsible for declaring and settling taxes if there is an additional amount of tax payable or an excess amount of tax paid that requires a refund or tax offset in the next tax declaration period, except for the following cases: Individuals with an amount of tax payable that is less than the amount of tax provisionally paid without a request for a tax refund or tax offset in the next period; individuals with income from salaries and wages who sign a labor contract for 3 months or more at a unit but have additional irregular income in other places with an average monthly income of no more than 10 million VND in the year, and have had their income paid by the unit deducting tax at the source at a rate of 10%, if there is no request, no tax settlement for this income will be made...

Taxable income

Taxable income is determined according to the instructions in Circular No.111/2013/TT-BTCdated August 15, 2013; Circular No. 119/2014/TT-BTC dated August 25, 2014; Circular No. 151/2014/TT-BTC dated October 10, 2014; Circular No.92/2015/TT-BTCJune 15, 2015 of the Ministry of Finance; General Department of Taxation notes the following contents:

For housing, electricity, water and accompanying services (if any) not included: benefits for housing, electricity, water and accompanying services (if any) for housing built by employers to provide free of charge to employees working in industrial parks; housing built by employers in economic zones, areas with difficult socio-economic conditions, areas with especially difficult economic conditions provided free of charge to employees working there.

In case an individual lives at the workplace, taxable income is based on rent or depreciation costs, electricity, water and other services calculated according to the ratio between the area used by the individual and the area of ​​the workplace.

The amount of house rent, electricity, water and other related services (if any) for housing paid by the employer on behalf of the employee shall be included in taxable income according to the actual amount paid on behalf of the employee but shall not exceed 15% of the total taxable income generated (excluding house rent, electricity, water and other related services (if any)) at the unit regardless of the place of income payment.

Allowances and subsidies not included in taxable income are summarized in the List of allowances and subsidies issued by competent state agencies as the basis for determining taxable income from salaries and wages, issued in Official Dispatch No. 1381/TCT-TNCN dated April 24, 2014 of the General Department of Taxation.

Average monthly taxable income

When performing annual tax settlement, average monthly taxable income is determined by total annual income (12 months) minus (-) total deductions of the following year and then divided by 12 months, specifically as follows:

In case the resident individual is a citizen of a country or territory that has signed an Agreement with Vietnam on the avoidance of double taxation and prevention of tax evasion with respect to taxes on income, the personal income tax obligation is calculated from the month of arrival in Vietnam in the case of the individual first arriving in Vietnam until the month of termination of the Labor Contract and departure from Vietnam (calculated in full by month).

Regarding the calculation of family deductions for individuals, the General Department of Taxation clearly states that in the tax period, individuals residing in the area have not yet calculated family deductions for themselves or have not calculated family deductions for themselves for 12 months, then they will be calculated for 12 months if they perform tax settlement according to regulations.

For individuals who are citizens of countries or territories that have signed an Agreement with Vietnam on the avoidance of double taxation and prevention of tax evasion with respect to taxes on income and are individuals residing in Vietnam, the calculation of personal family deductions is calculated corresponding to the number of months determining the personal income tax obligation to be declared in Vietnam according to regulations.

The family deduction for dependents that the taxpayer has the obligation to support is calculated from the month in which the obligation to support arises according to the instructions in Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance and Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance.

According to Chinhphu.vn