1. Legal basis

• Official dispatch 801/TCT-TNCN
• Circular No. 111/2013/TT-BTC

2. What is personal income tax finalization?

Personal Income Tax (PIT) finalization is the process of declaring and redefining the personal income tax amount that an individual or organization is responsible for paying in a tax period (usually annually) to compare with the tax amount paid in the period. If there is a difference, taxpayers need to complete the outstanding obligations or can receive a tax refund if overpaid.

3. In what cases must individuals self-finalize personal income tax?

Cases where individuals must self-finalize taxes include:

• An individual who meets the authorization conditions but has been issued a personal income tax deduction voucher by the income-paying organization shall not authorize tax finalization to the income-paying organization (except in cases where the income-paying organization has revoked and canceled the tax deduction voucher issued to the individual).
• Individuals with income from salaries or wages sign a labor contract of 3 months or more at a unit but at the time of tax finalization authorization do not work at that organization.
• Individuals with income from salaries or wages who sign a labor contract of 3 months or more at a unit, and at the same time have current income with no tax deduction or insufficient tax deduction (including cases where the deduction level has not yet been reached and the tax deduction limit has been reached but no deduction has been made).
• Individuals with income from salaries or wages sign labor contracts of 3 months or more in many places.
• Individuals with only current income have tax deducted at a rate of 10%. 
• Individuals who have not registered a tax code.
• Resident individuals with income from salaries and wages are also eligible for tax reduction due to natural disasters, fires, accidents, and serious diseases.
• Individuals who have additional/overpaid tax amounts should request a refund/offset in the next tax declaration period
• The individual is present in Vietnam for less than 183 days in the first calendar year, but for 12 consecutive months from the first day of presence in Vietnam for 183 days or more.
• Foreigners who finish working contracts in Vietnam declare tax finalization with tax authorities before leaving the country.

If falling into the above cases, individuals must directly settle personal income tax with the tax authority without authorizing the individual or organization paying income to settle on their behalf.

4. How to calculate personal income tax for people working in 2 places in a year

There are 02 following cases:

• If an individual signs a labor contract of 3 months or more with both companies, personal income tax will be calculated according to the Partial Progressive Tax Schedule.
• If one of the two places does not sign a labor contract or signs a contract with a term of less than 3 months and has an income of 2,000,000/time or more, a 10% deduction is required. Note, in this case, you cannot make a commitment because you have income in 2 places.

5. How to finalize personal income tax for people working for 2 companies in 1 year?

a) Authorize tax finalization through income payment organization:

Individuals will authorize income paying organizations to finalize personal income tax if:

• Have income from salary or wages, sign a labor contract of 3 months or more at an income-paying organization.
• At the same time, having current income elsewhere in the year with an average monthly income of no more than 10 million VND has had tax deducted by the income-paying unit at a rate of 10% if there is no request for tax finalization for this income.

b) Finalize tax directly with tax authorities:

Individuals will not authorize tax finalization but need to make personal income tax finalization directly with the tax authority if:

• Have income from salary or wages signing a labor contract of 3 months or more at an income-paying organization;
• At the same time, there is current income that has not yet deducted tax (including cases that have not yet reached the deduction level and have reached the deduction level but are not deductible).

6. Time to finalize personal income tax

The deadline for submitting final settlement documents is March 31 of the following tax year. If an individual requests a personal income tax refund that is not subject to finalization, the deadline for submitting the finalization dossier is not limited.

7. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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