Individuals are subject to a calendar year as their standard tax year. Employers are required to withhold PIT from employee salaries and remit monthly or quarterly.
Other taxes are generally required to be withheld at source (i.e., dividends), or self declared on an events basis.
Individuals will need to determine whether they will need to undertake an annual tax finalisation to ensure that their tax finalisation matters are in hand where necessary by the deadline of PIT finalisation.
If an individual only has income from a single employer during the year, or other income in limited circumstances, then they can authorise their employer to finalise on their behalf by the last day of the 3rd month from tax year end (i.e., 31 March)
If an individual wishes to claim a tax refund, a tax credit for future years, or has a tax liability to the tax authorities, then they must complete a tax finalisation by the last day of the 4th month from the tax year end (i.e., 30 April).
Individuals with simple tax matters, and who do not owe any taxes to the authorities, do not need to finalise. However, this may have an impact on future years if their tax affairs become complicated, therefore all taxpayers are encouraged to finalise their taxes each year.
*Notes:
- A Personal deduction of VND11,000,000 is provided each month, which reduces the monthly taxable income accordingly.
- Additional dependent deductions are permitted, of VND4,400,000 per dependent per month, where they meet the requirement and are registered, further reducing monthly taxable income
