According to Mr. Minh's reference to Document No. 883/TCT-DNNCN in 2022, individuals who have income from salary, wages, and labor contracts lasting for 3 months or more at one organization, while also having occasional income from other sources averaging not more than 10 million Vietnamese dong per month in the year and have had their personal income tax (PIT) deducted at a rate of 10%, do not need to settle tax for this income.

Mr. Minh asked whether he needs to settle tax for the 25 million Vietnamese dong income that already had a 10% PIT deduction at the source, or if he only needs to settle tax for the remaining income.

The Ministry of Finance responded to this issue as follows:

Based on Point d, Clause 6, Article 8 of Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government detailing certain provisions of the Tax Administration Law:

"Article 8. Types of taxes declared on a monthly, quarterly, annual basis, and settlement taxes

...6. Types of taxes, tax amounts declared and settled annually and settled up to the time of dissolution, bankruptcy, termination of operation, termination of contracts, or reorganization of enterprises. In the case of converting the type of enterprise (excluding state-owned enterprises that have been transformed into joint-stock companies) in which the enterprise inherits all tax obligations of the converted enterprise, then there is no need to declare and settle taxes until the decision on the conversion of the enterprise is made, and the enterprise settles the tax at the end of the year. Specifically, as follows:

...d) Personal income tax for organizations and individuals paying taxable income from salaries, wages, and individuals having income from salaries, wages delegated to settle taxes for organizations and individuals paying income; individuals with income from salaries, wages who directly settle taxes with tax authorities. Specifically, as follows:

...d.2) Resident individuals with income from salaries, wages who delegate the settlement of tax to organizations or individuals paying income, specifically as follows:

...Individuals with income from salaries, wages who sign labor contracts for 03 months or more at one place and are actually working there at the time of settling taxes, even if they do not work for a full 12 months in the year; simultaneously, they have occasional income from other places, averaging not more than 10 million Vietnamese dong per month in the year and have had their personal income tax deducted at a rate of 10%, then there is no need to settle tax for this income.

d.3) Resident individuals with income from salaries, wages who directly declare and settle personal income tax with tax authorities in the following cases:

There is additional tax to be paid or there is excess tax to be offset in the next tax period, except for the following cases: Individuals with additional tax to be paid after the annual settlement of each year is 50,000 Vietnamese dong or less; individuals with tax to be paid less than the tax already temporarily paid with no request for refund or offset in the next tax period; individuals with income from salaries, wages who sign labor contracts for 03 months or more at one organization, and simultaneously have occasional income from other places, averaging not more than 10 million Vietnamese dong per month in the year and have had their personal income tax deducted at a rate of 10%, then there is no need to settle tax for this income;..."

According to the guidance of the Hanoi Tax Department in Document No. 13762/CTIN-HKDCN dated March 22, 2023, on the settlement of personal income tax for the year 2022;

Based on the above regulations, in the case of Mr. Minh delegating the settlement of tax to organizations or individuals paying income and having income from salaries, wages with labor contracts lasting for 3 months or more at one place, and having occasional income from other sources averaging not more than 10 million Vietnamese dong per month in the year and having had their personal income tax deducted at a rate of 10%, there is no need to settle tax for this occasional income.

In the case of directly declaring and settling personal income tax with the tax authority, individuals must aggregate their income for the entire year to settle personal income tax.

According to Mai Chi (Government Newspaper).