Ms. Kieu asks whether she should submit the tax refund documents to the Tax Department of District 1 or to the Tax Department where she resides (Quy Nhon City, Binh Dinh Province).

Currently, she does not have a temporary residence registration in Ho Chi Minh City. If she needs to submit to the Tax Department of Quy Nhon but she lives and works in Ho Chi Minh City, can she submit them by post?

Regarding this matter, the Ho Chi Minh City Tax Department responded as follows:

Regarding Ms. Nguyen Duyen Kieu's concerns, the Ho Chi Minh City Tax Department issued Official Letter No. 2783/CTTPHCM-TTHT dated March 18, 2024, providing guidance on the personal income tax (PIT) settlement for the year 2023 as follows: 

Taxpayers who need to settle taxes

For individuals directly settling with the Tax Authority: Individuals residing who earn income from salaries, wages from two or more sources and do not meet the conditions for delegated tax settlement as prescribed must directly declare PIT to the tax authority if they have additional tax to pay or request a refund or offset in the next tax period.

Individuals present in Vietnam for less than 183 days in the first Gregorian calendar year, but for 12 consecutive months from the first day of presence in Vietnam is 183 days or more, the first settlement year is 12 consecutive months from the first day of presence in Vietnam.

Foreign individuals terminating work contracts in Vietnam must settle taxes with the tax authority before departing. If individuals have not completed tax settlement procedures with the tax authority, they must authorize an organization to pay income or another organization or individual to settle taxes as per regulations on tax settlement for individuals. In cases where an organization pays income or another organization or individual is authorized to settle taxes, they must be responsible for the PIT amount to be additionally paid or refunded for the individual.

Resident individuals earning income from salaries, wages paid from abroad and resident individuals earning income from salaries, wages paid by international organizations, embassies, consulates without tax deduction in the year must directly settle taxes with the tax authority if they have additional tax to pay or request a refund or offset in the next tax period.

Resident individuals earning income from salaries, wages simultaneously eligible for tax reduction due to natural disasters, fires, accidents, serious illnesses affecting tax payment capacity cannot delegate tax settlement to an organization or individual paying income but must directly declare taxes to the tax authority as per regulations.

For organizations or individuals paying income from salaries or wages: Organizations or individuals paying income from salaries or wages are responsible for settling personal income tax (PIT) without distinguishing whether tax deductions have occurred or not, and they settle PIT on behalf of authorized individuals. In cases where individuals authorize organizations to settle PIT and if the additional tax amount after settlement is less than 50,000 VND, exempted from tax, organizations or individuals paying income still declare the individual's income in the personal income tax settlement dossier of the organization and do not aggregate the additional tax amount for individuals who owe less than 50,000 VND after settlement. Organizations that have settled PIT before the effective date of Decree No. 126/2020/NĐ-CP are not subject to retroactive processing.

In the case of individuals who are employees transferred from the old organization to a new organization due to merger, consolidation, division, separation, or conversion of business types by the old and new organizations within the same system, the new organization is responsible for settling PIT based on the authorization of the individual for both the income portion paid by the old organization and the new organization retaining documents of PIT deductions issued by the old paying organization to the employee (if any).

In the case of dissolution, bankruptcy, cessation of operations, termination of contracts, or reorganization of enterprises by organizations or individuals paying income, PIT must be settled up to the date of dissolution, bankruptcy, cessation of operations, termination of contracts, or reorganization. In cases of conversion of business types (excluding state-owned enterprises being equitized) where the converted enterprise inherits all tax obligations of the converted enterprise, PIT settlement is not required until the decision on enterprise conversion, and the enterprise settles at the end of the year.

For authorization for PIT settlement: Resident individuals earning income from salaries or wages can authorize organizations or individuals paying income to settle personal income tax, as follows:

- Individuals earning income from salaries or wages under a labor contract for 3 months or more at one place and actually working there at the time the organization or individual pays income must settle taxes, even if they did not work for a full 12 months in the Gregorian calendar year. In cases where individuals are employees transferred from the old organization to a new organization due to merger, consolidation, division, separation, or conversion of business types by the old and new organizations within the same system, the individual is authorized to settle taxes for the new organization.

- Individuals earning income from salaries or wages under a labor contract for 3 months or more at one place and actually working there at the time the organization or individual pays income must settle taxes, even if they did not work for a full 12 months in the Gregorian calendar year; concurrently, if they have occasional income elsewhere averaging less than 10 million VND per month in the year and have already deducted PIT at a 10% rate, there is no requirement to settle taxes for this income.

- After authorizing tax settlement, if the organization or individual paying income has already settled taxes on behalf of the individual and subsequently discovers that the individual should directly settle taxes with the tax authority, the organization or individual paying income does not adjust the PIT settlement for the organization or individual paying income, but provides PIT deduction certificates to the individual based on the settlement number and specifies in the lower left corner of the PIT deduction certificate: "Company ... has settled PIT on behalf of Mr./Ms. ... (under authorization) at line (sequence number) ... of Appendix Form 05-1/BK-TNCN" for the individual to directly settle taxes with the tax authority. If organizations or individuals paying income use electronic PIT deduction certificates, they print and convert from the original electronic PIT deduction certificate and include the above content in the conversion printout provided to the taxpayer.

Cases not required to settle income tax

Individuals earning income from salaries or wages are not required to settle personal income tax (PIT) in the following cases:

- Individuals with additional PIT of less than 50,000 VND after annual settlement are exempt. Individuals determine the exempted tax amount themselves, are not obligated to submit PIT settlement documents, and do not need to submit tax exemption documents. Cases where the settlement period is before 2019 have been settled before the effective date of Decree No. 126/2020/NĐ-CP are not subject to retroactive processing;

- Individuals with PIT amount less than the provisional tax paid without requesting a refund or offset in the next tax period;

- Individuals earning income from salaries or wages under a labor contract for 3 months or more at one unit, with occasional income elsewhere averaging less than 10 million VND per month in the year, and having already deducted PIT at a 10% rate, are not required to settle tax for this income if no request is made;

- Individuals whose employers purchase life insurance (excluding voluntary pension insurance) or other non-mandatory insurance that accumulates insurance premiums, where the employer or insurance company has deducted PIT at a 10% rate on the corresponding insurance premiums paid or contributed to by the employee, are not required to settle PIT for this income.

For organizations or individuals paying income from salaries or wages: Organizations or individuals paying income from salaries or wages are not required to settle PIT including: organizations or individuals with no income payments during the year; organizations or individuals temporarily ceasing operations, fully closed for business throughout the calendar year.

Family deduction allowance

The family deduction allowance is stipulated in Resolution No. 954/2020/UBTVQH14 dated June 2, 2020 of the National Assembly Standing Committee: The deduction allowance for taxpayers is 11 million VND per month (132 million VND per year); the deduction allowance for each dependent is 4.4 million VND per month.

To qualify for the dependent deduction, taxpayers must register the deduction for dependents as prescribed. If a taxpayer has not previously claimed the family deduction for dependents in the tax year, they can claim it from the month the dependent support obligation arises when the taxpayer settles taxes and registers the family deduction for dependents. Regarding other dependents, according to Section d.4 Point d of Article 9 of Circular No. 111/2013/TT-BTC dated August 15, 2013 from the Ministry of Finance, the latest deadline for registering family deduction is December 31 of the tax year. If missed, the family deduction cannot be claimed for that tax year.

If a taxpayer under authorization for tax settlement has not previously claimed the family deduction for dependents in the tax year, they can still claim it from the month the dependent support obligation arises when the taxpayer settles taxes through authorization and registers the family deduction for dependents through the income payer.

Workers employed at a dependent unit or business location, receiving income from salaries or wages from the main office in another province, can register family deduction for dependents at the tax office managing the main office or the dependent unit/business location. If workers register family deduction for dependents at the dependent unit/business location, that unit/business location is responsible for transferring the dependent's supporting documents to the main office. The main office must review, retain the dependent's supporting documents as per regulations, and present them during tax inspection and audit by tax authorities.

In case of individuals changing workplaces, they must still register and submit dependent supporting documents following the guidelines in Section h.2.1.1.1 of Point h of Article 9 of Circular No. 111/2013/TT-BTC.

Documentation for family deduction for dependents

For individuals registering dependents directly at the tax office, the documentation includes:

- Registration form for dependents, Form No. 07/ĐK-NPT-TNCN issued together with Appendix 11 of Circular No. 80/2021/TT-BTC;

- Dependent supporting documents as guided in Circular No. 79/2022/TT-BTC dated December 30, 2022 (amending and supplementing Point g of Article 9 of Circular No. 111/2013/TT-BTC);

- In cases where the dependent supported by the taxpayer resides directly with them, confirmation from the Commune/ Ward People's Committee where the dependent resides, Form No. 07/XN-NPT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC.

For individuals registering family deduction for dependents through income payers, the individual submits the registration documents according to Point a of Section 3 of this communication to the income payer. The income payer consolidates the registration of dependents for family deduction using Form No. 07/THĐK-NPT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC and submits it to the tax authority as per regulations.

Required documents for personal income tax settlement

In Point b of Section 9.2 and Point b of Section 9.9 of Appendix I issued together with Decree No. 126/2020/NĐ-CP, the documents for personal income tax settlement are regulated.

According to Section 2, Article 87 of Circular No. 80/2021/TT-BTC guidance: "2. The tax settlement declaration forms prescribed in this Circular apply to tax periods starting from January 1, 2022 onwards. For tax settlements of the 2021 tax period, the declaration forms prescribed in this Circular also apply."

Accordingly, the documents for personal income tax settlement for the 2021 tax period are as follows:

For individuals settling personal income tax directly with the tax authority, the personal income tax settlement dossier includes:

- Personal income tax settlement declaration form No. 02/QTT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC;

- Appendix listing family deduction allowances for dependents form No. 02-1/BK-QTT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC;

- Copy (photocopy from the original) of documents proving deducted taxes, provisional taxes paid during the year, taxes paid abroad (if any). If the income payer does not provide tax deduction certificates because the income payer has ceased operations, the tax authority will consider processing the tax settlement dossier for the individual based on tax authority database information. In case electronic tax deduction certificates are used by income payers, taxpayers use printed copies of electronic tax deduction certificates (paper copies converted from the original electronic tax deduction certificates sent by the income payer);

- Copy of the Tax Deduction Certificate (clearly stating taxes paid according to the income tax declaration form) issued by the income payer or copy of bank documents for taxes paid abroad with confirmation from the taxpayer in accordance with foreign legal regulations, where foreign tax authorities do not issue tax payment confirmation certificates;

- Copies of invoices or documents proving contributions to charity funds, humanitarian funds, scholarship funds (if any);

- Documentation proving amounts paid by foreign income-paying entities or organizations in cases where individuals receive income from international organizations, embassies, consulates, and income from abroad;

- Dependent registration dossier as guided in Point a of Section 3 of this document (if claiming dependent deduction at the tax settlement time for dependents who have not previously been registered).

For income payers (organizations or individuals) settling income tax, the personal income tax settlement dossier includes:

- Personal income tax settlement declaration form No. 05/QTT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC;

- Appendix detailed list of individuals subject to progressive tax rates form No. 05-1/BK-QTT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC;

- Appendix detailed list of individuals subject to full tax rates form No. 05-2/BK-QTT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC;

- Appendix detailed list of family deduction allowances for dependents form No. 05-3/BK-QTT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC.

In cases where individuals authorize income payers to settle taxes on their behalf, individuals must prepare the Authorization Certificate for Personal Income Tax Settlement form No. 08/UQ-QTT-TNCN issued together with Appendix II of Circular No. 80/2021/TT-BTC.

Guidelines for Supplementary Personal Income Tax Settlement Documentation

In cases where organizations or individuals file supplementary declarations without altering their tax obligations, they only need to submit an explanatory statement for the supplementary declaration and related documents, without submitting a supplementary declaration form.

For organizations or individuals who have not filed their annual tax settlement documents, taxpayers must submit supplementary tax declarations for months or quarters where errors or omissions occurred, and simultaneously consolidate the supplementary figures into the annual tax settlement documents.

For organizations or individuals who have already submitted their annual tax settlement documents:

- Individuals who directly file taxes and settle taxes must only submit supplementary annual tax settlement documents.

- For organizations or individuals receiving income from salaries or wages, they must simultaneously submit supplementary annual tax settlement documents and monthly or quarterly declarations with corresponding errors or omissions.

Where to submit tax settlement documents?

The place for submitting Personal Income Tax (PIT) settlement documents is specified in Section 8, Article 11 of Decree No. 126/2020/NĐ-CP. Individuals who file and submit PIT settlement declarations on the website https://canhan.gdt.gov.vn can use the system's function to determine the tax authority for settlement based on tax obligations incurred during the year as declared by the individual.

The specific places for submitting individual income tax settlement documents are as follows:

For income payers (organizations) submitting PIT settlement documents, they must submit them to the tax authority directly managing the income payer.

For individuals directly settling taxes with the tax authority:

Residents with income from salaries or wages at one location and who self-declare taxes annually must submit their tax settlement documents to the tax authority where they directly declare taxes annually, as stipulated in Point a, Section 8, Article 11 of Decree No. 126/2020/NĐ-CP. Individuals with income from salaries or wages at two or more locations, including cases where income is both self-declared and deducted by an organization, must submit their tax settlement documents to the tax authority where the largest source of income was received during the year. If it's unclear where the largest income source was, individuals can choose to submit their settlement documents to the tax authority directly managing the income payer or where they reside.

Individuals residing and earning income from salaries or wages under organizations deducting taxes from two or more sources must submit their tax settlement documents as follows:

- Individuals who have claimed personal deductions with any income-paying organization or individual must submit their tax settlement documents to the tax authority directly managing that income-paying organization or individual. In cases where individuals change their place of work and the final income-paying organization or individual retains personal deductions, they should submit their tax settlement documents to the tax authority managing that final income source. If the final income source does not include personal deductions, individuals should submit their tax settlement documents to the tax authority where they reside. For individuals who have not claimed personal deductions with any income-paying organization or individual, they should submit their tax settlement documents to the tax authority where they reside.

- Individuals residing who do not sign labor contracts, or sign contracts for less than 3 months, or sign service provision contracts earning income from one or multiple sources with a 10% deduction must submit their tax settlement documents to the tax authority where they reside.

- Individuals residing during the year earning income from salaries or wages at one or multiple locations but not working at the final income-paying organization or individual at the time of settlement should submit their tax settlement documents to the tax authority where they reside.

Individuals residing with salaries or wages eligible for direct personal income tax settlement (TNCN) with a tax authority having records of requests for tax reduction due to natural disasters, fires, accidents, serious illnesses are required to submit their tax settlement documents to the tax authority where they submitted the tax reduction request. The tax authority processing the tax reduction request is responsible for handling the tax settlement documents according to regulations.

Deadline for submitting tax settlement documents

Based on the provisions of Points a and b, Section 2, Article 44 of Tax Management Law No. 38/2019/QH14, for income-paying organizations, the deadline for submitting tax settlement declarations is no later than the end of March of the subsequent year from the end of the calendar year.

For individuals settling taxes directly, the deadline for submitting tax settlement documents is no later than the end of April of the subsequent year from the end of the Gregorian calendar year. In cases where individuals incur personal income tax refunds but fail to submit their tax settlement declarations as prescribed, administrative penalties for late tax settlement do not apply.

If the deadline for submitting tax settlement documents coincides with a holiday as per civil law, the next working day following that holiday is considered the deadline according to the provisions of the Civil Code.