Finalization of personal income tax in Vietnam for foreign individuals quitting their jobs or returning home
By Hoa Nguyen
15/11/2024
This article provides a detailed guide on finalizing personal income tax for foreigners when leaving their jobs or returning to their home countries from Vietnam. Discover the necessary steps, legal regulations, and procedures to ensure compliance with the law and protect your financial rights.
1. Personal income tax finalization for foreign individuals quitting their jobs
An individual who is a foreigner quitting his or her job means a person who does not work at this organization but still works at another organization in Vietnam. At this time, the organization paying income (salaries, wages) is authorized to perform personal income tax finalization for foreigners who quit their jobs. However, according to the law, in this case, it is still necessary to consider and evaluate whether the foreigner is residing in Vietnam or not.
For foreign workers with current income from many different sources, they must make personal income tax settlement themselves according to regulations, without authorization.
2. Finalization of personal income tax for foreign individuals returning home
Regulations on personal income tax finalization for foreigners returning home are applied in cases where the individual was previously a resident of Vietnam, had income from wages in Vietnam and was present in Vietnam for a long time. 183 days or more and have registered temporary residence, personal income tax finalization is required.
Before leaving the country, individuals are responsible for declaring taxes to the agency. The organization where income is paid is where the individual will authorize personal income tax finalization. In this case, the deadline to submit personal income tax finalization documents is the 45th day from the date of departure of the foreigner.
3. Conditions for finalizing personal income tax for foreigners
Not all foreign workers in Vietnam have to make personal income tax finalization, so businesses must master the regulations to avoid confusion or errors.
Prerequisites to perform PIT finalization declaration for foreigners include:
– Resident individuals must have income from wages and salaries; Only income from production and business activities must be finalized for personal income tax. In which, the tax amount payable is greater than the tax deducted and there must be a request to refund the overpaid tax amount or offset it in the next tax declaration period.
- Or an individual who is a foreign resident after ending a labor contract in Vietnam also needs to finalize personal income tax before leaving the country.
4. Procedures for finalizing personal income tax for foreigners
The terms of personal income tax finalization for foreigners, including documents, time and place for submitting documents, are specified in detail and clearly in the circular of the Ministry of Finance.
However, to help people who need to make tax finalization grasp information as quickly as possible, we would like to summarize the finalization procedure as follows:
Procedures for finalizing personal income tax for foreigners | |
Tax finalization declaration dossier | The file is divided into 3 specific cases. Each case will have a different declaration form, specifically: – In case an individual is a foreigner receiving income from an international organization or receiving income from abroad, there must be evidence to prove or confirm the amount of money paid. Attached is Income confirmation letter according to form No. 20/TXN-TNCN issued together with Circular 156/2013/TT-BTC. – In case an individual is a foreigner subject to tax arising outside the territory of Vietnam, he/she will have to submit other related documents required in the final settlement application. – In fact, if the tax authority in a foreign country does not issue a certificate confirming the tax amount paid, the individual must take a photo of the tax deduction certificate or a copy of the bank document clearly showing the tax amount paid abroad. . All such copies must be committed and responsible for authenticity by that individual. |
Location for submitting tax finalization documents | – Submit documents to the Tax Department if the foreigner only receives income from wages and salaries and that person is eligible to declare taxes directly in 2019. – Submit documents to the direct management agency of the organization that paid the final income in case the foreigner receives income from 02 or more places and that person is subject to self-settlement. – Submit documents at the tax department of residence if the foreigner changes his or her workplace but does not calculate family deductions at the last working organization. In addition, for some cases such as foreigners who do not sign a labor contract or sign a contract for less than 3 months or receive income from many places but at the time of settlement do not work anywhere, then need to submit final settlement documents at the place where the foreigner resides. – Submit documents at the Tax Department where you do business if you fall into the following cases:
– Submit the application at the place where the tax code is first issued if the individual is a foreigner doing business in many places. |
Application deadline | The deadline for submitting personal income tax finalization documents will be announced by the State after the end of the tax payment period of that year. |
Above are the regulations that businesses need to pay attention to when finalizing personal income tax for foreigners. If you find this article useful, please share it with others.
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