In response to this inquiry, the Tax Department clarifies the following: According to point d.3, Clause 6, Article 8 of Decree No. 126/2020/NĐ-CP, resident individuals earning income from salaries or wages must directly file personal income tax returns with the tax authority in the following cases:
Individuals with additional tax liabilities or overpaid taxes requesting a refund or offset in the next tax filing period, except when additional tax liabilities after settlement in any year are VND 50,000 or less.
Individuals whose tax payable is less than the tax already withheld, without requesting a refund or offset in the next tax filing period.
Is self-settlement of personal income tax required if income hasn’t reached the taxable threshold?
Individuals earning salaries or wages under a labor contract of 3 months or more with one employer, and having incidental income from other sources averaging no more than VND 10 million per month, with a 10% personal income tax deduction, are exempt from tax settlement for this income if no request is made.
Based on the above regulations, if an individual earns salary or wage income from one employer under a labor contract of 3 months or more, they may authorize the income-paying organization to settle taxes on their behalf, regardless of whether their income reaches the taxable threshold.
Similarly, individuals earning salary or wage income from one employer under a labor contract of 3 months or more, with incidental income from other sources averaging no more than VND 10 million per month and a 10% personal income tax deduction, may authorize the income-paying organization to settle taxes on their behalf if no tax settlement request is made for this income.
This regulation applies whether the income from the employer under a 3-month or longer contract reaches the taxable threshold or not.
However, individuals with two or more income sources in the tax year, whose total income does not reach the taxable threshold, may neither authorize tax settlement nor are required to self-settle personal income tax.
If such individuals have had personal income tax deducted by the income-paying organization (resulting in overpaid tax) and do not request a refund or offset in the next tax filing period, they are exempt from self-filing personal income tax returns.
Dual Employment and Family Deduction Registration for Taxpayers: A Comprehensive Guide
The tax authority has clarified that individuals employed by both state agencies and private enterprises can only claim dependent tax deductions in one place, either at their government job or their private employer.
Revamping Personal Income Tax Law: Key Amendments Proposed by National Assembly Delegates
Numerous Members of Parliament have emphasized the necessity of amending the Personal Income Tax Law, offering specific recommendations such as: adjusting the family deduction threshold based on economic regions; carefully considering whether to retain or streamline the progressive tax brackets; and providing clearer regulations on taxes related to the transfer of gold bars and inherited real estate.
If Saved Assets Are Also Taxed, Then…
“Taxation on savings raises significant concerns, especially when considering the broader implications. While a 0.1% tax rate may seem negligible, it warrants careful scrutiny. As Representative Hoàng Văn Cường highlights, the cumulative effect of buying and selling incurs a 2.5% loss for individuals. Conversely, speculators who frequently trade land for profit only pay 2%, creating an evident disparity. This inequity demands attention and reevaluation.”
Government Proposes 0.1% Personal Income Tax on Gold Bullion Transfers
The proposed amendment to the Personal Income Tax Law suggests a 0.1% tax on gold bar transactions, aiming to enhance market transparency and curb speculative activities.
Consideration of Taxation on Gold Bullion Transfers: A Statement by Mr. Phan Van Mai
The Economic and Finance Committee recommends careful consideration of imposing taxes on gold bar transactions to prevent undue burdens on citizens.
