Among the questions related to personal income tax (PIT) settlement recently sent to the Ministry of Finance, there is the case of Ms. Nguyen Thi Thanh in Ho Chi Minh City.

Ms. Thanh said that from 2018 until now, she has had a single labor contract at one workplace and has had a casual income from another company's salary of less than 10 million VND/month, with 10% deducted at source.

Ms. Thanh authorized the tax settlement to the company with which she signed a labor contract and signed a commitment that she did not need to settle the irregular income. When making the settlement, the company did not calculate the other income (already settled from the source).

However, when looking up information on eTax Mobile software, Ms. Thanh could not help but worry when she saw a notice of missing personal income tax (estimated tax amount still to be paid) for 2021 (6.4 million VND) and 2022 (4.647 million VND).

Ms. Thanh wants to be guided on how to declare and pay taxes according to regulations and other tax declaration procedures to avoid tax debt notices on eTax Mobile.

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Clause 6, Article 8 of Decree No. 126 clearly stipulates the case of authorizing tax settlement. Photo: Thach Thao

Responding to Ms. Nguyen Thi Thanh, Ho Chi Minh City Tax Department cited the provisions of Clause 6, Article 8 of Decree No. 126/2020/ND-CP detailing a number of articles of the Law on Tax Administration.

In which, point d2 on “resident individuals with income from salaries and wages authorize tax settlement for organizations and individuals paying income” stipulates the case of “Individuals with income from salaries and wages sign labor contracts for 3 months or more at one place and are actually working there at the time the organization or individual paying income settles tax, including cases where they do not work for 12 months in the year; at the same time, they have irregular income in other places with an average monthly income in the year of no more than 10 million VND and have had personal income tax deducted at a rate of 10% if there is no request for tax settlement for this income”.

Based on the above provisions, in case Ms. Thanh is working at an organization and has a source of irregular income from other places with an average monthly income of no more than 10 million VND in the year and has had personal income tax deducted at a rate of 10%, if there is no request for tax settlement for this income, then in principle, she is authorized to settle tax for the company she has a labor contract with and only settle tax on the income paid by the company.

If looking up data on the eTax Mobile application and seeing that the tax payable is not correct, Ms. Thanh can contact the tax authority directly for specific instructions.