Cases where personal income tax settlement is not required

According to Clause 6, Article 8 of Decree No. 126/2020/ND-CP detailing a number of articles of the Law on Tax Administration, there are some cases where individuals do not need to finalize personal income tax, including:

- Individuals who do not have additional tax payable or have additional personal income tax payable after the annual settlement of VND 50,000 or less or have personal income tax payable less than the provisionally paid tax without requesting a tax refund or offset in the next tax declaration period are not required to settle personal income tax.

- Individuals with income from salary, wages, and labor contracts of 3 months or more at a unit, and at the same time have irregular income in other places with an average monthly income of no more than 10 million VND in the year and have had personal income tax deducted at a rate of 10%, if there is no request, they do not have to finalize tax on this income.

- For individuals whose employers purchase life insurance (except voluntary pension insurance), other non-compulsory insurance with accumulated insurance premiums, for which the employer or insurance company has deducted personal income tax at a rate of 10% on the insurance premium amount corresponding to the portion purchased or contributed by the employer for the employee, the employee does not have to finalize personal income tax on this portion of income.

Cases of direct or authorized personal income tax settlement

- Resident individuals with income from salaries and wages from two or more places but do not meet the conditions for authorized settlement according to regulations must directly declare and settle personal income tax with the tax authority if there is additional tax payable or there is excess tax paid and request for refund or offset in the next tax declaration period.

Individuals are authorized to settle taxes if their taxable income is 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%, and the individual does not request tax settlement for this income.

- Foreign individuals who have ended their employment contract in Vietnam must declare and settle taxes with the tax authority before leaving the country.

In case an individual has not completed tax settlement procedures with the tax authority, he/she shall authorize the income-paying organization or another organization or individual to settle the tax according to the regulations on tax settlement for individuals. In case the income-paying organization or another organization or individual receives the authorization to settle the tax, he/she shall be responsible for the additional personal income tax payable or shall be refunded the excess tax paid by the individual.

- Resident individuals with income from salaries and wages who are eligible for tax reduction due to natural disasters, fires, accidents, or serious illnesses that affect their ability to pay taxes must not authorize organizations or individuals paying income to make tax settlements on their behalf, but must directly declare and settle taxes with tax authorities according to regulations.