Source: Global Auditing

To help employees and employers complete Personal Income Tax (PIT) finalization in compliance with regulations, below are the key points to note for the 2025 tax finalization period.

1. Applicable Family Circumstance Deductions

For 2025 tax finalization

1. Personal deduction: VND 11 million/month (VND 132 million/year)
2. Dependent deduction: VND 4.4 million/month/dependent

From 2026 onward

1. Personal deduction: VND 15.5 million/month (VND 186 million/year)
2. Dependent deduction: VND 6.2 million/month/dependent

2. Applicable Tax Schedule

For 2025

1. Employment income of resident individuals is subject to a 7-tier progressive tax schedule

From 2026 onward

1. Employment income of resident individuals is subject to a 5-tier progressive tax schedule

3. Who Must Conduct PIT Finalization?

For income-paying organizations

Employers and income payers are responsible for:

1. Withholding PIT
2. Filing PIT finalization returns
3. Finalizing PIT on behalf of employees who authorize them to do so

For individuals

Individuals must directly finalize PIT if they fall into cases such as:

1. Having income from two or more sources and not meeting authorization conditions
2. Having additional tax payable
3. Having overpaid tax and requesting a refund or offset
4. Receiving income from overseas, international organizations, embassies, or consulates where tax has not yet been withheld
5. Being eligible for tax reduction due to natural disasters, fire, accidents, or serious illness
6. Being a foreign employee ending a labor contract in Vietnam before departure

4. Cases Not Required to Finalize PIT

Individuals are generally not required to finalize PIT if:

1. Additional tax payable after finalization is VND 50,000 or less
2. Tax already temporarily paid is higher than tax payable, with no request for refund or offset
3. They have a labor contract of at least 3 months with one employer, and their average monthly irregular income from other sources does not exceed VND 10 million, has been withheld at 10%, and they have authorized the employer to finalize PIT on their behalf
4. They receive life insurance or other non-compulsory insurance benefits paid by the employer and such income has already been withheld at 10% in accordance with regulations

5. Filing Deadlines

For employers/income-paying organizations

1. No later than the last day of the 3rd month after the end of the calendar year
2. Usually: March 31

For individuals directly finalizing PIT

1. No later than the last day of the 4th month after the end of the calendar year
2. Usually: April 30

If the deadline falls on a holiday, it will be extended to the next working day.

6. When Can an Individual Authorize PIT Finalization?

An individual may authorize the employer to finalize PIT on their behalf if:

1. They have a labor contract of at least 3 months with one employer
2. They are still working there at the time of finalization
3. They may have additional irregular income from other sources, but the average monthly amount does not exceed VND 10 million and such income has been withheld at 10%

7. PIT Finalization Documents for Individuals

An individual directly filing with the tax authority typically needs:

1. Form 02/QTT-TNCN
2. Appendix 02-1/BK-QTT-TNCN for dependents, if any
3. Tax withholding certificates, tax payment documents, and supporting records for income and deductions
4. Dependent registration documents if dependents were not previously registered

8. Submission Channels

Individuals may submit PIT finalization through:

1. The Tax Department’s Administrative Procedure Resolution Information System
2. The eTax Mobile application
3. The National Public Service Portal

9. Notes on Dependent Deductions

To claim dependent deductions, taxpayers must:

1. Properly register their dependents
2. Declare the correct time when the support obligation arises

If the deduction was not temporarily applied during the year, it may still be claimed from the month the support obligation arises, provided the taxpayer completes the registration at finalization and meets the required conditions.

10. Electronic Support Tools

The tax authority currently supports taxpayers through:

1. eTax Mobile
2. The Tax Department’s online system

These tools help taxpayers:

1. Review income and tax obligations
2. Determine whether direct finalization is required
3. Use a pre-filled suggested tax return
4. Submit documents online

Taxpayers should carefully review system-generated data before submitting.

11. Automatic PIT Refund

From 2025, the tax authority has implemented automatic PIT refund processing for individuals who directly finalize PIT electronically.

If the application meets all required conditions, the system may process the refund automatically within 3 working days.

Basic conditions for automatic processing

1. The employer or the individual has fulfilled PIT payment obligations
2. The tax return data matches the tax authority’s database
3. The bank account for receiving the refund has been properly verified

What taxpayers should prepare

1. Review personal identification information
2. Check total income, deductions, and withheld tax
3. Update and verify bank account information
4. Declare honestly and accurately

12. Important Recommendations

To ensure a smooth PIT finalization and refund process, taxpayers should:

1. Proactively review income and withholding documents
2. Check dependent information early
3. Use only official electronic channels of the tax authority
4. Stay alert to tax authority impersonation and fraud