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REGULATIONS ON AUTHORIZATION FROM INDIVIDUAL TO AN INCOME-PAYING ORGANIZATION FOR TAX FINALIZATION IN VIETNAM

I. Individuals who can authorize to finalize tax for the income-paying organization:

– Individuals earning income from salaries or wages sign the labor contract for at least 03 months at an income-paying organization and are actually working at such organization at the time of delegation for tax finalization, even if he/she has not worked for the full 12 months in the year. If an individual is an employee and is reassigned to a new organization as prescribed at Point d.1 Clause 6 Article 8 Decree 126/2020/ND-CP, he/she may authorize the new organization to finalize tax.

– Individuals earning income from salaries or wages sign the labor contract for at least 03 months at an income-paying organization and are actually working at such organization at the time of delegation for tax finalization, even if he/she has not worked for the full 12 months in the year; and have current income at others on a monthly average not exceeding VND10 millions already deducted PIT at 10% without PIT finalization request for such income.

II. Individuals who cannot authorize to finalize tax for the income-paying organization:

– Individuals who satisfy the conditions for authorization specified at Point I above but have been granted a Certificate of PIT withholding by the income-paying organization will not be able to authorize tax finalization to such organization (except for a Certificate of PIT withholding issued to an individual is revoked and canceled by such organization)

– Individuals earning income from salaries or wages sign the labor contract for at least 03 months at an income-paying organization but at the time such organization makes tax finalization, he/she did not work there.

– Individuals earning income from salaries or wages sign the labor contract for at least 03 months at an income-paying organization, and have current income that has not yet been achieved or the deduction from tax is insufficient (including the case that the income has not yet reached the deduction level and has reached the deduction level but is not deductible)

– Individuals earning income from salaries or wages sign labor contracts for at least 03 months at many income-paying organizations

– Individuals with only current income have withheld tax at the rate of 10% (even if they have only current income in one place).

– Individuals who have not yet registered for a tax identification number.

– Residents who earn income from salaries and wages and are considered for tax reduction due to natural disasters, fires, accidents, or fatal diseases are not authorized to make tax finalization. They shall make their own tax finalization with tax reduction dossiers according to the guidance in Clause 1, Article 46 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

*** Notes:

In principle, when an individual signs a letter of authorization for tax finalization, the income-paying organization will make tax finalization on behalf of the individual. After an individual has authorized the tax finalization, and the income-paying organization has made the tax finalization on behalf of the individual, if it is later determined that the individual is directly liable to tax finalization with the tax agency, the income-paying organization shall not adjust the PIT finalization, only issues the Certificate of PIT withholding to the individual according to the settlement number and writes in the lower-left corner of this with the content: “Company… finalized PIT on behalf of Mr/Ms…. (by authorization) at the line (numerical order)… of the Appendix to List 05-1/BK-TNCN” for the individual to directly make tax finalization with tax authorities.