FINALIZATION OF PERSONAL INCOME TAX
What is PIT finalization?
Every month, you get paid from the company every month, deduct some of your income to pay PIT.
12 times a year, the salary will be cut 12 times. Understand roughly the PIT amount you have been deducted called “provisional / temporary payment” on each month.
At the end of the year, now you go “PIT finalization”, which means recalculating one more time to see how with the income during that year, how much less do you pay compared to the PIT rate you have “temporarily paid” , if:
- If you pay an excess, you will be refunded (tax refund)
- If you are missing, you must pay more
Are you subject to PIT?
- Business income
- Income from salaries and wages
- Income from capital investment
- Income from capital transfer
- Income from real estate transfer
See more: Decree No. 65/2013 / ND-CP, Circular 111/2013 / TT-BTC, Circular 92/2015 / TT-BTC and other relevant guiding documents.
- Being present in Vietnam for 183 days or more in a calendar year or counted for 12 consecutive months from the date of arrival in Vietnam
- Having a place of habitual residence in Vietnam, including a registered permanent residence or a house rented to live in Vietnam under a term lease.