Avoiding Tax penalty risks when finalizing 2024 Personal Income Tax

March 25, 2025

The process of finalizing Personal Income Tax (PIT) for 2024 is currently a matter of concern for businesses and individuals as the submission deadline approaches. Determining the submission deadline for PIT finalization, the responsibilities of businesses and individuals paying income, and the obligations of individuals finalizing PIT directly are areas prone to errors and require careful attention. Enterprises and individuals should proactively review their tax declarations to identify any inaccuracies (with supporting documents) and voluntarily make appropriate corrections in a timely manner before tax authorities initiate an audit or inspection. Some key notes on personal income tax finalization for 2024 are as follows:

Deadline for submitting personal income tax finalization declarations

Pursuant to Point a, b, Clause 2, Article 44 of the Law on Tax Administration No. 38/2019/QH14, the deadline for submitting personal income tax finalization declarations is as follows:

– For income-paying organizations: No later than the last day of the third month from the end of the calendar year or fiscal year.

– For individuals finalizing their own PIT: No later than the last day of the 4th month from the end of the calendar year. In case of self-finalizing individuals who submit later than the dateline, and also incurring tax refunds, there will be no penalty for violating tax procedures as prescribed in Point b, Clause 2, Article 141 of the Law on Tax Administration No. 38/2019/QH14.

– If the deadline for submitting tax finalization dossiers falls on a public holiday, it will be extended to the next working day, as stipulated in Clause 1, Article 1 of Decree No. 91/2022/ND-CP.

Responsibilities of organizations and individuals paying income

According to the provisions of Section d.1, Point d, Clause 6, Article 8 of Decree 126/2020/ND-CP, organizations and individuals paying income (salaries and wages) are responsible for declaring and finalizing PIT on behalf of individuals who have authorized them, regardless of whether tax deductions arise or not. Non-paying income organizations and individuals do not have to finalize PIT on behalf.

For employees transferred to new organizations (due to mergers, consolidations, splits, separations, type conversion or between entities within the same group), the new organization is responsible for finalizing their PIT for both incomes from the new and previous organizations. The new organization should collect PIT deduction documents issued by the formal employer (if applicable).

Responsibilities of individuals finalizing PIT directly with tax authorities

Resident individuals earning income from salaries and wages must finalize their PIT directly with tax authorities in the following cases:

Resident individuals with income from salaries and wages from two or more sources but do not meet the conditions for authorized finalization: if there is additional tax payable/or excess tax payment eligible for a refund/offset in the next declaration period (except for cases specified in Section d.3, Point dd, Clause 6, Article 8 of Decree No. 126/2020/ND-CP).
Individuals present in Vietnam for less than 183 days in the first calendar year, but more than 183 days within 12 consecutive months from their first entry into Vietnam.
Foreigners ending their employment contracts in Vietnam must complete PIT finalization before leaving the country. Otherwise, they should authorize either the income-paying or other organizations/ individuals to process on their behalf. Upon accepting the authorization, the authorized party (organization or individual) shall be responsible for the additional PIT payable or tax refund of the mandator.
Resident individuals with income from salaries and wages who are also eligible for tax reduction due to natural disasters, fires, accidents, or serious illnesses affecting their ability to pay taxes.

Personal deduction for dependents

Conditions for personal deductions for dependents are stipulated in Clause 1, Article 9 of Circular No. 111/2013/TT-BTC, specifically as follows:

– For children (biological, legally adopted, illegitimate, stepchildren of the wife/husband) should satisfy: under 18 years old (calculated by full month); Children aged 18 years or older with disabilities, unable to work; Children studying in Vietnam or abroad at university, college, vocational high school, vocational training, including children aged 18 years or older studying at high school (or during the time waiting for university entrance exam results from June to September of grade 12) having no income or an average monthly income in the year from all sources not exceeding 1,000,000 VND.

– For subjects as prescribed in Sections d.2, d.3, d.4, Point d, Clause 1, Article 9 Circular No. 111/2013/TT-BTC, the following conditions apply:

Within working age:

Being disabled and unable to work.
Having no income or an average monthly income in the year from all sources of income not exceeding VND 1,000,000.

Not within working age: Having no income or an average monthly income in the year from all sources not exceeding VND 1,000,000.

Businesses and individuals can contact Russell Bedford KTC’s Tax Consulting department to explore more details on specific cases or to receive expert advice on Personal Income Tax Finalization.