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blue-check Issues relating to PIT declaration and payment

Official letter No. 53405/CTHN-TTHT dated November 4th, 2022 of the Department of Taxation of Ha Noi city regarding payment made on behalf of another one and declaration, withholding and payment of personal income tax (PIT) incurred by an employee who signs labor contract with a parent company outside Vietnam
Posted: 16/11/2022 10:50:27 AM | Latest updated: 18/11/2022 2:17:25 PM (GMT+7) | LuatVietnam: 5583
VietlawOnline

According to clause 1 Article 25 of Circular No. 111/2013/TT-BTCstatus2 , in case a company directly pays salary to an employee of the parent company outside Vietnam, its shall be responsible for withholding PIT before making the payment.

However, if the employee directly receives salary outside Vietnam, he/she has to directly declare PIT (point a.2 clause 3 Article 19 of Circular No. 80/2021/TT-BTC) .

In case the employee fails to meet the conditions for authorizing the income payer to finalize tax on his/her behalf according to the regulations at point d.2 clause 6 Article 8 of Decree No. 126/2020/ND-CPstatus2 , he/she has to directly make PIT tax finalization. However, the declaration of tax finalization is only required if there is tax underpaid or overpaid and the employee claims the refund.

Ms Phuong Thao (VietlawOnline.com)
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