Enterprises that pay income to employees and have tax deductions are obliged to declare, deduct and pay PIT periodically together with VAT declarations
Legal grounds:
- Decree No. 126/2020/ND-CP;
- Decree No. 91/2022/ND-CP.
Enterprises are obliged to declare and pay tax by themselves according to the provisions of law. Failure to complete tax returns may result in administrative penalties. Therefore, businesses need to pay attention to complete tax declaration.
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No PIT obligation, have to submit monthly/quarterly declarations?
For the obligation to declare tax on a monthly or quarterly, enterprises need to distinguish two cases:
- Income is paid to the employee, but has not yet reached the tax deduction level (the employee is not required to pay PIT);
- Paying income to employees and withholding and paying PIT.
Pursuant to Article 7 of Decree 126/2020/ND-CP, as amended and supplemented by Decree No. 91/2022/ND-CP as follows:
Article 7. Tax declaration dossiers
3. Taxpayers are not required to submit tax returns in the following cases:
e) Personal income tax declarant is an organization or individual paying income in the case of monthly or quarterly personal income tax declaration in which no deduction of personal income tax is incurred in the month or quarter.
According to the above provisions:
- If the enterprise does not deduct PIT in the month/quarter, it is not required to submit the PIT return of that month/quarter;
- If employees have to pay PIT in the month/quarter, the enterprise must submit the PIT return of that month/quarter.
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There is no PIT obligation, have to pay the annual finalization?
Pursuant to Article 8 of Decree No. 126/2020/ND-CP as follows:
Article 8. Taxes declared monthly, quarterly, annually, declared each time tax obligations arise and tax finalization declarations.
d.1) Organizations and individuals that pay incomes from salaries and wages are responsible for making tax finalization declarations and final settlements on behalf of authorized individuals paid by income-paying organizations or individuals, regardless of whether there is tax deduction or not. In case organizations and individuals do not generate income, they are not required to make personal income tax finalization declarations. …
According to the above provisions:
- Regardless of whether there is a PIT withholding or not, at the end of the year, the enterprise must submit the PIT finalization declaration;
- Only if the enterprise does not generate income (no salary), it is not required to submit the PIT finalization declaration.
