How to declare declaration period of personal income tax in year 2017


2017-02-10

Currently, numerous enterprises still confuse in determining the declaration period of personal income tax of their unit. Regarding to this issue, according to point 1, clause 2 of Article 16 in the Circular No.156/2013/TT-BTC guidance Law on Tax administration, obligation to declare tax monthly or quarterly shall be determined in the first month in which tax is deducted, and applied for whole year. In particular:

  • If enterprise is eligible to declare value added tax quarterly, personal income tax also shall be declared quarterly.
  • If enterprise is eligible to declare value added tax (VAT) monthly, the obligation to declare personal income tax shall be determined as follows:
    • If total deduction amount of personal income tax in the first month of the year is from 50 million or more, the income payer shall declare personal income tax monthly.
    • If total deduction amount of personal income tax in the first month of the year is under 50 million, the income payer shall declare personal income tax quarterly.

Example 1: In Y2017, company A is eligible to declare VAT quarterly, then it shall declare personal income tax quarterly whether the deduction amount of PIT in the first month of Y2017 is above 50 million VND or not.

Example 2: In 2017, company B is eligible to declare VAT monthly and total deduction amount of personal income tax in January is under 50 million VND, therefore, company B must declare personal income tax quarterly. In contrast, if the deduction amount of personal income tax in January is above 50 million VND, company B shall declare personal income tax monthly.

Notes:

Deadlines to submit personal income tax declarations:

  • The deadline for submitting a monthly tax declaration is the 20th of the month succeeding the month in which tax is incurred.
  • The deadline for submitting a quarterly tax declaration or provisional quarterly tax declaration is the 30th of the quarter succeeding the quarter in which tax is incurred.

Deadline for paying personal income tax

Deadline for paying personal income tax is no later than deadlines to submit declarations monthly, quarterly.

Places to submit tax declarations

Enterprises shall submit tax declarations at their own supervisory tax authorities through system of online tax declarations.