2012 Personal Income Tax (PIT) Finalisation Clarifications

Ho Chi Minh 6543


OL187 provides clarification on how to handle expatriate Vietnamese tax residents as follows;

  1. Interrupted Assignments - where an expatriate who is a Vietnamese tax resident stopped working in Viet Nam but had previously lodged their PIT finalisation dossier prior to December 31 2012, and then returned to continue working in Viet Nam until the end of 2012, such as expatriate is required to lodge a PIT finalisation dossier for the entire year 2012 including income for months worked outside of Viet Nam;
  2. Expats in their first calendar year as tax resident Viet Nam need to declare their income for the whole year, even for monies earned prior to arriving in Viet Nam.
If you have any questions, do not hesitate to contact HR2B Payroll Services in Vietnam.

Paid in 2013 not counted

Income relating to 2012 but paid in 2013 (for example a bonus payment), should be included in 2013 tax finalisation dossier, not 2012 tax finalisation dossier. Only report what was paid between January 1 to December 31 2012.

Late Registration of Dependents OK

Tax relief for qualified dependents begins from the month the obligation to care for the dependent is incurred, even if registration is done later.

Late Tax Code OK

Individuals without tax codes during 2012 are still entitled to PIT refund provided that they have a tax code by March 31 2013.

Your Employer Can Finalise PIT For You

If you;

  1. have income from Salaries and Wages;
  2. signed a labour contract of >3 months;
  3. have only one source of income.

You can authorise your employer to to Finalise your PIT on your behalf.

This is a change from last year when it said you had to work with your employer for more than 12 months.

If you do not satisfy these 3 conditions you must do the tax finalization yourself.

Standard Forms Provided

OL187 provides the format for 2012 PIT finalisation dossier and makes clear the procedures for specific cases.

In general OL187 makes clear the PIT Finalisation procedures for 2012.
It is an improvement on 2011 where many of these issues were open questions.

What you have to do

If you are an HR2B Payroll Outsourcing customer you don’t need to take any action. Our professionals will prepare and process the 2012 PIT Finalisation Dossier for your company and for the individuals who request personal finalisation as per the above official letter.

If your are not yet an HR2B Payroll Outsourcing customer, call today for a free quote

Business Development Department
Ms Nguyen Thi Bich Hong
Deputy General Director
+84 (0) 907 073388

To find out more about Payroll Outsourcing Service, please click here

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