Personal Income Tax declaration in Viet Nam

Personal income tax or PIT is the money deducted either directly from individual salaries/ wages or submitted quarterly from a worker who being paid internationally or from non-governmental organizations.

In addition to this, some extra criteria such as:

– Being resident or not,

– Working period,

– Types of business that working in and so on

also determinants of how PIT will be finalizing.

Either employment or non-employment income is executing on a withholding basis.

Regarding employment income PIT, laws and regulations impose on the entities to subtract the taxes from the salaries before paying to the individual, these calculations are done legally from registered and responsible staff. These can be provided within the organization itself or from an outside accounting firm.

About non-employment income from capital investment, capital assignment, transfer of securities, etc. the businesses have to withhold the tax at the profits and pay to concerning tax authority before due date. These tasks are also carried out by staff from the organization itself or from external source.

Moreover, additional income and its tax declaration can add in additional burdens to the company’s accounting functions, including:

– Size and scale of the business is essential in claiming itself in different categories with various tax rates.

– PIT for foreign worker is another calculation which is different according to his/her residential status – permanent or temporary. For which, one can be sorted into non-tax or tax resident in Vietnam.

– For a foreign based organization that is newly set up in Vietnam, it is imperative to prepare a basic knowledge regarding tax laws and legislations. Resulting in offering a Vietnamese consultant.

The previous points are costing extra time and money on PIT declaration of the business, hence, it is cost effective and time saving when it comes to a third agency to handle over these complicated papers. This solution is especially helpful for small and moderate size business to adjust under the time and human resource constraints.

Nevertheless, finding a well-known and experienced agency that compliant to the company’s requests and payment is a challenge. It should match the company’s standard performance as well as having negotiable price to keep the business developing.

Smart Solution for Business Company Limited or S4B is a compact product for all of client’s needs. It offers full range of services in tax and management in many industries. It assists the clients to achieve their professional targets and obtain sustainable development in Vietnam.

It has more than 10 years of practice in Vietnamese flexible environment where tax laws and regulations are changing frequently. The focus is for newly founded foreign based establishments that are not used to the complex procedures of taxation in Vietnam.

A high qualified and dedicated team of accountants and consultants from S4B can meet the client’s satisfaction by offering effective time and quality performance.

Monthly/ Quarterly or Annual PIT declaration and payment now can be processed within hours by professional software and responsive individuals. S4B is confident of providing skilled performance that digging in details and completing within optimal amount of time.