THE MINISTRY OF FINANCE
THE GENERAL DEPARTMENT OF TAXATION

Official Dispatch No. 187/TCT-TNCN dated January 15, 2013 of the General Department of Taxation guiding the final declaration of personal income tax 2012
To: Departments of taxation of central-affiliated cities and provinces
The final declaration of personal income tax is specified in the Law on Personal income tax, the Government's Decree No. 187_TCT-TNCN dated September 08th 2009, specifying a number of articles of the Law on Personal income tax, the Circular No. 84/2008/TT-BTC dated September 30th 2008 of the Ministry of Finance, the Circular No. 62/2009/TT-BTC dated March 27th 2009 of the Ministry of Finance, the Circular No.  02/2010/TT-BTC dated January 11th 2010 of the Ministry of Finance; the Government's Decree No. 101/2011/NĐ-CP dated November 04th 2011, the Circular No. 154/2011/TT-BTC dated November 11th of the Ministry of Finance, the Circular No. 140/2012/TT-BTC dated August 21st 2012 of the Ministry of Finance, the Circular No. 28/2011/TT-BTC dated February 28th 2011 of the Ministry of Finance, and the guiding documents of the General Department of Taxation. In order to ensure the uniform implementation of laws, the General Department of Taxation guides the final declaration of personal income tax 2012 as follows:
I. The subjects that make final tax declarations
1. The income payer must deduct tax whether the tax is deducted nor not.
2. A resident that earns income from wages and private business shall make final personal income tax declaration if:
- The tax payable is higher than the deducted tax or initially paid tax;
- The excess tax is refunded or offset against the tax in the next period.
3. A resident that earn income from securities transfer, who has registered with the tax authority for paying personal income tax at 20% on the assessable income, shall make final tax declaration in the following cases:
- The tax payable at 10% (reduced by 50%) is higher than the initially deducted tax at 0.05% (reduced by 50%) on the securities transfer price.
- The excess tax is refunded or offset against the next period.
4. A resident being a foreigner that stops working in Vietnam before leaving Vietnam.
When a resident being a foreigner stops working in Vietnam and make final tax declaration before December 31st, then comes back to Vietnam and works until the end of the year, that individual shall make the final declaration of the tax on the taxable income from January 1st to December 31st.
Example 1. Mr. X starts working in Vietnam on February 05th 2012, and stops working on August 31st 2012. Mr. X stays in Vietnam more than 183 days from January 05th 2012 to the day of departure. Before leaving, Mr. X makes the final declaration of the tax on his taxable income from January 01st 2012 until the end of August 31st 2012. On September 15th 2012, Mr. X comes back to Vietnam and works until the end of 2012. Thus Mr. X shall make the final declaration of the tax on his taxable income from January 01st 2012 until the end of December 31st 2012.
II. Delegating the final tax declaration:
1. When a individual that earns income from his or her wages under a long-term contract (more than 03 months) from only one place in a calendar year is requested to make final tax declaration, he or she may delegate the wage payer to make the final tax declaration on his or her behalf, even he or she has not worked for full 12 months.
2. This individual shall be issued with the tax deduction documents from the income payer (unless the income payer has withdrawn and destroyed the tax deduction documents issued to that individual); when a individual that does not sign the labor contract, or signs a labor contract that lasts under 03 months, or sign a service contract that has been deducted by 10% or 20% (including the income earned from one place) is requested to make final personal income tax declaration, he or she shall make the final tax declaration without delegating it to the wage payer.

Example 2. Mr. A is an individual that has a number of articles and sign a service contract with company X in 2012. Company X has deducted 10% from Mr. A’s income. In 2012, Mr. A only earns income from the company X. At the end of this year, if Mr. A is requested to make the final personal income tax declaration, he shall make the declaration himself without delegating company X to make it on his behalf.