Explaining why many people are being charged hundreds of millions of dong in personal income tax

On August 5, the Ministry of Finance issued a written response to the issue of individuals with multiple sources of income who have been sent notices by tax authorities to collect personal income tax (PIT) for many years, amounting to hundreds of millions of VND. Nearly half of this is fines and late payments.

The Ministry of Finance said that Decree No. 126 of the Government has detailed regulations on cases where resident individuals authorize personal income tax settlement to their working units.

Specifically, an individual has 1 source of income from a labor contract of 3 months or more at 1 unit and is actually working there at the time of personal income tax settlement; an individual has 1 source of income from a labor contract of 3 months or more and has irregular income in other places with an average monthly income of no more than 10 million VND in the year and has had personal income tax deducted at a rate of 10% if the individual does not have a need to settle this irregular income.

Individuals who do not fall into the above cases must directly settle personal income tax with the tax authority to determine tax obligations according to the settlement.

"In case an individual authorizes settlement in violation of regulations, the tax authority will inspect, verify, request the individual to fulfill their obligations and collect taxes according to regulations," said the Ministry of Finance.

Currently, the Tax sector has deployed sending notices of personal income tax settlement obligations via email and eTax Mobile application before the settlement deadline to taxpayers.

According to this Ministry, the eTax Mobile application has a "Look up settlement information" function to support individuals in looking up some information about their income such as: sources of income at paying organizations during the year, the amount of personal income tax deducted, and the amounts to be deducted.

The above information is compiled by the Tax Authority from data declared by organizations paying individuals' income to the Tax Authority and is the basis for individuals to grasp information and monitor their personal income tax settlement obligations.

Currently, the Tax sector has deployed the sending of notices on personal income tax settlement obligations via email and via the eTax Mobile application before the tax settlement deadline for individual taxpayers who have electronic tax accounts and use the eTax Mobile application.

In addition, individual taxpayers with tax arrears will receive tax debt notices via the email provided to the tax authority and the registered electronic tax account.

Besides the issue of personal income tax debt, the General Department of Taxation (Ministry of Finance) also has information about delayed personal income tax refunds.

The General Department of Taxation said that some cases of delayed tax refund settlement are due to taxpayers submitting incorrect tax finalization to the tax authority; under-declaring taxable income; incorrectly declaring the time for deduction of dependents or declaring dependents who are not eligible for deduction; under-declaring deductible compulsory insurances; under-declaring deductible compulsory insurances; incorrectly declaring the amount of personal income tax deducted or temporarily paid during the year compared to data compiled by the tax authority or providing insufficient documents for tax deduction and payment of personal income tax...

In the coming time, the General Department of Taxation will continue to direct tax agencies to actively implement propaganda and support programs and plans in many forms to support and answer questions for taxpayers to grasp policies and make settlements in accordance with regulations.

Source: https://www.nguoiduatin.vn/ly-giai-viec-nhieu-nguoi-bi-truy-thu-thue-thu-nhap-ca-nhan-hang-tram-trieu-dong-204240805164852541.htm