Official document 63/CT-CS from the Tax Department clarifies the declaration of personal income tax (PIT) on salaries and wages that are exempt from tax according to Resolution 136/2024/QH15, including cases where tax declaration is not required but final tax settlement is still necessary.
With the upcoming personal income tax (PIT) settlement period, many organizations and individuals are confused by the regulations. There are cases where, even without tax liability (no monthly/quarterly tax declaration required), an annual tax settlement is still mandatory. Let's update ourselves on the latest guidance from the Tax authorities to avoid unnecessary legal errors.
New points regarding personal income tax obligations according to Official Letter 63/CT-CS
According to Official Letter No. 63/CT-CS issued on January 7, 2026, by the Tax Department, the fulfillment of tax obligations regarding tax-exempt salaries and wages (according to Resolution 136/2024/QH15) has been clarified.
This regulation highlights the difference between "Regular tax filing" and "Annual tax settlement." This is especially important for businesses with tax-exempt personnel or those that do not meet tax thresholds.
In which cases is it not necessary to file periodic tax returns?
According to Clause 3, Article 7 of Decree 126/2020/ND-CP (amended by Decree 91/2022/ND-CP), the following entities are not required to submit monthly/quarterly tax returns:
- Individuals whose income is exempt from tax: According to the regulations of the law on personal income tax (except for cases of inheritance, gifts of real estate or transfer of real estate).
- Organizations and individuals paying income without withholding: If, during the month or quarter, a business pays salaries but no employees are subject to personal income tax withholding, the business does not need to file a tax return for that month/quarter.
- The taxpayer only engages in business activities that are exempt from tax.
Why is it "mandatory" to file a tax return even if you don't?
This is the most misleading information. Based on Point d.1, Clause 6, Article 8 of Decree 126/2020/ND-CP, the regulations on personal income tax finalization are as follows:
"Organizations and individuals paying income from salaries and wages are responsible for filing tax returns and settling tax on behalf of authorized individuals, regardless of whether tax deductions have been made or not."
Source: Point d.1, Clause 6, Article 8 of Decree 126/2020/ND-CP
Detailed analysis:
- For businesses (organizations paying income): Even if all your employees earn less than the personal allowance threshold during the year (no tax deductions are made), the business must still file an annual personal income tax return to report the total income paid.
- For individuals: If an individual authorizes a business to settle their tax obligations on their behalf, the business must fully fulfill this responsibility.
- The only exception to tax settlement is when an organization or individual does not generate any income payments throughout the entire tax year.
Taxpayer responsibilities in 2026
According to the Law on Tax Administration No. 38/2019/QH14 (recently supplemented by Law No. 56/2024/QH15), taxpayers should note:
- Accuracy: We are fully responsible before the law for the truthfulness of the information provided.
- Document archiving: All invoices and documents related to transactions that generate tax obligations must be fully recorded and kept.
- Coordinate with tax authorities: Provide documentation promptly when requested for inspections or guidance from the management agency.
Advice for accountants and employees
To ensure a smooth tax settlement process and avoid administrative penalties due to late payments or incorrect information, the accounting department and individual employees should pay attention to the following key issues:
- Review payment data: Even if no one has filed taxes, prepare income statements 05-1/BK-TNCN, 05-2/BK-TNCN, and 05-3/BK-TNCN in advance for the annual tax settlement period.
- Settlement deadline: Don't forget the deadline for submitting your 2025 personal income tax return (to be done at the beginning of 2026) to avoid penalties for late filing.
- Utilize supporting tools: Take advantage of applications such as eTax Mobile or the latest version of the tax declaration support software (HTKK) to update the forms.
Conclude
"Tax finalization is mandatory even without filing a tax return" is a requirement, not an option. Misinterpretation can lead to penalties for incomplete filing, even if no tax liability arises. Proactively reviewing your obligations according to Circular 63/CT-CS will help ensure a safe and lawful personal income tax finalization in 2026.
Unsure if your tax return documents comply with regulations? Contact the MAN – Master Accountant Network tax consulting team for a review of your personal income tax return, minimizing risks and saving time dealing with tax authorities.
Contact information MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Source: Vietnamese Law
MAN – Master Accountant Network Editorial Team
