Personal income tax finalization is a crucial obligation for individuals and businesses to accurately determine the amount of personal income tax payable or refundable. Understanding the regulations, deadlines, and declaration process not only helps avoid administrative penalties but also ensures your legal right to a tax refund. Annual worries about complex procedures, complicated paperwork, and tight deadlines are always a major concern for employees and accounting departments during personal income tax finalization season. This article will provide detailed guidance on the legal basis, required documents, and how to complete the process using the HTKK software and the Electronic Tax Portal, helping you easily finalize your personal income tax for the year 2025 and for the year 2026.
What is personal income tax finalization?
Personal income tax finalization is the process by which taxpayers (individuals or organizations paying income) declare and recalculate their total taxable income and applicable deductions for the calendar year to accurately determine the additional personal income tax payable or the amount of tax to be refunded.
The purpose of personal income tax final settlement is to compare the amount of tax already paid or withheld during the year with the actual amount of tax payable according to the law.
Why is personal income tax settlement important?
Filing personal income tax returns on time and in full is fundamental to building credibility.
- Comply with the law: Avoid administrative penalties related to taxes as stipulated in the Decree.
- Protecting rights: This helps individuals receive a refund of overpaid taxes due to changes in employment, dependents, or deductions. This is a crucial step in ensuring the legal financial rights of employees.
Because of its importance, every individual and organization needs to understand the legal regulations related to personal income tax settlement in order to comply correctly, fully, and promptly with the instructions of the tax authorities.
Regulations detailing personal income tax final settlement
Identifying the correct category of individuals or organizations required to file personal income tax returns is crucial. Only by clearly understanding which group they belong to according to regulations can taxpayers prepare the necessary documents, file their returns on time, avoid errors, and ensure their legitimate right to a tax refund.
Individuals required to file personal income tax returns.
Individuals and organizations are required to settle personal income tax in the following cases:
- Organizations and businesses: As income-paying entities, they must finalize personal income tax returns for individuals with income from salaries and wages, even if no tax deductions are made or the individual authorizes someone else to finalize the tax return.
- Resident individuals: Those with income from two or more sources where the amount of tax withheld is insufficient, or who require a tax refund or tax offset.
- Non-resident individuals: Not required to finalize personal income tax returns; tax is paid on each transaction.
However, in addition to the legally mandated subjects, to reduce administrative procedures and create favorable conditions for employees, tax laws also clearly stipulate cases where personal income tax finalization is exempted.
Cases exempt from personal income tax final settlement.
Individuals will not need to file their own personal income tax return if:
- Income comes from only one source, and the income-paying organization or business has authorized the tax settlement to handle personal income tax.
- Income from salaries and wages that averaged during the year is below the tax threshold (after deducting personal allowances) and the additional personal income tax payable does not exceed VND 50,000.
- Individuals with income from salaries and wages under a labor contract of 3 months or less at one entity, and who also have occasional income under 10 million VND that has been subject to withholding tax (form 10%), and who request a tax refund.
Understanding the regulations regarding eligible entities is fundamental to ensuring that personal income tax returns are valid and compliant with the law. Next, let's explore in detail the types of documents and forms that need to be prepared, as well as the deadlines for submission, with MAN – Master Accountant Network.
Deadline and required documents for personal income tax finalization.
Not understanding the filing deadlines can lead to unnecessary penalties, so familiarizing yourself with the filing schedule is a prerequisite before starting to prepare your documents.
Updated deadline for personal income tax settlement in 2026.
Knowing the deadlines is crucial when filing your personal income tax return:
- For organizations and businesses: No later than the last day of the third month from the end of the calendar year (i.e., March 31, 2026). If a holiday falls on one of these days, the workday will be moved to the first working day of April, which is April 1st.
- For individuals who self-declare their tax returns: The deadline is the last day of the fourth month from the end of the calendar year (i.e., April 30, 2026). However, since April 30th falls on a public holiday, the settlement deadline will be postponed to the first working day after the holiday.
Once you have a firm grasp of the important schedule, the next step is to prepare all the necessary "materials" for filing. Missing any documents can delay the completion of your personal income tax return. So, what documents are required for a self-filing personal income tax return?
What documents are required for personal income tax final settlement?
Depending on the specific individual, the regulations regarding personal income tax final settlement documents will vary:
Tax return documents for individuals
For individuals filing their personal income tax return directly with the tax authorities, the personal income tax return dossier includes:
- The personal income tax return form No. 02/QTT-TNCN is issued together with Appendix II of Circular No. 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance.
- Appendix to the list of personal deductions for dependents, form No. 02-1/BK-QTT-TNCN, issued together with Appendix II of Circular No. 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance.
- Copies (photocopies of the originals) of documents proving the amount of tax withheld, the amount of tax provisionally paid during the year, and the amount of tax paid abroad (if any).
After preparing all the required documents and declarations, taxpayers should note some special cases that may affect the process of receiving and processing personal income tax finalization documents. These notes help ensure that the documents are accepted as valid by the tax authorities, even in situations where the income-paying organization ceases operations or uses electronic withholding certificates.
Note:
- In cases where an organization paying income ceases operations and does not issue tax deduction certificates to individuals, the tax authorities will use the tax department's database to review and process the individual's tax return without requiring a tax deduction certificate.
- In cases where organizations or individuals paying income use electronic personal income tax withholding certificates, taxpayers shall use a printed copy of the electronic personal income tax withholding certificate (a paper copy printed by the taxpayer and converted from the original electronic personal income tax withholding certificate sent by the organization or individual paying the income).
- A copy of the Tax Deduction Certificate (clearly stating which income tax return the tax was paid according to) issued by the income-paying entity, or a copy of the bank statement for taxes paid abroad, certified by the taxpayer, in cases where, according to foreign law, the foreign tax authority does not issue a certificate confirming the amount of tax paid.
- Copies of receipts or documents proving contributions to charitable funds, humanitarian funds, or scholarship funds (if any).
- Documentation proving the amount paid by the entity or organization paying the income abroad, in cases where the individual receives income from international organizations, embassies, consulates, and income from overseas.
- Dependent registration documents (if any).
Besides the documents required for individuals to self-declare their income, organizations and individuals paying income are also responsible for preparing and submitting personal income tax return documents for their employees according to regulations. Understanding the required documents and procedures helps payers ensure compliance with the law and avoid errors in tax declaration and deduction.
Personal income tax settlement documents for organizations and individuals paying income.
For organizations and individuals paying income, the personal income tax return documents are as follows:
- The personal income tax return form No. 05/QTT-TNCN is issued together with Appendix II of Circular No. 80/2021/TT-BTC.
- Appendix to the detailed list of individuals subject to tax calculation according to the progressive tax rate schedule, form No. 05-1/BK-QTT-TNCN, issued together with Appendix II of Circular No. 80/2021/TT-BTC.
- Appendix to the detailed list of individuals subject to tax at the full tax rate, form No. 05-2/BK-QTT-TNCN, issued together with Appendix II of Circular No. 80/2021/TT-BTC.
- Appendix to the detailed list of dependents for personal allowance deduction, form No. 05-3/BK-QTT-TNCN, issued together with Appendix II of Circular No. 80/2021/TT-BTC.
Note: In cases where an individual authorizes the income-paying organization to settle their tax obligations on their behalf, the individual must prepare a Personal Income Tax Settlement Authorization Form for the tax period using mẫu số 08/UQ-QTT-TNCN (Form No. 08/UQ-QTT-TNCN) issued with Appendix II of Circular No. 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance.
Detailed guide to the personal income tax finalization process.
Currently, personal income tax settlement is mainly carried out through the HTKK software or the Electronic Tax Portal.
Set up personal income tax return using the HTKK tax declaration software.
To help taxpayers easily visualize the process, below is a detailed guide on the steps to complete personal income tax finalization using the HTKK software.
| Content of the steps | Detailed instructions |
| Download and install the latest version of the HTKK software. | Access the official website of General Department of Taxation To download and install the latest version of HTKK compatible with your operating system. |
| Enter taxpayer information. | Open the software, enter the Tax Identification Number (TIN), the taxpayer's full name, and select the tax period (according to the year for which you need to file your tax return). |
| Fill in the information on Form 02/QTT-TNCN. | Fill in all the information regarding total taxable income, mandatory insurance contributions, deductions (for yourself and dependents), and the amount of tax withheld during the year. |
| Inspect and export the XML file. | Review all the entered data, then export the file in XML format for submission. Electronic Tax Portal |
From the table above, taxpayers can see that the process of filing personal income tax returns using the HTKK software is quite simple if they understand each step. Proactively declaring and checking data before exporting the XML file not only helps reduce errors and save time, but also ensures that the documents are quickly received on the Electronic Tax Portal.
If you are unfamiliar with using HTKK, you can refer to the guide on online personal income tax settlement via the Public Service Portal (eTax) below, which will be more suitable for individuals to self-settle their taxes.
Online tax settlement via the Public Service Portal (eTax)
This is the most convenient method for individuals to self-declare their personal income tax.
Besides using the HTKK software, taxpayers can choose to file their personal income tax return online through the Public Service Portal (eTax). Below is a detailed guide on the steps to follow, helping individuals easily complete their tax return from home.
| Implementation content | Detailed instructions |
| Log in to the e-Tax system. | Access National Public Service Portal or The General Department of Taxation's Electronic Tax PortalLog in using your personal account registered with the tax authority. |
| Select the online declaration option. | On the main interface, select "Tax Declaration," then select "Online Declaration," and choose Form 02/QTT-TNCN to begin the declaration process. |
| Complete the tax return form. | The system automatically displays income data and deducted taxes reported by paying organizations. Taxpayers need to check, add, or adjust deduction information (personal, dependent, charitable, insurance, etc.). |
| Submit the application and monitor the results. | After completion, click "Submit application". The system will notify you of receipt and allow you to check the processing progress of your application in the "Application Tracking" section. |
Thus, with just a few simple steps on the Electronic Tax Portal, individuals can easily and transparently file their personal income tax returns without having to go to the tax office. However, during the declaration and submission process, taxpayers should still be aware of some common specific situations to avoid errors, delays, or requests for additional documents.
If you discover any errors in your submitted personal income tax return, you need to file an amended return:
- When is it necessary to file a supplementary tax return? After submission, but before the tax authorities announce a decision to conduct a tax audit or inspection at the taxpayer's premises.
- Procedure: Use the Supplementary Declaration Form (in the HTKK application or on the eTax Portal) to correct any incorrect entries. The final personal income tax settlement must be accurate.
Penalties for late submission of personal income tax returns.
Failure to file personal income tax returns on time will result in penalties according to Decree 125/2020/ND-CP (or its replacement documents):
- Delays of less than 5 days: Fines ranging from 2 to 5 million VND.
- Delays of 6-30 days: Fines ranging from 5 to 8 million VND.
- Delays of 31-60 days: Fines ranging from 8 to 15 million VND.
- Late by more than 90 days: Fine of 15-25 million VND (and mandatory payment of the late payment penalty).
Conclude
While personal income tax finalization isn't overly complicated, it requires a thorough understanding of legal regulations, proper comprehension of obligations, complete documentation, and accurate operation on the tax authority's electronic systems. Doing it correctly from the start not only avoids requests for additional information and delays in processing, but also ensures your right to deductions.
If you are still having trouble with the declaration and filing process, or if you would like assistance from a team of tax experts to review, verify, and complete your personal income tax return, you can contact MAN – Master Accountant Network for detailed and accurate advice. Timely support will help you save time, minimize errors, and confidently fulfill your tax obligations in accordance with regulations.
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 and CEO of MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Editor MAN – Master Accountant Network
