Personal income tax (PIT) is a mandatory obligation for all individuals earning taxable income in Vietnam. PIT finalization is the annual process of declaring one’s total income, calculating the tax liability for the year, and reconciling it with provisional tax payments or withholdings made during the year. The result of PIT finalization determines whether an additional tax payment is due or a refund can be claimed. For businesses (including Vietnamese companies and foreign-invested enterprises) that pay salaries, PIT finalization also involves reporting the total tax withheld on behalf of employees.
Understanding PIT finalization deadlines and requirements is crucial for proactive financial management and legal compliance. Not only does timely PIT finalization help avoid penalties, it also demonstrates good corporate governance and transparency – qualities important to both authorities and business partners.
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When must PIT finalization be completed?
Tax filing deadlines in Vietnam are governed by the Law on Tax Administration and guiding regulations. These deadlines specify the final date by which tax declarations or finalization dossiers must be submitted to the tax authorities. Missing a deadline for PIT finalization can result in penalties, so it’s essential to know your obligations whether you are an organization finalizing on behalf of employees or an individual filing for yourself.
For organizations that cease operations, dissolve, merge, or go bankrupt, a special timeline applies. PIT finalization covering income up to the final day of operation must be filed within 45 days from the date of dissolution or termination. Completing tax finalization on time is critical to avoid delays in closure procedures and potential liabilities for company representatives.
For individual taxpayers who self-file PIT, the deadline is no later than the last day of the fourth month following the end of the calendar year, normally April 30 of the following year. For income earned in 2024, the standard deadline would be April 30, 2025. However, if this date falls on public holidays or weekends, the deadline is extended to the next working day.
Individuals with only one employer may authorize their employer to finalize PIT on their behalf, but those with multiple income sources or refund claims must file directly.
For foreign expatriates leaving Vietnam, tax residents who terminate employment and depart mid-year must complete PIT finalization before leaving. The final PIT return must be filed within 45 days from the exit date. Employers typically support this process to ensure all tax obligations are settled and to avoid complications with immigration or future re-entry.
Key point: If a deadline falls on a weekend or official holiday, it is automatically extended to the next working day. Vietnam’s eTax systems for organizations and individuals allow electronic submission at any time, providing flexibility and proof of timely filing. Taxpayers are advised to prepare PIT finalization early in the year by collecting income records, withholding certificates, and dependent documentation to avoid last-minute errors and penalties.
Find out more about InCorp Vietnam’s Tax Outsourcing Services for Foreign Businesses
When should businesses handle periodic PIT filing?
Apart from the annual PIT finalization exercise, businesses in Vietnam have to fulfill periodic PIT declaration and payment obligations throughout the year. These are essentially the regular filings where employers report the personal income tax withheld from employee salaries either every month or every quarter. The frequency of PIT filings for a business is determined by its size – specifically, its revenue in the previous year – as per Vietnam’s tax regulations. This graded system helps balance administrative load and cash flow management for companies of different scales:
Apart from annual PIT finalization, businesses in Vietnam must also comply with periodic PIT declaration and payment obligations during the year. These filings report PIT withheld from employee salaries on a monthly or quarterly basis. The applicable filing frequency depends on the company’s revenue in the preceding year, in line with Vietnam’s tax regulations, to balance compliance workload and cash flow management.
Monthly PIT filing applies to businesses with revenue exceeding VND 50 billion in the previous calendar year. Under this regime, employers must declare and pay PIT withheld from salaries by the 20th day of the following month. For example, PIT withheld in January 2025 must be declared and paid by February 20, 2025. This schedule typically applies to large enterprises and multinational companies. Monthly filing ensures steady tax remittance, allows tax authorities to monitor compliance more closely, and helps companies avoid accumulating large tax liabilities.
While it involves more frequent deadlines, monthly filing can make year-end reconciliation easier and improve predictability in cash flow planning. Companies above the threshold should expect 12 PIT filing deadlines per year, in addition to annual finalization.
Quarterly PIT filing is available to businesses with prior-year revenue of VND 50 billion or less and is commonly used by SMEs. PIT returns are due by the last day of the month following each quarter: April 30 for Q1, July 31 for Q2, October 31 for Q3, and January 31 of the following year for Q4. These deadlines align with quarterly VAT and provisional CIT filings, which simplifies compliance. Quarterly filing reduces administrative burden and allows SMEs to focus more on business operations, but companies should still monitor PIT monthly to ensure sufficient funds are set aside for quarter-end payments.
The VND 50 billion revenue threshold is assessed annually based on the previous year’s financial statements or tax filings. New companies or those experiencing rapid growth should confirm their filing status with a tax advisor or local tax office. Businesses generally follow one filing method throughout the year and reassess eligibility at year-end for the following year.
Regardless of whether PIT is filed monthly or quarterly, all employers must still complete annual PIT finalization for employees by March 31. Periodic PIT filings function as advance reporting and payment, while year-end finalization reconciles actual tax liabilities.
In summary, Vietnam’s PIT filing system aligns compliance requirements with company size: larger businesses file monthly, while smaller ones benefit from quarterly reporting. Missing even one deadline can result in penalties, so companies should maintain a clear tax calendar and integrate PIT filings with VAT routines where possible. Knowing your filing category and following the correct schedule is essential for smooth PIT compliance and accurate annual finalization.
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Can extensions be requested if you cannot file taxes on time?
Life and business don’t always go as planned. There may be situations where meeting a tax deadline, including a PIT finalization deadline, is genuinely infeasible due to unforeseen events or financial difficulties. Recognizing this, Vietnamese law provides mechanisms for taxpayers to request an extension of the tax filing and payment deadlines in special circumstances. However, these extensions are not granted automatically – strict conditions and procedures apply. Below we outline when and how you might secure extra time for PIT finalization or tax payment:
Government policy-based extensions
In certain years, the government issues support policies, typically via Decrees, to extend tax payment deadlines for eligible businesses or sectors. For example, Decree 82/2025/NĐ-CP, issued on April 2, 2025, allows deferral of VAT, CIT, PIT, and land rental payments for qualifying taxpayers in 2025. Under such policies, businesses may postpone PIT payments, including PIT withheld from salaries or PIT finalization amounts, beyond the standard deadlines.
To benefit, taxpayers must submit a written application for extension by the prescribed deadline. In 2025, this cutoff was May 30, 2025. The request usually follows a standard form identifying the taxes and periods to be deferred and confirming eligibility under the decree. Missing the application deadline or falling outside the eligible sectors means normal deadlines continue to apply. When approved, extensions typically defer payment for several months without incurring late payment interest during the extension period. However, the tax remains fully payable later. Businesses should carefully track the new deadlines to avoid penalties once the extension expires.
Force majeure and special-case extensions
Vietnam’s tax laws also allow deadline extensions on a case-by-case basis for force majeure events such as natural disasters, fires, epidemics, or other uncontrollable incidents. Taxpayers must apply to the tax authority and provide official evidence showing that the event directly disrupted their ability to file or pay taxes. Depending on the situation, extensions are generally capped at up to 30 days for monthly or quarterly filings and up to 60 days for annual PIT finalization.
During the approved extension period, penalties and late payment interest are waived. Importantly, if the taxpayer fails to comply by the extended deadline, penalties and interest apply starting from the day after the extension ends, not from the original due date.
Procedure to request an extension
In both policy-based and force majeure cases, taxpayers must submit a written request to the managing tax authority, clearly stating the tax period, tax amount, and reason for the extension. Government support policies often prescribe specific forms, while force majeure requests require supporting documents such as official incident reports or government notices. Once approved, the tax authority issues a confirmation, which should be retained as proof of compliance.
Limitations
Extensions are temporary relief measures and do not apply automatically to all taxes or taxpayers. Some policies allow payment deferral but still require on-time filing, or vice versa. Eligibility is strictly defined. For example, Decree 82/2025 only applies to specific sectors and business sizes, excluding others. Similar restrictions applied under earlier COVID-19 support decrees. Businesses must carefully assess whether they qualify.
In conclusion, PIT deadline extensions are available but require proactive action, proper documentation, and strict adherence to application deadlines. Extensions provide short-term cash flow relief but do not eliminate tax obligations. Businesses should monitor extension timelines as closely as tax deadlines themselves and seek professional advice when eligibility or procedures are unclear to avoid unintended non-compliance.
How do late filing penalties impact businesses and individuals?
Failing to meet PIT finalization or other tax deadlines in Vietnam can lead to serious consequences. Vietnam’s tax system applies two main types of penalties to enforce compliance: administrative fines for late filing and late payment interest for delayed tax remittance. Combined, these penalties can quickly escalate and affect both finances and compliance records.
1. Administrative fines for late PIT returns
Decree 125/2020/ND-CP sets out fines for late submission of PIT finalization dossiers and periodic PIT returns. Fines differ by length of delay and whether the taxpayer is an individual or an organization, with organizations generally facing double the individual fine.
For individuals, the standard penalty tiers are as follows:
- 1–5 days late: Usually a warning, but fines of VND 2–5 million may apply in certain cases. For organizations, fines may reach VND 4–10 million.
- 6–30 days late: Fines range from VND 2–5 million for individuals and up to VND 10 million for organizations.
- 31–60 days late: Fines increase to VND 5–8 million for individuals and up to VND 16 million for businesses.
- 61–90 days late: Fines range from VND 8–15 million for individuals and up to VND 30 million for companies.
- Over 90 days late: Individuals may be fined VND 15–25 million, while organizations may face fines up to VND 50 million.
If a PIT return is over 90 days late and tax remains unpaid, the violation may be treated as tax evasion rather than late filing. In such cases, penalties can range from one to three times the unpaid tax amount, far exceeding the fixed fine caps.
Administrative fines apply per filing and are separate from the tax owed. Paying tax late does not remove the fine, and vice versa.
2. Late payment interest
In addition to fines, late tax payments incur interest at 0.03% per day on the unpaid amount, as stipulated by the Law on Tax Administration. Interest accrues from the day after the deadline until full payment, including weekends and holidays.
For example, paying VND 100 million in PIT 30 days late results in VND 900,000 in interest. Over time, this rate equates to roughly 0.9% per month or over 10% annually. This interest applies even if the tax return was filed on time or if filing was extended but payment was delayed. Interest is waived only during approved extension periods.
3. Other consequences
Repeated late filings can trigger audits, inspections, and closer scrutiny by tax authorities. Serious cases involving underreporting or intentional non-compliance may lead to enforcement actions, including account freezes, tax recovery measures, or business suspension. For foreign individuals, unresolved PIT obligations may affect tax clearance, refunds, or immigration procedures.
If an imposed administrative fine is not paid within the required timeframe, additional interest of 0.05% per day applies to the unpaid fine amount.
Late PIT finalization can also harm business reputation. Compliance records are often reviewed during due diligence, and repeated penalties may raise red flags for investors and partners. Individuals who miss finalization deadlines may lose entitlement to tax refunds.
