04 FAILURE WHEN NO REGISTRATION OF PERSONAL TAX NUMBER

Pursuant to Clause 5, Article 6 of Circular 95/2016 / TT-BTC, enterprises shall make tax registration for individuals earning income from salaries and wages and tax registration for their dependents. multiply once a year at least 10 working days before the time of filing the annual personal income tax finalization dossier (hereinafter referred to as "PIT").

Therefore, enterprises need to check which individual has income from salaries or wages but does not have a PIT code, then register the PIT code for that individual before the time of PIT finalization.

The fact that individuals do not have a tax code affects their rights as follows:

Firstly, it is unable to fulfill the commitment form 02 / CK-TNCN to serve as a temporary basis for not deducting PIT

According to Point i, Clause 1, Article 25 of Circular 111/2013 / TT-BTC, in case the individual has only income subject to tax deduction at the rate of 10% but estimated total taxable income of the individual. After deduction of family circumstances has not reached the level of tax payment, the individual earning income makes a commitment form 02 / CK-TNCN enclosed with Circular 92/2015 / TT-BTC as a temporary basis for non-deduction. PIT.

Individuals making commitments under the guidance at this point must register tax and have a temporary tax code at the time of commitment.

Thus, if the individual is subject to tax deduction at the rate of 10%, although the total taxable income is estimated to not exceed VND 108,000,000 / year, but without tax code, it will not be committed. Form 02 / CK-TNCN and PIT withheld according to regulations.

Second, the overpaid PIT part is not refundable

According to Clause 2, Article 8 of the 2007 Law on Personal Income Tax, individuals are entitled to tax refund when: (i) The paid tax amount is larger than the payable tax amount; (ii) Or, the individual has paid tax but has taxable income not up to the taxable level; (iii) Or, in other cases as decided by competent state agencies.

At the same time, pursuant to Clause 1, Article 28 of Circular 111/2013 / TT-BTC, the PIT refund applies to individuals who have had a tax code at the time of filing the tax finalization dossier.

Therefore, individuals who do not have a PIT number when making PIT finalization will not be refunded.

Third, ineligible to reduce family circumstances for dependents

Pursuant to the provisions of Item c.2.1, Point c, Clause 1, Article 9 of Circular 111/2013 / TT-BTC, taxpayers are entitled to a family deduction for their dependents if the taxpayer has registered tax and is entitled to tax code issuance.

Therefore, in cases where an individual has income from salaries or wages of over VND 09 million / month but does not have a tax code, he / she cannot apply for family deduction for dependents.

Fourth, not authorized to finalize PIT for individuals who do not have a PIT code

Individuals earning incomes from salaries or wages may authorize enterprises to pay tax finalization income in the cases specified at Point d, Clause 2, Article 26 of Circular 111/2013 / TT-BTC.

However, the individual authorizing personal income tax finalization must have a PIT code.

If you have any questions, do not hesitate to contact us!

TASCO always listens to customers' opinions. For any contributions, please contact hotline at 0975.480.868 or email: mylinh2883@gmail.com