Employment Tax

Vietnam | Personal income tax (PIT) finalization — key deadlines and compliance requirements

Summary

Income paying organizations and individuals with taxable income subject to PIT finalization are required to submit their annual PIT returns to the tax authorities by the statutory due date. Any additional tax liabilities must also be settled by this deadline.

The detail

Tax payment and filing deadlines

• Employer PIT filing and payment – Due by the last day of the third month following the tax year end
• Individual PIT filing and payment – Due by the last day of the fourth month following the tax year end

For 2025 PIT finalisation with tax year ended on 31 December 2025:

• Employer PIT return – Due by 31 March 2026
• Individual PIT return – Due by 30 April 2026. As 30 April 2026 falls on a public holiday, we recommend that filing and payment be completed by 29 April 2026.   

Penalty for non-compliance

The tax authorities may impose the following penalties for late filing and/or late payment of tax:

• Administrative penalties for late tax registration and late filing of tax returns: Up to VND10 million (approximately USD435) and VND25 million (approximately USD1,040) respectively
• Interest on late payment: 0.03% per day on the outstanding tax amount
• Underpayment penalty: 20% of the tax shortfall, but may be reduced to nil if a voluntary declaration is made.
• Tax evasion penalty: up to 3 times the outstanding tax liability. Tax evasion includes submission of tax returns more than 90 days after the statutory deadline.

Authorization for employers to finalize PIT on behalf of employees

Employees may authorize their income payer (i.e. their employer) to finalize annual PIT on their behalf if the following conditions are met:

• The employee remains employed by the current employer at the time of PIT finalization
• The employee has an employment contract more than 3 months and only one source of income with the current employer
• The employee is transferred to a new entity due to merger, consolidation, division, separation within the same group of company
• The employee has ad-hoc income with the average monthly amount in a year less than VND10million and PIT already withheld at the rate of 10% at source.

Annual individual PIT Filing

Below individuals are required to file their annual individual PIT returns directly with the tax authorities:

• Tax residents receiving income from overseas entities
• Individuals receiving income from international organizations, embassies, or consulates in Vietnam where PIT has not been withheld
• Tax residents with more than one source of income whose tax year ends on a non-calendar year basis
• Tax residents claiming a foreign tax credit

We are pleased to assist you in preparing or reviewing this return.

Please connect with us if you require support or clarifications on the above.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Brittany Chong
Partner

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