Official Letter No. 1992/CT-CS dated June 24, 2025, issued by the Tax Department regarding the use of personal income tax (PIT) withholding certificates:

by KMC Consulting Company Limited

  • In cases where individuals authorize the income-paying organization to finalize PIT on their behalf, the organization is not obligated to issue PIT withholding certificates to the employees.
  • If individuals directly finalize PIT with the tax authority, their PIT finalization dossier must include a PIT withholding certificate to verify the amount of tax withheld during the year.
  • According to regulations, the deadline for individuals to finalize PIT on wages and salaries is later than that for income-paying organizations. In certain cases, after the end of the calendar year, individuals may finalize their PIT before the income-paying organization does. At that point, the tax system may not yet have complete data on the individual's income and withheld PIT. In such instances, the PIT withholding certificate serves as the basis for the individual to finalize PIT and for the tax authority to verify and reconcile the declared information in the tax return.
  • Where the income-paying organizations have completed PIT finalization and fully declared individuals’ income and tax withheld to the tax authority's system, if they issue PIT withholding certificates to individuals who finalize tax directly, such certificates allow employees to cross- reference income and tax withheld between themselves and the income-paying organization. This helps prevent errors in enterprises’ declarations of income and tax withheld.
  • In cases where income-paying organizations do not issue PIT withholding certificates due to cessation of operations, the tax authority will rely on the sector’s database to process the individual’s PIT finalization dossier without requiring the PIT withholding certificate.
  • From June 1, 2025, the use of electronic PIT withholding certificate data shall comply with the provisions of Government Decree No. 70/2025/NĐ-CP dated March 20, 2025, and Circular No. 32/2025/TT-BTC dated May 31, 2025, issued by the Ministry of Finance.

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