Official letter No. 6360/CT-PC dated August 26, 2026 of the Ministry of Finance on promoting communication and providing guidance to business households and individuals on the provisional payment of personal income tax as follows:
by KMC Consulting Company Limited
1. Regarding the declaration and provisional payment of personal income tax
Pursuant to Point b, Clause 2, Article 10 of Decree No. 68/2026/ND-CP dated March 5, 2026 of the Government, business households and individuals subject to personal income tax under the method of taxable income multiplied (x) by the tax rate shall declare provisional personal income tax on a monthly or quarterly basis in the same value-added tax return. The provisional personal income tax payable is determined using the simple method:
PROVISIONAL PERSONAL INCOME TAX PAYABLE = MONTHLY/QUARTERLYTAXABLE REVENUE × TAX RATE
Where:
- Taxable revenue is revenue arising during the period from production and business activities and from goods and services;
- Tax rate: applied according to each business sector and field as prescribed by law.
Note: The deadlines for submission of tax declaration dossiers and tax payment shall comply with the provisions of the law on tax administration. At the end of the tax year, business households and individuals shall declare personal income tax finalization in accordance with regulations.
2. In case of multiple business locations
Pursuant to Point b, Clause 4, Article 8 of Decree No. 68/2026/ND-CP, in case a business household or individual conducts business activities at multiple locations, revenue shall be declared and value-added tax shall be paid for each business location; personal income tax shall be paid at the head office.
3. Upon finalizing tax at year-end
Pursuant to Point a, Clause 5, Article 10 of Decree No. 252/2026/ND-CP, business households and individuals subject to personal income tax finalization shall submit the tax finalization dossier no later than the last day of the third month from the end of the tax finalization period.
In case the provisional personal income tax paid is lower than the tax payable upon finalization, pursuant to Point b, Clause 2, Article 10 of Decree No. 68/2026/ND-CP, business households and individuals shall pay the additional amount of the difference and are not required to calculate late payment interest on the additional tax payable. In case the tax already provisionally paid is greater than the tax payable according to the finalization, the overpaid tax amount shall be handled in accordance with Article 12 of Decree No. 68/2026/ND-CP.
