**Subjects Exempt from Personal Income Tax Settlement:**
Point d, Clause 6, Article 8 of Decree 126/2020/ND-CP and Official Letter 636/TCT-DNNCN specify certain situations where individuals are not required to settle personal income tax (PIT).
First, organizations or individuals that pay income from salaries or wages that do not result in any payment for income do not need to file a PIT settlement. This means that if, during the PIT calculation period, there are no salary or wage payments to employees, there is no need to file a PIT settlement.
However, in the case of salary or wage payments without any tax deductions, the organization must still file a PIT settlement as required.
Second, for individual taxpayers who directly settle with the tax authority, if the additional tax payable after the annual settlement is 50,000 VND or less, they will not be required to settle taxes.
In this case, individuals exempt from taxes can self-determine the exempted tax amount and are not required to submit a PIT settlement or exemption application. For settlements from the year 2019 and earlier that were completed before December 5, 2020, no retrospective adjustments will be made.
Third, individuals whose payable PIT is less than the temporarily paid tax without any request for a tax refund or offset against the next filing period.
Fourth, individuals who earn income from labor contracts of 3 months or longer at one employer and also have additional income from other sources, averaging no more than 10 million VND per month throughout the year, and have had their PIT withheld at a rate of 10% without any additional requests will not need to settle taxes on this part of their income.
Fifth, individuals for whom employers purchase life insurance (excluding voluntary retirement insurance) and other non-mandatory insurance with accumulated premiums that the employer or insurance company has withheld tax at a rate of 10% on the corresponding premium amount will not need to settle taxes on this income portion.