Any individual who has income in the territory of Vietnam and is subject to tax is obliged to finalize personal income tax (PIT) no later than the last day of the fourth month following the end of the calendar year (Law on Tax Administration No. 38/2019/QH14).

Individual self-employment (commonly known as freelancer) is interpreted in the sense of freelancing, or working in style as self-managed, not constrained by labor contract, environment, location, or working hours, for example:

• Freelancer as MC, interpreter, designer;
• Freelancer trainer specializing in short-term training for businesses;
• Individuals buying and selling real estate and securities;
• Foreign workers working in Vietnam;
• Artists;
• Blogger freelancer;
• Editor freelancer;
• PR – marketing freelancer;
• Data entry freelancer;
• Virtual assistant freelancer;
• Tutoring jobs online;
• Other.

Having earned income in the year but not yet finalized PIT taxes, and being subject to the tax authority's required data clarification, collection of additional tax payable, and related fines.

PIT-related issues for a freelancer:

1. The freelancer is aware that there is no need to complete PIT finalization because the unit paying income when a freelancing contract is signed has already paid the % self-employment tax.

⇒ [ESOS] Even when the unit paying income has deducted and paid 10% tax from freelancer's income, freelancers must still perform year-end tax finalization to determine whether any taxes were owed or underpaid to quickly declare, pay additional taxes, and prevent incurring interest on late payments later.

2. I'm an individual, I don't know how to do it, and no one asked for it, so I don't think it's necessary.

⇒ [ESOS] PIT finalization is an indispensable thing that employees need to know and comply with the law.

3. How does my income acknowledged to the tax department?

⇒ [ESOS] The authorities are record and rigorously control the freelancing agreements signed with partners and payment through bank accounts.

If you belong in one of the aforementioned categories or your company is having trouble completing PIT Finalization, please get in touch with ESOS for assistance and a detailed quote on the service package that would come in handy for you.