Personal income tax finalization for those who haven't worked a full year is a mandatory administrative procedure, but it often causes confusion for employees. According to Circular 111/2013/TT-BTC, resident individuals with income from salaries earned from work for less than 12 months are still subject to tax review. Accurately determining the amount of tax payable helps you comply with the law and gives you the opportunity to receive a refund through the tax refund procedure.
Short-term employment is often due to job changes or starting work in the middle of the calendar year. Many people mistakenly believe that not working a full year means they are not entitled to full personal deductions or to authorized tax settlement. Understanding the regulations regarding personal income tax settlement for those who have not worked a full year helps you optimize your tax payments and avoid risks when the tax authorities review your data.
Legal basis for personal income tax settlement for those who have not worked for a full year.
To follow the correct procedure personal income tax settlement For those who have not worked for a full year, we need to rely on the current legal framework. This is the foundation that helps accountants and individuals determine their rights regarding the state budget.
This regulation is detailed at Circular No. 111/2013/TT-BTC and modified by Circular 92/2015/TT-BTC. From 2026 onwards, personal allowance Adjustments according to the new roadmap will directly impact the tax amount for those who have worked fewer months. Understanding the circular helps individuals confidently fulfill their personal income tax settlement obligations for those who have not worked a full year.
| Text type | Number | Related content |
| Law | 04/2007/QH12 | Original Personal Income Tax Law |
| Circular | 111/2013/TT-BTC | Guidelines for implementing the Personal Income Tax Law |
| Circular | 80/2021/TT-BTC | Guidelines for the implementation of the Law on Tax Administration |
| Resolution | [Expected 2026] | Adjusting the new personal allowance deduction levels. |
Conditions for authorizing personal income tax finalization for employees who have not worked for a full year.
The law stipulates certain cases in which employees can authorize tax settlement. personal income tax This allows employees who haven't worked for a full year at the company to do so. This helps reduce the administrative burden for busy individuals.
You must have an employment contract with the company at the time of tax settlement, usually in the first quarter of the following year. Even if you have only worked at the company for a few months, you still have the right to ask the company to calculate your personal income tax on your behalf. Authorizing the tax settlement for employees who have not worked for a full year offers convenience thanks to the professional accounting team.
The conditions must be satisfied simultaneously.
Individuals are only eligible for tax finalization if they have only one source of income: their current employment or any other incidental income that has already been subject to withholding tax (10%). This incidental income must not exceed 10 million VND per month during the year. The new employer is responsible for finalizing the personal income tax for employees who have not worked for a full year, including any income earned at their previous workplace if they are within the same system.
Special case: Mergers and internal transfers
Employees who transfer to a new company due to a split or merger are allowed to authorize tax settlement for personal income tax purposes on behalf of employees who did not work a full year at the new company. The condition is that you must retrieve the tax deduction certificates issued by your old company and submit them to your current employer. This helps the tax system continuously record your tax contributions and deductions.
Cases where direct settlement must be carried out independently.
Many individuals with complex income sources or those who have left their jobs are forced to file their own tax returns. Self-filing personal income tax for those who haven't worked a full year requires you to compile documentation from all your workplaces during the year.
If you are unemployed or self-employed in March 2026, you cannot authorize any business to file your tax return. Therefore, understanding the self-filing process for personal income tax for those who have not worked a full year is the only way to avoid late payment penalties.
Individuals who are not eligible to authorize
- The individual has left their job and is not employed anywhere at the time of tax settlement.
- Individuals who work in multiple places during the year (having at least two employment contracts of more than three months).
- Individuals whose occasional income has not been taxed or has not been taxed to the full extent.
- Individuals who wish to claim a refund for overpaid taxes but do not meet the eligibility requirements to authorize a business to do so.
Benefits of self-filing personal income tax for those who haven't worked a full year.
Self-assessment of personal income tax is both an obligation and a practical right for employees. For those who have worked fewer months than required, the monthly provisional tax payments are often higher than the actual annual tax amount. Self-assessing personal income tax for those who have worked less than a full year allows you to quickly receive the excess amount back from the state budget.
How to calculate the amount of personal income tax payable and the amount of tax refundable.
To accurately calculate personal income tax for individuals who haven't worked for a full year, you need to understand the formula for calculating annual personal income tax. This formula helps you compare the actual tax payable with the amount of tax that has been provisionally withheld each month.
The amount of tax payable is calculated by multiplying taxable income by the progressive tax rate. When filing personal income tax returns for individuals who have not worked a full year, if the amount of tax already paid is greater than the amount of tax payable according to the annual tax calculation, you will be refunded the difference.
- Taxable income = Total taxable income – Deductions (Personal, dependents, insurance, etc.).
- Personal income tax payable for the year = Taxable income (annual) x Corresponding tax rate according to the progressive tax schedule.
- Tax refund = Total tax deducted during the year – Personal income tax payable for the year.
In reality, when settling personal income tax for those who haven't worked a full year, because you're entitled to a full 12-month deduction but only worked for a few months, your taxable income is often very low or zero. Therefore, most people who haven't worked a full year receive a significant tax refund.
New regulations on personal deductions in 2026
Changes to personal deductions are a key focus of the 2025 tax year. For personal income tax settlements for those who have worked less than a full year, the personal deduction will still be calculated for the full 12 months.
Even if you only work for 5 months, you are still entitled to a personal deduction of 186 million VND for the entire year of 2025. This regulation is extremely beneficial, helping to reduce the amount of tax payable for employees who enter the market late. This is a crucial point when calculating personal income tax for those who do not work a full year.
Comparing the old and new personal allowance deductions.
From January 1st, 2026, the personal allowance for calculating personal income tax will be significantly increased to more accurately reflect the living standards, inflation, and actual income of workers. Compared to the levels applied before 2026, the new allowance thresholds not only help reduce the amount of tax payable but also expand the group of workers who no longer have tax obligations, especially those with average incomes and those supporting dependents. The comparison table below clearly shows the changes between the old and new allowance levels.
| Deductions | Previous level (Before 2026) | New rates (Effective January 1, 2026) |
| Personal deduction (monthly) | 11,000,000 VND | 15,500,000 VND |
| Personal deduction (year) | 132,000,000 VND | 186,000,000 VND |
| Dependent deduction (monthly) | 4,400,000 VND | 6,200,000 VND |
| Dependent deduction (per year) | 52,800,000 VND | 74,400,000 VND |
Principles for calculating dependent deductions
The dependent deduction for employees who have worked for less than a full year since the dependent began is applicable when calculating personal income tax. You need to ensure that the registration information at the company is fully transferred to the summary report. Omitting months of dependent deductions will increase your tax liability.
Deadline for submitting personal income tax returns for 2025
Complying with the deadline for filing personal income tax returns is mandatory for those who have not worked a full year to avoid penalties. The law stipulates two different deadlines for businesses and individuals.
Due to the extended April 30th and May 1st holidays in 2026, the deadline for self-assessment has been adjusted to be more favorable. Understanding the schedule will help you proactively and accurately prepare the necessary documents for personal income tax settlement for those who have not worked a full year.
Important dates to note
- Businesses that submit on behalf of others: The deadline for submitting the declaration form 05/QTT-TNCN is March 31, 2026.
- Individuals handle their own accounting: The latest deadline is May 4th, 2026, due to it coinciding with a long public holiday.
- Tax refund cases: You can file your claim after the deadline if you only have an overpayment of tax that needs to be refunded.
Guide to the online personal income tax settlement process for those who have not worked for a full year.
Individuals can complete the procedure themselves from home through the system. Thuedientu.net.vn from the General Department of Taxation. You just need to have an officially activated electronic tax transaction account.
The personal income tax settlement process for those who haven't worked a full year includes: Logging in, selecting form 02/QTT-TNCN, and entering data from supporting documents. Finally, you check the tax amount (over or under) and submit the tax return along with the necessary supporting files.
Before filing the personal income tax return for employees who haven't worked a full year, gather the following documents:
- Tax deduction certificates for personal income tax from all previous and current companies.
- Income verification letter if working for an international organization.
- Receipts for charitable contributions, insurance, or other deductions.
Common mistakes and important notes regarding personal income tax settlement for those who have not worked for a full year.
Many people make the mistake of not totaling their income or incorrectly declaring personal deductions. These errors cause tax authorities to reject personal income tax returns for those who have not worked for a full year.
Note: If the additional tax payable after final settlement is less than 50,000 VND, you are exempt from submitting the tax return. This policy aims to simplify procedures for citizens when filing personal income tax returns, even for those who have not worked for a full year.
Here is a checklist to follow before submitting your application:
- Have you collected enough documents from all the previous companies?
- Have you filled in the personal deduction amount of 186 million VND yet?
- Does the bank account receiving the refund have matching information?
Conclude
Personal income tax settlement for employees who haven't worked a full year requires high accuracy in data and timing. Understanding the new regulations on family allowance deductions in 2026 will help you protect your financial rights to the maximum extent. For businesses, this is a crucial responsibility in human resource management and tax compliance.
If you're having trouble settling personal income tax for employees who haven't worked a full year, let MAN – Master Accountant Network assist you. We provide... accounting services tax audit Professional service, helping you resolve all your paperwork issues quickly. Contact MAN today for advice on the best tax solutions for the 2026 tax year!
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Personal Income Tax Settlement for Individuals Who Have Worked for Less Than a Full Year
You should file your own personal income tax return for employees who haven't worked a full year in order to get a refund of the deducted tax.
You are still entitled to a full 12-month deduction, equivalent to 186 million VND, when filing your personal income tax return for employees who have not worked for a full year.
Yes, the penalty for late filing of tax returns is quite high if you incur additional tax liability when settling personal income tax for employees who did not work for a full year. I worked for 3 months and then took a year off. Do I need to file for tax settlement?
What is the personal deduction amount if I work for six months?
Will I be heavily fined for forgetting to submit my tax return?
