– Pursuant to Clause 2, Article 11 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019 stipulating the locations for submitting tax declaration dossiers:
“2. The location for submitting tax declaration dossiers for taxpayers running business in more than one province as prescribed at Point b, Clause 4, Article 45 of the Law on Real Tax Administration and conducting centralized accounting at the headquarters (except for the cases specified in Clauses 1, 3, 4, 5 and 6 of this Article) is at the tax authority managing the headquarters…”
– Pursuant to Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration
+ Clause 1, Clause 2, Clause 4, Article 12 provide for the distribution of tax obligations of taxpayers doing centralized accounting and having dependent units or business locations in multiple provinces:
“1. A taxpayer doing business in more than one province shall do centralized accounting in the province where the taxpayer is headquartered according to Clause 2 and Clause 4 Article 11 of Decree No. 126/2020/ND-CP, declare tax, calculate tax and submit tax declaration dossiers to the supervisory tax authority and distribute tax payable in each province where business is done.
2. Cases of distribution, methods for distribution, tax declaration, tax calculation, tax finalization are specified in Articles 13, 14, 15, 16, 17, 18, 19 of this Circular.
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4. The taxpayer shall, on the basis of the tax payable in each province, prepare payment documents and pay tax to state budget as per regulations. The State Treasury that receives payment documents from the taxpayer shall specify the revenue of each province…”
+ Clauses 1, 4, Article 13 provide for tax declaration, tax calculation, distribution and payment of value added tax:
“1. Distribution cases:
a) Computerized lottery business;
b) Transfer of real estate, except the cases specified in Point b Clause 1 Article 11 of Decree No. 126/2020/ND-CP;
c) Construction activities according to regulations of law on national economic sector system and specialized laws;
d) Dependent units and business locations that are factories (including processing and assembly facilities, except the cases specified in Point c Clause 1 Article 11 of Decree No. 126/2020/ND-CP;
dd) A hydroelectric plant that is located in multiple provinces.
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4. In case a dependent unit directly sells goods, uses invoices registered by the dependent unit or the taxpayer to the supervisory tax authority of the dependent unit, fully records input and output VAT, the dependent unit shall declare and pay VAT to its supervisory tax authority…”
+ Article 19 provides for tax declaration, tax calculation, distribution and payment of tax returns, tax calculation and distribution of personal income tax (PIT):
“1. Distribution cases:
a) Deduction of PIT on income from salaries and remunerations paid at the headquarters to employees working at dependent units or business locations in other provinces.
b) Deduction of PIT on individuals’ income from computerized lottery prizes.
2. Distribution methods:
a) Distribution of PIT on income from salaries and remunerations:
The taxpayer shall determine the PIT on salaries and remunerations of individuals working in each province according to the PIT deducted in reality from income of each individual. In case an employee is reassigned or seconded, PIT shall be paid in the province in which the employee is working at the time of income payment.
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3. Declaring and paying tax:
a) PIT on income from salaries and remunerations:
a.1) The taxpayer that pays salaries and remunerations to employees who work at dependent units and business locations in provinces other than the province where the taxpayer is headquartered shall deduct PIT from salaries and remunerations, submit tax declaration dossiers according to Form No. 05/KK-TNCN, the PIT distribution sheet according to Form No. 05-1/PBT-KK-TNCN in Appendix II hereof to the supervisory tax authority; pay PIT in the provinces where the employees work in accordance with Clause 4 Article 12 of this Circular. PIT payable in each province shall be determined monthly or quarterly and shall not be adjusted during PIT finalization…”
+ Clauses 1 and 2 of Article 87 provide for the effect:
“1. This Circular comes into force from January 01, 2022.
2. The tax declaration forms provided by this Circular shall be used for tax periods starting from January 01, 2022 and may also be used for 2021’s tax finalization…”
Based on the above provisions, refer to the following implementation:
- Regarding VAT declaration and payment:
In case the dependent units (branches) of the enterprise do not directly conduct business, do not monitor and fully account the output and input VAT, the enterprise shall declare, calculate and submit the VAT declaration of the enterprise and branches in other provinces to the supervisory tax authority where the taxpayer is headquartered according to the provisions of Clause 2, Article 11 of Decree No. 126/2020/ND-CP issued on October 19, 2020 by the Government and does not fall into the case of distributing the payable VAT amount to each province where the taxpayer does business according to the provisions of Article 13 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.
In case the dependent units (branches) of the enterprise directly do business, using invoices registered with the supervisory tax authority, monitoring and accounting for input and output VAT, the branch shall declare tax and pay VAT to the supervisory tax authority as prescribed in Clause 4, Article 13 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.
- Regarding PIT declaration and payment:
The enterprise shall pay salaries and remunerations to employees who work at dependent units and business locations in provinces other than the province where the taxpayer is headquartered shall deduct PIT from salaries and remunerations, submit tax declaration dossiers according to Form No. 05/KK-TNCN, the PIT distribution sheet according to Form No. 05-1/PBT-KK-TNCN in Appendix II hereof to the supervisory tax authority; pay PIT in the provinces where the employees work in accordance with Clause 4 Article 12 of this Circular. PIT payable in each province shall be determined monthly or quarterly and shall not be adjusted during PIT finalization.