– 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:
+ In Article 12 guiding the distribution of tax obligations of concentrated-accounting taxpayers with dependent units and business locations in other provinces where the head office is located:
“Article 12. Allocation of tax obligations of concentrated-accounting taxpayers with dependent units and business locations in other provinces where the head office is located
1. Taxpayers operating and doing business in many other provincial-level areas where taxpayers are headquartered and conducting concentrated accounting at the head office according to the provisions of Clauses 2 and 4, Article 11 of Decree No. 126/2020/N Đ -CP shall declare tax, calculate tax and submit tax declaration dossiers to tax authorities directly managing and distribute payable tax amounts to each province where the business operates.
2. The cases of distribution, methods of distribution, tax declaration, tax calculation and finalization for the distributed tax shall comply with the provisions of Articles 13, 14, 15, 16, 17, 18 and 19 of this Circular.
4. Taxpayers shall base themselves on the payable tax amount in each province enjoying the distributed revenue to make payment receipts and remit the money to the state budget according to regulations. The State Treasury where the taxpayer’s receipt of payment to the state budget is received shall account the revenue for each area receiving the distributed revenue.
+ Article 19 provides guidance on tax declaration, tax calculation and personal income tax distribution:
“Article 19. Tax declaration, tax calculation, personal income tax distribution
1. Cases of distribution:
a) Withholding personal income tax on incomes from salaries and wages paid at the head office to employees working at dependent units or business locations in other provinces.
2. Distribution method:
a) Distribution of personal income tax on income from salaries and wages:
Taxpayers shall separately determine the amount of personal income tax that must be distributed to incomes from salaries and wages of individuals working in each province according to the actual tax withheld of each individual. If the employee is transferred, rotated or seconded, based on the time of income payment and which province the employee is working in, the withholding personal income tax amount incurred shall be calculated for that province.
3. Tax declaration and payment:
a) Personal income tax on income from salaries and wages:
a.1) Taxpayers only paying salaries and wages to employees working at dependent units or business locations in provinces other than their headquarters shall withhold personal income tax on incomes from salaries and wages according to regulations and submit tax declaration dossiers according to form No. 05/KK-TNCN, appendix of the table determining the amount of personal income tax payable to localities entitled to revenue according to the form No. 05-1/PBT-KK-TNCN promulgated together with Appendix II of this Circular for tax authorities to directly manage; pay personal income tax on incomes from salaries and wages to the state budget for each province where the employee works according to the provisions of Clause 4, Article 12 of this Circular. The personal income tax amount is determined for each province on a monthly or quarterly basis corresponding to the personal income tax declaration period and is not re-determined when finalizing personal income tax.
+ In Article 87 provides for the effectivity:
“Article 87. Effectivity
1. This Circular takes effect from January 1, 2022.”
Pursuant to the above provisions, if the Company pays salaries and wages to employees working at dependent units or business locations in a province other than its head office , from January 1, 2022, it will be subject to personal income tax distribution under the guidance in Clause 1, Article 19 of Circular No. 80/2021/TT-BTC. The distribution, tax declaration and payment of personal income tax in this case comply with the guidance in Clauses 2 and 3, Article 19 of Circular No. 80/2021/TT-BTC of the Ministry of Finance mentioned above.