How to Finalize Taxes When Transferred to Work at the Parent Company?

Point d Clause 6 Article 8 Decree 126/2020/ND-CP stipulates as follows:

d) Personal income tax for organizations and individuals that pay taxable income from wages and salaries; individuals with income from wages and salaries authorizing tax finalization to organizations and individuals paying income; individuals with income from wages and salaries directly finalizing taxes with the tax authorities. Specifically, as follows:

d.1) Organizations and individuals paying income from wages and salaries are responsible for declaring tax finalization and finalizing taxes on behalf of individuals who authorize them, regardless of whether tax deduction arises or not. In cases where organizations and individuals do not incur income payment, they are not required to declare personal income tax finalization. In cases where individuals are employees transferred from the old organization to the new organization due to the old organization merging, consolidating, splitting, separating, changing the type of enterprise, or both the old and new organizations being part of the same system, the new organization is responsible for finalizing the tax according to the individual's authorization for the income paid by the old organization and retrieving the personal income tax deduction documents issued to the employees by the old organization (if any).

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Accordingly, based on the above provisions, since you are transferred from a subsidiary to the parent company and these two companies are considered to be in the same system, the parent company (the company you are transferred to) will be responsible for finalizing the tax according to the authorization for all income previously paid by the subsidiary.

Respectfully!