Will personal income tax of employees working at representative offices be paid to the headquarters or the place where representative office is located in Vietnam?
Will personal income tax of employees working at representative offices be paid to the headquarters or the place where representative office is located in Vietnam? What are declaration forms, appendices and relevant documents in the tax declaration dossier in Vietnam?
My company has headquarters in Binh Duong and representative office in Ho Chi Minh City. The Representative Office only serves as a place for employees to work, has no business function, and does not appoint any titles related to the Representative Office. Deductions based on the salaries of employees working at the Representative Office are still paid to Binh Duong Social Insurance. So, will the personal income tax of employees working at the representative office in Ho Chi Minh City be paid to the tax authority of Ho Chi Minh City or Binh Duong? Thank you!
Will personal income tax of employees working at representative offices be paid to the headquarters or the place where representative office is located in Vietnam?
Pursuant to Article 19 of Circular 80/2021/TT-BTC regulating declaring, calculating, distributing and paying personal income tax (PIT):
1. Distribution methods:
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.
....
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.
a.2) Individuals who earn income from salaries and remunerations and have to declare tax directly to tax authorities include: resident individuals whose salaries and remunerations are paid from foreign countries; non-resident individuals whose salaries and remunerations are earned in Vietnam but paid from foreign countries; individuals whose salaries and remunerations are paid by international organizations, Embassies, Consulates in Vietnam but PIT has not been deducted; individuals receiving bonus shares from paying organizations.
b) PIT on individuals' income from winning computerized lottery prizes:
The taxpayer is the income payer that deducts PIT from the individual's prize, submit the PIT declaration dossier according to Form No. 06/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 individual participates in computerized lottery by phone or internet and where computerized lottery tickets are distributed via terminal devices according to Clause 4 Article 12 of this Circular.
According to this Article, in case an enterprise establishes a representative office in a province other than where its headquarter is located and the enterprise pays centrally to employees working at this representative office, the enterprise must deduct taxes and declare personal income tax from salaries and wages centrally at the headquarter. Thus, if your company pays personal income tax for employees working at the representative office in Ho Chi Minh City, the company submits tax declaration documents to the Binh Duong tax agency, which is the tax agency that directly manages the business and distributes taxes, pay money into the state budget for workers working at Representative Office in Ho Chi Minh.
Will personal income tax of employees working at representative offices be paid to the headquarters or the place where representative office is located in Vietnam? (Image from the Internet)
What are declaration forms, appendices and relevant documents in the tax declaration dossier in Vietnam?
Pursuant to Article 20 of Circular 80/2021/TT-BTC, regulations on declaration forms, appendices and relevant documents in the tax declaration dossier are as follows:
The tax form, appendices; additional declaration; registration of dependants; PIT declaration authorization form; report on estimated petroleum production and provisional tax rate; declaration of increase in tax declared monthly compared to quarterly declared tax; application for conversion from monthly declaration to quarterly declaration of taxes and other state budget revenues are provided in Appendix II hereof.
Best regards!
