When transferring from company A managed by the Large Enterprise Tax Department to company B managed by the Ho Chi Minh City Tax Department, which tax authority will the person directly responsible for settling personal income tax (PIT) have to submit the settlement dossier to?
Taxpayers' concerns
Ms. Nguyen Thanh Truc in Ho Chi Minh City said: from January to September 2023, she signed a labor contract and paid social insurance at Company A (the management agency is the Large Enterprise Tax Department). From February 25, 2024 to present, she signed a labor contract, paid social insurance and had family deductions for herself at Company B (the management agency is the Ho Chi Minh City Tax Department).
In April 2024, she submitted her 2023 personal income tax settlement dossier to the tax authority where she resides, the Tan Binh District Tax Department, and was rejected on the grounds that, at the time of submitting her 2023 personal income tax settlement dossier, she was making family deductions for herself at Company B, so she had to submit the dossier to the Ho Chi Minh City Tax Department.
In May 2024, she submitted the 2023 personal income tax settlement dossier, with the attached labor contract signed on February 25, 2024 with Company B, to the Ho Chi Minh City Tax Department.
In July 2024, she received a notice of non-acceptance of her tax refund application stating that she was not subject to tax settlement at the Ho Chi Minh City Tax Department.
However, she did not agree with this notice because from February 2024 until now, she signed a labor contract, paid social insurance and made family deductions for herself at Company B under the management of the Ho Chi Minh City Tax Department, so the time to submit the 2023 tax settlement dossier to the Ho Chi Minh City Tax Department was correct.
According to the officer processing the file, at the time of tax settlement (the officer determined it was December 2023), she did not have family deductions at Company B. Company B declared her income in Table 05-2, so she was not subject to tax settlement at this Tax Department.
Ms. Truc asked, is the tax authority's announcement correct? In her case, according to the law, which tax authority must she pay to? Is the 2023 personal income tax settlement date the time of submitting the application to the tax authority or the time of receiving income?
Response from Ho Chi Minh City Tax Department
The Ho Chi Minh City Tax Department responded in principle as follows: In the case that in 2023, Ms. Truc worked at company A managed by the Large Enterprise Tax Department, and on February 25, 2024, she worked at company B managed by the Ho Chi Minh City Tax Department. She is subject to direct tax settlement in 2023, so the place to submit the settlement dossier is as follows:
+ At the Ho Chi Minh City Tax Department, if at the time of submitting the 2023 finalization dossier, you are calculating personal deductions at company B.
+ At the tax office where you reside, if at the time of submitting the 2023 finalization dossier, you do not deduct yourself at any income paying organization.
Regarding the determination of where to submit the 2023 personal income tax refund dossier, because Ms. Truc did not provide specific documents, in principle, to determine where to submit the personal income tax refund dossier, she can study and implement according to the provisions at Point b, Clause 8, Article 11, Decree No. 126/2020/ND-CP and Official Dispatch No. 4172/TCT-DNNCN.
Point b Clause 8 Article 11 Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government stipulates the location for submitting tax declaration dossiers for taxpayers who are individuals with tax obligations arising on income from salaries and wages that are subject to personal income tax settlement according to the provisions of Point d Clause 4 Article 45 of the Law on Tax Administration as follows:
" b) Individuals directly declaring tax settlement according to the provisions of Clause 6, Article 8 of this Decree include:
b.1) Individuals residing in one place with income from salary or wages and who are required to self-declare taxes during the year shall submit tax finalization declaration dossiers to the tax authority where the individual directly declares taxes during the year according to the provisions of Point a of this Clause.
In case an individual has income from salary or wages in two or more places, including both income subject to direct declaration and income deducted by the paying organization, the individual shall submit tax finalization declaration dossiers to the tax authority where the largest source of income is in the year.
In case the largest source of income in the year cannot be determined, the individual can choose to submit the finalization dossier at the tax authority directly managing the paying organization or the place where the individual resides.
b.2) Resident individuals with salary and wage income subject to deduction at source from two or more paying organizations must submit tax finalization declaration documents as follows:
Individuals who have calculated family deductions for themselves at the organization or individual paying income must submit tax finalization declarations to the tax authority directly managing the organization or individual paying that income.
In case an individual changes his/her workplace and the organization or individual paying the final income with family deductions for himself/herself, he/she must submit the tax finalization declaration to the tax authority managing the organization or individual paying the final income.
In case an individual changes his/her workplace and the organization or individual pays the final income without taking family deductions for himself/herself, he/she must submit the tax finalization declaration to the tax authority where the individual resides.
In case an individual has not yet calculated family deductions for himself/herself at any organization or individual paying income, he/she must submit tax finalization declaration documents to the tax authority where the individual resides.
In case a resident individual does not sign a labor contract, or signs a labor contract for less than 3 months, or signs a service provision contract with income at one or more places where 10% has been deducted, the tax finalization declaration must be submitted to the tax authority where the individual resides.
Individuals residing during the year have income from salaries and wages at one or many places but at the time of settlement do not work for any organization or individual paying the income, the place to submit tax settlement declaration is the tax authority where the individual resides .
Source: https://vietnamnet.vn/doi-noi-lam-viec-nguoi-truc-tiep-quyet-toan-thue-tncn-nop-ho-so-o-dau-2370713.html
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