According to Clauses 1 and 2 of Article 19 of the Circular, the allocation of personal income tax is applied in two main cases. Firstly, for income from salaries and wages paid by the enterprise at its head office to employees working at subsidiary units or business locations in other provinces. Secondly, for income arising from winnings in computerized lottery games, where the winner is an individual participating in the draw via the Internet, telephone, or terminal device.
The law has clearly stipulated the regulations, so businesses and individuals need to comply with them regarding personal income tax to avoid unnecessary risks.
For income from salaries and wages, the individual or organization paying the income is responsible for separately determining the amount of tax to be allocated to each province where the employee is working, based on the actual tax withheld from each employee. In cases where an employee is transferred, seconded, or rotated between provinces, the withheld tax will be allocated to the province where the employee is working at the time the income is paid, not based on the length of employment within the year. This is an important point to help the paying entity correctly identify the locality receiving budget revenue from the withheld personal income tax.
With income from lottery winnings, taxpayers also need to determine the specific amount of personal income tax payable according to each locality. If an individual participates in the lottery via telephone or the Internet, the tax is allocated according to the province where the individual registered to participate. If the lottery ticket is purchased via a terminal device, the tax will be allocated according to the province where the ticket was issued. In both situations, the amount of personal income tax is determined based on the actual deduction for each individual winner.
Regarding the tax declaration and payment process in 2025, organizations paying income from salaries and wages to employees working in provinces other than their head office will continue to deduct taxes as usual. However, when declaring taxes, the unit must use form 05/KK-TNCN accompanied by appendix 05-1/PBT-KK-TNCN as per Appendix II of Circular 80/2021/TT-BTC, and submit it to the directly managing tax authority. Subsequently, the deducted tax amount will be paid into the state budget corresponding to each province where the employee works, in accordance with the guidance in Clause 4, Article 12 of the Circular.
An important point to note is that the amount of personal income tax allocated to localities on a monthly or quarterly basis, corresponding to the chosen tax filing period, will not be recalculated during the year-end tax settlement. This regulation helps reduce administrative procedures and limit adjustments to tax amounts between localities after allocation has been made.
With the detailed guidance above, Circular 80/2021/TT-BTC continues to be an important legal basis to ensure that the allocation and payment of personal income tax are carried out correctly, transparently, and fairly among localities in 2025.
Source: vov.vn
Source: https://baophutho.vn/sai-noi-nop-thue-nguoi-nop-thue-co-the-bi-truy-thu-trong-nam-2025-238958.htm
Comment (0)