According to the reflection of Ms. Tran Le Quyen (Hanoi), in July 2021 her company changed the type of business from a Vietnamese enterprise to a 100% foreign-owned enterprise, the tax administration agency is the District Tax Department. Nam Tu Liem. Her company has a foreign worker who is a resident individual who earns income from wages and salaries at two places: Income from the parent company in Japan for the work generated at the subsidiary in Vietnam Male; Income from a subsidiary in Vietnam, in which the income from a subsidiary in Vietnam has been deducted from personal income tax by the subsidiary and paid on its behalf.

Foreign workers first came to Vietnam on April 7, 2021, so the second quarter of 2021 is the first quarter that individuals directly declare personal income tax.

Pursuant to the provisions of Point a2 and Point b1, Clause 8, Article 11, Decree 126/2020/ND-CP, her company determined that Nam Tu Liem District Tax Department is the place to directly manage the payment organization. income, receive personal income tax declaration dossiers of individuals who directly declare quarterly (Form No.: 02/KK-TNCN) and make personal income tax finalization declarations (Form No.: 02/QTT-TNCN) .

However, when the foreign worker submits the personal income tax return for the second quarter of 2021 (Form No. 02/KK-TNCN) to the Tax Sub-Department of Nam Tu Liem District, the Tax Department's staff thinks that the individual needs to submit tax returns to Hanoi Tax Department.

Ms. Quyen asked, in the above case, the individual needs to file a personal income tax return at the Hanoi Tax Department or the Nam Tu Liem District Tax Department?

The Hanoi Tax Department responded to this issue as follows:

Pursuant to Point d, Clause 4, Article 45 of the Law on Tax Administration No. 38/2019/QH14 stipulating the location of filing tax returns:

"4. The Government shall stipulate the location of submitting tax declaration dossiers in the following cases:

d) Taxpayers have tax obligations to finalize personal income tax".

Pursuant to Clause 8, Article 11 of Decree 126/2020/ND-CP dated October 19, 2020 of the Government detailing the location of filing tax returns:

"8. Tax return filing location for taxpayers being individuals that incur tax obligations for incomes from salaries and wages that are subject to personal income tax finalization as prescribed at point d Clause 4, Article 45 of the Law on Tax Administration is as follows:

a) Individuals who directly declare tax on a monthly or quarterly basis as prescribed in Clause 1, Article 8, Article 9 of this Decree, including:

a.2 In case the place where the individual's work arises is not in Vietnam, the individual shall submit a tax return to the tax office where the individual resides.

b) Individuals who directly declare tax finalization as prescribed in Clause 6, Article 8 of this Decree include:

b.1) A resident who earns salary or wages in one place and is subject to self-declaration in the year shall submit a tax finalization declaration dossier at the tax office where he/she directly declares tax in the year according to regulations. specified at point a of this clause. In case an individual earns salary or wages at two or more places, including the case where he has both income directly declared and deducted by the paying organization, he/she shall submit a dossier of application. declare tax finalization at the tax office where the largest source of income in the year. In case the biggest source of income cannot be determined in the year, the individual may choose the place to submit the finalization dossier at the tax agency directly managing the paying organization or the place where the individual resides.

Pursuant to the above provisions, in case the foreign worker is an individual resident and earns income from wages or salaries paid from abroad, the individual shall submit a tax return to the tax authority managing the locality where he/she is located. Persons who arise jobs in Vietnam according to the provisions of Item a.2 Clause 8 Article 11 of Decree 126/2020/ND-CP.

In case the foreign worker is a resident individual who has both directly declared income and has deducted income from the paying organization, the individual shall submit a tax finalization declaration at the tax office of the locality where he/she is located. biggest source of income for the year. In case the biggest source of income cannot be determined in the year, the individual may choose the place to submit the finalization dossier at the tax agency directly managing the paying organization or the place where the individual resides as prescribed in Item b. 1 Clause 8, Article 11 of Decree 126/2020/ND-CP.