Allocation of Personal Income Tax on income from salaries and wages

From January 1, 2022, taxpayers are required to allocate Personal Income Tax (PIT) if they withhold PIT on income from salaries and wages paid at the head office to employees working at dependent units or business locations in other provinces.

Taxpayers separately determine the PIT amount that must be allocated to incomes from salaries and wages of individuals working in each province according to the actual tax withheld of each individual. In case the employee is transferred, rotated or seconded, based on the time of income payment and which province the employee is working in, the amount of PIT withheld shall be calculated for that province.

Taxpayers pay salaries and wages to employees working at dependent units or business locations in provinces other than the head office, deduct Personal Income Tax on income from salaries and wages according to regulations and submit tax declaration dossiers according to form No. 05/KK-TNCN, appendix to determine the amount of PIT payable to localities enjoying revenue sources according to form No. 05-1 /PBT-KK-TNCN promulgated together with Appendix II of this Circular for the tax authority in charge; pay PIT to the state budget for each province where the employee works according to the provisions of Clause 4, Article 12 of this Circular. The Personal Income Tax amount is determined for each province on a monthly or quarterly basis corresponding to the PIT declaration period and is not re-determined when finalizing PIT.

Legal base:

Circular 80/2021/TT-BTC issued on September 29, 2021 by the Ministry of Finance.

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Allocation of PIT on income from salaries and wages from 01/01/2022