Wrong place to pay tax, taxpayers may be subject to tax arrears in 2025

In 2025, the allocation, declaration and payment of personal income tax will continue to be implemented according to the guidance in Circular No. 80/2021/TT-BTC issued by the Ministry of Finance. This Circular provides specific regulations to ensure transparent and fair tax collection among localities, while facilitating taxpayers in the process of fulfilling their financial obligations to the State.

According to the provisions of Clauses 1 and 2, Article 19 of the Circular, the allocation of personal income tax is applied in two main cases. The first is for income from salaries and wages that enterprises pay at their headquarters to employees working at affiliated units or business locations located in other provinces. The second case is for income arising from winning computerized lottery prizes, with winners being individuals participating in the lottery via the Internet, telephone or terminal device.

The law has very clear regulations, so businesses and individuals need to comply with regulations on personal income tax to avoid unnecessary risks.

For income from wages and salaries, the individual or organization paying the income is responsible for separately determining the corresponding tax amount to be allocated to each province where the employee is working, based on the actual tax amount deducted from each employee. In the case of employees being transferred, seconded or rotated between provinces, the deducted tax amount will be allocated to the province where the employee is working at the time of income payment, not allocated according to the working time in the year. This is an important point to help the paying unit determine the correct locality that receives budget revenue from the deducted personal income tax.

For income from winning computerized lottery prizes, taxpayers also need to determine the specific amount of personal income tax payable in each locality. In cases where individuals participate in the lottery via telephone or the Internet, the tax is allocated according to the province where the individual registered to participate. If lottery tickets are purchased via a terminal device, the tax will be allocated according to the province where the tickets were issued. In both situations, the amount of personal income tax is determined according to the actual deduction level of each winning individual.

Regarding the tax declaration and payment process in 2025, organizations paying income from salaries and wages to employees working in provinces other than the head office will still deduct tax as usual. However, when declaring taxes, the unit will use form No. 05/KK-TNCN with appendix 05-1/PBT-KK-TNCN according to appendix II of Circular 80/2021/TT-BTC, and submit it to the direct tax authority. After that, the deducted tax will be paid to the state budget corresponding to each province where the employee works, in accordance with the instructions in Clause 4, Article 12 of the Circular.

An important note is that the personal income tax amount allocated to localities on a monthly or quarterly basis, corresponding to the selected tax declaration period, will not be re-determined when performing year-end tax settlement. This provision helps reduce administrative procedures and limits the adjustment of tax amounts between localities after the allocation has been made.

With the detailed instructions above, Circular 80/2021/TT-BTC continues to be an important legal basis to ensure that the allocation and payment of personal income tax is carried out in accordance with regulations, 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