Under Circular No. 89/2026/TT-BTC how is personal income tax on salaries and wages declared quarterly from July 1, 2026?
On June 30, 2026, the Minister of Finance of Vietnam promulgated Circular No. 89/2026/TT-BTC elaborating on several articles of the Law on Tax Administration and Decree No. 252/2026/ND-CP elaborating on several articles of, and measures for organizing and providing guidelines for implementing, the Law on Tax Administration.
From July 1, 2026, personal income tax on salaries and wages shall be declared quarterly and finalized annually.
Specifically, income-paying organizations and individuals shall make quarterly declarations and annual tax finalization as follows:
- Quarterly declaration: An organization or individual paying income in the form of salaries or wages shall declare quarterly the personal income tax withheld from income recipients.
- Annual tax finalization:
+ An organization or individual paying income in the form of salaries or wages shall finalize tax and conduct tax finalization on behalf of individuals who have authorized it to do so, regardless of whether any tax withholding arose;
+ Where an individual employee is transferred from a former organization to a new organization because the former organization undergoes a merger, consolidation, division, separation, or conversion of enterprise type, or where the former and new organizations belong to the same system, the new organization shall, as authorized by the individual, conduct tax finalization on the individual’s behalf for income paid by both organizations. It shall also retrieve any personal income tax withholding certificate previously issued to the employee by the former organization.
Accordingly, personal income tax declaration dossiers for income from salaries and wages shall be received and processed as follows:
- The tax authority responsible for receiving and processing the personal income tax declaration dossier is the tax authority directly managing the income-paying organization or individual;
- Where an organization or individual pays income to employees working at a dependent unit or business location in a province other than that in which the income-paying organization or individual has its headquarters:
+ If the income-paying organization or individual elects to make a centralized tax declaration at its headquarters, the declaration dossier shall be received and processed by the tax authority directly managing that organization or individual;
+ If the income-paying organization or individual elects to make a separate tax declaration for each dependent unit or business location, the declaration dossier shall be received and processed by the tax authority directly managing the relevant dependent unit or business location.
See more details in Circular No. 89/2026/TT-BTC effective as of July 1, 2026.
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