Taxation is a complex area that requires keeping up to date with the latest legislation. Hong Bang Law has many employees who are experts with long experience in the tax field, providing customers with quality and reliable services.

Therefore we would like to send you some necessary information about tax regulations for branches

General regulations

A branch is a dependent unit of an enterprise, responsible for performing all or part of the enterprise’s functions, including the function of an authorized representative. The branch’s line of business must be consistent with the business line of the enterprise.

When registering branch operations, enterprises can choose the form of accounting, including: Independent accounting or dependent accounting.

Tax obligations of the branches

Declare license fees for branches

Pursuant to Clause 3, Article 5 of Decree No. 139/2016/ND-CP, license fee payers shall submit license fee declaration dossiers to the tax authorities directly managing them.

In case: A business branch in the same province as the enterprise on which the branch is dependent, the enterprise shall submit a dossier of declaration of license fees of those dependent units to the tax authority directly managing them. of the enterprise;

In case: A business branch located in a different province than the head office of the enterprise on which the branch depends, the branch shall submit its license fee declaration dossier to the tax agency directly managing the branch. .

Value added tax declaration

• Case: Independent accounting branch:

The branch submits its own VAT declaration dossier at the branch’s direct tax management agency.

• Case: Dependent accounting branch

According to the provisions of Clause 1, Article 11 of Circular 156/2013/TT-BTC, value added tax shall be paid according to the following provisions:

Branches with an address in the same province or city under central authority as the head office address of the enterprise:

• Enterprises make general VAT declaration for the whole branch.
• If the branch has a seal, a bank deposit account, directly sells goods and services, fully declares input and output value-added tax, and needs to declare and pay its own tax, it must register it. Sign separate tax payments and use separate invoices.
• In case the branch has business activities of catering services, restaurants, hotels, massage, karaoke, the Director of the local Tax Department shall decide the place of tax declaration.

The branch has an address different from the province or centrally run city with the address of the head office of the enterprise:

• The branch submits the value-added tax declaration dossier to the tax agency directly managing the branch;
• If the branch does not directly sell goods and does not generate revenue, it shall make concentrated tax declaration at the enterprise’s head office.
• In case an enterprise has a real estate business project in a locality other than the province where its head office is located and a branch is established, the branch must register for tax and pay tax according to the deduction method for the enterprise. with real estate business with the local tax authority where the real estate business arises.
• In case an enterprise declares and pays tax by the deduction method, whose branches are affiliated production establishments (including processing and assembling establishments) that do not directly sell goods and generate no revenue from paying taxes. In a province or centrally run city that is different from the province or city where the head office is located, the following procedures shall be followed:
• If the affiliated production establishment has accounting records, it must register to pay tax according to the deduction method in the locality where it is produced. When transferring semi-finished products or finished products, including exported to the head office, they must use it. use the value-added invoice as a basis for tax declaration and payment in the locality where production is made.
• If the affiliated production establishment does not perform accounting, the enterprise shall declare tax at the head office and pay tax to the localities where the affiliated production establishment is located.

Corporate income tax declaration

Pursuant to Article 12 of Circular 156/2013/TT-BTC as amended and supplemented by Article 16 of Circular 151/2014/TT-BTC, the responsibility to declare corporate income tax is as follows:

• Independent accounting branch:

If the branch does independent accounting, the branch shall submit the enterprise income tax declaration dossier arising at the branch to the tax agency directly managing the branch.

• Dependent accounting branch:

If the branch does dependent accounting, the branch is not required to submit a corporate income tax return; when submitting corporate income tax declaration dossiers, enterprises are responsible for making concentrated declaration at the head office, including the arising part at the branch.

A dependent accounting branch is a production establishment (including a processing and assembling establishment) operating in a province or centrally run city other than the area where the enterprise’s head office is located. enterprise income tax declaration dossiers, enterprises are responsible for making concentrated declaration at the head office, both arising at the place of head office and in the place of dependent accounting production branch.

Declaration and finalization of personal income tax

According to Official Letter 18200/CT-TTHT in 2017 and Official Letter 329/CT-TTHT in 2020, the responsibility to declare and pay personal income tax for employees working at the branch is determined in two cases:

• Individuals sign labor contracts directly with the branch, register for family circumstance deduction at the branch.
• The individual signed a labor contract with the enterprise and was sent to the branch to work, individuals registered to reduce their family circumstances at the enterprise.

Tax declaration service for branches of Hong Bang Law

•               Declare and pay license fees to the branch;
•               Check the reasonableness, validity and legitimacy of invoices and documents provided by enterprises;
•               Declare and submit monthly and quarterly tax reports;
•               Declare and submit year-end financial statements, PIT finalization, CIT finalization (applicable to independent branches);
•               Consulting on completing accounting books and documents for the branch;
•               Explain tax declaration data to tax authorities.

In addition to the above services, Hong Bang Law also provides the following tax services for enterprises:

• Consulting services and personal income tax finalization;
• Consulting services and initial tax declaration;
• Service of tax declaration by month, by quarter;
• Tax declaration service according to Tax declaration service according to the time of arising;
• Services of making and declaring year-end financial statements;
• Contractor tax declaration service;
• Service of filing value added tax refund;
• Tax declaration services at the request of businesses.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!