Tax declarations for dependent branches

4/9/2024
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On 22 March 2024, Hanoi GDT issued Official Letter No. 14116/CTHN-TTHT regarding the tax declarations for dependent accounting branch.

In case Nam Dinh Textile and Garment Urban Development Joint Stock Company (headquarters in Nam Dinh), establishes a Branch in Hanoi with dependent accounting, the Branch shall fulfill tax obligations as follows:

1. Business license fees:

Branch in Hanoi City is required to pay business license fees as prescribed in Article 2 of Decree No. 139/2016/ND-CP by the Government. The location for submitting business license fee declaration documents is as prescribed in Clause 1, Article 11 of Decree No. 126/2020/ND-CP dated 19 October 2020 by the Government.

2. Value added tax (“VAT”):

In the case where a dependent unit (branch) conducts business activities without fully tracking the input and output value-added tax (VAT) accounting, the head office shall be responsible for declaring and submitting the VAT returns of both the Company and the branches in different provinces directly to the tax authority in accordance with the provisions of Clause 1 and Clause 2 of Article 11 of Government Decree No. 126/2020/NĐ-CP.

In case a dependent unit (Branch) directly sells and uses invoices registered by the dependent unit or registered by the taxpayer with the tax authority managing the dependent unit, full accounting tracking is required. For output and input VAT, the dependent unit declares and pays VAT to the tax authority managing the branch directly according to the provisions of Clause 4, Article 13 of Circular 80/2021/TT-BTC issued by the Ministry of Finance.