New regulations on where to settle personal income tax when there are many sources of income

The Government has just issued Decree No. 373/2025/ND-CP amending and supplementing a number of articles of Decree No. 126/2020/ND-CP detailing a number of articles of the Law on Tax Administration, effective from February 14, 2026.

According to the decree, in case the taxpayer finds himself unqualified to declare taxes quarterly, the taxpayer must declare taxes monthly from the first month of the following quarter, submit the monthly tax declaration documents of the previous quarters and calculate the late payment fee according to regulations.

In case the tax authority discovers that the taxpayer is not eligible to declare taxes quarterly, the tax authority shall issue a document requesting the taxpayer to declare taxes monthly from the first month of the following quarter, return the monthly tax declaration documents of the previous quarters and calculate the late payment fee according to regulations, except in cases where the tax authority discovers it through inspection at the taxpayer's headquarters.

Taxpayers must declare taxes monthly and submit monthly tax records according to the request of the tax authority.

Taxpayers are not subject to administrative sanctions for late submission of tax declarations for tax declarations of tax calculation periods that must be re-submitted due to changes in tax calculation periods.

Previously, Decree 126/2020/ND-CP did not have specific regulations on exemption from administrative sanctions for tax declarations that were delayed when they had to be re-submitted due to changes in tax calculation periods. Decree 373/2025/ND-CP has added this regulation to create conditions and reduce the risk of penalties due to incorrect tax calculation periods.

Regarding the location for tax declaration, the Decree amends the regulations on the location for tax declaration for residential individuals with salary and wages income subject to deduction at source from two or more places.

Individuals residing with salary and wages income subject to deduction at source from two or more places shall submit a tax declaration dossier to the tax authority directly managing the organization paying the largest income in the year.

In case there are the largest sources of income in the year and those sources of income are equal, the individual shall submit the settlement file to one of the tax authorities directly managing the organization that pays the largest sources of income above.

In case the individual submits the personal income tax declaration in violation of the above regulations, the tax authority that received the individual's dossier shall base on the information on the tax industry database system to support the transfer of the dossier to the tax authority directly managing the income payment organization to carry out personal income tax settlement according to the law.

Previously, Decree 126/2020/ND-CP stipulated that individuals with salary and wages income in two or more places, depending on each specific case, will submit a tax declaration and settlement dossier at: Tax authority directly managing the organization, individual paying income or tax authority where the individual resides.

In order to facilitate taxpayers and tax authorities, while ensuring fairness for budget revenue between localities, Decree No. 373/2025/ND-CP has amended the above regulation in the direction of unifying the submission of tax declaration documents to the tax authority directly managing the organization paying the largest income in the year.

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