Official document No. 4946/HYE-QLDN2 The document issued by the Hung Yen Provincial Tax Department on December 1, 2025, is an important guidance document on the tax declaration obligations for dependent accounting representative offices. This document is based on Circular 80/2021/TT-BTC, clarifying responsibilities. VAT declaration, corporate income tax and personal income tax In cases where the representative office does not directly generate revenue.
In accounting, auditing, and tax practices, many businesses are still confused about determining where to declare and pay taxes for their representative offices outside the province. Circular No. 4946/HYE-QLDN2 helps standardize understanding, reducing the risk of tax assessment and administrative penalties. This article will provide a detailed analysis to help businesses apply the regulations correctly and effectively.
Detailed content of official document No. 4946/HYE-QLDN2
Before delving into specific tax regulations, businesses need to clearly understand the context and scope of application of Circular No. 4946/HYE-QLDN2. This is a crucial foundation for correctly identifying the subjects and avoiding misapplication that could lead to risks in tax declaration and payment.
Context for the issuance of document No. 4946/HYE-QLDN2
Official document No. 4946/HYE-QLDN2 was issued in the context of many businesses expanding their operations through dependent accounting representative offices in localities other than their head office. This dispersion of operating locations leads to differing interpretations of tax declaration obligations, especially VAT and personal income tax.
The Hung Yen Provincial Tax Authority has based its guidelines on the regulations in Circular 80/2021/TT-BTC to ensure consistent tax management and reduce compliance risks for businesses.
Scope of application of document No. 4946/HYE-QLDN2
Official document No. 4946/HYE-QLDN2 applies to dependent accounting representative offices that are not production facilities, do not directly sell goods, and do not generate revenue. This is a common model in trading, service, consulting businesses and corporations with a wide network of offices.
Correctly defining the scope of application is crucial for businesses to file taxes in the right place, with the right type, and within the prescribed timeframe according to the law.
Value Added Tax according to Official Letter No. 4946/HYE-QLDN2
Value-added tax (VAT) is often the most problematic tax for representative offices outside the province. Circular No. 4946/HYE-QLDN2 clarifies the declaration principles for representative offices that are dependent on other accounting systems and do not generate revenue.
Principles of VAT declaration
According to official document No. 4946/HYE-QLDN2, if a representative office outside the province is not a production facility, does not directly sell goods, and does not generate revenue, the enterprise is not required to declare VAT at the representative office. All VAT declaration obligations are carried out centrally at the head office.
This regulation is consistent with Clauses 1 and 3 of Article 13 of Circular 80/2021/TT-BTC, helping businesses reduce administrative procedures and avoid duplicate declarations.
| Criteria | The representative office is a dependent accounting unit. | Headquarters |
| Revenue generation | Are not | Have |
| VAT declaration | Are not | Have |
| Legal basis | Official document No. 4946/HYE-QLDN2 | Circular 80/2021/TT-BTC |
The table above clearly shows the central role of the head office in VAT tax declaration according to Official Letter No. 4946/HYE-QLDN2.
Corporate income tax according to official document No. 4946/HYE-QLDN2
For corporate income tax, determining the correct place for declaration and settlement is crucial in managing taxable expenses and profits. Circular No. 4946/HYE-QLDN2 helps businesses standardize declaration methods, avoiding unnecessary dispersion of tax obligations.
Determining corporate income tax declaration obligations
Official document No. 4946/HYE-QLDN2 confirms that dependent accounting representative offices are not required to file separate corporate income tax returns. Businesses should file and settle corporate income tax centrally at their head office.
This regulation is based on Clauses 1 and 3 of Article 17 of Circular 80/2021/TT-BTC, accurately reflecting the legal nature of representative offices which do not have independent legal personality.
Practical significance in corporate income tax management.
Applying Circular No. 4946/HYE-QLDN2 helps businesses avoid the unreasonable allocation of expenses and income between the head office and representative offices. This is a point frequently checked by tax authorities during tax audits and inspections.
Personal income tax according to official document No. 4946/HYE-QLDN2
Personal income tax directly relates to employees working at the representative office. Official document No. 4946/HYE-QLDN2 clearly defines the responsibility for withholding., personal income tax declaration and payment in the relationship between the head office and representative offices.
Responsibilities for deducting and declaring personal income tax.
According to official document No. 4946/HYE-QLDN2, if the representative office does not sign labor contracts and does not directly pay salaries, the responsibility for withholding and declaring personal income tax rests with the head office. The enterprise, as the income-paying entity, is responsible for fulfilling all tax obligations.
This regulation is consistent with Clauses 1 and 3 of Article 19 of Circular 80/2021/TT-BTC, ensuring unified management of personal income tax across all enterprises.
| Content | Representative Office | Headquarters |
| Signing an employment contract | Are not | Have |
| Paying salaries | Are not | Have |
| Personal income tax declaration | Are not | Have |
| Base | Official document No. 4946/HYE-QLDN2 | Circular 80/2021/TT-BTC |
Important notes when applying document No. 4946/HYE-QLDN2
Besides understanding the regulations for each tax type, businesses need to be aware of the practical risks when applying Circular No. 4946/HYE-QLDN2. These are points that tax authorities often consider during tax audits and inspections.
Risks of incorrect declaration.
In practice, during tax audits and inspections, many businesses are assessed taxes incorrectly due to non-compliance with Circular No. 4946/HYE-QLDN2. Common risks include declaring VAT at the wrong location or allocating salary expenses improperly.
Understanding the content of official documents helps businesses proactively prevent risks and optimize tax management.
Internal links and records to be stored
Businesses should establish a coordination process between their head office and representative offices, and maintain complete records of employment contracts, payrolls, and accounting documents to demonstrate the correct application of Circular No. 4946/HYE-QLDN2 during tax audits.
Frequently Asked Questions about Official Document No. 4946/HYE-QLDN2
Do representative offices need their own tax identification numbers?
According to official document No. 4946/HYE-QLDN2, a dependent accounting representative office may be assigned a dependent tax code for administrative management purposes, but will not incur separate tax declaration obligations if it does not generate revenue.
Do businesses need to notify the local tax authorities?
Businesses should notify the local tax authorities of the operational status of their representative offices so that they can be informed and apply the guidelines in Official Letter No. 4946/HYE-QLDN2 correctly.
Conclude
Official document No. 4946/HYE-QLDN2 is an important legal basis that helps businesses correctly determine their tax declaration obligations for dependent accounting representative offices. Applying this document correctly not only ensures compliance with the law but also minimizes risks during tax inspections and audits.
By understanding and applying Circular No. 4946/HYE-QLDN2, businesses can optimize accounting and tax practices and enhance financial transparency. MAN – Master Accountant Network is ready to partner with businesses with these guidelines. tax accounting services and audit In-depth support for effective and sustainable compliance.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
