On December 31, 2025, the Government issued Decree No. 373/2025/ND-CP amending and supplementing a number of provisions of Decree No. 126/2020/ND-CP, which provides detailed guidance on the implementation of certain articles of the Law on Tax Administration. This Decree takes effect from February 14, 2026, and introduces many important provisions to improve tax administration mechanisms, particularly in handling errors related to tax period declaration and determining the place for personal income tax finalization.
1. Supplementation of provisions on handling cases of incorrect tax period declaration
One of the notable new points is the addition of Clause 3, Article 9 of Decree No. 126/2020/ND-CP, which specifically regulates cases where taxpayers have declared taxes on a quarterly basis but, in fact, do not meet the conditions for applying quarterly declaration.
Under the new provisions, taxpayers in such cases are obliged to:
– Switch to monthly tax declaration from the first month of the following quarter; at the same time, resubmit monthly tax declaration dossiers for previous tax periods;
– Fulfill obligations to calculate and pay late payment interest in accordance with the law.
Notably, Decree No. 373/2025/ND-CP introduces a mechanism for exemption from administrative penalties for late submission of tax declaration dossiers in this case. Specifically, the resubmitted monthly tax declarations shall be considered as replacements for the previously filed quarterly declarations and shall not be subject to penalties for late submission.
This provision is practically significant, as Decree No. 126/2020/ND-CP previously did not provide specific guidance, leading to the risk that taxpayers could be subject to administrative penalties even when the late submission arose from the requirement to adjust the tax period. The supplementation of this provision helps address this legal gap, ensures fairness, and reduces legal risks for taxpayers.
2. Amendments to regulations on the place of personal income tax finalization
Decree No. 373/2025/ND-CP also amends provisions related to determining the place of personal income tax finalization for resident individuals earning income from salaries and wages from multiple sources.
Accordingly, the principles for determination are clearly provided as follows:
– Individuals shall carry out tax finalization at the tax authority directly managing the organization that pays the highest income during the year;
– In cases where the highest income sources are equal, taxpayers are entitled to choose one of the corresponding tax authorities to conduct the finalization.
At the same time, in order to facilitate taxpayers and reduce administrative procedures, the Decree also stipulates that:
– In cases where individuals submit finalization dossiers to an incorrect competent tax authority, the receiving tax authority shall be responsible for assisting in transferring the dossier to the competent tax authority for settlement.
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