Chương I Thông tư 105/2020/TT-BTC: Quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular set forth entities required to directly apply for taxpayer registration with a tax authority as specified in point b clause 1 Article 30 of the Law on Tax Administration; structure of TIN (taxpayer identification number); application, procedures and forms for tax registration (including initial tax registration; issuance of certificate of tax registration, TIN notification; notification of amendments to taxpayer registration; notification of business/operation suspension; TIN deactivation; TIN reactivation; tax registration in case of enterprise or organization restructuring) as prescribed in point c clause 2 Article 30, Articles 31, 34, 36, 37, 38, 39, 40 of the Law on Tax Administration.

Article 2. Regulated entities

Regulated entities in this Circular: taxpayers; tax authorities; tax officials; regulatory agencies, relevant entities prescribed in Article 2 of the Law on Tax Administration.

Article 3. Interpretation of terms

For the purposes of this Circular, these terms below shall be construed as follows:

1. “Managing entity” means a taxpayer which has affiliated entity/entities.

2. “Affiliated entities of enterprise or cooperatives” mean branches or representative offices of an enterprise or cooperatives as per the law on registration of enterprises and cooperatives.

3. “Place of business of enterprise or cooperatives” is specified in the law on registration of enterprises and cooperatives.

4. “Affiliated entities of business entity or other organization” mean branches, representative offices, or other places where the business operations of the business entity or other organization take place.

5. “Place of business of household business or individual business” means a store, shop or another specific place where the business operations of a household business or individual business take place.

6. “Petroleum contract” means a contract or agreement on exploration, development and extraction of petroleum as provided for in the Law on Petroleum.

7. “Income payer” means an organization or individual that pay income earned from wages, remuneration subject to tax registration to employees and dependents of employees.

8. “Tax registration system” means a component of the centralized tax management system that is built, managed, used consistently within the whole taxation sector for the purposes of tax administration in terms of tax registration.

9. “National information system of registration of enterprises and cooperatives” means a dedicate information system of registration of enterprises and cooperatives of the enterprise and cooperatives registration authorities as per the law on registration of enterprises and cooperatives.

Article 4. Entities required to register tax

1. The following entities are required to register tax:

a) The taxpayers subject to tax registration through the interlinked single-window system as prescribed in point a clause 1 Article 30 of the Law on Tax Administration.

b) The taxpayers subject to direct tax registration with tax authorities as prescribed in point b clause 1 Article 30 of the Law on Tax Administration.

2. The taxpayers subject to direct tax registration with tax authorities include:

a) Enterprises operating in the sectors of insurance, accounting, auditing, lawyers, notarization, or other specialized sectors that are not required for enterprise registration at business registration authorities as per the specialized laws (hereinafter referred to as business entities)

b) Public sector entities, business entities of armed forces; business entities of political organizations, socio-political organizations, social organizations, socio-professional organizations that conduct business as prescribed by law but are not required to apply for enterprise registration at business registration authorities; organizations of neighbor countries on land with Vietnam that conduct sale, barter at border marketplaces, checkpoint marketplaces and marketplaces in checkpoint economic zones; representative offices of foreign organizations in Vietnam; artels that are established and operating under the Civil Code (hereinafter referred to as business entities).

c) Organizations established by competent authorities without production or business operation but taking on liabilities to government budget (hereinafter referred to as other entities)

d) Foreign organizations and individuals, organizations in Vietnam that use foreign humanitarian aid and/or non-refundable aid to buy VAT-inclusive goods or services in Vietnam to provide non-refundable aid and/or humanitarian aid; diplomatic missions and consular offices and representative agencies of international organizations in Vietnam that are eligible for VAT refund as entities entitled to diplomatic immunity and privileges; ODA project owners that are eligible for VAT refund, representative offices of ODA project sponsors, organizations designated by foreign sponsors to manage ODA grant programs/projects (hereinafter referred to as other entities).

dd) Foreign organizations without Vietnamese’s legal status, foreign individuals doing independent business in Vietnam in accordance with Vietnam’s law and earning incomes in Vietnam or taking on tax liabilities in Vietnam (hereinafter referred to as foreign contractors or foreign sub-contractors).

e) Overseas suppliers without permanent establishments in Vietnam that operate electronic commerce, business based on digital platform and other services together with organizations or individuals in Vietnam (hereinafter referred to as overseas suppliers).

g) Enterprises, cooperatives, business entities, other entities and individuals that are responsible for withholding and remitting the taxes on behalf of other taxpayers and declare and determine their own taxes separately from those taxes of the said taxpayers as per the tax law (except for the income payers upon withholding and remitting personal income taxes on others' behalf); commercial banks, payment service intermediary providers or entities authorized by overseas suppliers to declare, withhold and remit taxes on behalf of overseas suppliers (hereinafter referred to withholding agents). An income payer shall, upon withholding and remitting a personal income tax, use the TIN that was already issued.

h) Executives, general executive companies, joint ventures, organizations authorized by Vietnamese Government to receive profits distributed from petroleum fields in the overlapping areas, contractors, and investors entering into petroleum contracts or agreements, parent company - Petro Vietnam as the representative of host country that receives profits distributed from petroleum contracts or agreements

i) Households, individuals engaged in production and business of goods or services, including individuals of neighbor countries on land with Vietnam engaging in sale and barter at border marketplace, checkpoint marketplaces, marketplaces in checkpoint economic zones) (hereinafter referred to as household/individual businesses).

k) Individuals earning incomes subject to personal income tax (excluding individual businesses)

l) Individuals who have dependents as per the law on personal income tax.

m) Organizations and individuals authorized by tax authorities to collect amounts receivable (hereinafter referred to as authorized tax collectors).

n) Other entities, households and individuals taking on liabilities to government budget.

Article 5. Structure of TIN

1. Structure of TIN

N₁N₂N₃N₄N₅N₆N₇N₈N₉N₁₀ - N₁₁N₁₂N₁₃

Where:

- The first two digits N₁N₂ indicate the province that issues TINs

- Seven digits N₃N₄N₅N₆N₇N₈N₉ are formed in a definite element in ascending order from 0000001 to 9999999.

- N₁₀ is the check digit.

- Three digits N₁₁N₁₂N₁₃ are formed in ascending order from 001 to 999.

- A dash (-) is used to separate the first 10-digit element and the last 3-digit element.

2. A business identification number, cooperatives identification number, identification number of affiliated entity of enterprise or cooperative that is issued in accordance with the law on registration of enterprises or cooperatives is also a taxpayer identification number.

3. Classification of structure of TIN

a) 10-digit TINs shall be issued to enterprises, cooperatives, entities that have full legal status or entities without legal status but incurring tax liabilities; representatives of households, household businesses and other individuals (hereinafter referred to as independent entities).

b) 13-digit TINs with a dash (-) used to separate the first 10 digits and the last 3 digits are used for affiliated entities and others.

c) The taxpayers being business entities or other entities as prescribed in points a, b, c, d, n clause 2 Article 4 of this Circular, whether or not they have legal status, once incurring tax liabilities and being accountable for their own tax liabilities, shall be issued with 10-digit TINs; the affiliated entities thereof, established as per the law, once incurring tax liabilities and directly declaring and paying taxes, shall be issued with 13-digit TINs.

d) Foreign contractors, foreign sub-contractors specified in point dd clause 2 Article 4 of this Circular that apply for paying foreign contractor withholding tax directly with tax authorities shall be issued with 10-digit TINs by every contract.

If a foreign contractor, upon a contract, engages in a joint venture with Vietnamese business entities for undertaking business in Vietnam and these joint venture members establish a joint venture management board that keeps accounting records and has a bank account and is responsible for issuance of invoices; or the Vietnamese business entity, as the joint venture member, keeps the accounting records in general and shares profits to joint venture members, they shall be issued with a 10-digit TIN for tax declaration and payment for the contract purpose.

If a foreign contractor or foreign subcontractor has an office in Vietnam and has its foreign contractor withholding tax declared, withheld and remitted by the Vietnamese party, such foreign contractor or foreign subcontractor shall be issued with a 10-digit TIN for declaration of other tax liabilities (except foreign contractor withholding tax) in Vietnam and that TIN shall be notified to the Vietnamese party.

dd) An overseas supplier, specified in point e clause 2 Article 4 of this Circular, which has not been issued with a TIN in Vietnam shall be issued with a 10-digit TIN upon application for tax registration directly with the tax authority.
The overseas supplier shall use the above-mentioned TIN to declare and remit tax by themselves, or provide such TIN for a Vietnamese entity whom they authorize to declare and pay tax on their behalf, or provide such TIN for a commercial bank or payment intermediary service provider to declare and pay tax on their behalf and declare their withholding tax schedule.

e) The withholding agents, specified in point g clause 2 Article 4 of this Circular, shall be issued with a 10-digit TIN (hereinafter referred to as authorized TIN) to declare and pay taxes on behalf of the foreign contractors, foreign sub-contractors, overseas suppliers, organizations and individuals that have contracts and business cooperation documents.
A foreign contractor, foreign sub-contractors, specified in point dd clause 2 Article 4 of this Circular, which has their foreign contractor withholding tax declared and remitted by the Vietnamese party shall be issued with a 13-digit TIN according to the authorized TIN of the Vietnamese party to complete the certification of payment of foreign contractor withholding tax in Vietnam.

If the taxpayer changes tax registration information, suspends business/operation or resumes business ahead of schedule, deactivates TIN or reactivate TIN as prescribed associated with their TIN, the authorized TIN shall be updated by the tax authority corresponding to the information and status of the taxpayer’s TIN. The taxpayer is not required to file the documentation required in Chapter II hereof associated with the authorized TIN.

g) The executive, general executive company, joint venture, organization authorized by Vietnamese Government to receive profits distributed from petroleum fields in the overlapping areas as prescribed in point h clause 2 Article 4 of this Circular shall be issued with a 10-digit TIN for every petroleum contract or agreement document or equivalent document.

A contractor or investor entering into a petroleum contract shall be issued with a 13-digit TIN according to the 10-digit TIN of every petroleum contract to pay the taxes incurred in each petroleum contract (including corporate income tax on income from participating interest in petroleum contract).
The parent company - Petro Vietnam that is the representative of host country to receive profits distributed from petroleum contracts shall be issued with a 13-digit TIN according to the 10-digit TIN of every petroleum contract to declare and pay tax on the profit distributed from each petroleum contract.

h) For the taxpayers being households, household businesses, individual businesses and other individuals, specified in points i, k, l, n clause 2 Article 4 of this Circular, a 10-digit TIN shall be issued to the representatives of the households, household businesses, individuals, and a 13-digit shall be issued to the places of business of the household businesses and individual businesses.

i) If the organization or individual, specified in point m clause 2 Article 4 of this Circular, has one or several authorized tax collection contract(s) with a tax authority, they shall be issued with an authorized TIN to remit the amount of taxes collected to the state budget.

Article 6. Receipt of application for tax registration

1. Application of taxpayer

Application for tax registration includes application for initial tax registration; application for amendments to tax registration; notification of business/operation suspension or business/operation resumption ahead of schedule; application for TIN deactivation; application for TIN reactivation which is received as prescribed in clause 2, clause 3 Article 41 of the Law on Tax Administration.

2. Receipt of application of taxpayer

a) As for paper application:

The tax officer shall receive and bears an acknowledgement stamp on the application for tax registration, specify the date of receipt, number of documents according to the list of documents for an application for tax registration filed in person with the tax authority. The tax officer shall make a written appointment to return the result for an application for which the tax authority must return the result, processing time for every category of application received. If the application for tax registration is sent by post, the tax officer shall bear the acknowledgement stamp, the date of receipt and number the document as stipulated by the tax authority.

The tax officer shall verify the application for tax registration. If the application is incomplete which requires further explanation and supplementation of information and documentation, the tax authority shall give a notice to the taxpayer using form No. 01/TB-BSTT-NNT in Appendix II to Decree No. 126/2020/ND-CP dated October 19, 2020 within 2 business days after the date of receipt of the application.

b) As for e-application for tax registration: The application shall be received in accordance with regulation of the Ministry of Finance on electronic transactions in taxation sector.

3. Receipt of decisions, documents from competent authorities

a) As for paper decisions, documents:

The tax officer shall receive and bear an acknowledgement stamp and the dates of receipt on decisions or documents from competent authorities.

If the decision or document is sent by post, the tax officer shall bear an acknowledgement stamp and the date of receipt on the decision or document, and number the decision or document stipulated by the tax authority.

b) As for e-decisions or documents: The receipt of e-decisions or documents from competent authorities shall comply with regulations on electronic transactions in finance and taxation sectors.