Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular deals with applications and procedures; amendments to tax registration information; deactivation of tax identification numbers (hereinafter referred to as TINs), TIN reactivation, business suspension; tax registration regarding restructuring and conversion of business entities; responsibilities for management and usage of TINs.
Enterprises established and operating under the Law on Enterprise shall register for tax in conjunction with business registration as prescribed in the Law on Enterprise and guiding documents on enterprise registration.
Enterprises that are not being established or operating under the Law on Enterprise, organizations, households and individuals, and issues in connection with tax administration and tax registration of enterprises established under the Law on Enterprise that are not specified in the Law on Enterprise and guiding documents shall comply with the Law on Tax administration and this Circular for tax registration.
Article 2. Regulated entities
1. Taxpayers are enterprises, organizations and individuals below:
a) Limited liability companies, joint-stock companies, partnerships, private enterprises that apply for enterprise registration (tax registration and business registration) at business registration authorities (hereinafter referred to as enterprises).
b) Enterprises operating in the sectors of securities, insurance, accounting, auditing, lawyers, notarization, or other specialized sectors that do not apply for enterprise registration at business registration authorities (hereinafter referred to as business entities).
c) Public service providers; 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; cooperatives, co-operative groups that are established and operating under the Law on cooperatives (hereinafter referred to as business entities).
d) Organizations established by competent authorities without production or business operation but taking on liabilities to government budget (hereinafter referred to as other entities).
dd) Organizations and individuals not taking on tax liabilities but eligible for tax refund, including: 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 (hereinafter referred to as other entities).
e) 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 (hereinafter referred to as foreign contractors) or taking on foreign contractors tax liabilities in Vietnam.
g) Enterprises, business entities, organizations and individuals responsible for withholding and paying taxes on behalf of contractors, foreign subcontractors; organizations obtaining contracts or business cooperation contracts with individuals that pay tax on behalf of individuals (hereinafter referred to as withholding entities).
h) Executives, general executive companies, joint ventures, contractors, and investors entering into petroleum contracts or agreements, parent company – PetroVietnam that is the representative of host country receives profits distributed from petroleum contracts or agreements and the organization authorized by Vietnamese Government to receive profits distributed from petroleum fields in the overlapping areas.
i) Households, groups of individuals, individuals engaging in production, business and provision 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 businesses).
k) Individuals earning incomes subject to personal income tax (excluding self-employed individuals).
l) Other entities and individuals taking on liabilities to government budget.
m) Organizations and individuals paying incomes earned from wages (hereinafter referred to as employers).
2. Organizations and individuals authorized by tax authorities to collect amounts receivable.
3. Taxpayers shall register dependent(s) for taxation purposes as prescribed in the Law on personal income tax.
4. Tax authorities include: General Department of Taxation, Departments of Taxation, Sub-departments of Taxation.
5. Customs authorities include: The General Department of Customs, Departments of Customs, Sub-department of Customs.
6. Other relevant regulatory agencies, organizations and individuals.
Article 3. Interpretation of terms
For the purposes of this Circular, these terms below shall be construed as follows:
1. Tax registration system is a part of tax management system that is created, managed, and used consistently in the tax sector for the purposes of tax administration in terms of tax registration.
2. The website of General Department of Taxation, prescribed in Clause 9 Article 3 of Circular No. 110/2015/TT-BTC dated July 28, 2015 on guidelines for electronic transactions in the tax field.
3. Website’s address of General Department of Taxation is http://www.gdt.gov.vn.
Article 4. TINs
1. TIN is a series of numbers, letters or characters issued with a taxpayer by a tax authority as prescribed in the Law on Tax administration. TINs are used for identifying every tax payer (including taxpayers engaging in export/import operation) and consistently managed nationwide.
2. A TIN is formed as follows:
N1N2 N3N4N5N6N7N8N9 N10 - N11N12N13
In which:
- The first two digits N1N2 indicate the province that issues TINs specified in a list of province codes (for TINs issued with taxpayers being enterprises, organizations, household businesses, and self-employed individuals) or non-province codes (for TINs issued with other individuals).
- 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.
3. The business identification number prescribed in Clause 1 Article 8 of the Government’s Decree No. 78/2015/ND-CP dated September 14, 2015 is the TIN prescribed in Clause 1 and Clause 2 of this Article.
Article 5. TIN issuance and usage
1. Issuing TINs
A taxpayer shall register for tax so as to be issued a TIN as prescribed in Article 21 of the Law on Tax administration. In particular:
a) Each of business entities and other entities shall be issued with a unique TIN for the whole operation as from the tax registration until the shutdown, except for the cases specified in Clause 3 of this Article.
b) An individual shall be issued a unique TIN being used in his/her entire life. A dependent of a personal income taxpayer shall be issued with a TIN for the purpose of exemption. The dependent’s TIN is also his/her TIN upon any of liability to government budget taken on by such person.
c) An assigned TIN may not be reissued to other taxpayers.
d) TINs of business entities and other entities shall, upon occurrence of conversion of business forms, sale, giving, or inheritance, remain valid.
dd) A TIN issued to a household business is the TIN issued to the individual acting as representative of such household business. When the representative of the household business dies, is missing, or lacks of legal capacity, the household business shall be issued with new TIN according to the tax code issued to the new household business’s representative. If the household business shuts down, the TIN of household business’s representative still remains valid as his/her TIN.
e) When a household business amendment its representative, it shall notify the tax authority of such amendment so as to be reissued another TIN. If the new household business’s representative has been issued with a TIN, such TIN shall be used.
g) 10-digit TINs shall be issued to enterprises, business entities, and other entities that have full legal status and take legal responsibility for their obligations (hereinafter referred to as “independent entities”; and household businesses’ representatives and other individuals prescribed in Clauses 1, 2, and 3 Article 2 of this Circular, except for the cases prescribed in Clause 3 of this Article.
h) 13-digit TINs shall be issued to:
- Branches and/or representative offices of an enterprise that are eligible for affiliated entities identification numbers of enterprises as prescribed in Law on enterprises; affiliated entities of business entities and other entities established under regulations of law and taking on tax liabilities.
hereinafter referred to as “affiliated entities”. An entity having “affiliated entity/entities” is called “managing entity” for the purpose of this Circular.
- Contractors, and investors entering into petroleum contracts or agreements, parent company – PetroVietnam that is the representative of host country receives profits distributed from petroleum contracts prescribed in Point a Clause 3 of this Article.
- Business locations of a household business in case where the business locations are in the same district but different communes.
2. Using TINs
A taxpayer shall use its/his/her own TIN issued as prescribed in Article 28 of the Law on Tax administration. In particular:
a) The taxpayer shall use its TIN for the purposes of filing tax returns, remitting payments, requesting refunds and following other tax formalities regarding all types of amounts payable to government budget, even if the taxpayer does businesses in multiple administrative divisions.
b) If an enterprise or organization that is issued with a TIN engages in new business or expand business to another province or city without establishment of any branch or affiliated entity, or with establishment of an affiliated producing facility (including processing or assembling facility) in another administrative division different from the province or city where it has its head office located that is an entity permitted keep records of government budget revenues as prescribed in the Law on Tax administration, it is permitted to use the TIN for the purpose of filing tax returns and remitting payments to the tax authority at the administrative division where new business or expanded business is operating.
c) If a household business has at least 2 business locations of which each business location is under management of a tax authority, its TIN shall be used for the purposes of filing tax returns and remitting payments to both tax authorities.
d) When a person that has been issued with an infidel TIN engages in business and he/she is a household business’s representative, the above TIN shall be used for the purposes of filing tax returns and remitting payments for the household business and vice versa.
dd) Sole proprietorship’s owner shall use his/her individual TIN the purposes of filing personal income tax returns, remitting payments and making final statements. If the sole proprietorship takes on obligation to deduct and pay personal income tax on behalf of employees working for the sole proprietorship, the sole proprietorship’s TIN shall be used for the purposes of filing tax returns, withholding and remitting taxes for such employees
e) When an dependent incurs amounts payable to government budget, his/her TIN shall be used for the purposes of filling tax returns and remitting payments of such amounts. The tax authority shall, according to the initial tax return, amendment the dependent’s TIN into taxpayer’s TIN for the purpose of records of tax liabilities taken on by the taxpayer..
3. Issuing TINs in specific cases
a) Issuing TINs to taxpayers entering into petroleum contracts or agreements:
a1) For petroleum exploration and extraction contracts (hereinafter referred to as petroleum contracts), the 10-digit TINs shall be issued to: The operator (or joint operating company) under each petroleum contract; the joint enterprises of petroleum contracts signed in form of joint contracts.
In case the petroleum contract requires that each contractor, investor must separately fulfill their own tax liability (including corporate income tax on incomes deriving from transfer of interests on entering into petroleum contract), the contractor or investor that enters into the contract shall be issued with 13-digit TIN (including contractors and investors being the operators and the contractors receiving the profit sharing) according to the 10-digit TIN of the operator, the joint operating company, or the joint venture.
Parent company – PetroVietnam being the representative of the host country that receives profit sharing from petroleum contracts shall be issued with a 13-digit TIN (according to the 10-digit TIN of the operator or the joint operating company or the joint venture of each petroleum contract) for the purposes of filing tax return, remitting payments as to the profit sharing.
In case of transfer leading a change of ownership of a contractor receiving interest in a petroleum contract in Vietnam, the signatory in the petroleum contract in Vietnam shall use the 13-digit TIN for the purposes of filing tax return, remitting payments on behalf the transferor as to the income deriving from such petroleum contract and register for amendment to tax registration according to the 10-digit TIN of the operator or the joint operating company or the joint venture.
a2) With regard to the organization that is authorized to receive profit sharing for Vietnam in oil and gas fields at overlapping areas, it shall be issued with a 10-digit TIN according to each contract or arrangement or a equivalent document for the purposes of filing tax return, remitting payments for each contract.
b) Issuing TINs to foreign contractors, foreign subcontractors applying for direct tax payment to the tax authorities:
The foreign contractors and sub-contractors applying for direct tax payment to the tax authorities shall be issued with 10-digit TINs in accordance with the concluded contracts.
If a foreign contractor and business entities in Vietnam create a joint venture in Vietnam under a contract agreement and they also establish a joint Board of Management that does accounting, has bank account and take responsibility for invoice issuance or a business entity in Vietnam take responsibility for joint accounting and distribute profit sharing, the joint Board of Management or the business entity in Vietnam shall be issued with a 10-digit TIN for the purposes of filing tax return, remitting payments, and tax statement for the main contract in accordance with regulations of law on taxation in force.
c) Issuing TINs to enterprises, business entities, other entities, and individuals taking responsibility for withholding or remitting payments of tax on behalf of foreign contractors or subcontractors; organizations and individuals authorized to collect amounts receivables by tax authorities; entities withholding taxes from individuals entering into business cooperation contracts (hereinafter referred to as withholding TINs) as follows:
c1) If an enterprise, organization and individual being the Vietnamese party enters into an agreement with a contractor or make direct payment to a foreign contractor or subcontractor that does not register direct tax payment with tax authorities, the Vietnamese party shall register for tax and be issued with an additional 10-digit TIN for the purposes of filing tax return and remitting payments on behalf of the foreign contractors or subcontractors.
c2) Each entity entering into an agreement on collection of amount receivables with a tax authority shall be issued with an withholding TIN for the purpose of payment of received taxes from taxpayers to government budget.
c3) Each organization entering into an agreement or business cooperation contract with individual(s) and withholding tax for such individual(s) shall be issued with an withholding TIN for the purpose of payment of received taxes from taxpayers to government budget.
c4) Each withholding TIN shall be used for the purposes of remitting taxes receivable as prescribed in the laws on taxation during the operation of taxpayers. When a taxpayer amendments its/his/her tax registration information as prescribed, the equivalent information of withholding TIN shall be updated by the tax authority. When a taxpayer cancel its/his/her TIN, the withholding TIN is also cancelled.
4. Individuals earning incomes from salaries or wages that authorize their employers to register for tax
Each individual earning incomes from salaries or wages (hereinafter referred to as employee) paid by his/her employer may authorize the employer to register for tax and claim a dependent on his/her behalf.
The employee shall provide the withholding employer with documents related to him/her and dependents as prescribed in Clause 9 and Clause 10 Article 7 of this Circular; then the employer shall register for tax and claim dependents within the authorization of the employee.
If an employee pays personal income tax incurred at multiple employers shall register for at with only one employer for a TIN.
The employee shall notify other employers of his/her TIN so as to they use it for the purposes of filing tax return and remitting payments.
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