Are enterprises in Vietnam required to register tax identification numbers for employees in Vietnam?

Are enterprises in Vietnam required to register tax identification numbers for employees in Vietnam?

Based on Clause 3, Article 33 of the 2019 Tax Administration Law:

Deadline for initial taxpayer registration

1. Taxpayers register simultaneously with enterprise, cooperative, or business registration, the deadline for taxpayer registration is the same as the deadline for enterprise, cooperative, or business registration according to the law.

2. Taxpayers registering directly with the tax authority must do so within 10 working days from the following dates:

a) Issuance of a business registration certificate, establishment and operation license, investment registration certificate, or establishment decision;

b) Commencing business activities for entities not requiring business registration or individuals and business households who have not been granted business registration certificates;

c) Arising obligation to withhold tax and pay tax on behalf of another; organizations paying on behalf of individuals in accordance with contracts or business cooperation documents;

d) Signing contractor contracts for foreign contractors and subcontractors filing taxes directly with tax authorities; signing oil and gas agreements;

dd) Arising personal income tax obligation;

e) Arising request for tax refund;

g) Arising other obligations to the state budget.

3. Organizations and individuals responsible for income payment must register tax identification numbers on behalf of individuals with income within 10 working days from the date of tax obligation if the individual does not have a tax identification number; register tax identification numbers on behalf of taxpayer dependents within 10 working days from the date the taxpayer registers for family deduction in accordance with the law if the dependents do not have a tax identification number.

Thus, enterprises are responsible for registering tax identification numbers on behalf of employees with income if the employees do not yet have a tax identification number. If employees already have a tax identification number, enterprises do not have the responsibility to register tax identification numbers for them.

Are enterprises in Vietnam required to register tax identification numbers for employees in Vietnam?​ (Image from the Internet)

What is the deadline for issuing taxpayer registration certificates in Vietnam?

Based on Clause 1, Article 34 of the 2019 Tax Administration Law, the provisions on issuing taxpayer registration certificates are as follows:

Issuance of taxpayer registration certificates

1. The tax authority issues taxpayer registration certificates to taxpayers within 3 working days from receiving complete taxpayer registration documents as per the regulations. The taxpayer registration certificate information includes:

a) The taxpayer's name;

b) The tax identification number;

c) Number, date, month, year of the business registration certificate or the establishment and operation license or the investment registration certificate for organizations or individuals in business; number, date, month, year of the establishment decision for organizations not requiring business registration; information from ID cards, citizen identification cards, or passports for individuals not requiring business registration;

d) The tax authority directly managing the taxpayer.

2. The tax authority notifies the taxpayer of the tax identification number instead of issuing the taxpayer registration certificate in the following cases:

a) Individuals authorize organizations or individuals responsible for income payment to register tax identification numbers on their behalf and their dependents;

b) Individuals perform taxpayer registration through tax return documents;

c) Organizations or individuals register to withhold and pay taxes on behalf of others;

d) Individuals register tax identification numbers for their dependents.

3. In cases where the taxpayer registration certificate or tax identification number notification is lost, torn, damaged, or burnt, the tax authority reissues it within 2 working days from receiving complete reissue request documents from the taxpayer as per the regulations.

Thus, the deadline for issuing a taxpayer registration certificate is 3 working days from receiving complete taxpayer registration documents.

What are the regulations on using tax identification numbers in Vietnam?

Based on Article 35 of the 2019 Tax Administration Law, the regulations on using tax identification numbers are as follows:

- Taxpayers must record the issued tax identification number on invoices, documents, and records when conducting business transactions; opening deposit accounts at commercial banks, and other credit institutions; filing taxes, paying taxes, receiving tax exemptions and reductions, tax refunds, non-tax collection, customs declaration, and conducting other tax-related transactions for all obligations to the state budget, including cases where taxpayers operate in multiple locations.

- Taxpayers must provide the tax identification number to relevant agencies and organizations or record the tax identification number on documentation when carrying out administrative procedures under the one-stop-shop mechanism with tax authorities.

- Tax authorities, the State Treasury, commercial banks cooperating in state budget collection, and organizations authorized by tax authorities to collect taxes use the taxpayer’s tax identification number in tax management and tax collection into the state budget.

- Commercial banks and other credit institutions must record the tax identification number in account opening documents and transaction vouchers of taxpayers.

- Other organizations and individuals involved in tax management use the issued tax identification number of taxpayers when providing information related to tax obligation determination.

- When Vietnamese entities pay money to individuals or organizations conducting cross-border business activities based on digital intermediary platforms without physical presence in Vietnam, they must use the issued tax identification number for these entities to withhold and pay taxes.

- When personal identification numbers are issued to all residents, the personal identification number will replace the tax identification number.