How to handle incomplete initial tax registration applications for household and individual businesses in Vietnam from February 6, 2025?

How to handle incomplete initial tax registration applications for household and individual businesses in Vietnam from February 6, 2025?

Based on Point b, Clause 1, Point b, Clause 2, Article 23 of Circular 86/2024/TT-BTC (effective from February 6, 2025), regulations on handling incomplete initial tax registration applications for household and individual businesses are as follows:

(1) Case where an individual uses an ID number instead of a TIN

- The tax authority sends a Notification of Non-acceptance of Dossier per Form No. 01-2/TB-TDT attached to Circular 19/2021/TT-BTC (for electronic dossiers) or a Notification for Completing Additional Information per Form No. 01/TB-BSTT-NNT in Appendix 2 attached to Decree 126/2020/ND-CP (for paper dossiers) to the taxpayer within 2 (two) working days from receiving the dossier, so the taxpayer can adjust the information or submit a different tax registration dossier.

- In cases where household and individual businesses register for tax registration through income-paying organizations, the tax authority notifies the income-paying agencies with a list of household and individual businesses whose information does not match with data in the National Population Database using Form No. 40/TB-DKT issued with Circular 86/2024/TT-BTC within 2 (two) working days from receiving the dossier. The income-paying agency is responsible for notifying each individual of the results and resubmitting the tax registration dossier after household and individual businesses have adjusted their information.

(2) Case for household and individual businesses issued TINs by the tax authority

- If the tax registration dossier does not meet the conditions for issuing a TIN, the tax authority sends a Notification of Non-acceptance of Dossier per Form No. 01-2/TB-TDT attached to Circular 19/2021/TT-BTC (for electronic dossiers) or a Notification for Completing Additional Information per Form No. 01/TB-BSTT-NNT in Appendix 2 attached to Decree 126/2020/ND-CP (for paper dossiers) to the taxpayer within 2 (two) working days from receiving the dossier, so the taxpayer can adjust the information or submit another tax registration dossier.

- In cases where household and individual businesses register through income-paying agencies, the tax authority notifies the income-paying agency with a list of household and individual businesses unable to be issued TINs using Form No. 40/TB-DKT issued with Circular 86/2024/TT-BTC within 2 (two) working days from the date of receipt. The notification includes the reasons for refusal and requirements for the taxpayer. The income-paying agency is responsible for notifying each individual of the reasons for not being issued a TIN, so they can adjust or supplement the individual’s information. The income-paying agency must resubmit the tax registration dossier to the tax authority after it has been adjusted and supplemented to issue a TIN for the individual according to the regulations.

How to handle incomplete initial tax registration applications for household and individual businesses in Vietnam from February 6, 2025? (Image from the Internet)

How to handle initial tax registration applications for household and individual businesses using ID numbers instead of TINs in Vietnam from February 6, 2025?

Based on Clause 1, Article 22 of Circular 86/2024/TT-BTC (effective from February 6, 2025), regulations on initial tax registration applications for household and individual businesses using ID numbers instead of TINs are as follows:

(1) In the case where households, household and individual businesses engage in the production, trading of goods or services in compliance with the law but are not required to register as business households through the business registration authority according to regulations of the Government of Vietnam on business households; household and individual businesses from neighboring countries of Vietnam conducting business activities at border markets, border gate markets, markets in border gate economic zones.

- tax registration declaration form 03-DK-TCT issued with Circular 86/2024/TT-BTC, or tax declaration dossiers as prescribed by the tax management law.

(2) In the case where household and individual businesses have income subject to personal income tax (excluding business household and individual businesses) and other household and individual businesses have obligations to the state budget and pay personal income tax through income-paying organizations and authorize the income-paying organizations to register taxpayers for household and individual businesses or dependents

- The tax registration dossier for household and individual businesses or dependents includes: Authorization document Form No. 41/UQ-DKT issued with Circular 86/2024/TT-BTC.

- The income-paying organization is responsible for compiling tax registration information of household and individual businesses into the tax registration declaration form No. 05-DK-TH-TCT attached to Circular 86/2024/TT-BTC, compiling tax registration information for dependents into the tax registration declaration form No. 20-DK-TH-TCT attached to Circular 86/2024/TT-BTC, and submitting it to the tax authority managing the income-paying organization directly.

The income-paying organization uses the individual's personal ID numbers when deducting, declaring, and paying taxes in accordance with the law.

(3) In the case where household and individual businesses have income subject to personal income tax (excluding business household and individual businesses) and other household and individual businesses have obligations to the state budget and pay personal income tax not through income-paying organizations or do not authorize income-paying organizations to register taxpayers

- For household and individual businesses with taxable income: tax registration declaration form 05- DK-TCT attached to Circular 86/2024/TT-BTC.

- For dependents: tax registration declaration form 20-DK-TCT issued with Circular 86/2024/TT-BTC.

(4) For households, household and individual businesses not covered by the above-mentioned cases, taxpayers register through tax declaration dossiers:

- Tax declaration dossiers as prescribed by the tax management law. In cases where the tax authority and the state management agency have performed interoperability, the tax authority bases on the Information Transfer Ticket sent by the state management agency if there is no tax declaration dossier.

Note*: After the initial tax registration, if household and individual businesses engage in business activities or establish additional business locations outside of the registered business address, household and individual businesses use their personal ID numbers for tax declaration and payment with the Tax Department where they operate according to the tax management law.*

What does the initial tax registration application for household and individual businesses Issued TINs by tax authorities in Vietnam include from February 6, 2025?

Pursuant to Clause 2, Article 22 of Circular 86/2024/TT-BTC (effective from February 6, 2025), regulations on initial tax registration applications for household and individual businesses issued TINs by tax authorities are as follows:

(1) In the case where household and individual businesses are involved in the production and trading of goods and services under the law but are not required to register for business through business registration authorities as per the Government's regulation on household business in Vietnam; household and individual businesses conducting business activities from countries sharing land borders with Vietnam perform buying, selling, and exchanging goods at border markets, border gate markets, and economic zones at border gates.

- Tax registration declaration form No. 03-DK-TCT issued with Circular 86/2024/TT-BTC or tax declaration dossiers as prescribed by the law on tax management.

- A valid passport copy of the individual; or a copy of valid documentation for household and individual businesses conducting trading activities at border markets as regulated in Article 16 of Decree 14/2018/ND-CP.

(2) In cases where household and individual businesses have income subject to personal income tax (excluding business household and individual businesses) and other household and individual businesses with obligations to the state budget pay personal income tax through income-paying organizations and authorize these organizations to register taxpayers for household and individual businesses or dependents

- The tax registration dossier for household and individual businesses or dependents includes:

+ Authorization Document Form No. 41/UQ-DKT issued with Circular 86/2024/TT-BTC;

+ A valid passport copy of the individual or dependent or a copy of other valid personal identification documents (if the passport is not available).

- The income-paying organization is responsible for compiling the individual's tax registration information into the tax registration form No. 05-DK-TH-TCT attached to Circular 86/2024/TT-BTC, compiling tax registration information for dependents into the tax registration form No. 20-DK-TH-TCT attached to Circular 86/2024/TT-BTC, and submitting it to the tax authority managing the income-paying organization directly.

The income-paying organization uses the TINs issued by the tax authority for the individual and their dependents when deducting, declaring, and paying taxes following the regulations.

(3) In cases where household and individual businesses have income subject to personal income tax (excluding business household and individual businesses) and other household and individual businesses with obligations to the state budget pay personal income tax not through income-paying organizations or do not authorize such organizations to register taxpayers

- For household and individual businesses with taxable income:

+ tax registration declaration form No. 05-DK-TCT issued with Circular 86/2024/TT-BTC, and a valid passport copy of the individual.

+ A copy of the appointment document from the employer organization in cases where the foreign individual non-resident in Vietnam under the personal income tax law is assigned to work in Vietnam but receives income abroad.

- For dependents:

+ tax registration declaration form No. 20-DK-TCT issued with Circular 86/2024/TT-BTC;

+ A valid passport copy of the dependent or a copy of other valid personal identification documents (if the passport is not available).

(4) For household and individual businesses not covered by the aforementioned cases, taxpayers register through tax declaration dossiers:

- Tax declaration dossiers as per the tax management law. In cases where the tax authority and state management agency have interoperable systems, the tax authority relies on the Information Transfer Ticket sent by the state management agency if there are no tax declaration dossiers.

- A valid passport copy of the individual or a copy of other valid personal identification documents (if the passport is not available).

Note*: After initial tax registration, if household and individual businesses engage in new business activities or establish additional business locations outside of their registered business address, they use the issued TINs to declare and pay taxes with the Tax Department where the business activities are conducted according to the tax management law.*