Is a sole proprietorship in Vietnam issued a 10-digit or 13-digit TIN?

Vietnam: Is the ID number of a sole proprietorship the same as the TIN?

According to the provisions of Clause 2, Article 5 of Circular 105/2020/TT-BTC, the ID number of a sole proprietorship issued under legal provisions on enterprise registration is the TIN.

Is a sole proprietorship in Vietnam issued a 10-digit or 13-digit TIN?

Based on Clause 3, Article 5 of Circular 105/2020/TT-BTC concerning the structure of TINs as follows:

TIN Structure

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3. Classification of TIN structure

a) A 10-digit TIN is used for enterprises, cooperatives, organizations with legal status or organizations without legal status but directly incurring tax obligations; representatives of households, business households, and other individuals (hereinafter referred to as independent units).

b) A 13-digit TIN with a hyphen (-) used to separate the first 10 digits from the last 3 digits is used for dependent units and other subjects.

c) A taxpayer being an economic organization or other organization as prescribed in Points a, b, c, d, n Clause 2 Article 4 of this Circular with full legal status or without legal status but directly incurring tax obligations and fully responsible for all tax obligations before the law, is issued a 10-digit TIN; dependent units established according to the taxpayer's laws mentioned above, if incurring tax obligations and directly declaring, paying taxes, are issued a 13-digit TIN.

d) Foreign contractors and subcontractors as prescribed in Point đ Clause 2 Article 4 of this Circular registering to pay contractor tax directly with the tax authority are issued a 10-digit TIN per contract.

In cases where a foreign contractor associates with Vietnamese economic organizations to conduct business in Vietnam under a contractor agreement, and the consortium establishes a Consortium Management Board responsible for accounting, having a bank account, and issuing invoices; or a Vietnamese economic organization participating in the consortium, bearing responsibility for joint accounting and profit sharing with the consortium members, a 10-digit TIN is issued for tax declaration and payment for the contract.

In cases where a foreign contractor or subcontractor with an office in Vietnam has been declared, withheld, and paid tax on their behalf concerning contractor tax by the Vietnamese side, the foreign contractor or subcontractor is issued a 10-digit TIN to declare all other tax obligations (except contractor tax) in Vietnam and provide the TIN to the Vietnamese side.

đ) Foreign suppliers as stipulated in Point e Clause 2 Article 4 of this Circular, who do not have a TIN in Vietnam when taxpayer registration directly with the tax authority are issued a 10-digit TIN. Foreign suppliers use the issued TIN to directly declare and pay taxes or provide the TIN to organizations or individuals in Vietnam authorized by the foreign supplier, or provide it to commercial banks, intermediary payment service providers to perform withholding, paying tax obligations, and declaring in the Tax Withholding Statement of foreign suppliers in Vietnam.

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Based on the regulation, a 10-digit TIN is used for enterprises, cooperatives, organizations with legal status, or organizations without legal status but directly incurring tax obligations; representatives of households, business households, and other individuals (hereinafter referred to as independent units).

Thus, a sole proprietorship is issued a 10-digit TIN.

Is a sole proprietorship in Vietnam issued a 10-digit or 13-digit TIN? (Image from the Internet)

When will a sole proprietorship have its TIN revoked?

A sole proprietorship will have its TIN revoked in the cases stipulated in Clauses 1 and 2, Article 39 of the Tax Management Law 2019 as follows:

[1] Taxpayers who are sole proprietorships registering taxpayer registration along with enterprise registration shall have their TIN terminated in the following cases:

- Termination of business activities or dissolution, bankruptcy;

- Revocation of the enterprise registration certificate;

- Being divided, merged, or consolidated.

[2] Taxpayers who are sole proprietorships registering taxpayer registration directly with the tax authority shall have their TIN terminated in the following cases:

- Termination of business activities, no longer incurring tax obligations for non-business organizations;

- Revocation of the business registration certificate or equivalent license;

- Being divided, merged, or consolidated;

- Receiving a notification from the tax authority that the taxpayer is not operating at the registered address;

- The individual dies, is missing, or loses civil act capacity according to legal provisions;

- Foreign contractors when the contract ends;

- Contractors, investors participating in petroleum contracts when the contract ends or transfers all rights to participate in the petroleum contract.