Is a taxpayer allowed to authorize the income payer to apply for initial tax registration in Vietnam?

Is a taxpayer allowed to authorize the income payer to apply for initial tax registration in Vietnam?

Pursuant to Clause 9, Article 7 of Circular 105/2020/TT-BTC, the provisions are as follows:

Location of submission and application for initial tax registration

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9. For taxpayers who are individuals specified in Points k, n, Clause 2, Article 4 of this Circular.

a) Individuals paying personal income tax through income payers and having authorized income payers for tax registration should submit their tax registration application at the income payers. In cases where personal income tax is paid at multiple income payers in the same tax period, individuals should authorize tax registration at one income-paying agency to be issued a tax identification number by the tax authority. Individuals should inform their tax identification numbers to other income payers for tax declaration and payment purposes.

The tax registration document for individuals includes: authorization document and one of the individual's identification papers (photocopy of Citizen Identification Card or valid copy of Identity Card for individuals with Vietnamese nationality; valid copy of Passport for individuals with foreign nationality or Vietnamese nationality residing abroad).

income payers are responsible for consolidating the tax registration information of individuals into the tax registration declaration form No. 05-DK-TH-TCT issued with this Circular and sending it to the tax authority managing the income-paying agency directly.

*b) Individuals paying personal income tax not through income payers or without authorizing income payers for tax registration should submit their tax registration application to the tax authority as follows:

b.1) At the Tax Department where the individual works for residents with income from salaries and wages paid by international organizations, embassies, consulates in Vietnam but these organizations have not deducted tax. The tax registration application include:

- tax registration declaration form No. 05-DK-TCT issued with this Circular;

- Photocopy of Citizen Identification Card or valid copy of Identity Card for individuals with Vietnamese nationality; valid copy of Passport for individuals with foreign nationality or Vietnamese nationality residing abroad.

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Individuals paying personal income tax through income payers and having authorized income payers for tax registration should submit their tax registration application at the income payers.

If personal income tax is paid at multiple income payers in the same tax period, individuals should authorize tax registration at one income-paying agency to be issued a tax identification number by the tax authority. Individuals should inform their tax identification numbers to other income payers for tax declaration and payment purposes.

Is a taxpayer allowed to authorize the income payer to apply for initial tax registration in Vietnam? (Image from the Internet)

What are cases of initial tax registration for taxpayers in Vietnam?

Pursuant to Clause 1, Article 30 of the Law on Tax Administration 2019, the provisions on tax registration and tax identification number issuance are as follows:

Subjects of tax registration and tax identification number issuance

1. Taxpayers must carry out tax registration and be issued tax identification numbers by the tax authority before starting production, business activities, or obligations with the state budget arise. The subjects of tax registration include:

a) Enterprises, organizations, individuals carrying out tax registration under the one-stop-shop mechanism together with business registration, cooperative registration, and business registration following the provisions of the Enterprise Law and other relevant laws;

b) Organizations and individuals not falling under point a of this clause shall carry out tax registration directly with the tax authority following the regulations of the Minister of Finance.

2. The structure of the tax identification number is regulated as follows:

a) The 10-digit tax identification number is used for enterprises, organizations with legal status; representatives of households, business households, and other individuals;

b) The 13-digit and other characters are used for dependent units and other subjects;

c) The Minister of Finance provides detailed regulations for this clause.

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Thus, taxpayers must register for personal tax identification numbers and be issued tax identification numbers by the tax authority before starting production, business activities, or obligations with the state budget arise. Individual tax registration includes:

- Individuals carrying out tax registration under the one-stop-shop mechanism along with business registration, cooperative registration, and business registration following the provisions of the Enterprise Law 2020 and other relevant laws;

- Individuals not falling under the above cases shall carry out tax registration directly with the tax authority following the regulations of the Minister of Finance.

What are the responsibilities of the taxpayers in Vietnam?

Pursuant to Article 17 of the Law on Tax Administration 2019, the responsibilities of taxpayers are as follows:

- Conduct tax registration and use the tax identification number following legal regulations.

- Accurately, truthfully, and fully declare taxes and submit tax application on time; assume legal responsibility for the accuracy, truthfulness, and completeness of the tax application.

- Pay taxes, late payment interest, penalties fully, on time, and at the correct location.

- Comply with accounting, statistics policies, and manage, use invoices, application following legal regulations.

- Accurately, truthfully, and fully record activities generating tax obligations, tax deductions, and transactions that must be declared for tax information.

- Issue and deliver invoices, application to buyers in the exact quantity, type, and payment value when selling goods, providing services according to legal regulations.

- Provide accurate, complete, and prompt information, and application related to determining tax obligations, including investment value information; account numbers and content of transactions at commercial banks, other credit institutions; explain tax calculation, tax declaration, tax payment upon request by tax management authorities.

- Comply with decisions, notices, and requirements of tax management authorities and tax management officials according to legal regulations.

- Bear the responsibility to fulfill tax obligations according to legal regulations in cases where legal representatives or authorized representatives carry out tax procedures improperly.

- Taxpayers conducting business activities in areas with information technology infrastructure must declare, pay taxes, and transact with tax management authorities through electronic means according to legal regulations.

- Based on the actual situation and the condition of information technology equipment, the Government of Vietnam will provide detailed regulations on cases where taxpayers are not required to submit application in tax declaration, tax payment, tax refund, and other tax application that state management agencies already have.

- Build, manage, and operate the technical infrastructure system that ensures electronic transactions with tax management authorities, applying information connections related to tax obligation implementation with tax management authorities.

- Taxpayers with affiliated transactions must prepare, store, declare, and provide information application about themselves and affiliated parties of the taxpayers, including information about affiliated parties residing in other countries and territories outside Vietnam according to regulations by the Government of Vietnam.