Is the ID number of business locations of enterprises considered a TIN in Vietnam? What is the use of TIN in Vietnam?

Is the ID number of business locations of enterprises considered a TIN in Vietnam?

Based on Article 8 of Decree 01/2021/ND-CP, the regulations are as follows:

Enterprise ID number, affiliate ID number of the enterprise, ID number of business locations of enterprises

1. Each enterprise is issued a unique ID number called the enterprise ID number. This ID number also serves as the TIN and the social insurance participation ID number for the enterprise.

2. The enterprise ID number exists throughout the operation of the enterprise and is not reissued to any other organization or individual. When an enterprise ceases to operate, the enterprise ID number ceases to be effective.

3. The enterprise ID number is created, sent, and received automatically by the National Information System on enterprise registration and taxpayer registration system, and is recorded on the Enterprise Registration Certificate.

4. State management agencies uniformly use the enterprise ID number to perform state management tasks and exchange information about enterprises.

5. The ID number for the affiliate of the enterprise is issued to branches and representative offices. This ID number also serves as the TIN for branches and representative offices.

6. The ID number of business locations of enterprises is a 5-digit ID number issued sequentially from 00001 to 99999. This ID number is not the TIN of the business location.

7. In cases where an enterprise, branch, or representative office's TIN is invalidated due to tax law violations, the enterprise, branch, or representative office may not use the TIN in financial transactions from the date the Tax Authority publicly announces the invalidation.

8. For branches and representative offices established before November 1, 2015, that have not been issued a affiliate ID number, enterprises must directly contact the Tax Authority to be issued a 13-digit TIN, followed by procedures to change the registration content at the Business Registration Agency according to regulations.

9. For enterprises established and operating under an Investment License or Investment Certificate (which also serves as a Business Registration Certificate) or other legally equivalent documents, a Securities Business License, the enterprise ID number is the TIN issued by the Tax Authority.

Thus, comparing the above regulations, the ID number of business locations of enterprises is not the TIN of the business location.

Is the ID number of business locations of enterprises considered a TIN in Vietnam? What is the use of TIN in Vietnam? (Image from the Internet)

When is it necessary to register a TIN in Vietnam?

Based on clause 1, Article 30 of the Law on Tax Administration 2019, the regulations are as follows:

Subject to taxpayer registration and issuance of TIN

1. Taxpayers must register with the tax authority and be issued a TIN before commencing production, business activities, or incurring obligations with the state budget. Subjects required for taxpayer registration include:

a) Enterprises, organizations, individuals register for taxpayer registration under a unified one-stop mechanism along with enterprise registration, cooperative registration, business registration according to the Law on Enterprises and other related legal regulations;

b) Organizations, individuals not falling under the case stipulated at point a of this clause register directly with the tax authority as prescribed by the Minister of Finance.

Thus, taxpayers must register with the tax authority before beginning production, business activities, or incurring obligations regarding the state budget.

What is the use of TIN in Vietnam?

According to Article 35 of the Law on Tax Administration 2019, the regulations on TINs are as follows:

- Taxpayers must include the issued TIN on invoices, documents, materials when conducting business transactions; opening deposit accounts at commercial banks, other credit institutions; filing taxes, paying taxes, tax exemptions, reductions, refunds, non-collection of taxes, registering customs declarations, and fulfilling other tax-related transactions concerning all obligations to the state budget, even in cases where taxpayers conduct production, business activities in different areas.

- Taxpayers must provide the TIN to related agencies, organizations, or enter the TIN on dossiers when performing administrative procedures under a unified one-stop mechanism with the tax management agency.

- Tax management agencies, the State Treasury, commercial banks coordinating state budget collection, organizations authorized by tax authorities to collect taxes use taxpayers' TINs in tax management and tax collection into the state budget.

- Commercial banks, other credit institutions must record TINs in the documents for opening accounts and transactional documents through taxpayers' accounts.