Shall individual and household businesses be issued a TIN in Vietnam?
Shall individual and household businesses be issued a TIN in Vietnam?
Based on point e, clause 3, Article 30 of the Tax Administration Law 2019, the issuance of TINs is stipulated as follows:
Subject to taxpayer registration and TIN issuance
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3. TIN issuance is stipulated as follows:
a) Enterprises, economic organizations, and other organizations shall be issued with a unique TIN to be used throughout their operation from the time of taxpayer registration until the cessation of the TIN’s validity. Taxpayers who have branches, representative offices, or dependent units that directly fulfill tax obligations shall be issued dependent TINs. In the case of enterprises, organizations, branches, representative offices, or dependent units registering under a one-stop-shop mechanism concurrently with enterprise registration, cooperative registration, or business registration, the code recorded on the enterprise registration certificate, cooperative registration certificate, or business registration certificate shall simultaneously serve as the TIN;
b) Individuals are issued with a unique TIN to be used for their entire lifespan. Dependents of an individual shall be issued a TIN for the purpose of family circumstance deductions for personal income taxpayers. The TIN given to the dependent will also serve as a personal TIN when the dependent incurs obligations to the state budget;
c) Enterprises, organizations, individuals responsible for withholding and submitting tax on behalf of others will be granted a substitute TIN for the purpose of declaring and submitting tax on behalf of taxpayers;
d) An issued TIN shall not be reused for another taxpayer;
dd) The TIN of an enterprise, economic organization, or other organization remains unchanged after changes in type, sale, gifting, donation, or inheritance;
e) The TIN issued to households, business households, and business individuals is the TIN issued to the individual representing the household, business household, or business individual.
According to point a, clause 2, Article 30 of the Tax Administration Law 2019, a 10-digit TIN is used for enterprises, organizations with legal status, representatives of households, business households, and other individuals.
Therefore, an individual business household must register with the tax authority to be issued a TIN (10-digit TIN) for the purpose of declaring and managing taxes smoothly.
Shall individual and household businesses be issued a TIN in Vietnam? (Image from Internet)
How long does it take after tax registration for individual and household businesses to be issued a TIN in Vietnam?
The issuance of a TIN for individual business household taxpayer registration is stipulated in clause 1, Article 34 of the Tax Administration Law 2019 as follows:
Issuance of taxpayer registration certificate
1. The tax authority shall issue a taxpayer registration certificate to a taxpayer within 03 working days from the date of receipt of the complete taxpayer registration dossier as stipulated. Information on the taxpayer registration certificate includes:
a) Name of the taxpayer;
b) TIN;
c) Number, date, month, year of the business registration certificate or license for establishment and operation or investment registration certificate for organizations and business individuals; number, date, month, year of the decision to establish for organizations not subject to business registration; information from the identification card, citizen identification card, or passport for individuals not subject to business registration;
d) Direct managing tax authority.
2. The tax authority shall notify the TIN to the taxpayer as a substitute for a taxpayer registration certificate in the following cases:
a) An individual authorizes an organization or another individual to make taxpayer registration on behalf of themselves and their dependents;
b) An individual performs taxpayer registration through a tax declaration dossier;
c) Organizations or individuals register for taxpayer purposes to withhold and submit tax on behalf of others;
d) An individual registers a TIN for their dependents.
3. In cases of loss, torn, damaged, or burned taxpayer registration certificates or TIN notifications, the tax authority shall reissue them within 02 working days from the date of receipt of the complete application from the taxpayer as prescribed.
Thus, within 03 working days from the date of receipt of the complete taxpayer registration dossier, the tax authority shall issue a taxpayer registration certificate to individual and household businesses. The information on the taxpayer registration certificate includes the TIN.
What are regulations on the use of TIN of an individual business household in Vietnam?
Pursuant to Article 35 of the Tax Administration Law 2019, the use of the TIN of an individual business household is as follows:
- The individual business household must record the assigned TIN on invoices, documents, and materials when conducting business transactions; open deposit accounts at commercial banks, or other credit institutions; declare tax, pay taxes, apply for tax exemptions, reductions, refunds, non-collection of tax, register customs declarations, and conduct other tax-related transactions for all obligations to the state budget, including cases where the individual business household engages in production and business activities across different locations.
- The individual business household must provide the TIN to related agencies and organizations or record the TIN in dossiers when carrying out administrative procedures under the one-stop-shop linkage mechanism with the tax authority.
- Tax authorities, the State Treasury, commercial banks that coordinate the collection of state budgets, organizations mandated by tax authorities to collect taxes shall use the TIN of the individual business household in tax management and the collection of tax into the state budget.
- Commercial banks, other credit institutions must record the TIN in the file for opening an account and in transaction documents via the account of an individual business household.
- Organizations, individuals involved in tax management shall use the TIN already issued to individual and household businesses when providing information related to determining tax liability.
- When entities in Vietnam make payments to organizations or individuals engaging in cross-border business activities based on digital intermediary platforms not present in Vietnam, they must use the TIN issued to such organizations or individuals to withhold and submit tax on their behalf.
- Once the personal identification number is issued to all citizens, the personal identification number will serve as a replacement for the TIN.
