Vietnam: Shall a fine or a warning be imposed upon a taxpayer failing to make taxpayer registration 9 days after expiration of the time limit?

Vietnam: Shall a fine or a warning be imposed upon a taxpayer failing to make taxpayer registration 9 days after expiration of the time limit?

According to Article 10 of Decree 125/2020/ND-CP, the regulations are as follows:

Penalty for violating the deadline for taxpayer registration; notifying a temporary business suspension; notifying resumption of business before the notified time

1. A warning shall be issued for violations of taxpayer registration; notifying a temporary business suspension; or notifying resumption of business before the notified time beyond the deadline from 01 to 10 days with mitigating circumstances.

2. A fine from 1,000,000 VND to 2,000,000 VND shall be imposed for one of the following acts:

a) Tax registration; notifying resumption of business before the notified time beyond the deadline from 01 to 30 days, except for the cases specified in Clause 1 of this Article;

b) Notifying a temporary business suspension beyond the prescribed deadline, except for the cases specified in Clause 1 of this Article;

c) Failing to notify a temporary business suspension.

3. A fine from 3,000,000 VND to 6,000,000 VND shall be imposed for taxpayer registration; notifying resumption of business before the notified time beyond the deadline from 31 to 90 days.

4. A fine from 6,000,000 VND to 10,000,000 VND shall be imposed for one of the following acts:

a) Tax registration; notifying resumption of business before the notified time beyond the deadline from 91 days onwards;

b) Failing to notify resumption of business before the time previously announced but not incurring any tax payable;

Thus, referring to the above regulations, exceeding the taxpayer registration deadline by 9 days with mitigating circumstances results in a warning. In the absence of mitigating circumstances, a penalty ranging from 1,000,000 VND to 2,000,000 VND shall be imposed.

*Note: According to Clause 4, Article 7 of Decree 125/2020/ND-CP, the above monetary penalties apply to organizations. For individuals, the penalty is half that of organizations.

What is the deadline for taxpayer registration in Vietnam?

Based on Article 33 of the Law on Tax Administration 2019, the first-time taxpayer registration deadline is as follows:

- Taxpayers registering taxes alongside business registration, cooperative registration, or business registration must adhere to the legal deadlines for business registration or cooperative registration.

- Taxpayers directly registering with the tax authority must do so within 10 working days from the following events:

+ Issuance of a business registration certificate, establishment and operation license, investment registration certificate, or establishment decision;

+ Commencement of business activities for entities not required to register a business or business households or individuals subject to business registration but not yet possessing a business registration certificate;

+ Arising of tax withholding responsibilities and paying taxes on behalf of others; organizations making payments on behalf of individuals according to contracts or business cooperation documents;

+ Signing a contract for contractors or subcontractors who declare taxes directly with the tax authority; signing a contract or oil and gas agreements;

+ Arising of individual income tax obligations;

+ Arising of foreign tax refund requests;

+ Arising of other obligations to the state budget.

- Entities or individuals paying income are responsible for registering taxes on behalf of income earners within 10 working days from the tax obligation arises if the individual does not have a tax code; registering taxes on behalf of dependents of the taxpayer within 10 working days from the taxpayer registering for family circumstance deductions according to legal regulations if the dependents do not have a tax code.

Thus, according to the above regulations, the taxpayer registration deadline is 10 working days.

Vietnam: Shall a fine or a warning be imposed upon a taxpayer failing to make taxpayer registration 9 days after expiration of the time limit? (Image from the Internet)

Vietnam: Does the first-time taxpayer registration dossier require a establishment license?

According to Article 31 of the Law on Tax Administration 2019, the first-time taxpayer registration dossier is as follows:

- For taxpayers registering alongside business registration, cooperative registration, or business registration, the taxpayer registration dossier is the same as the business registration, cooperative registration, or business registration dossier as per the law.

- For organizational taxpayers registering directly with the tax authority, the dossier includes:

+ Taxpayer registration declaration;

+ Copy of the establishment and operation license, establishment decision, investment registration certificate, or other equivalent documents issued by competent authorities that are still in effect;

+ Other relevant documents.

- For household, household business, or individual taxpayers registering directly with the tax authority, the dossier includes:

+ Taxpayer registration declaration or tax declaration;

+ Copy of identification card, identity card, or passport;

+ Other relevant documents.

* Information exchange between state management agencies and the tax authority to receive taxpayer registration dossiers and issue tax codes via electronic portal interconnection is conducted according to applicable laws.

Thus, if the taxpayer is an organization registering directly with the tax authority, the dossier must include a copy of the establishment and operation license.