Vietnam: What entities shall the 13-digit TIN be issued to?

Vietnam: What entities shall the 13-digit TIN be issued to?

Based on Clause 2, Article 30 of the Law on Tax Administration 2019, which stipulates the structure of the TIN as follows:

Subject to taxpayer registration and issuance of TINs

...

2. The TIN structure is prescribed as follows:

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

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

c) The Minister of Finance shall detail this clause.

...

Thus, the 13-digit TIN structure and other characters are used for dependent units and other subjects.

What is the structure of the 13-digit TIN in Vietnam?

According to Clause 1, Article 5 of Circular 105/2020/TT-BTC, the TIN structure is as follows:

N1N2 N3N4N5N6N7N8N9 N10 - N11N12N13

In which:

- The first two digits N1N2 denote the TIN classification.

- The seven digits N3N4N5N6N7N8N9 are defined by a specific increasing sequence from 0000001 to 9999999.

- The digit N10 is the check digit.

- The three digits N11N12N13 are serial numbers from 001 to 999.

- The hyphen (-) is the character used to separate the group of the first 10 digits and the last 3 digits.

What are regulations on classification of structure of TIN in Vietnam?

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

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

[2] The 13-digit TIN with a hyphen (-) used to separate the first 10 digits and the last 3 digits is used for dependent units and other subjects.

[3] Taxpayers who are economic organizations, other organizations stipulated in points a, b, c, d, n Clause 2, Article 4 of Circular 105/2020/TT-BTC have full legal status or do not have legal status but directly incur tax obligations and self-liability for all tax obligations before the law shall be issued a 10-digit TIN;

Dependent units established in accordance with the law of the taxpayer above, if incurring tax obligations and directly declare and pay taxes shall be issued a 13-digit TIN.

[4] Foreign contractors, foreign sub-contractors stipulated in point đ Clause 2, Article 4 of Circular 105/2020/TT-BTC that register to pay contractor tax directly with tax authorities shall be issued a 10-digit TIN according to each contract.

+ In case foreign contractors associate with Vietnamese economic organizations to conduct business in Vietnam on the basis of contractor contracts and the joint venture parties establish a Joint Venture Executive Board, the Joint Venture Executive Board conducts accounting, has bank accounts, and is responsible for issuing invoices;

Or the Vietnamese economic organization participating in the joint venture is responsible for the common accounting and distribution of profits to the joint venture parties, they shall be issued a 10-digit TIN to declare and pay taxes for the contractor contract.

+ In case foreign contractors, foreign sub-contractors have an office in Vietnam that has been declared and deducted from taxes by the Vietnamese side for contractor tax, foreign contractors, foreign sub-contractors shall be issued a 10-digit TIN to declare all other tax obligations (except for contractor tax) in Vietnam and provide the TIN to the Vietnamese side.

[5] Overseas suppliers, according to the provisions in point e Clause 2, Article 4 of Circular 105/2020/TT-BTC, who do not yet have a TIN in Vietnam when registering directly with tax authorities shall be issued a 10-digit TIN.

Overseas suppliers use the issued TIN to directly declare and pay taxes or provide the TIN to organizations, individuals in Vietnam authorized by overseas suppliers, or provide to commercial banks, intermediary payment service providers to execute deduction, pay substitute tax obligations, and declare in the Table of tax deduction of overseas suppliers in Vietnam.

[6] Organizations, individuals who deduct and pay on behalf under the provisions in point g Clause 2, Article 4 of Circular 105/2020/TT-BTC are issued a 10-digit TIN (hereinafter referred to as a substitute TIN) to declare and pay taxes on behalf of foreign contractors, foreign sub-contractors, overseas suppliers, and organizations and individuals with a business cooperation contract or document.

+ Foreign contractors, foreign sub-contractors according to provisions in point đ Clause 2, Article 4 of Circular 105/2020/TT-BTC declared and paid substitute contractor tax by the Vietnamese side, shall be issued a 13-digit TIN according to the substitute TIN of the Vietnamese side to fulfill contractor tax obligations in Vietnam.

+ When taxpayers change information on taxpayer registration, temporarily suspend operations or business, continue operations or business ahead of schedule, terminate the TIN's validity, or restore the TIN according to regulations on the taxpayer's TIN, the substitute TIN will be updated by the tax authority corresponding to the information and status of the taxpayer's TIN. Taxpayers are not required to submit dossiers as specified in Chapter II of Circular 105/2020/TT-BTC concerning the substitute TIN.

[7] Operators, joint operating companies, joint venture enterprises, organizations assigned by the Government of Vietnam to receive profit oil, gas shared by Vietnam in petroleum fields in overlapping areas, according to the provisions in point h Clause 2, Article 4 of Circular 105/2020/TT-BTC, shall be issued a 10-digit TIN for each petroleum contract or equivalent document or other document.

+ Contractors, investors participating in petroleum contracts shall be issued a 13-digit TIN according to the 10-digit TIN of each petroleum contract to fulfill separate tax obligations for the petroleum contract (including corporate income tax on income from the transfer of rights participating in the petroleum contract).

+ The parent company - PetroVietnam, representing the host country, receives profit shares from petroleum contracts, shall be issued a 13-digit TIN according to the 10-digit TIN of each petroleum contract to declare and pay taxes on the profit share under each petroleum contract.

[8] Taxpayers who are households, business households, individual businesses, and other individuals as stipulated in points i, k, l, n Clause 2, Article 4 of Circular 105/2020/TT-BTC shall be issued a 10-digit TIN for the household representative, business household representative, individual, and issued a 13-digit TIN for business locations of business households, individual businesses.

[9] Organizations, individuals as defined in point m Clause 2, Article 4 of Circular 105/2020/TT-BTC that have one or multiple authorized collection contracts with a tax authority shall be issued one substitute TIN to pay the collected amount of taxpayers into the state budget.