What are procedures for initial taxpayer registration for individuals not engaged in business activities in Vietnam?

Initial taxpayer registration deadline for individuals not engaged in business activities in Vietnam

Pursuant to Article 33 of the Law on Tax Administration 2019, the initial taxpayer registration deadline is as follows:

Initial taxpayer registration deadline

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2. For taxpayers who directly register with tax authorities, the initial taxpayer registration deadline is 10 working days from the following dates:

a) Issuance of the business household registration certificate, the establishment and operation license, the investment registration certificate, or the establishment decision;

b) Commencement of business activities for organizations not required to register their business or households, individuals engaged in business activities required to register but not yet having received the business registration certificate;

c) Arising obligation to withhold and remit tax on behalf of another party; organizations fulfilling tax obligations on behalf of individuals as per cooperation contracts or agreements;

d) Signing of contracts for main contractors or subcontractors, who directly declare and remit taxes with tax authorities; signing of oil and gas agreements;

e) Arising obligation for personal income tax;

f) Arising need for tax refund;

g) Arising other obligations to the state budget.

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Individuals not engaged in business activities have an initial taxpayer registration deadline of 10 working days from the date the following conditions arise:

- Arising obligation for personal income tax;

- Arising need for tax refund;

- Arising other obligations to the state budget.

Initial taxpayer registration procedure for individuals not engaged in business activities in Vietnam (Image from the Internet)

What are procedures for initial taxpayer registration for individuals not engaged in business activities in Vietnam?

Pursuant to Subsection 2, Section 1 of the administrative procedures issued with Decision 2589/QD-BTC in 2021, the initial taxpayer registration for individuals not engaged in business activities via tax return filings is carried out as follows:

- Step 1: Individuals submit tax return documents as per the tax management law deadlines to the District Tax Department where the individual has obligations to the state budget to complete the taxpayer registration procedure.

Where to submit documents: At the District Tax Department where the individual has obligations to the state budget.

+ For electronic taxpayer registration documents: Taxpayers (TPs) access the electronic portal of their choice (electronic portal of the General Department of Taxation/state agencies' electronic portals, including national public service portals, ministry-level public service portals, provincial public service portals per regulations on the implementation of a one-stop and integrated process in administrative procedures and are connected to the electronic portal of the General Department of Taxation/electronic portals of T-VAN service providers).

And fill out the declaration and attach documents as required (if any), sign electronically, and send to the tax authorities through the chosen electronic portal;

+ TPs submit documents (taxpayer registration documents along with business registration documents as per the one-stop integrated process) to the competent state management authorities. These authorities will forward the received documents of TPs to the tax authorities via the General Department of Taxation’s electronic portal.

- Step 2: Tax authorities receive the documents:

+ For paper-based taxpayer registration documents:

++ If the documents are submitted directly to the tax authorities: the tax officer receives them, stamps the receipt on the taxpayer registration documents, indicating the receipt date and the number of documents as per the document checklist if the taxpayer registration documents are submitted directly to the tax authorities. The tax officer writes an appointment slip indicating the result return date and the handling time of the documents received;

++ If the taxpayer registration documents are sent via postal service: the tax officer stamps the receipt, notes the receipt date on the documents, and records the document number of the tax authorities;

The tax officer reviews the taxpayer registration documents. If the documents are incomplete and need further explanation or additional information, the tax authorities will notify the taxpayer using form 01/TB-BSTT-NNT as per Appendix 2 issued with Decree 126/2020/ND-CP within 02 (two) working days from the date the documents are received.

+ For electronic taxpayer registration documents:

Tax authorities accept the documents via the General Department of Taxation’s electronic portal, review, and handle the documents through the tax authorities' electronic data processing system:

++ Receiving documents: The General Department of Taxation’s electronic portal sends a receipt notice to TPs via the chosen electronic portal within 15 minutes from receiving the electronic taxpayer registration documents from the TPs;

++ Reviewing and handling documents: Tax authorities review and handle the documents as per the taxpayer registration laws and return results via the electronic portal chosen by the TPs:

+++ If the documents are complete and in compliance with procedure regulations and results need to be returned: Tax authorities send the document handling result to the chosen electronic portal within the time specified in Circular 105/2020/TT-BTC

+++ If the documents are incomplete or not in compliance with procedure regulations, tax authorities send a notification of document rejection to the chosen electronic portal within 02 (two) working days from the date on the document receipt notification.

What are procedures for initial taxpayer registration for individuals not engaged in business activities via tax return in Vietnam?

According to Subsection 2, Section 1 of the administrative procedures issued with Decision 2589/QD-BTC in 2021, this procedure can be executed by:

- Directly submitting at the headquarters of the Tax Authority;

- Sending via postal service;

- Using electronic means through the General Department of Taxation’s electronic portal/state agencies' electronic portals, including national public service portals, ministry-level public service portals, provincial public service portals as per regulations on the implementation of a one-stop and integrated process in administrative procedures and connected to the General Department of Taxation’s electronic portal/T-VAN service providers’ portals as per regulations.