What are procedures for tax registration when an organization changes its operating model in Vietnam?

What are procedures for tax registration when an organization changes its operating model in Vietnam?

According to Article 21 of Circular 86/2024/TT-BTC regarding tax registration in the case of a change in the operating model as follows:

(1) Conversion of a dependent unit into an independent unit or vice versa

- When a dependent unit is decided to become an independent unit or vice versa, the independent unit and the dependent unit after conversion must perform tax registration to be issued a new tax code as prescribed in Article 31, Article 32, Article 33 of the Law on Tax Administration 2019 and Article 7 of Circular 86/2024/TT-BTC. The independent unit and the dependent unit before conversion must carry out procedures to terminate the effectiveness of the tax code with the directly managing tax authority as prescribed in Article 39 of the Law on Tax Administration and Article 14 of Circular 86/2024/TT-BTC.

- Based on the tax registration application of the independent unit and the dependent unit after conversion, the tax authority shall carry out the procedures and processes to issue tax codes to taxpayers as prescribed in Article 34 of the Law on Tax Administration 2019 and Article 8 of Circular 86/2024/TT-BTC.

- Based on the application to terminate the effectiveness of the tax code of the independent unit and the dependent unit before conversion, the tax authority shall carry out the procedures and processes to terminate the effectiveness of the tax code as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 15, Article 16 of Circular 86/2024/TT-BTC.

(2) Converting an independent unit to become a dependent unit of another managing unit

- An independent unit converting into a dependent unit of another managing unit shall be issued a tax code of 13 digits based on the tax code of the new managing unit. The independent unit must carry out procedures to terminate the effectiveness of the tax code with the tax authority as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 14 of Circular 86/2024/TT-BTC. The dependent unit implements tax registration as prescribed in Article 31, Article 32, Article 33 of the Law on Tax Administration 2019 and Article 7 of Circular 86/2024/TT-BTC. The managing unit must declare the new dependent unit established into the list of dependent units form BK02-DK-TCT issued along with Circular 86/2024/TT-BTC as prescribed in Article 10 of Circular 86/2024/TT-BTC.

- Based on the tax registration application of the dependent unit, the tax authority shall carry out the procedures and processes to issue tax codes to taxpayers as prescribed in Article 34 of the Law on Tax Administration 2019 and Article 8 of Circular 86/2024/TT-BTC.

- Based on the application to terminate the effectiveness of the tax code of the independent unit, the tax authority shall carry out the procedures and processes to terminate the effectiveness of the tax code as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 15, Article 16 of Circular 86/2024/TT-BTC.

(3) Convert a dependent unit of a managing unit into a dependent unit of another managing unit

A dependent unit of a managing unit (hereinafter referred to as the old dependent unit) converting into a dependent unit of another managing unit (hereinafter referred to as the new dependent unit) must carry out procedures to terminate the effectiveness of the tax code from the old dependent unit with the directly managing tax authority as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 14 of Circular 86/2024/TT-BTC. The new dependent unit must perform tax registration with the tax authority as prescribed in Article 31, Article 32, Article 33 of the Law on Tax Administration 2019 and Article 7 of Circular 86/2024/TT-BTC. The managing unit must declare the newly established dependent unit into the list of dependent units form BK02-DK-TCT issued along with Circular 86/2024/TT-BTC as prescribed in Article 10 of Circular 86/2024/TT-BTC.

Based on the tax registration application of the new dependent unit, the tax authority shall carry out the procedures and processes to issue tax codes to taxpayers as prescribed in Article 34 of the Law on Tax Administration 2019 and Article 8 of Circular 86/2024/TT-BTC.

Based on the application to terminate the effectiveness of the tax code of the old dependent unit, the tax authority shall carry out the procedures and processes to terminate the effectiveness of the tax code as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 15, Article 16 of Circular 86/2024/TT-BTC.

What are procedures for tax registration when an organization changes its operating model in Vietnam? (Image from the Internet)

Vietnam: What does the initial tax registration application for an organization include?

According to Article 31 of the Law on Tax Administration 2019, the initial tax registration application for an organization includes:

- When an organization registers tax registration alongside enterprise registration, cooperative registration, or business registration, the tax registration application is the application for enterprise registration, cooperative registration, or business registration as prescribed by law.

- If an organization registers tax registration directly with the tax authority, the tax registration application includes:

+ tax registration declaration;

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

+ Other related documents.

- The interconnection of information between state management agencies and tax authorities to receive tax registration applications and issue tax codes through a one-stop mechanism via electronic portals is carried out as prescribed by relevant legal regulations.

Where is the initial tax registration application for an organization submitted in Vietnam?

According to Article 32 of the Law on Tax Administration 2019, the location to submit the initial tax registration application for an organization is as follows:

- When an organization registers tax registration together with enterprise registration, cooperative registration, or business registration, the location to submit the tax registration application is where the enterprise registration, cooperative registration, or business registration application is submitted as prescribed by law.

- If an organization registers tax registration directly with the tax authority, the location to submit the tax registration application is defined as follows:

+ The organization submits the tax registration application at the tax authority where the organization is headquartered;

+ An organization responsible for withholding and paying tax on behalf shall submit the tax registration application at the tax authority directly managing that organization or individual.