What are regulations on the classification of structures of TINs issued by the tax authority in Vietnam starting February 6, 2025?

What are regulations on the classification of structures of TINs issued by the tax authority in Vietnam starting February 6, 2025?

Based on clause 4, Article 5 of Circular 86/2024/TT-BTC (effective from February 6, 2025), the classification of the structures for TINs issued by the tax authority is specified as follows:

(1) A 10-digit TIN is used for enterprises, cooperatives, organizations with legal status, or organizations without legal personality but directly incurring tax obligations (hereinafter referred to as independent units); individuals who are foreign nationals or Vietnamese nationals residing abroad who do not have a personal identification number established from the National Population Database.

(2) A 13-digit TIN with a hyphen (-) to separate the first 10 digits and the last 3 digits is used for dependent units and other subjects as prescribed in points c, e, g, clause 4, Article 5 of Circular 86/2024/TT-BTC.

(3) Taxpayers who are economic organizations, or other organizations as prescribed in points a, b, c, d, n, paragraph 2, Article 4 of Circular 86/2024/TT-BTC with or without legal personality but directly incurring tax obligations and carrying full responsibility for all tax obligations under the law are issued a 10-digit TIN. Dependent units established according to the law of these taxpayers, if arising tax obligations and directly declaring and paying taxes, will be issued a 13-digit TIN.

(4) Foreign contractors and foreign sub-contractors as prescribed in point đ, paragraph 2, Article 4 of Circular 86/2024/TT-BTC who register to pay contractor tax directly with the tax authority are issued a 10-digit TIN for each contract. In cases where multiple foreign contractors are subject to direct tax payment with the tax authority under the same contractor contract signed with the Vietnamese party and the contractors wish to separately declare and pay taxes, each foreign contractor is issued a separate 10-digit TIN.

Should a foreign contractor associate with Vietnamese economic organizations to conduct business in Vietnam based on a contractor contract and the parties involved in the association establish a joint operative board, the joint operative board implements accounting, holds a bank account, is responsible for issuing invoices; or the Vietnamese economic organization involved in the association assumes joint accounting responsibility and distributes profits to the parties involved in the association, a 10-digit TIN is issued to declare and pay taxes for the contractor contract.

If foreign contractors and foreign sub-contractors have an office in Vietnam and the Vietnamese party has declared and withheld contractor tax, then the foreign contractor, foreign sub-contractor is issued a 10-digit TIN to declare all other tax obligations (excluding contractor tax) in Vietnam and provides the TIN to the Vietnamese party.

(5) Foreign suppliers as prescribed in point c, paragraph 2, Article 4 of Circular 86/2024/TT-BTC who have not yet obtained a TIN in Vietnam, when taxpayer registration directly with the tax authority, are issued a 10-digit TIN. Foreign suppliers use the issued TIN to directly declare and pay taxes or provide the TIN to organizations or individuals in Vietnam authorized by the foreign supplier or provide it to commercial banks, intermediary payment service providers for deductions, payments on behalf of tax obligations, and declaration in the Deduction Table for Foreign Supplier Tax in Vietnam.

(6) Organizations or individuals who deduct, pay on behalf according to point g, paragraph 2, Article 4 of Circular 86/2024/TT-BTC are issued a 10-digit TIN (hereinafter referred to as a replacement tax code) to declare, pay taxes on behalf of foreign contractors, subcontractors, foreign suppliers, organizations, and individuals with cooperation contracts or business collaboration documents if there is a need to issue a separate TIN for the business cooperation contract. Foreign contractors and subcontractors as prescribed in point d, paragraph 2, Article 4 of Circular 86/2024/TT-BTC where the Vietnamese party declares and pays contractor tax on their behalf are issued a 13-digit TIN based on the replacement tax code of the Vietnamese party to confirm the completion of contractor tax obligations in Vietnam.

When the taxpayer changes taxpayer registration information, temporarily suspends activities, or business, resumes activities, or business before the deadline, terminates the effectiveness of the TIN, and restores the TIN according to regulations for the taxpayer's TIN, the replacement tax code is updated by the tax authority corresponding to the information and status of the taxpayer's TIN. Taxpayers are not required to submit a dossier as regulated in Chapter 2, Chapter 3 of Circular 86/2024/TT-BTC for the replacement tax code.

(7) The operator, joint operation companies, joint venture enterprises, organizations assigned by the Government of Vietnam to receive Vietnam's share of oil and gas profits from overlapping oil and gas fields as prescribed in point h, paragraph 2, Article 4 of Circular 86/2024/TT-BTC are issued a 10-digit TIN for each petroleum contract or agreement or other equivalent document.

Contractors and investors participating in petroleum contracts are issued a 13-digit TIN according to the 10-digit TIN of each petroleum contract to fulfill separate tax obligations according to the petroleum contract (including corporate income tax on income from transferring interests in petroleum contracts).

The parent company - Vietnam National Oil and Gas Group representing the host country to receive the profits shared from petroleum contracts is issued a 13-digit TIN according to the 10-digit TIN of each petroleum contract to declare and pay taxes on the profits shared according to each petroleum contract.

(8) Organizations and individuals as prescribed in point m, paragraph 2, Article 4 of Circular 86/2024/TT-BTC with one or more authorization contracts with a tax authority are issued one replacement tax code to pay the collected funds of the taxpayer into the state budget.

What are regulations on the classification of structures of TINs issued by the tax authority in Vietnam starting February 6, 2025? (Image from the Internet)

What is the structure of the TINs issued by the tax authority in Vietnam?

Based on clause 2, Article 5 of Circular 86/2024/TT-BTC (effective from February 6, 2025), the structure of TINs issued by the tax authority is as follows:

TIN structure: N1N2 N3N4N5N6N7N8N9 N10 - N11N12N13

In which:

- The first two digits N1N2 are the segmentation numbers of the TIN.

- Seven digits N3N4N5N6N7N8N9 are defined according to a determined structure, increasing in range from 0000001 to 9999999.

- The digit N10 is the check digit.

- Three digits N11N12N13 are the serial numbers from 001 to 999.

- The hyphen (-) is the separator character between the first 10-digit group and the last 3-digit group.

What are regulations on the use of TINs in Vietnam?

Based on Article 35 of the Tax Administration Law 2019, the use of TINs is regulated as follows:

- Taxpayers must write the issued TIN on invoices, documents, materials when conducting business transactions; open deposit accounts at commercial banks, other credit institutions; declare taxes, pay taxes, apply for tax exemptions, tax reductions, tax refunds, tax non-collection, register customs declarations and conduct other tax-related transactions for all obligations to the state budget, even if the taxpayer operates production, business in multiple different locations.

- Taxpayers must provide the TIN to relevant agencies, organizations, or enter the TIN on files when conducting administrative procedures under a one-stop interconnected mechanism with the tax management authority.

- Tax management authorities, State Treasury, commercial banks cooperating in collecting state budget revenue, organizations authorized by the tax authority to collect taxes use the taxpayer's TIN in tax management and tax collection into the state budget.

- Commercial banks, other credit institutions must record the TIN in the file when opening an account and transaction documents through the taxpayer's account.

- Other organizations and individuals participating in tax management use the issued TIN of the taxpayer when providing information related to the determination of tax obligations.

- When the Vietnamese party pays money to organizations or individuals conducting cross-border business activities on a digital intermediary platform not present in Vietnam, they must use the issued TIN of these organizations, individuals to withhold and pay on their behalf.