What are regulations on the use of signature in personal income tax withholding certificates in Vietnam?

What are regulations on the use of signature in personal income tax withholding certificates in Vietnam?

Based on Article 32 of Decree 123/2020ND-CP, it is stipulated as follows:

Contents of the record

1. personal income tax withholding certificates include the following contents:

a) Name of the personal income tax withholding certificate, model code of the personal income tax withholding certificate, personal income tax withholding certificate sign, serial number of the personal income tax withholding certificate;

b) Name, address, tax code of the payer;

c) Name, address, tax code of the taxpayer (if the taxpayer has a tax code);

d) Nationality (if the taxpayer is not of Vietnamese nationality);

dd) Income amount, time of income payment, total taxable income, withheld tax amount; remaining income to be received;

e) Date of issuance of the personal income tax withholding certificate;

g) Full name, signature of the income payer.

In the case of using e-personal income tax withholding certificates, the signature on the e-record is a digital signature.

2. Receipt

a) Type of receipt: Tax, fee, and charge receipts without pre-printed face value; tax, fee, and charge receipts with pre-printed face value; tax, fee, and charge receipts.

b) Model code of the receipt and receipt sign.

The model code of the receipt contains information showing the type of receipt, number of receipt links, and the model serial number in one type of receipt (a type of receipt may have multiple models).

The receipt sign is the distinguishing mark of the receipt using a system of Vietnamese alphabet letters and the last 02 digits of the year.

For printed receipts, the last 02 digits of the year are the year the printed receipt is issued. For self-printed and e-receipts, the last 02 digits of the year are the year it is first used, noted on the issuance notice, or the year the receipt is printed out.

c) The receipt number is the sequential number shown on tax, fee, and charge receipts. The receipt number is recorded using Arabic numerals with a maximum of 7 digits. For self-printed and printed receipts, the receipt number starts from 0000001. For e-receipts, the e-receipt number starts from 1 on January 1 or the date of starting the use of e-receipts and ends on December 31 each year.

d) The link of the receipt (applied to printed and self-printed receipts) is the number of sheets in the same receipt number. Each receipt number must have at least 02 links or 02 parts, including:

- Link (part) 1: retained at the collecting organization;

- Link (part) 2: given to the taxpayer;

Links from the third onward are named according to their specific management use as prescribed by law.

đ) Name, tax code of the tax, fee, and charge collecting organization.

e) Name of the types of tax, fee, and charge items and the amount recorded in numbers and words.

g) Date of issuance of the receipt.

h) Signature of the money collector. In the case of using e-receipts, the signature on the e-receipt is a digital signature.

i) Name, tax code of the organization receiving the print order for the receipt (in case of printing order).

k) The receipt is presented in Vietnamese. If additional foreign language is required, the foreign language part is placed to the right in parentheses "( )" or immediately below the content line in Vietnamese with a smaller font size than the Vietnamese text.

The numbers recorded on the receipt are natural numbers 0, 1, 2, 3, 4, 5, 6, 7, 8, 9.

The currency recorded on the receipt is Vietnamese Dong. In cases where other collectible amounts belonging to the state budget are prescribed by law to be collected in foreign currency, they are collected in foreign currency or collected in Vietnamese Dong on the basis of conversion from foreign currency to Vietnamese Dong according to the exchange rate prescribed in clause 4, Article 3 of Decree No. 120/2016/ND-CP dated August 23, 2016, of the Government of Vietnam detailing and guiding the implementation of several articles of the Law on Fees and Charges.

In cases when collecting fees and charges, if the fee and charge list exceeds the number of lines of a receipt, an appendix can be attached to the receipt. The appendix is self-designed by the fee, and charge collecting organization suitable to the characteristics of each type of fee and charge. The appendix must clearly state "attached to receipt number... date... month... year."

For fee and charge collecting organizations using e-receipts, if it is necessary to adjust some criteria in the content on the e-receipt to suit actual conditions, the fee and charge collecting organization should communicate in writing with the Ministry of Finance (General Department of Taxation) for consideration and guidance before implementation.

In addition to the mandatory information as prescribed in this clause, fee, and charge collecting organizations may create additional information, including logos, decorative images, or advertising, in accordance with legal provisions, without obscuring or blurring the mandatory content shown on the receipt. The font size of additional information cannot be larger than the font size of the mandatory content shown on the receipt.

3. The display model of e-records is guided in clause 10, Article 4 of Decree No. 11/2020/ND-CP dated January 20, 2020, of the Government of Vietnam, regulating administrative procedures in the area of the State Treasury and other implementation guidance records.

Accordingly, the use of signatures for personal income tax withholding certificates must use digital signatures.

What are regulations on use of signature in personal income tax withholding certificates in Vietnam? (Image from the Internet)

Can e-invoices be converted to paper invoices in Vietnam?

Based on Article 7 of Decree 123/2020ND-CP regulating the conversion of e-invoices and e-records into paper invoices and records is as follows:

- Legal e-invoices and records can be converted into paper invoices and records when there is a request arising from an economic, financial transaction or as required by tax authorities, auditing agencies, inspection, examination, investigation, and according to the provisions of law on inspection, examination, and investigation.

- The conversion of e-invoices and records into paper invoices and records must ensure the consistency between the content of the e-invoice and record and the paper invoice and record after conversion.

- When e-invoices and records are converted into paper invoices and records, the paper invoices and records only have a retention value for accounting record-keeping and monitoring according to the law on accounting, and the law on e-transactions, and do not have effectiveness for transactions, payments, except in the case where the invoice is created from a cash register connected to e-data transfer with the tax authorities as prescribed in this Decree.

Therefore, according to the above regulations, e-invoices can be converted to paper invoices when there is a arising demand for economic, financial transactions or upon the request of tax authorities, auditing agencies, inspection, examination, investigation.

Are individuals authorized to finalize taxes issued with personal income personal income tax withholding certificates in Vietnam?

According to the provisions at point a, clause 2, Article 25 of Circular 111/2013/TT-BTC, it is clearly stipulated which cases are and are not issued with personal income personal income tax withholding certificates to individuals withheld as follows:

Tax withholding and personal income tax withholding certificates

...

2. personal income tax withholding certificates

a) Organizations and individuals paying incomes withheld from tax as guided in clause 1 of this Article must issue personal income tax withholding certificates upon request of the individual withheld. In cases where individuals authorize tax finalization, personal income tax withholding certificates are not issued.

In the following cases, organizations, and individuals paying incomes that have been taxed must provide personal income tax withholding certificates upon request of the individual withheld, except where the individual authorizes tax finalization to the organization or individual paying the income:

(1) Withholding for income of non-resident individuals.

(2) Withholding for income from salaries and wages.

(3) Withholding for income from being an insurance agent, lottery agent, multi-level sale; income from leasing assets to businesses, economic organizations.

(4) Withholding for income from capital investment.

(5) Withholding for income from securities transfer.

(6) Withholding for income from transferring capital contributions of non-resident individuals.

(7) Withholding for income from winnings.

(8) Withholding for income from royalties, franchising.

(9) Withholding in additional specific cases (withholding 10% at the source before income payment).

Thus, individuals who authorize tax finalization will not be issued with personal income personal income tax withholding certificates.