What are regulations on the use of the tax identification number in Vietnam?

What are regulations on the use of the tax identification number in Vietnam?

Based on Article 35 of the Law on Tax Administration 2019, the use of the tax identification number (TIN) is regulated as follows:

- Taxpayers must record the issued TIN on invoices, documents, and files when conducting business transactions; opening deposit accounts at commercial banks and other credit institutions; filing taxes, paying taxes, being exempted from taxes, reducing taxes, getting tax refunds, non-taxable income, registering customs declarations, and conducting other tax-related transactions for all obligations to the state budget, including cases where taxpayers operate production and business in different localities.

- Taxpayers must provide the TIN to relevant agencies, organizations, or record the TIN on documents when performing administrative procedures under the interconnected one-stop mechanism with tax administration authorities.

- Tax authorities, the State Treasury, commercial banks that cooperate in collecting the state budget, and 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 and other credit institutions must record the TIN in the account opening documents and transaction vouchers through the taxpayer's account.

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

- When the Vietnamese party pays money to organizations or individuals with cross-border business activities based on digital intermediary platforms not present in Vietnam, they must use the issued TIN of these organizations or individuals for withholding and paying taxes on behalf.

- When a personal identification number is issued to all residents, the personal identification number will be used instead of the TIN.

What are regulations on the use of the tax identification number in Vietnam? (Image from the Internet)

What are regulations on the issuance of the tax identification number in Vietnam?

Based on Clause 3, Article 30 of the Law on Tax Administration 2019, the issuance of the TIN is regulated as follows:

- Enterprises, economic organizations, and other organizations are issued a single TIN to use throughout their operation from the time of taxpayer registration until the termination of the TIN's validity. Taxpayers with branches, representative offices, or dependent units directly performing tax obligations are issued dependent TINs. In cases where enterprises, organizations, branches, representative offices, or dependent units perform taxpayer registration under the interconnected one-stop mechanism with business registration, cooperative registration, or business registration, the number on the business registration certificate, cooperative registration certificate, or business registration certificate is simultaneously the TIN;

- Individuals are issued a single TIN to use throughout their lifetime. Dependents of individuals are issued TINs to provide personal income tax deductions. The TIN issued to dependents simultaneously serves as the individual's TIN when the dependent incurs obligations to the state budget;

- Enterprises, organizations, and individuals responsible for withholding and paying taxes on behalf of others are issued a TIN to perform tax declaration and payment on behalf of taxpayers;

- The issued TIN will not be reused for another taxpayer;

- The TIN of enterprises, economic organizations, and other organizations remains unchanged following any change in the type of organization, sale, donation, gifting, or inheritance;

- The TIN issued to households, business households, and business individuals is the TIN issued to the individual representing the household, business household, or business individual.

What is the structure of the tax identification number in Vietnam?

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

N1N2N3N4N5N6N7N8N9N10 - N11N12N13

Where:

- The first two digits N1N2 represent the tax number segment.

- Seven digits N3N4N5N6N7N8N9 are structured in a specific format, increasing from 0000001 to 9999999.

- The digit N10 is a check digit.

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

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

When is the tax identification number deactivated in Vietnam?

Based on Article 39 of the Law on Tax Administration 2019, the TIN is deactivated in the following cases:

• Taxpayers who register taxpayer registration along with business registration, cooperative registration, or business registration will deactivate the TIN in the following cases:

- Termination of business operations or dissolution, bankruptcy;

- Revocation of the business registration certificate, cooperative registration certificate, or business registration certificate;

- Being split, merged, or consolidated.

• Taxpayers who register taxpayer registration directly with the tax authority will deactivate the TIN in the following cases:

- Termination of business operations, no longer incurring tax obligations for non-business organizations;

- Revocation of business registration certificate or equivalent license;

- Being split, merged, or consolidated;

- Tax authority issuance of a notice that the taxpayer is not operating at the registered address;

- The individual has passed away, is missing, or lost legal capacity as prescribed by law;

- Foreign contractor upon completion of the contract;

- Petroleum contractor or investor upon completion of the contract or transfer of entire participation rights in the petroleum contract.