What are the regulations on the classification of structure of TIN in Vietnam?

What is the definition of tax identification number (TIN) in Vietnam?

According to Clause 5, Article 3 of Law on Tax Administration 2019, “tax identification number” or “TIN” means a series of 10 or 13 digits and other characters assigned by tax authorities to taxpayers to serve tax administration.

What are the regulations on the classification of structure of TIN in Vietnam?

Under Clause 3, Article 5 of Circular 105/2020/TT-BTC, the classification of structure of TIN is as follows:

- 10-digit TINs shall be issued to enterprises, cooperatives, entities that have full legal status or entities without legal status but incurring tax liabilities; representatives of households, household businesses and other individuals (hereinafter referred to as independent entities).

-13-digit TINs with a dash (-) used to separate the first 10 digits and the last 3 digits are used for affiliated entities and others.

- The taxpayers being business entities or other entities as prescribed in points a, b, c, d, n clause 2 Article 4 of Circular 105/2020/TT-BTC, whether or not they have legal status, once incurring tax liabilities and being accountable for their own tax liabilities, shall be issued with 10-digit TINs; the affiliated entities thereof, established as per the law, once incurring tax liabilities and directly declaring and paying taxes, shall be issued with 13-digit TINs.

- Foreign contractors, foreign sub-contractors specified in point dd clause 2 Article 4 of Circular 105/2020/TT-BTC that apply for paying foreign contractor withholding tax directly with tax authorities shall be issued with 10-digit TINs by every contract.

If a foreign contractor, upon a contract, engages in a joint venture with Vietnamese business entities for undertaking business in Vietnam and these joint venture members establish a joint venture management board that keeps accounting records and has a bank account and is responsible for issuance of invoices; or the Vietnamese business entity, as the joint venture member, keeps the accounting records in general and shares profits to joint venture members, they shall be issued with a 10-digit TIN for tax declaration and payment for the contract purpose.

If a foreign contractor or foreign subcontractor has an office in Vietnam and has its foreign contractor withholding tax declared, withheld and remitted by the Vietnamese party, such foreign contractor or foreign subcontractor shall be issued with a 10-digit TIN for declaration of other tax liabilities (except foreign contractor withholding tax) in Vietnam and that TIN shall be notified to the Vietnamese party.

- An overseas supplier, specified in point e clause 2 Article 4 of Circular 105/2020/TT-BTC, which has not been issued with a TIN in Vietnam shall be issued with a 10-digit TIN upon application for tax registration directly with the tax authority.

The overseas supplier shall use the above-mentioned TIN to declare and remit tax by themselves, or provide such TIN for a Vietnamese entity whom they authorize to declare and pay tax on their behalf, or provide such TIN for a commercial bank or payment intermediary service provider to declare and pay tax on their behalf and declare their withholding tax schedule.

- The withholding agents, specified in point g clause 2 Article 4 of Circular 105/2020/TT-BTC, shall be issued with a 10-digit TIN (hereinafter referred to as authorized TIN) to declare and pay taxes on behalf of the foreign contractors, foreign sub-contractors, overseas suppliers, organizations and individuals that have contracts and business cooperation documents.

A foreign contractor, foreign sub-contractors, specified in point dd clause 2 Article 4 of Circular 105/2020/TT-BTC, which has their foreign contractor withholding tax declared and remitted by the Vietnamese party shall be issued with a 13-digit TIN according to the authorized TIN of the Vietnamese party to complete the certification of payment of foreign contractor withholding tax in Vietnam.

If the taxpayer changes tax registration information, suspends business/operation or resumes business ahead of schedule, deactivates TIN or reactivate TIN as prescribed associated with their TIN, the authorized TIN shall be updated by the tax authority corresponding to the information and status of the taxpayer’s TIN. The taxpayer is not required to file the documentation required in Chapter II hereof associated with the authorized TIN.

- The executive, general executive company, joint venture, organization authorized by Vietnamese Government to receive profits distributed from petroleum fields in the overlapping areas as prescribed in point h clause 2 Article 4 of Circular 105/2020/TT-BTC shall be issued with a 10-digit TIN for every petroleum contract or agreement document or equivalent document.

A contractor or investor entering into a petroleum contract shall be issued with a 13-digit TIN according to the 10-digit TIN of every petroleum contract to pay the taxes incurred in each petroleum contract (including corporate income tax on income from participating interest in petroleum contract).

The parent company - Petro Vietnam that is the representative of host country to receive profits distributed from petroleum contracts shall be issued with a 13-digit TIN according to the 10-digit TIN of every petroleum contract to declare and pay tax on the profit distributed from each petroleum contract.

- For the taxpayers being households, household businesses, individual businesses and other individuals, specified in points i, k, l, n clause 2 Article 4 of Circular 105/2020/TT-BTC, a 10-digit TIN shall be issued to the representatives of the households, household businesses, individuals, and a 13-digit shall be issued to the places of business of the household businesses and individual businesses.

- If the organization or individual, specified in point m clause 2 Article 4 of Circular 105/2020/TT-BTC, has one or several authorized tax collection contract(s) with a tax authority, they shall be issued with an authorized TIN to remit the amount of taxes collected to the state budget.

What are the regulations on the classification of structure of TIN in Vietnam? (Image from the Internet)

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

According to Clause 3, Article 30 of Law on Tax Administration 2019, the issuance of tax identification numbers is regulated as follows:

- Each enterprise, business organization or other organization is issued with 01 unique TIN to use throughout its entire operation, from the date of taxpayer registration to the date of TIN deactivation. A taxpayer’s branches, representative offices and/or dependent units that pay their own tax shall be issued with separate TINs. In case an enterprise, organization, branch, representative office or dependent unit combines taxpayer registration via the interlinked single-window system with business registration, the number of the certificate of enterprise registration, cooperative registration and/or business registration (hereinafter referred to as “business registration certificate”) is also the TIN; 

- Each individual is issued 01 unique TIN to use throughout their whole life. Any dependant of that individual shall be issued with a TIN for the purpose of claiming personal exemption for personal income taxpayers. The TIN issued to the dependant is also his/her personal TIN, which is used when paying his/her tax;

- Enterprises, organizations and individuals responsible for deducting and paying tax on behalf of taxpayers shall be issued with separate TINs for use when deducting tax;

- Issued TINs shall not be reissued to another taxpayer;

- TINs of enterprises, business organizations and other organizations shall remain unchanged after they are converted, sold, gifted or inherited;

- TIN issued to a household, household business or individual business is issued to the individual representing the household, household business or individual business.