What is the deadline for the first taxpayer registration of a Vietnamese resident when a personal income tax obligation arises?

What is the deadline for the first taxpayer registration of a Vietnamese resident when a personal income tax obligation arises?

Based on Article 33 of the Law on Tax Administration 2019, the deadline for the first taxpayer registration is as follows:

Deadline for the first taxpayer registration

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2. For taxpayers registering directly with tax authorities, the deadline for taxpayer registration is 10 working days from the following dates:

a) Issuance of the business registration certificate, establishment and operation license, investment registration certificate, or establishment decision;

b) Commencement of business activities for organizations not required to register a business or business households and business individuals required to register but not yet issued a business registration certificate;

c) Incurrence of the responsibility to withhold and pay taxes on behalf of others or a contractual obligation to do so;

d) Signing of a contract for the engagement by foreign contractors and subcontractors who declare and pay taxes directly with tax authorities or signing of a petroleum contract;

dd) Incurrence of a personal income tax obligation;

e) Incurrence of a tax refund request;

g) Incurrence of other obligations to the state budget.

3. Organizations and individuals paying income are responsible for registering taxpayers on behalf of income recipients no later than 10 working days from the date of incurrence of a tax obligation in case the individual does not yet have a tax identification number; registering taxpayers on behalf of dependents of the taxpayer no later than 10 working days from the date the taxpayer registers for family deductions as per the law in case the dependents do not yet have a tax identification number.

Thus, the deadline for the first taxpayer registration of a Vietnamese resident when a personal income tax obligation arises is 10 days.

What is the deadline for the first taxpayer registration of a Vietnamese resident for personal income tax? (Image from Internet)

How to calculate the tax period for personal income tax for Vietnamese residents?

Based on Article 7 of the Law on Personal Income Tax 2007 (amended by Clause 3, Article 1 of the Law on Amendments to the Personal Income Tax 2012), the regulations are as follows:

Tax period

1. The tax period for Vietnamese residents is regulated as follows:

a) The annual tax period applies to income from business activities and wages or salaries;

b) The tax period for each instance of income generation applies to income from capital investment; capital transfer, except for securities transfer; real estate transfer; lottery winnings; royalties; franchise income; inheritance; and gifts;

c) The tax period for each instance of securities transfer or annually for securities transfer income.

2. The tax period for non-Vietnamese residents applies to each instance of income generation for all taxable income.

Thus, the tax period for personal income tax for Vietnamese residents is calculated annually for income from business activities and wages or salaries.

The tax period for personal income tax for Vietnamese residents is calculated for each instance of income generation for income from capital investment; capital transfer, except securities transfer; real estate transfer; lottery winnings; royalties; franchise income; inheritance; and gifts.

Where is the place to submit the first taxpayer registration dossier in Vietnam?

Based on Article 32 of the Law on Tax Administration 2019, the place to submit the first taxpayer registration dossier is as follows:

- Taxpayers registering along with enterprise registration, cooperative registration, or business registration shall submit the taxpayer registration dossier at the place of submitting the enterprise, cooperative, or business registration dossier as per the law.

- Taxpayers registering directly with tax authorities shall submit the taxpayer registration dossier as follows:

+ Organizations, business households, and business individuals shall submit the taxpayer registration dossier at the tax office where the organization, business household, or individual is headquartered;

+ Organizations, individuals responsible for tax withholding and payment shall submit the taxpayer registration dossier at the tax office directly managing the organization or individual;

+ Non-business households and individuals shall submit the taxpayer registration dossier at the tax office where taxable income arises, the place of permanent residence registration, the place of temporary residence registration, or the place of incurrence of budget obligations.

- Individuals authorizing organizations or individuals paying income to register taxpayers on their behalf and for their dependents shall submit the taxpayer registration dossier through the paying organization or individual. The organization or individual paying income is responsible for compiling and submitting the taxpayer registration dossier on behalf of the individuals to the tax office directly managing the paying organization or individual.