What is the guidance on first-time taxpayer registration for foreign subcontractors who directly declare and pay contractor tax in Vietnam?

Vietnam: What does the first-time taxpayer registration application for foreign subcontractors who directly declare and pay contractor tax include?

Based on the provisions stipulated in Subsection 5, Section 2, Part 2 of the newly issued, replaced, and abolished administrative procedures in the field of Tax Management within the management functions of the Ministry of Finance issued together with Decision 2589/QD-BTC 2021 regarding the first-time taxpayer registration application for foreign subcontractors who directly declare and pay contractor tax, the components include:

- Taxpayer registration declaration form No. 04-DK-TCT issued together with Circular 105/2020/TT-BTC;

- Schedule of foreign contractors, foreign subcontractors form No. BK04-DK-TCT issued together with Circular 105/2020/TT-BTC (if any);

- A copy of the Certificate of Operation Office Registration; or an equivalent document issued by a competent authority (if any).

Note: The number of applications is 01 (set).

What is the guidance on first-time taxpayer registration for foreign subcontractors who directly declare and pay contractor tax in Vietnam? (Image from the Internet)

What are procedures for first-time taxpayer registration for foreign subcontractors directly declaring and paying contractor tax in Vietnam?

Based on the provisions stipulated in Subsection 5, Section 2, Part 2 of the newly issued, replaced, and abolished administrative procedures in the field of Tax Management within the management functions of the Ministry of Finance issued together with Decision 2589/QD-BTC 2021, the procedure for first-time taxpayer registration for foreign subcontractors directly declaring and paying contractor tax is as follows:

Step 1: Within 10 working days from the date of signing the contract for subcontracting with the contractor, foreign subcontractors who declare and pay contractor tax directly with the tax authority; upon arising personal income tax obligations; arising other obligations to the state budget, foreign contractors, and subcontractors shall submit applications to the Tax Department where the headquarters is located.

- For electronic taxpayer registration applications: The taxpayer (NNT) accesses the electronic portal chosen by the taxpayer (the General Department of Taxation's electronic portal/state agency's electronic portal including the national public service portal, ministerial or provincial public service portals that have been connected to the General Department of Taxation's electronic portal/organization providing T-VAN service's portal) to fill in the declaration form and attach electronic applications as required (if any), sign electronically and send to the tax authority via the electronic portal chosen by the taxpayer;

The taxpayer submits the application (taxpayer registration application simultaneously with the business registration application according to the one-stop-shop mechanism) to the competent state management authority as stipulated. The competent state management authority forwards the received application information of the taxpayer to the tax authority via the General Department of Taxation's electronic portal.

Step 2: The tax authority receives:

- For paper taxpayer registration applications:

+ In cases where the application is submitted directly at the tax authority: The tax official receives and stamps the receipt on the taxpayer registration application, specifying the reception date and the number of documents according to the application list in cases where taxpayer registration applications are submitted directly at the tax authority. The tax official issues a receipt with the appointment date for result delivery and processing time for the received application;

+ In cases where the taxpayer registration application is sent by post: The tax official stamps the receipt, records the reception date on the application, and notes the correspondence number of the tax authority;

The tax official checks the taxpayer registration application. In cases where the application is incomplete and needs explanations or additional information, the tax authority notifies the taxpayer using Form 01/TB-BSTT-NNT in Appendix II issued together with Decree 126/2020/ND-CP within 02 (two) working days from the date of receiving the application.

- For electronic taxpayer registration applications:

The tax authority receives the application via the General Department of Taxation's electronic portal, checks and processes the application through the tax authority's electronic data processing system:

+ Receiving the application: The General Department of Taxation's electronic portal sends a notification of receipt to the taxpayer confirming they have submitted the application through the electronic portal selected for compiling and submitting the application (the General Department of Taxation's electronic portal/state agency's electronic portal or organization providing T-VAN service's portal) no later than 15 minutes from receiving the taxpayer's electronic registration application;

+ Checking and processing the application: The tax authority reviews and processes the taxpayer's application according to the legal regulations on taxpayer registration and provides the result via the electronic portal selected by the taxpayer for compiling and submitting the application:

++ In cases where the application is complete and in order as per regulations and requires result delivery: The tax authority sends the resolution result to the electronic portal chosen by the taxpayer for compiling and submitting the application within the time limit prescribed in Circular 105/2020/TT-BTC;

++ In cases where the application is incomplete or not in order according to regulations, the tax authority sends a notification of application rejection to the electronic portal selected by the taxpayer for compiling and submitting the application within 02 (two) working days from the date recorded on the application Receipt Notification.

Where is the place of submitting the first-time taxpayer registration application for foreign subcontractors directly declaring and paying contractor tax in Vietnam?

Based on the provisions stipulated in Subsection 5, Section 2, Part 2 of the newly issued, replaced, and abolished administrative procedures in the field of Tax Management within the management functions of the Ministry of Finance issued together with Decision 2589/QD-BTC 2021 about the place of submitting the first-time taxpayer registration application for foreign subcontractors directly declaring and paying contractor tax is as follows:

- Submit directly at the headquarters of the Tax Authority;

- Or send via the postal system;

- Or through electronic means via the General Department of Taxation's electronic portal/state agency's electronic portal including the national public service portal, ministerial or provincial public service portals according to regulations on implementing the one-stop-shop and interconnected one-stop-shop mechanism in administrative procedure resolution, and already connected with the General Department of Taxation's electronic portal/organization providing T-VAN service's portal as stipulated in Circular 19/2021/TT-BTC.