What is the ID number of business location 00001? What are regulations on tax submission for businesses with multiple business locations in Vietnam?

What is the ID number of business locations of enterprises in Vietnam?

Based on Clause 6, Article 8 of Decree 01/2021/ND-CP, regulations on the ID number of business locations of enterprises are as follows:

Enterprise ID number, ID numbers of affiliates and business locations of enterprises

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2. The enterprise ID number exists throughout the operation of the enterprise and cannot be reassigned to other organizations or individuals. When the enterprise ceases operations, the enterprise ID number becomes invalid.

3. The enterprise ID number is automatically created, sent, and received through the National Business Registration Information System, the taxpayer registration information system, and is recorded on the Business Registration Certificate.

4. State management agencies uniformly use the enterprise ID number for state management and information exchange regarding the enterprise.

5. The subordinate unit number of the enterprise is assigned to branches and representative offices of the enterprise. This number is concurrently the tax ID number of the branch or representative office.

6. The ID number of business locations of enterprises consists of 5 digits and is assigned sequentially from 00001 to 99999. This number is not the tax ID number of the business location.

7. If an enterprise, branch, or representative office has its tax number invalidated due to tax law violations, they cannot use the tax number in economic transactions from the date the Tax Authority publicly announces the invalidation.

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According to the legal regulations, the ID number of business locations of enterprises is a 5-digit number assigned sequentially from 00001 to 99999. This number is not the tax ID number of the business location.

What is the ID number of business location 00001? What are regulations on tax submission for businesses with multiple business locations in Vietnam? (Image from the Internet)

What are regulations on tax submission for businesses with multiple business locations in Vietnam?

Pursuant to Article 45 of the Law on Tax Administration 2019, the regulations on the location for submitting tax declarations are as follows:

Location for submitting tax declaration dossiers

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4. the Government of Vietnam prescribes the location for submitting tax declaration dossiers in the following cases:

a) The taxpayer has multiple production and business activities;

b) The taxpayer conducts production and business activities in multiple areas; the taxpayer incurs tax obligations for taxes declared and paid on each occurrence;

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According to Article 11 of Decree 126/2020/ND-CP, regulations on the location for submitting tax declaration dossiers are as follows:

Location for submitting tax declaration dossiers

Taxpayers shall comply with the regulations on the location for submitting tax declaration dossiers according to Clauses 1, 2, and 3 of Article 45 of the Law on Tax Administration and the following regulations:

1. The location for submitting tax declaration dossiers for taxpayers with various activities and business in multiple provincial areas as specified in points a and b, Clause 4, Article 45 of the Law on Tax Administration, is the tax authority where the business activity is conducted outside of the province or city where the headquarters is located in the following cases:

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2. The location for submitting tax declaration dossiers for taxpayers with business activities in multiple provincial areas other than where the taxpayer's headquarters is located, as specified in point b, Clause 4, Article 45 of the Law on Tax Administration, performs centralized accounting at the headquarters (except for the cases prescribed in Clauses 1, 3, 4, 5, and 6 of this Article) at the tax authority managing the headquarters.

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According to Clause 1, Article 12 of Circular 80/2021/TT-BTC, regulations on the allocation of tax obligations for taxpayers with centralized accounting having dependent units, business locations in multiple other places than the headquarters are as follows:

Allocation of tax obligations of taxpayers with centralized accounting having dependent units, business locations in provinces other than where the headquarters is located

1. A taxpayer with business activities in multiple provincial areas other than the place where the taxpayer's headquarters is located, performs centralized accounting at the headquarters as prescribed in Clauses 2 and 4, Article 11, Decree No. 126/2020/ND-CP, performing tax declaration, calculation, and filing tax declaration dossiers for the direct tax management authority and allocating the payable tax amount to each province with business activities.

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According to Article 13 of Circular 80/2021/TT-BTC, regulations on declaring, calculating, allocating, and paying value-added tax are as follows:

Declaring, calculating, allocating, and paying value-added tax

1. Cases of allocation:

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d) Dependent units, business locations are production facilities (including processing and assembly facilities), except for cases specified in point c, Clause 1, Article 11 of Decree No. 126/2020/ND-CP;

dd) Hydropower plants located in multiple provinces.

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According to Clause 1, Article 17 of Circular 80/2021/TT-BTC, regulations on declaring, calculating, finalizing, allocating, and paying corporate income tax are as follows:

Declaring, calculating, finalizing, allocating, and paying corporate income tax

1. Cases of allocation:

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c) Dependent units, business locations are production facilities;

d) Hydropower plants located in multiple provinces.

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According to Article 19 of Circular 80/2021/TT-BTC, regulations on declaring, calculating, allocating personal income tax are as follows:

Declaring, calculating, allocating personal income tax

1. Case of allocation:

a) Deduction of personal income tax for income from salary and wages paid at the headquarters for employees working at dependent units, business locations in different provinces.

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Therefore, the tax submission for businesses with business locations in multiple places is regulated as follows:

- Business locations conducting centralized accounting at the main office of the enterprise must pay taxes at the tax authority managing the main office and allocate payable taxes like personal income tax, value-added tax, corporate income tax to each locality with business activities.

Simultaneously, the enterprise must submit an Allocation Table of Payable Taxes (if any) according to each local area at the provincial level that receives the state budget revenue (including dependent units, business locations) to the tax authority managing the main office. Except for certain circumstances prescribed by law.

- Businesses with business locations may pay taxes at the tax authority where the business activities occur in provinces or cities different from where the headquarters is located in the following cases:

- Declare value-added tax of the investment project at the place where the investment project is located.

- Declare value-added tax for real estate transfer activities of an investment and infrastructure development project, housing projects for transfer (including scenarios where pre-collection of advances from customers is made according to progress) at the place where real estate transfer activities occur.

- Declare value-added tax at the location of an electricity production plant.

- Declare special consumption tax at the place of production, processing goods subject to special consumption tax, or where service provision subject to special consumption tax is made (excluding digital lottery business activities).

In the event a taxpayer directly imports goods subject to special consumption tax and then sells them domestically, the taxpayer must declare special consumption tax with the tax authority directly managing the location where the taxpayer's headquarters is based.

- Declare environmental protection tax at the place where environmental protection taxable goods are produced, excluding environmental protection tax on petroleum business activities as prescribed.

- Declare environmental protection tax at the place with a coal production, business facility (including internal consumption scenarios).

- Declare natural resource tax (except for natural resource tax on hydropower production in cases where the hydropower reservoir of the hydropower plant spans multiple provincial areas; crude oil exploration and sales; natural gas exploration and sales and natural resource tax from organizations authorized to sell seized, confiscated resources; infrequent resource extraction authorized or not required to be authorized by competent state agencies as prescribed by law).

- Declare corporate income tax at the location with a dependent unit or business location enjoying corporate income tax preferences.

- Declare environmental protection fees at the place of mineral mining (excluding crude oil, natural gas & coal gas; organizations collecting minerals from small-scale miners).

- Declare license fees at the location with a dependent unit, business location.

Who has the authority to sign the business location establishment notification in Vietnam?

Based on Clause 3, Article 31 of Decree 01/2021/ND-CP, the regulations on the notification of business location establishment are as follows:

Dossier, procedures for registration of branch, representative office operations, and notification of business location establishment

1. Dossier for branch, representative office operations registration

2. Notification of business location establishment

a) Enterprises may establish a business location at an address different from where the headquarters or branch is located;

b) Within 10 days from the decision to establish a business location, the enterprise sends a notification of business location establishment to the Business Registration Office where the business location is established;

c) The notification of business location establishment is signed by the legal representative of the enterprise in the case of a business location directly affiliated with the enterprise or by the head of the branch in the case of a business location directly affiliated with the branch.

3. Within 03 working days from the date of receiving a valid dossier, the Business Registration Office issues a certificate of branch, representative office operations registration, updates information about the business location in the National Database on Business Registration for the enterprise. If the enterprise requests it, the Business Registration Office issues a business location registration certificate for the enterprise. If the dossier is invalid, the Business Registration Office notifies in writing the content that needs to be amended or supplemented for the enterprise.

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Therefore, according to the above regulation, the notification of business location establishment is signed by the legal representative of the enterprise in the case of a business location directly affiliated with the enterprise or by the head of the branch in the case of a business location directly affiliated with the branch.