What is the time limit for an employer to register a TIN for employees in Vietnam?

What is the time limit for an employer to register a TIN for employees in Vietnam?

Based on Clause 3, Article 33 of the 2019 Law on Tax Administration stipulates:

Deadline for first taxpayer registration

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3. Organizations or individuals responsible for income payment have the duty to register for a TIN on behalf of individuals receiving income within 10 working days from the date on which the tax obligation arises if the individuals do not yet have a TIN; and to register on behalf of dependents of taxpayers within 10 working days from the date the taxpayer registers for family circumstances deduction as prescribed by law if the dependents do not yet have a TIN.

According to the above regulation, organizations or individuals paying income to employees must be responsible for registering a TIN on behalf of their employees if they do not have one within 10 days from the date on which the tax obligation arises.

Thus, the employer is responsible for registering a TIN for employees within no later than 10 days from the date the employee incurs a tax obligation but does not have a TIN.

What is the time limit for an employer to register a TIN for employees in Vietnam? (Image from Internet)

How much is the penalty for an employer failing to register TIN for employees within the time limit in Vietnam?

Based on Article 10 of Decree 125/2020/ND-CP stipulates:

Penalties for violations of the deadline for taxpayer registration; notification of temporary business suspension; notification of business resumption ahead of schedule

1. A warning shall be given for violations of taxpayer registration; notification of temporary business suspension; notification of business resumption ahead of schedule overdue from 01 to 10 days with mitigating circumstances.

2. A fine from 1,000,000 VND to 2,000,000 VND for one of the following acts:

a) Tax registration; notification of business resumption ahead of schedule overdue from 01 to 30 days, except as stipulated in Clause 1 of this Article;

b) Notification of temporary business suspension exceeding the prescribed time, except as stipulated in Clause 1 of this Article;

c) Not notifying of temporary business suspension.

3. A fine from 3,000,000 VND to 6,000,000 VND for acts of taxpayer registration; notification of business resumption ahead of schedule overdue from 31 to 90 days.

4. A fine from 6,000,000 VND to 10,000,000 VND for one of the following acts:

a) Tax registration; notifying business resumption ahead of schedule exceeding the prescribed time from 91 days upwards;

b) Not notifying business resumption ahead of schedule but not incurring a payable tax amount;

The law stipulates that taxpayers delaying taxpayer registration are penalized for violating the deadline for taxpayer registration as follows:

- Exceeding the prescribed time from 01 to 10 days with mitigating circumstances: Warning

- Exceeding the prescribed time from 01 to 30 days, without mitigating circumstances: A fine from 1,000,000 VND to 2,000,000 VND

- Exceeding the prescribed time from 31 to 90 days: A fine from 3,000,000 VND to 6,000,000 VND

- Exceeding the prescribed time from 91 days or more: A fine from 6,000,000 VND to 10,000,000 VND

And based on point a, Clause 1, Article 3 of Decree 125/2020/ND-CP stipulates:

Subjects being fined for administrative violations regarding tax and invoices

1. Subjects being fined for administrative violations regarding tax, invoices include:

a) Taxpayers committing administrative violations regarding tax, invoices.

In cases where a taxpayer authorizes another organization or individual to perform tax obligations which the tax law and tax administration law stipulate the obligations and responsibilities of the authorized party, if the authorized party commits administrative violations stipulated in this Decree, then the authorized organization or individual is subject to punishment pursuant to this Decree.

In cases stipulated by tax law and tax administration law, if an organization or individual has the obligation to register for taxes, declare and pay taxes on behalf of the taxpayer, and the organization or individual registering, declaring and paying taxes on behalf of the taxpayer commits administrative violations stipulated herein, then the organization or individual registering, declaring and paying taxes on behalf will be subject to administrative penalties regarding tax pursuant to this Decree.

b) Organizations and individuals related to administrative violations regarding tax and invoices.

2. A taxpayer being an organization subjected to administrative penalties for violations regarding tax and invoices include:

a) Enterprises established and operating according to the Law on Enterprises, the Law on Investment, the Law on Credit Institutions, the Law on Insurance Business, the Law on Securities, the Law on Petroleum, the Law on Commerce, and other legislative documents; dependent units of enterprises, business locations directly reporting, paying taxes, and using invoices;

b) Public non-business units, non-public non-business units;

c) Organizations established and operating according to the Law on Cooperatives;

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Thus, in cases where an employer is responsible for registering a TIN on behalf of employees but violates the registration deadline, it will be subject to a maximum fine of 10,000,000 VND.

Vietnam: How many digits does an personal TIN have?

According to Clause 5, Article 3 of the 2019 Law on Tax Administration, a TIN is a sequence of 10 digits or 13 digits and other characters issued by the tax authority for taxpayers to use for tax management.

To be specific: in Clause 2, Article 30 of the 2019 Law on Tax Administration, it specifies as follows:

Objects of taxpayer registration and issuance of TINs

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2. The structure of TINs is specified as follows:

a) A 10-digit TIN is used for enterprises, organizations with legal personality; representatives of households, business households, and other individuals;

b) A 13-digit TIN and other characters are used for dependent units and other entities;

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Thus, an personal TIN is a sequence of 10 digits issued by the tax authority for taxpayers to use for tax management.