What TIN is issued to foreign subcontractors registering to pay contractor tax directly with the tax authority in Vietnam?
What TIN is issued to foreign subcontractors registering to pay contractor tax directly with the tax authority in Vietnam?
Pursuant to the provisions at Point d, Clause 2, Article 5 of Circular 86/2024/TT-BTC (Effective from February 6, 2025) as follows:
Structure of TIN
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4. Classification of TIN structure issued by the tax authority
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d) Foreign contractor, foreign subcontractor as stipulated at Point đ, Clause 2, Article 4 of this Circular, registering to pay contractor tax directly with the tax authority, shall be assigned a 10-digit TIN for each contract. In cases where multiple foreign contractors, subject to direct tax payment with the tax authority, are on the same contractor contract signed with the Vietnamese party, and the contractors wish to declare and pay tax separately, each foreign contractor shall be assigned a separate 10-digit TIN.
In cases where foreign contractors associate with Vietnamese economic organizations to conduct business in Vietnam based on a contract and the joint operation forms a Joint Operation Board that maintains accounting records, holds a bank account, and is responsible for issuing invoices; or a Vietnamese economic organization in the joint operation takes responsibility for joint accounting and profit sharing among participants, a 10-digit TIN shall be issued to declare and pay tax for the contractor contract.
In cases where foreign contractors, subcontractors, having an office in Vietnam, have been declared and have had contractor tax deducted and paid by the Vietnamese party instead, the foreign contractor, subcontractor shall be issued a 10-digit TIN for declaring all other tax obligations (excluding contractor tax) in Vietnam and providing the TIN to the Vietnamese party.
Referring to Point đ, Clause 2, Article 4 of Circular 86/2024/TT-BTC (Effective from February 6, 2025) stipulates:
Subjects of tax registration
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- Taxpayers subject to perform tax registration directly with the tax authority include:
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dd) Foreign organizations without legal status in Vietnam, foreign individuals practicing independent business in Vietnam in compliance with Vietnamese law, having income arising in Vietnam, or having arising tax obligations in Vietnam (hereinafter referred to as Foreign contractor, foreign subcontractor).
For foreign subcontractors as stipulated above, registering to pay contractor tax directly with the tax authority shall be assigned a 10-digit TIN for each contract.
In cases where foreign subcontractors have an office in Vietnam that has been declared and had contractor tax deducted and paid by the Vietnamese party instead, the foreign subcontractor shall be issued a 10-digit TIN for declaring all other tax obligations (excluding contractor tax) in Vietnam and providing the TIN to the Vietnamese party.
What TIN is issued to foreign subcontractors registering to pay contractor tax directly with the tax authority in Vietnam? (Image from the Internet)
What is the structure of the TIN issued to foreign subcontractors registering to pay contractor tax directly with the tax authority in Vietnam?
The structure of the TIN issued by the tax authority is specified under Clause 2, Article 5 of Circular 86/2024/TT-BTC (Effective from February 6, 2025) as follows:
N1N2 N3N4N5N6N7N8N9 N10 - N11N12N13
Where:
- The first two digits N1N2 are the range identifier of the TIN.
- The next seven digits N3N4N5N6N7N8N9 are defined by a specified structure, incrementing from 0000001 to 9999999.
- Digit N10 is the check digit.
- The three digits N11N12N13 are serial numbers from 001 to 999.
- The hyphen (-) is the character used to separate the group of the first 10 digits and the group of the last 3 digits.
The TIN issued to foreign subcontractors registering to pay contractor tax directly with the tax authority is a 10-digit TIN with the structure N1N2 N3N4N5N6N7N8N9 N10.
What is the initial tax registration application for taxpayers as foreign subcontractors in Vietnam?
Based on the provisions at Clause 4, Article 7 of Circular 86/2024/TT-BTC (Effective from February 6, 2025), the initial tax registration application for taxpayers as foreign subcontractors includes:
Foreign subcontractors directly declaring and paying contractor tax or other tax obligations except for contractor tax deducted and paid by the Vietnamese party according to tax management law, submit the initial tax registration application at the Tax Department where the headquarters is located.
The tax registration application includes:
- tax registration declaration form No. 04-ĐK-TCT issued together with Circular 86/2024/TT-BTC;
- List of foreign contractors, foreign subcontractors form No. BK04-ĐK-TCT issued together with Circular 86/2024/TT-BTC (if any);
- A copy of the Certificate of registration of the executive office or equivalent document issued by a competent authority (if any).
