What unit is the 10-digit TIN structure used for in Vietnam?

What is the TIN structure in Vietnam?

Pursuant to Clause 2, Article 30 of the Tax Administration Law 2019, the TIN structure is regulated as follows:

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

- A 13-digit TIN and other characters are used for dependent units and other subjects;

Additionally, according to Clause 1, Article 5 of Circular 105/2020/TT-BTC, regulations on the structure of the TIN are specified as follows:

The structure of the TIN:

N1N2 N3N4N5N6N7N8N9 N10 - N11N12N13

Where:

- The first two digits N1N2 are the range division numbers of the TIN.

- The seven digits N3N4N5N6N7N8N9 are structured in a specific sequence, escalating from 0000001 to 9999999.

- The digit N10 is the check digit.

- The three digits N11N12N13 are sequential numbers from 001 to 999.

- The hyphen (-) is the character used to separate the first 10-digit group and the last 3-digit group.

Thus, the 10-digit TIN is utilized for enterprises, organizations with legal status; representatives of households, business households, and other individuals.

What unit is the 10-digit TIN structure used for in Vietnam? (Image from the Internet)

What is the classification of TIN structure in Vietnam?

According to Clause 3, Article 5 of Circular 105/2020/TT-BTC, the classification of the TIN structure is regulated as follows:

- A 10-digit TIN is used for enterprises, cooperatives, organizations with legal status, or organizations without legal status but that directly incur tax obligations; representatives of households, business households, and other individuals (hereafter referred to as independent units).

- A 13-digit TIN and a hyphen (-) used to separate the first 10 digits and the last 3 digits is used for dependent units and other subjects.

- Taxpayers who are economic organizations, or other organizations as stipulated in Points a, b, c, d, n Clause 2, Article 4 of Circular 105/2020/TT-BTC, which have full legal status or no legal status but directly incur tax obligations and are fully responsible for all tax obligations under the law, are granted a 10-digit TIN; dependent units established by the taxpayer as provided for by law shall, if they incur tax obligations and directly declare and pay tax, be granted a 13-digit TIN.

- Foreign contractors, subcontractors according to Point đ, Clause 2, Article 4 of Circular 105/2020/TT-BTC, who register to pay contractor tax directly with the tax authority, will be granted a 10-digit TIN for each contract.

In cases where foreign contractors form a consortium with Vietnamese economic organizations to conduct business in Vietnam based on a contract and establish a management board, and the management board performs accounting and holds bank accounts, and is responsible for invoice issuance; or if the Vietnamese economic organization responsible for the joint management and profit-sharing issues invoices, they will be granted a 10-digit TIN to declare and pay tax for the contract.

In cases where foreign contractors, subcontractors have an office in Vietnam that has been declared and tax deducted and paid by the Vietnamese side on behalf of the contractor tax, the foreign contractors, subcontractors will be granted a 10-digit TIN to declare all other tax obligations (except contractor tax) in Vietnam and supply this TIN to the Vietnamese side.

- Foreign suppliers under Point e, Clause 2, Article 4 of Circular 105/2020/TT-BTC who do not yet have a TIN in Vietnam when they taxpayer register directly with the tax authority will be granted a 10-digit TIN. Foreign suppliers use this number to directly declare and pay taxes or provide this number to organizations and individuals in Vietnam that they authorize or provide it to commercial banks, and intermediary service providers to deduct and pay taxes on their behalf and declare them on the deduction table for foreign suppliers in Vietnam.

- Organizations, individuals tasked with tax deduction and payment on behalf of foreign contractors, foreign suppliers, organizations, and individuals with contracts or business cooperation documents are granted a 10-digit TIN (hereafter referred to as a substitute TIN) to declare and pay taxes on behalf of foreign contractors, subcontractors, and foreign suppliers, as well as to organizations and individuals with contracts or business cooperation documents. Foreign contractors, subcontractors, as per Point đ Clause 2, Article 4, of Circular 105/2020/TT-BTC for whom Vietnam has filed and paid the contractor tax on their behalf, will be issued a 13-digit TIN based on the Vietnamese substitute TIN to confirm completion of the contractor tax obligations in Vietnam.

When the taxpayer changes taxpayer registration information, suspends operations, resumes operations before the deadline, terminates the validity of the TIN, and restores the TIN according to the taxpayer's number, the substitute TIN is updated accordingly by the tax authority based on the taxpayer's information and status. The taxpayer is not required to submit the dossier stipulated in Chapter 2 of Circular 105/2020/TT-BTC for the substitute TIN.

- Operators, joint operating companies, joint venture enterprises, and organizations assigned by the Government of Vietnam to receive Vietnam's share of oil and gas profits from overlapping oil and gas fields under Point h, Clause 2, Article 4 of Circular 105/2020/TT-BTC will be granted a 10-digit TIN for each oil and gas contract or a similar agreement or document. The contractor, investor involved in the oil and gas contract is issued a 13-digit TIN based on the 10-digit number of each oil and gas contract to fulfill tax obligations under the contract (including corporate income tax on income from transferring participation rights in oil and gas contracts). The parent company - Vietnam National Oil and Gas Group, representing the host country, receiving the shared profits from oil and gas contracts, is granted a 13-digit TIN based on the 10-digit number of each oil and gas contract to declare and pay tax on the share of profits according to each oil and gas contract.

- Taxpayers who are households, business households, business individuals, and other individuals according to Points i, k, l, n, Clause 2, Article 4 of Circular 105/2020/TT-BTC are granted a 10-digit TIN for the representative of the household, business household, individual, and a 13-digit TIN for the business locations of business households, individuals.

- Organizations, individuals, as per Point m, Clause 2, Article 4 of Circular 105/2020/TT-BTC, have one or more authorization contracts with a tax authority and are granted a substitute TIN to deposit the collected money from taxpayers into the state budget.

What are regulations on the issuance of TIN for individuals in Vietnam?

Based on Clause 3, Article 30 of the Tax Administration Law 2019, regulations on the issuance of TIN for individuals are as follows:

- Enterprises, economic organizations, and other organizations are issued a unique TIN to be used throughout their duration from taxpayer registration until the termination of the TIN validity. Taxpayers with branches, representative offices, dependent units directly fulfilling tax obligations are issued dependent TINs. In cases where an enterprise, organization, branch, representative office, dependent unit registers taxpayer registration through the interconnected mechanism along with enterprise registration, cooperative registration, or business registration, the number recorded on the certificate of enterprise registration or cooperative registration, or business registration is also the TIN;

- Individuals are issued a unique TIN to be used throughout their lifetime. Dependents of individuals are issued a TIN for personal income tax deduction purposes. The TIN issued to the dependent also serves as the individual's TIN when the dependent incurs obligations with the state budget;

- Enterprises, organizations, individuals responsible for tax deduction and payment on behalf are issued a substitute TIN to declare and pay tax on behalf of taxpayers;

- A TIN once issued cannot be reused for another taxpayer;

- The TIN of enterprises, economic organizations, and other organizations remains unchanged after changing the type of business, selling, gifting, or inheriting;

- The TIN issued to households, business households, and business individuals is the number issued to the individual representative of the household, business household, or business individual.