Which authority are responsible for registering tax for reorganized enterprises in Vietnam?

Which authority are responsible for registering tax for reorganized enterprises in Vietnam?

Pursuant to Article 38 of the Law on Tax Administration 2019 :

Tax Registration in Cases of Business Reorganization

1. Taxpayer registration along with business registration, cooperative registration, and business registration upon business reorganization shall be implemented together with business registration, cooperative registration, and business registration as prescribed by law.

2. Taxpayers directly registering with the tax authority when reorganizing the business must terminate the tax identification number’s validity for the entities being split, merged, consolidated, or change information for entities being divided, and re-register or change information for newly established entities after being split, divided, or merged.

Thus, according to the aforementioned regulation, taxpayer registration in the case of business reorganization must be carried out directly with the tax authority.

*Note: The business must terminate the tax identification number’s validity for the entities being split, merged, consolidated, or change information for entities being divided, and re-register or change information for newly established entities after being split, divided, or merged.

Which authority are responsible for registering tax for reorganized enterprises in Vietnam? (Image from the Internet)

Guidelines for tax registration in cases of business reorganization in Vietnam

Pursuant to Clause 1, Article 20, Section 6 of Circular 105/2020/TT-BTC, the guidance on taxpayer registration in cases of business reorganization is as follows:

* Splitting the Organization

[1] For the entity being split:

- The entity being split must complete the procedures to terminate the tax identification number’s validity with the directly managing tax authority as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 14 of Circular 105/2020/TT-BTC.

- Based on the dossier to terminate the tax identification number’s validity of the entity being split, the tax authority shall complete the procedures and sequence to terminate the tax identification number’s validity of the entity being split as prescribed in Article 39 of the Law on Tax Administration 2019 and Articles 15 and 16 of Circular 105/2020/TT-BTC.

[2] For the newly established entity from the split:

- Newly established entities from the split organization must complete the procedures for taxpayer registration with the tax authority as prescribed in Articles 31, 32, and 33 of the Law on Tax Administration 2019 and Article 7 of Circular 105/2020/TT-BTC.

- Based on the taxpayer registration dossier of the newly established entity from the split organization, the tax authority shall complete the procedures and sequence to issue a tax identification number for the taxpayer as prescribed in Article 34 of the Law on Tax Administration 2019 and Article 8 of Circular 105/2020/TT-BTC.

* Dividing the Organization

[1] For the divided entity:

If post-division, the divided entity has to change taxpayer registration information, the entity must complete the procedures to change taxpayer registration information with the directly managing tax authority within 10 (ten) working days from the date of issuance of the Establishment and Operation License, Establishment Decision, or other equivalent documents by the competent state authority.

The dossier includes:

- The declaration of adjustment and supplementation of taxpayer registration information Form No. 08-MST issued together with this Circular;

- A copy of the organization division decision or equivalent document;

- A copy of the Establishment and Operation License, Establishment Decision, or other equivalent documents.

The tax authority shall complete the procedures to change taxpayer registration information of the divided entity as prescribed in Article 36 of the Law on Tax Administration 2019 and Article 11 of Circular 105/2020/TT-BTC.

The divided entity shall continue to use the previously issued tax identification number to fulfill its tax obligations.

[2] For the divided entity:

The divided entity must complete the taxpayer registration procedures with the tax authority as prescribed in Articles 31, 32, and 33 of the Law on Tax Administration 2019 and Article 7 of Circular 105/2020/TT-BTC.

Based on the taxpayer registration dossier of the divided entity, the tax authority shall complete the procedures and sequence to issue a tax identification number for the taxpayer as prescribed in Article 34 of the Law on Tax Administration 2019 and Article 8 of Circular 105/2020/TT-BTC.

* Merging the Organization

The entity that receives the merger will retain its tax identification number. The merged entities will have their tax identification numbers terminated.

[1] For the merged entity:

The merged entity must complete the procedures to terminate the tax identification number’s validity with the directly managing tax authority as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 14 of Circular 105/2020/TT-BTC.

Based on the dossier to terminate the tax identification number’s validity of the merged entity, the tax authority shall complete the procedures and sequence to terminate the tax identification number’s validity of the merged entity as prescribed in Article 39 of the Law on Tax Administration 2019 and Articles 15 and 16 of Circular 105/2020/TT-BTC.

[2] For the merging entity:

In case of a merger resulting in a change in taxpayer registration information, within 10 (ten) working days from the date of issuance of the Establishment and Operation License, Establishment Decision, or other equivalent documents, the merging entity must complete the procedures to change taxpayer registration information with the directly managing tax authority.

The dossier includes:

- The declaration of adjustment and supplementation of taxpayer registration information Form No. 08-MST issued together with this Circular;

- A copy of the merger contract or equivalent document;

- A copy of the Establishment and Operation License, Establishment Decision, or other equivalent documents.

The tax authority shall complete the procedures to change taxpayer registration information of the merging entity as prescribed in Article 36 of the Law on Tax Administration 2019 and Article 11 of Circular 105/2020/TT-BTC.

* Consolidating the Organization

[1] For the consolidated entity:

Consolidated entities must complete the procedures to terminate the tax identification number’s validity with the directly managing tax authority as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 14 of Circular 105/2020/TT-BTC.

Based on the dossier to terminate the tax identification number’s validity of the consolidated entities, the tax authority shall complete the procedures and sequence to terminate the tax identification number’s validity of the consolidated entities as prescribed in Article 39 of the Law on Tax Administration 2019 and Articles 15 and 16 of Circular 105/2020/TT-BTC.

[2] For the consolidating entity:

The consolidating entity must complete the taxpayer registration procedures with the tax authority as prescribed in Articles 31, 32, and 33 of the Law on Tax Administration 2019 and Article 7 of Circular 105/2020/TT-BTC.

Based on the taxpayer registration dossier of the consolidating entity, the tax authority shall complete the procedures and sequence to issue a tax identification number for the taxpayer as prescribed in Article 34 of the Law on Tax Administration 2019 and Article 8 of Circular 105/2020/TT-BTC.

Guidelines for taxpayer registration when converting dependent units into independent units in Vietnam

Pursuant to Clause 1, Article 21 of Circular 105/2020/TT-BTC:

- The dependent unit with a decision to convert into an independent unit, or vice versa, must complete taxpayer registration procedures to be issued a new tax identification number as prescribed in Articles 31, 32, and 33 of the Law on Tax Administration 2019 and Article 7 of Circular 105/2020/TT-BTC.

- The independent unit or dependent unit prior to the conversion must complete the procedures to terminate the tax identification number’s validity with the directly managing tax authority as prescribed in Article 39 of the Law on Tax Administration 2019 and Article 14 of Circular 105/2020/TT-BTC.

- Based on the taxpayer registration dossier of the independent unit or dependent unit after the conversion, the tax authority shall complete the procedures and sequence to issue a tax identification number for the taxpayer as prescribed in Article 34 of the Law on Tax Administration 2019 and Article 8 of Circular 105/2020/TT-BTC.

- Based on the dossier to terminate the tax identification number’s validity of the independent unit or dependent unit before the conversion, the tax authority shall complete the procedures and sequence to terminate the tax identification number’s validity as prescribed in Article 39 of the Law on Tax Administration 2019 and Articles 15 and 16 of Circular 105/2020/TT-BTC.