Can Enterprises Supplement Tax Declaration Dossiers When Declaring Taxes Using Only the ID Number of the Employee?
Which entities are required to register for tax payment?
According to the provisions of Article 4 Circular 105/2020/TT-BTC regarding entities required for taxpayer registration as follows:
Entities required for taxpayer registration
1. Entities required for taxpayer registration include:
a) Taxpayers who are subject to taxpayer registration through the inter-connected single-window mechanism as stipulated in Point a Clause 1 Article 30 of the Law on Tax Administration.
b) Taxpayers who are subject to taxpayer registration directly with the tax authority as stipulated in Point b Clause 1 Article 30 of the Law on Tax Administration.
Simultaneously, Article 30 of the Law on Tax Administration 2019 stipulates the entities required for taxpayer registration as follows:
Entities required for taxpayer registration and issuance of tax identification numbers
1. Taxpayers must conduct taxpayer registration and be issued tax identification numbers by the tax authority before starting production and business activities or generating obligations with the state budget. Entities required for taxpayer registration include:
a) Enterprises, organizations, and individuals performing taxpayer registration through the inter-connected single-window mechanism together with business registration, cooperative registration, business operation registration according to the provisions of the Law on Enterprises and other relevant laws;
b) Organizations and individuals not within the scope defined at Point a of this clause shall carry out taxpayer registration directly with the tax authority as stipulated by the Minister of Finance.
Thus, both individuals and organizations are required to conduct taxpayer registration and be issued tax identification numbers by the tax authority.
How do organizations declare personal income tax finalization for employees?
Official Dispatch 50820/CTHN-TTHT year 2022 guides the declaration of personal income tax finalization as follows:
Based on the provisions at Clause 1 Article 4 Circular 105/2020/TT-BTC and Article 30 of the Law on Tax Administration 2019:
Organizations paying income when conducting the procedures for declaring personal income tax finalization on behalf of employees by authorization must have complete personal tax identification numbers of the employees. In cases where the organization paying income only declares based on the employees' identification card numbers, they shall guide the employees to perform taxpayer registration procedures pursuant to Circular 105/2020/TT-BTC, and the organization paying income shall make additional declarations of personal income tax returns as stipulated in Article 47 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019, of the National Assembly.
Thus, when an organization conducts the procedures for declaring personal income tax finalization for employees by authorization, it must have the personal tax identification numbers of the employees.
How is the issuance of tax identification numbers for individuals regulated?
According to the provisions of Clause 3 Article 30 of the Law on Tax Administration 2019 on the issuance of tax identification numbers for individuals:
Entities required for taxpayer registration and issuance of tax identification numbers
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3. The issuance of tax identification numbers is regulated as follows:
a) Enterprises, economic organizations, and other organizations are issued a unique tax identification number to be used throughout their operational period from taxpayer registration to the termination of the tax identification number's validity. Taxpayers with branches, representative offices, and dependent units performing tax obligations are issued dependent tax identification numbers. If enterprises, organizations, branches, representative offices, and dependent units perform taxpayer registration through the inter-connected single-window mechanism together with business registration, cooperative registration, and business operation registration, the number on the business registration certificate, cooperative registration certificate, and business operation certificate concurrently is the tax identification number;
b) Individuals are issued a unique tax identification number to be used for their entire lifetime. Dependents of the individual are issued tax identification numbers to reduce family circumstances for personal income tax. The tax identification number issued to the dependent is concurrently the tax identification number of the individual if the dependent incurs obligations with the state budget;
c) Enterprises, organizations, and individuals responsible for withholding and paying taxes on behalf of others are issued substitute tax identification numbers to perform tax declaration and payment on behalf of taxpayers;
d) Issued tax identification numbers are not reused to assign to other taxpayers;
dd) Tax identification numbers of enterprises, economic organizations, and other organizations after conversion of type, sale, donation, inheritance are maintained;
e) Tax identification numbers issued to households, business households, and individual businesses are the tax identification numbers issued to the individual representing the household, business household, and individual business.
Therefore, after taxpayer registration, individuals are issued a unique tax identification number as stipulated above.
Can enterprises submit additional tax returns when they only declare taxes based on employees' identification card numbers?
Based on the provisions of Clause 1 and Clause 3 Article 30 of the Law on Tax Administration 2019, taxpayers performing taxpayer registration will be issued tax identification numbers by the tax authority for tax declaration.
Based on the provisions of Clause 1 Article 47 of the Law on Tax Administration 2019 concerning the supplementary declaration of tax returns as follows:
Supplementary declaration of tax returns
1. Taxpayers discovering errors in previously submitted tax returns may submit supplementary declarations within 10 years from the expiration date for submitting the tax returns for the tax period with errors, but before the tax authority or competent authority announces the decision to inspect, examine.
Furthermore, Official Dispatch 50820/CTHN-TTHT year 2022 guides that if the organization paying income only declares based on the employees' identification card numbers, they should guide the employees to perform taxpayer registration procedures according to Circular 105/2020/TT-BTC, and the organization paying income shall make additional declarations of personal income tax returns as stipulated in Article 47 of the Law on Tax Administration 2019.
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