When will PITs replace TINs? How long does it take for TIN registration in Vietnam?
How long does it take for TIN registration in Vietnam?
Pursuant to the provisions of Clause 1, Article 34 of the Law on Tax Administration 2019 as follows:
Issuance of taxpayer registration certificate
1. Tax authorities shall issue taxpayer registration certificates to taxpayers within 03 working days starting from the date of receipt of taxpayers’ satisfactory taxpayer registration application as prescribed by law.
At the same time, based on Decision 2589/QD-BTC in 2021, the processing time for online TIN registration application is 03 (three) working days from the date the tax authority receives the registration application according to regulations.
When will PITs replace TINs in Vietnam? How long does it take for TIN registration in Vietnam?
How many TINs will be issued for Vietnamese citizens?
Pursuant to Clause 3, Article 30 of the Law on Tax Administration 2019 on TIN issuance as follows:
Applying for taxpayer registration and TIN issuance
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3. Issuance of TINs:
a) Each enterprise, business organization or other organization is issued with 01 unique TIN to use throughout its entire operation, from the date of taxpayer registration to the date of TIN deactivation. A taxpayer’s branches, representative offices and/or dependent units that pay their own tax shall be issued with separate TINs. In case an enterprise, organization, branch, representative office or dependent unit combines taxpayer registration via the interlinked single-window system with business registration, the number of the certificate of enterprise registration, cooperative registration and/or business registration (hereinafter referred to as “business registration certificate”) is also the TIN;
b) Each individual is issued 01 unique TIN to use throughout their whole life. Any dependant of that individual shall be issued with a TIN for the purpose of claiming personal exemption for personal income taxpayers. The TIN issued to the dependant is also his/her personal TIN, which is used when paying his/her tax;
c) Enterprises, organizations and individuals responsible for deducting and paying tax on behalf of taxpayers shall be issued with separate TINs for use when deducting tax;
d) Issued TINs shall not be reissued to another taxpayer;
dd) TINs of enterprises, business organizations and other organizations shall remain unchanged after they are converted, sold, gifted or inherited;
e) TIN issued to a household, household business or individual business is issued to the individual representing the household, household business or individual business.
Accordingly, each individual is issued 01 unique TIN to use throughout their whole life.
When will PITs replace TINs in Vietnam?
Pursuant to the provisions of Article 35 of the Law on Tax Administration 2019 as follows:
Use of TINs
1. Taxpayers must include their TINs in invoices, records and/or materials when making business transactions; opening deposit accounts at commercial banks and/or other credit institutions; declaring tax, pay tax, applying for tax exemption, tax reduction, tax refund and/or tax cancellation; filing customs declarations and making other tax-related transactions for all amounts payable to the state budget, including the case where taxpayers’ businesses operate across different locations.
2. Taxpayers must provide their TINs to relevant agencies and/or organizations or include their TINs in their applications when following administrative procedures of tax authorities via the interlinked single-window system.
3. Tax authorities, the State Treasury and commercial banks and other organizations authorized by tax authorities to collect tax shall use TINs of taxpayers for the purpose of tax administration and tax collection.
4. Commercial banks and other credit institutions must include TINs in the taxpayers’ applications for opening accounts and in records of transactions via accounts.
5. Other organizations and individuals participating in tax administration shall use TINs of taxpayers when providing information related to the determination of tax liabilities.
6. When a Vietnamese party makes a payment to an organization/individual whose cross-border business is based on a digital intermediary platform outside of Vietnamese territories, it must use the TIN assigned to this organization/individual to deduct and pay tax on behalf of such organization/individual.
7. Personal identification numbers shall replace TINs when they are issued to the whole population.
Thus, when a personal identification number is issued to the entire population, people can use the personal identification number instead of the tax code.
Accordingly, based on Directive 18/CT-TTg in 2023 on promoting connection and data sharing to serve the development of e-commerce, prevent tax loss, and ensure monetary security.
In order to increase effectiveness and efficiency and continue to promote digital transformation in e-commerce activities, prevent tax loss, and ensure monetary security, the Prime Minister has instructed and requested the Ministry of Public Security to coordinate Coordinate with the Ministry of Finance to convert the use of PITs as TINs to be completed no later than the third quarter of 2023.
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