Vietnam: Taxpayers who change their citizen identity numbers are required to register to change information on their tax declaration dossiers?
- What is included in the tax declaration dossiers of individuals earning incomes subject to personal income tax?
- Taxpayers who change their citizen identity numbers are required to register to change information on their tax declaration dossiers?
- How to handle individuals changing their citizen identity number without notifying tax authorities?
What is included in the tax declaration dossiers of individuals earning incomes subject to personal income tax?
According to the provisions at point k, clause 2, Article 4 of Circular 105/2020/TT-BTC of Vietnam:
Entities required to register tax
…
2. The taxpayers subject to direct tax registration with tax authorities include:
…
h) Executives, general executive companies, joint ventures, organizations authorized by Vietnamese Government to receive profits distributed from petroleum fields in the overlapping areas, contractors, and investors entering into petroleum contracts or agreements, parent company - Petro Vietnam as the representative of host country that receives profits distributed from petroleum contracts or agreements
i) Households, individuals engaged in production and business of goods or services, including individuals of neighbor countries on land with Vietnam engaging in sale and barter at border marketplace, checkpoint marketplaces, marketplaces in checkpoint economic zones) (hereinafter referred to as household/individual businesses).
k) Individuals earning incomes subject to personal income tax (excluding individual businesses)
l) Individuals who have dependents as per the law on personal income tax.
m) Organizations and individuals authorized by tax authorities to collect amounts receivable (hereinafter referred to as authorized tax collectors).
n) Other entities, households and individuals taking on liabilities to the government budget.
Thus, individuals earning incomes subject to personal income tax are subject to tax registration and need to prepare the documents prescribed in Clause 9 Article 7 of Circular 105/2020/TT-BTC of Vietnam, specifically as follows:
- If an individual who has his/her income payer withhold and remit personal income taxes and authorize the income payer to apply for tax registration, he/she shall file an application for tax registration with his/her income payer.
Required documents in an application for tax registration of individual:
+ Authorization document
+ One of the documents of the individual
++ Copy of unexpired citizen identification card or ID card, for a Vietnamese nationality individual;
++ Copy of unexpired passport, for a foreign national or overseas Vietnamese.
The income payer shall consolidate tax registration information of the individual in a single application form for tax registration No. 05-DK-TH-TCT hereto appended and file it with their supervisory tax authority.
- If an individual who neither has his/her income payer withhold and remit personal income taxes nor authorize the income payer to apply for tax registration, he/she shall file an application for tax registration as follows:
+ Application form for tax registration No. 05-DK-TCT hereto appended;
+ Copy of unexpired citizen identification card or ID card, for a Vietnamese nationality individual;
+ Copy of unexpired passport, for a foreign national or overseas Vietnamese.
Vietnam: Taxpayers who change their citizen identity numbers are required to register to change information on their tax declaration dossiers?
Taxpayers who change their citizen identity numbers are required to register to change information on their tax declaration dossiers?
Pursuant to Clause 3, Article 10 of Circular 105/2020/TT-BTC of Vietnam, the taxpayer being an individual wishing to amend his/her tax registration information, citizen identity number in particular, shall apply for amendments to tax registration information.
- The application for amendments to tax registration, filed with the income payer, includes:
+ A letter of authorization (if the taxpayer has not authorized the income payer before)
+ Copies of documents having changes related to the tax registration of the taxpayer or his/her dependent(s).
- The application for amendments to tax registration, filed with the tax authority in person, includes:
+ Application form for amendments to tax registration No. 08-MST hereto appended;
+ Copy of unexpired citizen identification card or ID card, for an Vietnamese nationality individual; copy of unexpired passport, for a foreign national or overseas Vietnamese, if the tax registration information thereon is changed.
How to handle individuals changing their citizen identity number without notifying tax authorities?
Pursuant to Article 11 of Decree 125/2020/ND-CP of Vietnam as follows:
Penalties for violations against regulations on time limits for notification of changes in tax registration information in Vietnam
1. Cautions shall be given as a form of penalty imposed for the following violations:
a) Notifying changes in tax registration information in Vietnam from 01 to 30 days after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications under mitigating circumstances;
b) Notifying changes in tax registration information in Vietnam from 01 to 10 days after expiration of the prescribed time limits if such changes entail any change in tax registration certificates or tax identification number notifications under mitigating circumstances.
2. Fines ranging from VND 500,000 to VND 1,000,000 shall be imposed for the act of notifying changes in tax registration information in Vietnam from 01 to 30 days after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications, except the cases specified in point a of clause 1 of this Article.
3. Fines ranging from VND 1,000,000 to VND 3,000,000 shall be imposed for one of the following violations:
a) Notifying changes in tax registration information from 31 to 90 days after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications;
b) Notifying changes in tax registration information from 01 to 30 days after expiration of the prescribed time limits if such changes entail any change in tax registration certificates or tax identification number notifications, except as specified in point b of clause 1 of this Article.
4. Fines ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for one of the following violations:
a) Notifying changes in tax registration information at least 91 days after expiration of the prescribed time limits without entailing any change in tax registration certificates or tax identification number notifications;
b) Notifying changes in tax registration information from 31 to 90 days after expiration of the prescribed time limits if these changes entail any change in tax registration certificates or tax identification number notifications.
5. Fines ranging from VND 5,000,000 to VND 7,000,000 shall be imposed for one of the following violations:
a) Notifying changes in tax registration information at least 91 days after expiration of the prescribed time limits if these changes entail any change in tax registration certificates or tax identification number notifications;
b) Failing to notify changes of information contained in tax registration applications.
Thus, individuals who change citizen ID numbers without notifying the change registration to the tax authorities may be fined up to VND 07 million.
However, for the following cases, individuals who change citizen ID numbers will not be administratively sanctioned for late/failure to notify tax registration changes to the tax authorities:
+ Non-business persons who have been granted personal income tax identification codes delay in registering changes in their ID information after receipt of 12-digit ID cards;
+ Income payers delay in registering changes from ID cards to 12-digit ID cards of PIT payers that are persons granting authorization to complete PIT finalization procedures.
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