What is a personal tax code in Vietnam? Is it necessary to change the personal tax code in Vietnam when changing the Citizen ID?
What is a personal tax code in Vietnam?
Pursuant to the provisions of Clause 5, Article 3 of the Tax Administration Law 2019, the tax code is as follows:
“Article 3. Interpretation of terms
…
5. Tax identification number is a sequence of 10 or 13 digits and other characters issued by the tax authority to the taxpayer for use in tax administration.”
Thus, the personal tax identification number is a sequence of 10 or 13 digits and tax characters issued by the tax authority to the individual taxpayer in accordance with tax laws.
Tax registration object? How is the tax code structure regulated?
Pursuant to Article 4 of Circular 105/2020/TT-BTC stipulating tax registrants as follows:
“Article 4. Tax registrants
1. Tax registration subjects include:
a) Taxpayers who are subject to tax registration through the one-stop shop as prescribed at Point a, Clause 1, Article 30 of the Law on Tax Administration.
b) Taxpayers who are subject to direct tax registration with tax authorities as prescribed at Point b, Clause 1, Article 30 of the Law on Tax Administration.
2. Taxpayers subject to direct tax registration with tax authorities, including:
a) Enterprises operating in the fields of insurance, accounting, auditing, lawyer, notary public or other specialized fields are not required to register their business through the business registration agency as prescribed by law. specialized (hereinafter referred to as Economic Organization).
b) Non-business units, economic organizations of the armed forces, economic organizations of political, socio-political, social, socio-professional organizations doing business in accordance with the provisions of law. the law, but it is not required to register the business through the business registration agency; organizations of countries sharing a land border with Vietnam that buy, sell and exchange goods at border markets, border-gate markets and markets in border-gate economic zones; representative offices of foreign organizations in Vietnam; cooperative groups are established and operate under the provisions of the Civil Code (hereinafter referred to as economic organizations).
c) Organizations established by a competent authority have no production or business activities but incur obligations to the state budget (hereinafter referred to as other organizations).
d) Foreign organizations and individuals and organizations in Vietnam that use foreign humanitarian aid or non-refundable aid to purchase goods and services subject to value-added tax in Vietnam for non-refundable aid. reimbursement, humanitarian aid; diplomatic missions, consular offices and representative offices of international organizations in Vietnam eligible for VAT refund for beneficiaries of diplomatic incentives and immunities; ODA project owners eligible for VAT refund, representative offices of ODA project donors, organizations designated by foreign donors to manage non-refundable ODA programs and projects (hereinafter referred to as: called Other Organizations).
dd) Foreign organizations that do not have legal status in Vietnam or foreign individuals who independently practice business in Vietnam in accordance with Vietnamese law have incomes generated in Vietnam or incur obligations. tax in Vietnam (hereinafter referred to as foreign contractors, foreign sub-contractors).
e) An overseas supplier without a permanent establishment in Vietnam that conducts e-commerce, digital-based business and other services with organizations and individuals in Vietnam (after this is called Overseas Supplier).
g) Enterprises, cooperatives, economic organizations, other organizations and individuals responsible for withholding and paying tax on behalf of other taxpayers must declare and determine their tax obligations separately from those of other taxpayers. pay tax according to the provisions of the law on tax administration (except for income-paying agencies when deducting and paying personal income tax); Commercial banks, payment intermediary service providers or organizations and individuals authorized by overseas suppliers are responsible for declaring, withholding and paying tax on behalf of overseas suppliers ( hereinafter referred to as organizations and individuals withholding and paying instead). Organizations paying income when deducting and paying PIT on behalf of PIT shall use the issued tax identification number to declare and pay personal income tax withheld and paid on behalf of.
h) Operators, joint operating companies, joint venture enterprises, organizations assigned by the Vietnamese Government to receive Vietnamese shares of oil and gas fields in overlapping areas, contractors, investors When the investor participates in the oil and gas contract, the parent company - Vietnam National Oil and Gas Group represents the host country to receive the profit divided from the oil and gas contracts.
i) Households and individuals engaged in production and business activities of goods and services, including individuals from countries sharing a land border with Vietnam, conduct activities of buying, selling and exchanging goods and services. goods at border markets, border-gate markets, and markets in border-gate economic zones (hereinafter referred to as business households and business individuals).
k) Individuals whose income is subject to personal income tax (except for business individuals).
l) Individuals are dependents according to the provisions of the law on personal income tax.
m) Organizations and individuals authorized to collect by tax authorities.
n) Other organizations, households and individuals have obligations to the state budget”
Pursuant to Article 5 of Circular 105/2020/TT-BTC stipulating the structure of tax codes as follows:
“Article 5. Tax code structure
1. Tax code structure
N1N2N3N4N5N6N7N8N9N10 - N11N12N13
In there:
- The first two digits of N1N2 are the part number of the tax code.
- Seven digits N3N4N5N6N7N8N9 are specified according to a definite structure, increasing from 0000001 to 9999999.
- Digit N10 is the check digit.
- Three digits N11N12N13 are the ordinal numbers from 001 to 999.
- The dash (-) is the character to separate the first 10 digits and the last 3 digits.
2. Enterprise identification number, cooperative identification number and code number of dependent units of enterprises or cooperatives granted in accordance with the law on business registration and registration of cooperatives are tax identification numbers.
3. Tax code structure classification
a) A 10-digit tax code is used for enterprises, cooperatives, organizations with legal status or organizations without legal status but directly incurring tax obligations; representatives of households, business households and other individuals (hereinafter referred to as independent units).
b) Tax code 13 digits and a dash (-) used to separate the first 10 digits and the last 3 digits are used for dependent units and other objects.
c) Taxpayers being economic organizations or other organizations specified at Points a, b, c, d, n, Clause 2, Article 4 of this Circular have full legal status or have no legal status but directly incur tax obligations and take self-responsibility for all tax obligations before the law to be granted a 10-digit tax code; Dependent units established in accordance with the law of the above-mentioned taxpayers, if tax obligations arise and directly declare and pay tax, are granted a 13-digit tax code.
d) Foreign contractors and foreign sub-contractors specified at Point dd, Clause 2, Article 4 of this Circular that register to pay contractor tax directly with tax authorities will be granted a 10-digit tax code according to each contract. .
In case a foreign contractor enters into a partnership with Vietnamese economic organizations to conduct business in Vietnam on the basis of a bidding contract, and the parties participating in the partnership establish a Joint Venture Executive Board, the Joint Executive Board name in charge of accounting, have an account at a bank, are responsible for issuing invoices; or an economic organization in Vietnam participating in a partnership that is responsible for general accounting and distributing profits to the parties to the partnership, shall be granted a 10-digit tax code to declare and pay tax for the contract.
In case the foreign contractor or foreign sub-contractor has an office in Vietnam and the Vietnamese party declares, deducts and pays tax on behalf of the contractor tax, the foreign contractor or foreign sub-contractor is granted a code. 10-digit tax number to declare all other tax obligations (except for contractor tax) in Vietnam and provide tax identification number to the Vietnamese party.
dd) The overseas supplier specified at Point e, Clause 2, Article 4 of this Circular does not yet have a tax identification number in Vietnam when registering for tax directly with the tax authority and is granted a 10-digit tax code. Overseas suppliers use their granted tax identification numbers to directly declare and pay tax or provide tax identification numbers to organizations and individuals in Vietnam authorized or provided by overseas suppliers. commercial banks, payment intermediary service providers to deduct, pay tax obligations on behalf of and declare in the tax deduction list of overseas suppliers in Vietnam.
e) Organizations and individuals that deduct and pay on behalf of as prescribed at Point g, Clause 2, Article 4 of this Circular are granted a 10-digit tax code (hereinafter referred to as tax code for payment on behalf of) to declare and pay tax. on behalf of foreign contractors, foreign sub-contractors, overseas suppliers, organizations and individuals with business cooperation contracts or documents. Foreign contractors and foreign sub-contractors specified at Point dd, Clause 2, Article 4 of this Circular and declared and paid by the Vietnamese party on behalf of the contractor, shall be granted a 13-digit tax code according to the tax code paid on behalf of the foreign contractor. Vietnamese party to confirm the fulfillment of house tax obligations in Vietnam.
When a taxpayer changes his/her tax registration information, suspends operations, does business or resumes operations or business ahead of time, terminates the validity of his tax identification number and restores his/her tax identification number as prescribed for a tax code. If the taxpayer's tax number is the taxpayer, the tax identification number paid on behalf of the tax authority will be updated accordingly according to the information and status of the taxpayer's tax identification number. Taxpayers are not required to submit dossiers as prescribed in Chapter II of this Circular for tax identification numbers to be paid on behalf of.
g) Operators, joint operating companies, joint venture enterprises, organizations assigned by the Vietnamese Government to receive distributions of Vietnam's divided oil and gas interests in oil and gas fields in overlapping areas according to regulations. specified at Point h, Clause 2, Article 4 of this Circular, a 10-digit tax code shall be granted according to each oil and gas contract or written agreement or other equivalent paper. Contractors and investors participating in oil and gas contracts are granted a 13-digit tax code according to the 10-digit tax code of each petroleum contract to fulfill their own tax obligations under the oil and gas contract (including income tax). income from the transfer of interests to participate in oil and gas contracts). The parent company - Vietnam National Oil and Gas Group, representing the host country receiving the profit share from oil and gas contracts, is granted a 13-digit tax code according to the 10-digit tax code of each oil and gas contract to declare. declare and pay tax on the profit divided according to each oil and gas contract.
h) Taxpayers being households, business households, business individuals and other individuals specified at Points i, k, l, n, Clause 2, Article 4 of this Circular are granted a 10-digit tax code for representatives of households, representatives of business households and individuals and grant 13-digit tax codes to business locations of business households and individuals.
i) Organizations and individuals specified at Point m, Clause 2, Article 4 of this Circular, which have one or more collection authorization contracts with a tax authority, shall be granted a tax identification number instead of paying the collected amount. taxpayers to the state budget.”
What is a personal tax code? Is it necessary to change the personal tax code when changing the Citizen ID?
Procedure to change personal tax code when changing to using Citizen ID with chip?
Pursuant to the provisions of Clause 2, Article 11 of Circular 105/2020/TT-BTC providing for taxpayers to change tax registration information as follows:
“Article 11. Processing application for change of tax registration information and returning results
...
2. Taxpayers change tax registration information as prescribed in Clause 2, Article 10 of this Circular
a) At the tax office where moving:
Taxpayers submit dossiers of change of tax registration information at the tax authorities directly managing them. Within 5 (five) working days at the latest from the date the tax authority publishes the inspection report and conclusion (for dossiers subject to inspection at the taxpayer's office), 07 (seven days) ) working days from the date of receipt of the taxpayer's dossier (for the dossier that is not subject to inspection at the taxpayer's office), the tax authority shall issue a notice of the taxpayer's relocation of the sample location. No. 09-MST issued together with this Circular according to the provisions of Clause 3, Article 6 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration sent to taxpayers.
Taxpayers who move their business locations at the head office, if they continue to have business activities other than the province-level areas with the locality where the head office is located, are obliged to declare and pay taxes to the tax authorities managing the tax authorities. management in that provincial area according to the provisions of the tax administration law (the tax authority manages the revenue) is not required to carry out the transfer of tax obligations as prescribed at point a.1 of this Clause.
b) At the tax office where they move to:
Within 03 (three) working days from the date of receipt of a complete dossier from the taxpayer, the tax authority receiving the dossier is responsible for updating the changed information into the tax registration application system. At the same time, issue the Tax Registration Certificate or the Notice of Tax Identification Number with updated information and send it to the taxpayer.”
Thus, when taxpayers change from a 9-digit ID card to a CCCD with a chip, they must carry out procedures to change tax registration information.
Pursuant to Clause 3, Article 10 of Circular 105/2020/TT-BTC, dossiers and procedures for changing tax registration information are prescribed as follows:
“Article 11. Processing application for change of tax registration information and returning results
...
3. Taxpayers being individuals specified at Points k, l, n, Clause 2, Article 4 of this Circular have changed their tax registration information and their dependents (including change in tax authorities). direct manager) submit a dossier to the income paying agency or the Tax Department, the regional Tax Department where the individual registers his/her permanent residence or temporary residence (in case the individual does not work at the paying agency). income) as follows:
a) An application for change of tax registration information, for the case submitted through an income-paying agency, includes: Authorization letter (in case there is no prior written authorization to the income-paying agency); ) and copies of documents with changes in information related to tax registration of individuals or dependents.
The income-paying agency is responsible for synthesizing changed information of individuals or dependents on the tax registration declaration form No. 05-DK-TH-TCT or form No. 20-DK-TH-TCT enclosed herewith. according to this Circular, and send it to the tax authority directly managing the income-paying agency.
b) Dossier of change of tax registration information, for the case filed directly at the tax authority, includes:
- Declaration of adjustment and supplement of tax registration information, form No. 08-MST issued together with this Circular;
- A copy of the citizen's identity card or a copy of the valid people's identity card for dependents who are Vietnamese nationals; a copy of the valid Passport for dependents who are foreign nationals or Vietnamese nationals living abroad in case the tax registration information on these papers changes.”
So, in your case, if you switch from a 9-digit ID card to a CCCD with a chip, you have to carry out the procedure to change tax registration information. As for switching from CCCD to CCCD with chip, there is no need to change.
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