What is the application for first-time taxpayer registration? Is the penalty for violations against regulations on tax registration time limits up to 10 million VND?
When should a taxpayer prepare to apply for first-time taxpayer registration in Vietnam?
Pursuant to Article 31 of the Law on Tax Administration 2019 stipulates as follows:
“Article 31. Application for first-time taxpayer registration
1. For taxpayers who combine taxpayer registration with business registration, taxpayer registration application is the application for business registration as prescribed by law.
2. If the taxpayer is an organization registering directly with the tax authority, the taxpayer registration application shall include:
a) The taxpayer registration form;
b) Copies of valid establishment and operation license, establishment decision, investment registration certificate or equivalent documents granted by competent authorities;
c) Other relevant documents.
3. If the taxpayer is a household, household business or individual business directly registered with the tax authority, the taxpayer registration application shall include:
a) The registration form or tax return;
b) Copy of the identity card or passport;
c) Other relevant documents.
4. Sharing of information between state management agencies and tax authorities for receipt of taxpayer registration applications and TIN issuance via the interlinked single-window system on portals shall be implemented as prescribed by law.”
Accordingly, when conducting tax registration for the first time, taxpayers need to prepare documents according to the above components to conduct tax registration in accordance with the law.
What is the application for first-time taxpayer registration? Is the penalty for violations against regulations on tax registration time limits up to 10 million VND?
What is the time limit for first-time taxpayer registration in Vietnam?
Pursuant to Article 33 of the Law on Tax Administration 2019 stipulates as follows:
"Article 33. Time limit for first-time taxpayer registration
1. For taxpayers who combine taxpayer registration with business registration, the time limit for taxpayer registration is the time limit for business registration as prescribed by law.
2. For taxpayers directly registered with tax authorities, the time limit for taxpayer registration is 10 working days starting from the day on which:
a) the certificate of household business registration, establishment and operation license, investment registration certificate or establishment decision is granted;
b) the taxpayer inaugurates business operation for organizations that are not required to apply for business registration and household businesses and individual businesses that are required to apply for business registration but yet to be granted the business registration certificate;
c) the responsibility to deduct and pay tax on behalf of individuals arises; organizations paying tax on behalf of individuals according to business cooperation contracts and/or agreements;
d) the contract with the foreign contractor and/or subcontractors who directly declare and pay tax to tax authorities; the petroleum contract or agreement is concluded;
dd) personal income tax is incurred;
e) tax refund in claimed;
g) other amounts payable to the state budget are incurred.
3. In case an individual does not have a TIN, his/her income payer shall apply for taxpayer registration on his/her behalf in no later than 10 working days starting from the date tax liabilities are incurred; in case a dependant of a taxpayer does not have a TIN, the income payer shall apply for taxpayer registration for the dependant in no later than 10 working days starting from the date the taxpayer applies for dependant exemption as prescribed by law.”
Thus, based on each taxpayer's case to determine the tax registration deadline as mentioned above.
What is the penalty for violations against regulations on tax registration time limits in Vietnam?
Pursuant to Article 10 of Decree 125/2020/ND-CP stipulates as follows:
“Article 10. Penalties for violations against regulations on tax registration time limits; notification of temporary business suspension; notification of premature business continuation
1. Penalties imposed in form of cautions shall be imposed for violations arising from making tax registration; notifying the temporary business suspension; notifying the premature business continuation from 1 to 10 days after expiration of the prescribed time limits under mitigating circumstances.
2. Fines ranging from VND 1,000,000 to VND 2,000,000 shall be imposed for one of the following violations:
a) Making tax registration; notifying the premature business continuation from 1 to 30 days after expiration of the prescribed time limits, except the cases prescribed in clause 1 of this Article;
b) Notifying the temporary business suspension after expiration of the time limits, except the cases prescribed in clause 1 of this Article;
c) Failing to notify the temporary business suspension.
3. Fines ranging from VND 3,000,000 to VND 6,000,000 shall be imposed for violations arising from making tax registration; notifying the premature business continuation from 31 to 90 days after expiration of the prescribed time limits.
4. Fines ranging from VND 6,000,000 to VND 10,000,000 shall be imposed for one of the following violations:
a) Making tax registration; notifying the premature business continuation from at least 91 days after expiration of the prescribed time limits;
b) Failing to notify the premature business continuation without any more taxes incurred.”
Thus, in case of violation of regulations on tax registration, it will be based on the overdue time that taxpayers make tax registration to determine the administrative sanction.
Note: The level of administrative sanction mentioned above is applied to the violating organization. In case the violating taxpayer is an individual, the administrative sanction is half of that of an organization.
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