Vietnam: Require to convert personal identification numbers into tax identification numbers under Directive No. 18/CT-TTg in 2023?
- Directive No. 18/CT-TTg in 2023 requires to convert personal identification numbers into tax identification numbers in Vietnam?
- What are the regulations on the use of personal identification numbers replacing tax identification numbers in the Law on Tax Administration in Vietnam?
- How many tax identification numbers does each individual currently have?
Directive No. 18/CT-TTg in 2023 requires to convert personal identification numbers into tax identification numbers in Vietnam?
According to Directive No. 18/CT-TTg in 2023 on promoting connectivity and data sharing for e-commerce development, combating tax loss, and ensuring monetary security issued by the Prime Minister of Vietnam on May 30, 2023.
In order to increase the effectiveness and efficiency and continue to promote digital transformation in e-commerce activities, combat tax loss, and ensure monetary security, the Prime Minister of Vietnam has directed and requested a number of contents: for the Ministry of Public Security, the task of coordinating with the Ministry of Finance is determined as follows:
4. Ministry of Public Security
....
b) Cooperate with the Ministry of Finance in formulating a detailed plan on data connection and sharing for:
- National population database for conversion to use personal identification numbers as tax identification numbers according to the provisions of the Law on Tax Administration No. 38/2019/QH14.
- Domestic organizations and individuals that cooperate with foreign organizations and individuals in the business of telecommunications services, advertising in cyberspace, payment services, payment intermediaries, e-wallets, money transfer; software products and services; digital information content products and services and products and services through domestic and cross-border digital platforms in Vietnam.
- Individuals earning income from advertising from providing digital information content products and services on cross-border video sharing platforms in cyberspace, personal information having business activities, buying and selling goods and providing services on e-commerce websites and social networks.
The deadline for completion is in the third quarter of 2023.
Thus, performing the conversion using personal identification numbers as tax identification numbers is one of the prominent contents mentioned.
The deadline for completion is in the third quarter of 2023.
Directive No. 18/CT-TTg in 2023 requires to convert personal identification numbers into tax identification numbers in Vietnam?
What are the regulations on the use of personal identification numbers replacing tax identification numbers in the Law on Tax Administration in Vietnam?
Pursuant to the provisions of Article 35 of the 2019 Law on Tax Administration in Vietnam on the use of tax identification numbers (TINs) 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, according to the above content, personal identification numbers shall replace TINs when they are issued to the whole population.
How many tax identification numbers does each individual currently have?
Pursuant to the provisions of Point b, Clause 3, Article 30 of the 2019 Law on Tax Administration in Vietnam as follows:
Applying for taxpayer registration and TIN issuance
…
3. Issuance of tax identification numbers:
…
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;
Thus, at present, the issuance of tax identification numbers is carried out according to the above provisions.
Each individual, enterprise, business entity and other entity is granted 01 unique tax identification number.
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