What is "Mã số thuế" in English? Is a business code also a tax identification number under the law in Vietnam?

Hello, Lawnet would like to answer as follows:

1. What is "Mã số thuế" in English?

According to Clause 5, Article 3 of the Law on Tax Administration 2019, tax identification number as follows:

"tax identification number" or “TIN” means a series of 10 or 13 digits and other characters assigned by tax authorities to taxpayers to serve tax administration.

Thus "Mã số thuế" in Engligh: "tax identification number" or “TIN”. Based on taxpayers, tax identification number is classified as follows:

- "Mã số thuế doanh nghiệp": Business code

10-digit TINs shall be issued to enterprises and organizations that are legal persons; representatives of households, household businesses and other individuals;

- "Mã số thuế cá nhân": Personal tax identification number

- ...

2. TIN structure (Tax Identification Number structure) under the law in Vietnam

According to the provisions of Article 53 of the Law on Tax Administration 2019 and Article 5 of Circular 105/2020/TT-BTC, the structure of TIN

N1N2N3N4N5N6N7N8N9N10 - N11N12N13

Where:

- The first two digits N1N2 indicate the province that issues TINs

- Seven digits N3N4N5N6N7N8N9 are formed in a definite element in ascending order from 0000001 to 9999999.

- N10 is the check digit.

- Three digits N11N12N13 are formed in ascending order from 001 to 999.

- A dash (-) is used to separate the first 10-digit element and the last 3-digit element.

A business identification number, cooperatives identification number, identification number of affiliated entity of enterprise or cooperative that is issued in accordance with the law on registration of enterprises or cooperatives is also a taxpayer identification number.

Note:

- 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;  

- 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;

- 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;

- Issued TINs shall not be reissued to another taxpayer;

- TINs of enterprises, business organizations and other organizations shall remain unchanged after they are converted, sold, gifted or inherited;

- TIN issued to a household, household business or individual business is issued to the individual representing the household, household business or individual business.

Thus, the TIN consists of 10 digits or 13 digits, of which:

- The first two digits indicate the province that issues TINs

- The next even digits are formed in a definite element in ascending order from 0000001 to 9999999.

- The tenth digit is the check digit.

- The last hree digits are formed in ascending order from 001 to 999.

3. Is a business code also a tax identification number under the law in Vietnam?

Article 8 of Decree 01/2021/ND-CP stipulates enterprise ID number, ID numbers of affiliates and business locations of enterprises as follows:

- Each enterprise is issued with a single enterprise ID number. This number is also the enterprise’s taxpayer identification number (TIN) and social insurance participant’s code.

- The enterprise ID number exists throughout its operation and shall not be issued to any other entity. When an enterprise ceases to operate, the enterprise ID number will be invalidated.

- Enterprise ID numbers are created, sent and received automatically by the National Enterprise Registration Information System, tax registration information system, and written on enterprise registration certificates.

- Regulatory agencies shall uniformly use enterprise ID numbers to perform state management tasks and exchange information about enterprises.

- ID numbers of an enterprise’s affiliates are issued to the enterprise’s branches and representative offices. These numbers are also TINs of branches and representative offices.

- ID number of a business location is a series of 5 digits from 00001 to 99999. This number is not TIN of the business location.

- In case the TIN of the enterprise, or its branch or representative office is invalidated as a result of its commission of tax offences, this TIN must not be used in business transactions from the day on which the TIN invalidation is announced by the tax authority.

- With regard to branches and representative offices that are established before November 01, 2015 but have not had their own ID numbers, the enterprise shall directly contact the tax authority to be issued with a 13-digit TIN, and then follow procedures for change of the registration information at the business registration authority as prescribed.

- Enterprise ID numbers of enterprises that are established and operating under the investment license or investment certificate (also the business registration certificate) or another document of equivalent validity, or securities trading license shall be their TINs issued by tax authorities.

Thus, according to current legal regulations, each business is granted a business code. This code is both the tax identification number and the social insurance participating unit code of the enterprise.

Best regards!

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