Are foreign contractors required to make TIN registration in Vietnam?

According to Point dd, Clause 2 Article 4 of Circular 105/2020/TT-BTC, taxpayers subject to direct taxpayer registration with tax authorities in Vietnam include:

Foreign organizations without Vietnamese legal status, foreign individuals doing independent business in Vietnam by Vietnam’s law and earning incomes in Vietnam or taking on tax liabilities in Vietnam (hereinafter referred to as foreign contractors or foreign sub-contractors)

Under Point d Clause 3 Article 5 of Circular 105, the structure of TIN in Vietnam is classified as follows:

- Foreign contractors, foreign sub-contractors specified in point dd clause 2 Article 4 of this Circular that apply for paying foreign contractor withholding tax directly with tax authorities shall be issued with 10-digit TINs by every contract.

- If a foreign contractor, upon a contract, engages in a joint venture with Vietnamese business entities for undertaking business in Vietnam and these joint venture members establish a joint venture management board that keeps accounting records and has a bank account and is responsible for issuance of invoices; or the Vietnamese business entity, as the joint venture member, keeps the accounting records in general and shares profits to joint venture members, they shall be issued with a 10-digit TIN for tax declaration and payment for the contract purpose.

- If a foreign contractor or foreign subcontractor has an office in Vietnam and has its foreign contractor withholding tax declared, withheld and remitted by the Vietnamese party, such foreign contractor or foreign subcontractor shall be issued with a 10-digit TIN for declaration of other tax liabilities (except foreign contractor withholding tax) in Vietnam and that TIN shall be notified to the Vietnamese party.

Thus, where foreign contractors earn income in Vietnam or take on tax liabilities in Vietnam, they must complete the taxpayer registration procedures. Therefore, the foreign contractors are responsible for applying for paying foreign contracts directly with the tax authority and will be issued a 10-digit TIN for each contract.

Respectfully!