Classification of structure of TIN (taxpayer identification number) in Vietnam

Classification of structure of TIN (taxpayer identification number) in Vietnam - image from internet

Pursuant to Clause 3 Article 5 of the Decree 105/2020/TT-BTC stipulating classification of structure of TIN in Vietnam:

- 10-digit TINs shall be issued to enterprises, cooperatives, entities that have full legal status or entities without legal status but incurring tax liabilities; representatives of households, household businesses and other individuals (hereinafter referred to as independent entities).

- 13-digit TINs with a dash (-) used to separate the first 10 digits and the last 3 digits are used for affiliated entities and others.

- The taxpayers being business entities or other entities as prescribed in points a, b, c, d, n clause 2 Article 4 of this Circular, whether or not they have legal status, once incurring tax liabilities and being accountable for their own tax liabilities, shall be issued with 10-digit TINs; the affiliated entities thereof, established as per the law, once incurring tax liabilities and directly declaring and paying taxes, shall be issued with 13-digit TINs.

- 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.

- An overseas supplier, specified in point e clause 2 Article 4 of this Circular, which has not been issued with a TIN in Vietnam shall be issued with a 10-digit TIN upon application for tax registration directly with the tax authority.
The overseas supplier shall use the above-mentioned TIN to declare and remit tax by themselves, or provide such TIN for a Vietnamese entity whom they authorize to declare and pay tax on their behalf, or provide such TIN for a commercial bank or payment intermediary service provider to declare and pay tax on their behalf and declare their withholding tax schedule.

- The withholding agents, specified in point g clause 2 Article 4 of this Circular, shall be issued with a 10-digit TIN (hereinafter referred to as authorized TIN) to declare and pay taxes on behalf of the foreign contractors, foreign sub-contractors, overseas suppliers, organizations and individuals that have contracts and business cooperation documents.

A foreign contractor, foreign sub-contractors, specified in point dd clause 2 Article 4 of this Circular, which has their foreign contractor withholding tax declared and remitted by the Vietnamese party shall be issued with a 13-digit TIN according to the authorized TIN of the Vietnamese party to complete the certification of payment of foreign contractor withholding tax in Vietnam.

If the taxpayer changes tax registration information, suspends business/operation or resumes business ahead of schedule, deactivates TIN or reactivate TIN as prescribed associated with their TIN, the authorized TIN shall be updated by the tax authority corresponding to the information and status of the taxpayer’s TIN. The taxpayer is not required to file the documentation required in Chapter II hereof associated with the authorized TIN.

- The executive, general executive company, joint venture, organization authorized by Vietnamese Government to receive profits distributed from petroleum fields in the overlapping areas as prescribed in point h clause 2 Article 4 of this Circular shall be issued with a 10-digit TIN for every petroleum contract or agreement document or equivalent document.

A contractor or investor entering into a petroleum contract shall be issued with a 13-digit TIN according to the 10-digit TIN of every petroleum contract to pay the taxes incurred in each petroleum contract (including corporate income tax on income from participating interest in petroleum contract).
The parent company - Petro Vietnam that is the representative of host country to receive profits distributed from petroleum contracts shall be issued with a 13-digit TIN according to the 10-digit TIN of every petroleum contract to declare and pay tax on the profit distributed from each petroleum contract.

- For the taxpayers being households, household businesses, individual businesses and other individuals, specified in points i, k, l, n clause 2 Article 4 of this Circular, a 10-digit TIN shall be issued to the representatives of the households, household businesses, individuals, and a 13-digit shall be issued to the places of business of the household businesses and individual businesses.

- If the organization or individual, specified in point m clause 2 Article 4 of this Circular, has one or several authorized tax collection contract(s) with a tax authority, they shall be issued with an authorized TIN to remit the amount of taxes collected to the state budget.

Best regards!