Using personal eIDs as tax identification numbers and using personal eIDs to declare information and register for taxpayers on VNeID app in Vietnam

Using personal eIDs as tax identification numbers (TINs) and using personal eIDs to declare information and register for taxpayers on VNeID app in Vietnam

On May 30th, 2023, the Prime Minister issued the Directive 18/CT-TTg in 2023 on promoting connectivity and data sharing for e-commerce development, combating tax loss, and ensuring monetary security.

According to Directive 18/CT-TTg in 2023, the Prime Minister has requested the Ministry of Public Security to implement the task of using personal eIDs as tax identification numbers and using personal eIDs to declare information and register for taxpayers on VNeID app in Vietnam as follows:

4. Ministry of Public Security

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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 eIDs 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 provide services on e-commerce websites and social networks.

The deadline for completion is in the third quarter of 2023.

c) Assume the prime responsibility for, and coordinate with ministries and branches in:

- Speeding up the connection of the national population database with the databases and information systems of ministries, branches and localities for electronic identification and authentication; synchronizing population data with civil status data, tax, banking, telecommunications, etc serving identification and authentication of individuals and organizations to prevent fraud and tax evasion in e-commerce activities.

- Integrating the use of electronic identification accounts to declare and register to pay taxes on the national electronic identification application (VNelD) and other platforms guided by the Tax Authority.

- Researching and developing or integrating payment gateway, e-wallet and other utilities on the national e-identification (VnelD) application to facilitate people when participating in e-commerce activities.

- Cooperating with the Ministry of Industry and Trade in applying chip-based citizen identification cards, identification and electronic authentication to authenticate subjects participating in the conclusion of electronic contracts on the Vietnam Certified e-Contract Authority.

- Cooperating with the Ministry of Information and Communications in applying chip-based citizen identification cards, identification and electronic authentication to authenticate the registrants for issuance of digital certificates of telecommunications and mobile subscribers.

- Guiding and promoting e-commerce service providers to study the use of electronic identification and authentication in e-commerce transactions.

The deadline for completion is within 2025.

d) Assume the prime responsibility for analyzing and synthesizing population data, identification, electronic authentication and enrichment data in the national population database for early detection of tax evasion acts in order to carry out tax collection and management services. The deadline for completion is within 2023.

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Thus, in the near future, at the request of the Prime Minister, the Ministry of Public Security will coordinate with the Ministry of Finance to implement the conversion of using personal eIDs as tax identification numbers and will complete with in 2023.

At the same time, assume the prime responsibility for, and coordinate with ministries and branches in integrating the use of personal eIDs to declare and register for tax payment on the national electronic identification (VNelD) application. The deadline for completion is within 2025.

What are regulations on use of TINs in Vietnam?

Pursuant to Article 35 of the Law on Tax Administration in 2019 stipulating regulations on use of TINs in Vietnam as follows:

- 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.

- 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.

- 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.

- Commercial banks and other credit institutions must include TINs in the taxpayers’ applications for opening accounts and in records of transactions via accounts.

- Other organizations and individuals participating in tax administration shall use TINs of taxpayers when providing information related to the determination of tax liabilities.

- 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.

- Personal identification numbers shall replace TINs when they are issued to the whole population.

What are types of TINs in Vietnam?

Pursuant to Clause 2 Article 30 of the Law on Tax Administration in 2019 stipulating types of TINs in Vietnam as follows:

Article 30. Applying for taxpayer registration and TIN issuance

2. Types of TINs:

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

b) 13-character TINs shall be issued to dependent units and other entities;

c) The Minister of Finance shall elaborate this clause.

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As regulations above, there are 2 types of TINs:

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

- 13-character TINs shall be issued to dependent units and other entities.

Best regards!