What is record? Regulations on record content according to Decree 123 in Vietnam

What is record? Regulations on record content according to Decree 123 in Vietnam (Internet image)

1. What is record?

Pursuant to Clauses 4,5,6, Article 3 of Decree 123/2020/ND-CP stipulating record as follows:

Record means a document used for recording information on tax deductions, taxes, fees or charges payable to state budget in accordance with regulations of the Law on tax administration.

Records prescribed in Decree 123/2020/ND-CP include?

Certificate of personal income tax withholding and receipts of taxes, fees and charges which are represented in the electronic form, or internally- or externally printed.

- Electronic record means a record or receipt defined in Clause 4 of  Article 3 of Decree 123/2020/ND-CP, which is represented in the electronic form and issued by the organization or individual responsible for tax deduction to a taxpayer or issued by a tax, fee or charge collector to a payer by using electronic instruments in accordance with regulations of the Law on fees and charges, and the Law on taxation.

- Externally- or internally-printed record means a record or receipt defined in Clause 4 of  Article 3 of Decree 123/2020/ND-CP, which is represented in the paper form and printed according to a set form ordered by the tax authority, or tax, fee or charge collector, or self-printed by using informatics equipment, cash registers or other instruments when deducting tax or collecting taxes, fees or charges in accordance with regulations of the Law on fees and charges, and the Law on taxation.

2. Types of records in Vietnam

Article 30 of Decree 123/2020/ND-CP stipulates the following types of documents:

- Records serving the management of taxes, fees and charges by tax authorities include:

+ Certificate of personal income tax withholding;

+ Receipts, including:

++ Tax, fee or charge receipts without pre-printed face values;

++ Tax, fee or charge receipts with pre-printed face values;

++ Tax, fee or charge receipts.

- The Minister of Finance of Vietnam shall stipulate and provide guidance on other records which are required to serve the management of taxes, fees and charges in accordance with regulations of the Law on tax administration.

3. Contents of records

In Clause 1, Article 32 of Decree 123/2020/ND-CP, a certificate of personal income tax withholding contains the following information:

- Name, form number, reference number and ordinal number of the certificate of personal income tax withholding;

- Name, address and TIN of the applicant;

- Name, address and TIN of the taxpayer (if available);

- Nationality (if the taxpayer is not a Vietnamese citizen);

- Taxable income, time of income payment, total taxable income, PIT amount deducted, income amounts received;

- Date of the certificate of personal income tax withholding;

- Full name and signature of income payer.

In case of electronic certificate of personal income tax withholding, digital signature is required.

4. Contents of receipts

In Clause 2, Article 32 of Decree 123/2020/ND-CP, a receipt contains the following information:

- Name of receipt: Tax, fee or charge receipt without a pre-printed face value; Tax, fee or charge receipt with a pre-printed face value; Tax, fee or charge receipt.

- Form number and reference number of the receipt.

The receipt form number reflects the receipt type, number of its copies, and ordinal number of the receipt form (if a receipt type consists of different forms).

The receipt reference number is a sign used for identifying a particular receipt and is comprised of Vietnamese alphabet and 02 last numerals of the year.

02 last numerals of the year on an externally-printed receipt are those of the year in which the receipt is printed. 02 last numerals of the year on an internally-printed receipt or electronic receipt are those of the year specified in the announcement of receipt issue or in which the receipt is printed.

- Receipt number is the ordinal number specified in a tax, fee or charge receipt. The receipt number is written in Arabic numerals and consists of 7 digits. The first number of an internally- or externally-printed receipt is 0000001. The number of an electronic receipt begins from 1, on January 01 or the first day on which the electronic receipts are used, and ends on December 31 every year.

- Copies of a receipt (internally- or externally-printed receipt) are sheets of the same receipt. Each receipt has at least 02 copies or parts, including:

+ Copy (part) 1 is kept by the collector;

+ Copy (part) 2 is delivered to the tax, fee or charge payer;

The third and subsequent copies of the receipt are named according to their use purposes to serve the performance of management tasks as prescribed.

- Name and TIN of the collector.

- Names of types of taxes, fees or charges, and amounts in figures and in words.

- Date of making the receipt.

- Signature of cashier. In case of electronic receipts, digital signature is required.

- Name and TIN of receipt printing service provider (in case of externally-printed receipts).

- The receipt is written in Vietnamese language. If a foreign language text is necessary, it must be placed between parentheses ( ) or next to the Vietnamese text, in which case it must be smaller than the Vietnamese text.

Numbers on the receipt must be natural numbers: 0, 1, 2, 3, 4, 5, 6, 7, 8, 9.

The currency on the receipt shall be VND. If other amounts payable to state budget are collected in foreign currencies as prescribed by law, the currency on receipts may be written in either the foreign currency or VND by exchanging such amounts from the foreign currency to VND according to the exchange rates prescribed in Clause 4 Article 3 of the Government’s Decree No. 120/2016/ND-CP dated August 23, 2016.

If a receipt does not have enough lines for specifying all types of fees/charges collected, it may be accompanied by a list of collected fees/charges. The collector shall decide the format of the list of collected fees/charges. This list must bear the text “kèm theo biên lai số... ngày... tháng.... năm” (this list is enclosed with the receipt No……….dated…….”).

If some items of an electronic receipt need to be changed to meet the actual conditions, the collector shall request the Ministry of Finance (via the General Department of Taxation) in writing to give its approval and guidance before making such changes.

In addition to the compulsory contents prescribed in this Clause, the collector may add other information, including its logo/decorative or advertising images, to a receipt in accordance with regulations of laws provided that such additional information shall neither hide nor obscure the compulsory contents. The font size of additional information on a receipt must be smaller than that of the compulsory contents.

5. Time of preparing records in Vietnam

In Article 31 of Decree 123/2020/ND-CP, the time of preparing records is as follows:

When deducting personal income tax (PIT) or collecting taxes, fees or charges, organizations deducting PIT or collectors of taxes, fees or charges shall prepare and give PIT deduction statements or receipts to persons whose income is deducted or payers of taxes, fees or charges.

Ngoc Nhi

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