Guidelines on classification of tax code structure issued by the tax authority in Vietnam from February 06, 2024

Guidelines on classification of tax code structure issued by the tax authority in Vietnam from February 06, 2024 (Image from the Internet)

Guidelines on classification of tax code structure issued by the tax authority in Vietnam from February 06, 2024

Pursuant to Clause 4, Article 5 of Circular 86/2024/TT-BTC, the tax code structure issued by the tax authorities in Vietnam from February 06, 2024, will be classified as follows:

(i) A 10-digit tax code is used for enterprises, cooperatives, organizations with legal entity status, or organizations without legal entity status but directly arising tax obligations (hereinafter referred to as independent units); individuals who are foreign nationals or Vietnamese nationals living abroad without a personal identification number established from the national population database.

(ii) A 13-digit tax code with a hyphen (-) used to separate the first 10 digits from the last 3 digits is used for dependent units and other subjects stipulated in (iii), (vi), (vii).

(iii) Taxpayers who are economic organizations, other organizations as stipulated in points a, b, c, d, n Clause 2 Article 4 of Circular 86/2024/TT-BTC with or without legal entity status but directly incurring tax obligations and responsible for all tax obligations before the law are granted a 10-digit tax code.

Dependent units established under the law of this taxpayer, if arising tax obligations and directly declaring and paying taxes, are granted a 13-digit tax code.

(iv) Foreign contractors, foreign sub-contractors as stipulated in point dd  Clause 2 Article 4 of Circular 86/2024/TT-BTC who register to pay contractor tax directly with the tax authorities are granted a 10-digit tax code for each contract.

If there are multiple foreign contractors subject to direct tax payments with the tax authorities under one contractor contract signed with the Vietnamese party and the contractors wish to declare and pay tax separately, each foreign contractor is granted a separate 10-digit tax code.

In case a foreign contractor partners with Vietnamese economic organizations to conduct business in Vietnam based on a contractor contract and the parties form a Joint Operating Committee, the Joint Operating Committee carries out accounting, has a bank account, and is responsible for issuing invoices; or the Vietnamese economic organization participating in the partnership is responsible for joint accounting and profit distribution to the parties in the partnership, they are granted a 10-digit tax code to declare and pay taxes for the contractor contract.

If a foreign contractor or sub-contractor has an office in Vietnam and is declared by the Vietnamese party, with tax withheld and paid on behalf of contractor tax, the foreign contractor and sub-contractor are granted a 10-digit tax code to declare all other tax obligations (excluding contractor tax) in Vietnam and provide the tax code to the Vietnamese party.

(v) Foreign suppliers as stipulated in point e Clause 2 Article 4 of Circular 86/2024/TT-BTC who do not have a tax code in Vietnam when directly registering with the tax authorities are granted a 10-digit tax code.

Foreign suppliers use the assigned tax code to directly declare, pay taxes, or provide the tax code to organizations and individuals in Vietnam authorized by the foreign suppliers, or to provide to commercial banks, intermediary payment service providers to conduct tax withholding and payment on their behalf and declare in the foreign supplier's tax withholding table in Vietnam.

(vi) Organizations and individuals withholding and paying on behalf of according to the provisions in point g Clause 2 Article 4 Circular 86/2024/TT-BTC are granted a 10-digit tax code (hereinafter referred to as the substitute payment tax code) to declare and pay taxes on behalf of foreign contractors, foreign sub-contractors, foreign suppliers, and organizations and individuals with business cooperation contracts if requesting a separate tax code for the business cooperation contract.

Foreign contractors, foreign sub-contractors as stipulated in point dd  Clause 2 Article 4 Circular 86/2024/TT-BTC declared and paid contractor tax on behalf by the Vietnamese party are granted a 13-digit tax code based on the substitute payment tax code of the Vietnamese party to confirm the completion of contractor tax obligations in Vietnam.

When taxpayers change their taxpayer registration information, temporarily suspend operations, or resume operations before the deadline, terminate the tax code's validity and restore the tax code according to regulations concerning the taxpayer's tax code, the substitute payment tax code is updated by the tax authorities corresponding to the information and status of the taxpayer's tax code.

Taxpayers are not required to submit dossiers as stipulated in Chapter II, Chapter III Circular 86/2024/TT-BTC concerning the substitute payment tax code.

(vii) The operator, joint operating company, joint venture enterprise, organization assigned by the Government of Vietnam to receive the profit oil, gas share of Vietnam from oil and gas fields in overlapping areas as stipulated in point h Clause 2 Article 4 Circular 86/2024/TT-BTC are granted a 10-digit tax code for each oil and gas contract or agreement or equivalent document.

Contractors, investors participating in oil and gas contracts are granted a 13-digit tax code based on the 10-digit tax code of each oil and gas contract to fulfill tax obligations separately under the oil and gas contract (including corporate income tax on income from transferring interest in participating in the oil and gas contract).

The parent company - Vietnam National Oil and Gas Group, representing the host country receiving the profit share from oil and gas contracts, is granted a 13-digit tax code based on the 10-digit tax code of each oil and gas contract to declare and pay taxes on the profit share according to each oil and gas contract.

(viii) Organizations and individuals as stipulated in point m Clause 2 Article 4 Circular 86/2024/TT-BTC with one or more entrusted collection contracts with a tax authority are granted a substitute payment tax code to pay the collected amounts from taxpayers into the state budget.

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