From January 17, 2021, adding 02 additional cases of tax registration information disclosure in Vietnam

Taxpayers must apply for taxpayer registration and shall be issued with TINs by tax authorities before beginning their business operations or incurring amounts payable to the state budget. This is a mandatory obligation specified in Clause 1 Article 30 of the Law on Tax Administration 2019 of Vietnam. According to Clause 4 Article 30 of this Law, taxpayer registration includes:

a) First-time taxpayer registration;

b) Notifying changes to taxpayer registration information;

c) Notifying suspension of business operation;

d) TIN deactivation;

dd) TIN reactivation.

These 05 activities will be the basis for tax authorities to publicize tax registration information. Specifically, according to Clause 1 Article 22 of the Circular No. 105/2020/TT-BTC of the Ministry of Finance of Vietnam, the tax authority shall make public the tax registration of taxpayers on the website of General Department of Taxation in the following cases:

- Taxpayer’s termination of operation and completion of TIN deactivation (status 01).

- Taxpayer’s termination of operation without completion of TIN deactivation (status 03).

- Taxpayer’s suspension of operation/business (status 05). (completely new provision)

- Taxpayer’s non-operation at the registered address (status 06).

- Taxpayer’s TIN reactivation following the notice form No. 19/TB-DKT hereto appended.

- Taxpayer’s violation of law on tax registration. (completely new provision)

In comparison with provisions of Clause 1 Article 29 of the Circular No. 95/2016/TT-BTC on guidelines for tax registration in accordance with the Law on tax administration 2006, this new regulation has added 02 cases of disclosing tax registration information.

It can be seen that the new provision on the disclosure of tax registration information for taxpayers who temporarily stop operating or doing business in Circular No. 105/2020/TT-BTC is in accordance with Point c Clause 4 Article 30 of the Law on Tax Administration 2019 of Vietnam. Moreover, in case that the taxpayer violates the law on tax registration, the disclosure of information is an overarching regulation, avoiding the loss of information causing damage to other taxpayers, and facilitating tax collection.

The disclosure of information on tax registration shall comply with the provisions of Clauses 2 and 3 Article 22 of Circular No. 105/2020/TT-BTC as follows:

Contents: The entries made on the notice of taxpayer’s TIN deactivation (Form No. 18/TB-ĐKT), notice of taxpayer’s termination of operation and in progress of TIN deactivation (Form No. 17/TB-ĐKT), notice of taxpayer’s non-operation at the registered address (Form No. 16/TB-ĐKT).

Method: To be posted on the website of the General Department of Taxation.

Time limit: No later than 1 business day from the date on which the tax authority issues a notice or updates the TIN status under a decision or notice forwarded by the competent authority.

Power: The supervisory tax authority shall make public information of the taxpayer. 

Note: Prior to making public the taxpayer’s information, the supervisory tax authority shall double check and collate to ensure the accuracy of the public information. If the public information is incorrect, the tax authority shall correct the information and make public the corrected information.

In short, from January 17, 2021, when the Circular No. 105/2020/TT-BTC of the Ministry of Finance of Vietnam takes effect, the taxpayer's tax registration information temporarily ceases to operate, does business, and the taxpayer violates the law on tax registration will be published on the website of the General Department of Taxation.

The forms mentioned in this article are all changed in accordance with Circular No. 105/2020/TT-BTC. Customers and Members of LAWNET update the changed forms here: Word files of the latest tax registration form in 2021

Phuong Thanh

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