Vietnam: First-time tax registration and 4 basic things to know

1. Who is eligible for first-time tax registration?

According to Clause 1 Article 30 of the Law on Tax Administration 2019 of Vietnam, taxpayers must apply for taxpayer registration and shall be issued with  TINs (tax identification number) by tax authorities before beginning their business operations or incurring amounts payable to the state budget. The following entities shall apply for taxpayer registration:

- Enterprises, organizations and/or individuals shall apply for taxpayer registration through the interlinked single-window system together with enterprise, cooperative or business registration as prescribed in the Law on Enterprises and other relevant regulations;

- Organizations and individuals beside those stipulated in Point a of this clause shall register directly with tax authorities as regulated by the Minister of Finance of Vietnam.

In particular, according to Clause 3 Article 30 of the Law on Tax Administration 2019 of Vietnam, each enterprise, business organization or other organization is issued with 01 unique TIN to use throughout its entire operation, from the date of taxpayer registration to the date of TIN deactivation. A taxpayer’s branches, representative offices and/or dependent units that pay their own tax shall be issued with separate TINs.

In case an enterprise, organization, branch, representative office or dependent unit combines taxpayer registration via the interlinked single-window system with business registration, the number of the certificate of enterprise registration, cooperative registration and/or business registration is also the TIN.

Note:

- TINs of enterprises, business organizations and other organizations shall remain unchanged after they are converted, sold, gifted or inherited;

- TIN issued to a household, household business or individual business is issued to the individual representing the household, household business or individual business.

2. Application for first-time taxpayer registration

According to Article 31 of the Law on Tax Administration 2019 of Vietnam, for taxpayers who combine taxpayer registration with business registration, taxpayer registration application is the application for business registration as prescribed by law.

* If the taxpayer is an organization registering directly with the tax authority, the taxpayer registration application shall include:

- The taxpayer registration form;

- Copies of valid establishment and operation license, establishment decision, investment registration certificate or equivalent documents granted by competent authorities;

- Other relevant documents.

* If the taxpayer is a household, household business or individual business directly registered with the tax authority, the taxpayer registration application shall include:

- The registration form or tax return;

- Copy of the identity card or passport;

- Other relevant documents.

3. Receiving authorities of first-time taxpayer registration

According to Article 32 of the Law on Tax Administration 2019 of Vietnam, receiving authorities of first-time taxpayer registration are specified as follows:

- For taxpayers who combine taxpayer registration with business registration, the taxpayer registration application and the business registration application shall be submitted to the same authority as prescribed by law.

- Taxpayers directly registered with tax authorities shall submit their applications as follows:

+ Organizations, household businesses and individual businesses shall submit their applications to tax authorities of the areas where their headquarters are located;

+ Organizations and individuals responsible for withholding and paying tax on taxpayers’ behalf shall submit their applications to their supervisory tax authorities;

+ Non-business households and individuals shall submit their taxpayer registration applications to tax authorities where taxable income is incurred, where permanent residence or temporary residence is registered or where amounts payable to the state budget are incurred.

Note: Individuals authorizing their income payers to apply for taxpayer registration of themselves and their dependents shall submit their taxpayer registration applications to the income payers.

4. Time limit for first-time taxpayer registration

According to Article 33 of the Law on Tax Administration 2019 of Vietnam, time limit for first-time taxpayer registration for each specific case are stipulated as follows:

- For taxpayers who combine taxpayer registration with business registration, the time limit for taxpayer registration is the time limit for business registration as prescribed by law.

- For taxpayers directly registered with tax authorities, the time limit for taxpayer registration is 10 working days starting from the day on which:

+ the certificate of household business registration, establishment and operation license, investment registration certificate or establishment decision is granted;

+ the taxpayer inaugurates business operation for organizations that are not required to apply for business registration and household businesses and individual businesses that are required to apply for business registration but yet to be granted the business registration certificate;

+ the responsibility to deduct and pay tax on behalf of individuals arises; organizations paying tax on behalf of individuals according to business cooperation contracts and/or agreements;

+ the contract with the foreign contractor and/or subcontractors who directly declare and pay tax to tax authorities; the petroleum contract or agreement is concluded;

+ personal income tax is incurred;

+ tax refund in claimed;

+ other amounts payable to the state budget are incurred.

Note: In case an individual does not have a TIN, his/her income payer shall apply for taxpayer registration on his/her behalf in no later than 10 working days starting from the date tax liabilities are incurred; in case a dependant of a taxpayer does not have a TIN, the income payer shall apply for taxpayer registration for the dependant in no later than 10 working days starting from the date the taxpayer applies for dependant exemption as prescribed by law.

Le Vy

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