Individuals with an income subject to personal income tax are obliged to register for tax for the first time. What are the regulations on the application and procedures for initial personal income tax registration in Vietnam?
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Vietnam: Procedures for and application of personal income tax registration in 2021 (Illustration)
Individuals earning incomes subject to personal income tax (excluding individual businesses) and other organizations, households or individuals with obligations to the state budget are among the subjects that must register for PIT. Accoring to Vietnam's Circular 105/2020/TT-BTC stipulating guidelines for tax registration, application of and procedures for application for initial PIT registration specified in Clause 9 of Article 7 are as follows:
*** If an individual who has his/her income payer withhold and remit personal income taxes and authorize the income payer to apply for tax registration in Vietnam:
- He/she shall file an application for tax registration with his/her income payer.
- If the individual incurs personal income taxes at multiple income payers in the same tax payment period, he/she only authorizes one single income payer to apply for tax registration in order for the tax authority to issue a TIN. He/she shall notify other income payers of his/her TIN for tax declaration and remittance purpose.
- Required documents in an application for tax registration of individual:
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Authorization document
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One of the documents of the individual (copy of unexpired citizen identification card or ID card, for a Vietnamese nationality individual; copy of unexpired passport, for a foreign national or overseas Vietnamese).
- The income payer shall consolidate tax registration information of the individual in a single application form for tax registration No. 05-DK-TH-TCT hereto appended and file it with their supervisory tax authority.
*** If an individual who neither has his/her income payer withhold and remit personal income taxes nor authorize the income payer to apply for tax registration in Vietnam:
- He/she shall file an application for tax registration with a tax authority stipulated as follows:
(1) With the Department of Taxation of province where he/she has worked, if he/she is a resident earning income, wages from an international organization, embassy, or consulate in Vietnam but such organization has not withheld his/her income, wages for tax payment purpose. Required documents in the application for tax registration:
- Application form for tax registration No. 05-DK-TCT hereto appended;
- Copy of unexpired citizen identification card or ID card, for a Vietnamese nationality individual; copy of unexpired passport, for a foreign national or overseas Vietnamese.
(2) With the Department of Taxation of province where the work occurs in Vietnam, if he/she earns income, wages from other overseas organizations, individuals.
Required documents in the application for tax registration are specified in Item (1), together with copy of the document, made by the employer, which assigns a foreign individual, non-resident in Vietnam as per the law on personal income tax, to work in Vietnam but still receives income on his/her home country payroll.
(3) With the Sub-department of Taxation, regional Sub-department of Taxation of district where the individual incurs amounts payable to the state budget if he/she applies for tax registration through a tax return (the individual who incurs non-agricultural land use tax without a TIN; the individual who transfers a real estate without a TIN; the individual who incurs an amount payable to the state budget on non-current revenue, including: registration fee, capital assignment and other non-current revenues without a TIN).
- Application for initial tax registration is a tax return as per the law on tax administration. If the tax return lacks of copies of unexpired personal documents (including citizen identification card or ID card, for an Vietnamese nationality individual; passport, for a foreign national or overseas Vietnamese), the taxpayer shall enclose one of the documents together with the tax return.
- In case of absence of a tax return, if the tax authority and regulatory agency has their data linking available, the tax authority shall avail the transfer note sent by the regulatory agency.
(4) With the Sub-department of Taxation, regional Sub-department of Taxation of district where the individual resides (permanent or temporary residence) for other circumstances. Required documents in the application for tax registration comply with item (1) above.
Le Thanh
- Key word:
- Circular 105/2020/TT-BTC of Vietnam
