In Vietnam, one of the important obligations when changing from ID card to Citizen Identification Card is to notify the tax authorities. Therefore, failing to fulfill this obligation may result in penalties as stipulated by the law.
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The act of changing the Citizen Identification Card (CIC) number without notifying the tax authorities shall be fined up to VND 7 million (Illustration)
With the advent of the 2014 Law on Citizen Identification, starting from January 1, 2020, the issuance of the CIC will be implemented nationwide. As of now, many people have completed the transition from ID cards to CICs. The ID number or CIC number is one of the mandatory details required when registering for taxes. Therefore, when handling tax registration procedures should you have already changed your CIC number, you are obligated to inform the tax authorities.
Specifically, subjects obligated to comply are those taxpayers who are required to register for tax as per Clause 1, Article 30 of the 2019 Law on Tax Administration (guided by Article 4 of Circular 105/2020/TT-BTC) and those who have changed their CIC number, except for three cases listed in Clause 6, Article 11 of Decree 125/2020/ND-CP, including:
- Individuals not engaged in business who have been issued a personal income tax number and are late in updating ID details when issued a CIC.
- Agencies paying income that are late in notifying changes in ID details when the taxpayer authorized for finalizing personal income tax is issued a CIC.
- Late notification of changes in tax registration information due to changes in administrative boundaries.
The deadline for notifying changes to tax authorities is prescribed in Clause 2, Article 6 of Decree 126/2020/ND-CP. Accordingly, individuals who change their ID card, CIC, or passport, have a deadline of 20 days (30 days for highland, border, and island districts) starting from the date mentioned on the ID card, CIC, or passport to inform the tax authorities.
Thus, if you are late in informing or fail to inform the tax authorities about the CIC number change when switching from an ID card, you will face administrative penalties as regulated in Article 11 of Decree 125/2020/ND-CP, as follows:
- In cases of late notification of tax registration changes without altering the tax registration certificate or tax identification number:
- Warning for late notice by 01-30 days with mitigating circumstances;
- Fine from 500,000 VND to 1 million VND for late notice by 01-30 days without mitigating circumstances;
- Fine from 1 million VND to 3 million VND for late notice by 31-90 days;
- Fine from 3 million VND to 5 million VND for late notice by over 91 days.
- In cases of late notification of tax registration changes affecting the tax registration certificate or tax identification number:
- Warning for late notice by 01-10 days with mitigating circumstances;
- Fine from 1 million VND to 3 million VND for late notice by 01-30 days without mitigating circumstances;
- Fine from 3 million VND to 5 million VND for late notice by 31-90 days;
- Fine from 5 million VND to 7 million VND for late notice by over 91 days and failing to notify changes in the tax registration file.
Compared to Decree 129/2013/ND-CP, where the specific actions dictated were fines ranging from 400,000 VND to 1 million VND for late notification of changes in tax registration by 01-30 days, and higher fines of 800,000 VND to 2 million VND for late notification by over 30 days, the current fines have increased by 3 to 3.5 times compared to the old regulations.
In summary, from December 5, 2020, when Decree 125/2020/ND-CP came into effect, individuals who are obligated to notify tax registration changes when switching from ID cards to CICs must notify the tax authorities. Failure to comply can result in fines up to 7 million VND.
>>> View more: 04 new points in sanctioning administrative violations on tax registration under Decree No. 125/2020/ND-CP of Vietnam’s Government
Phuong Thanh
- Key word:
- Decree 125/2020/ND-CP
