Obligations to be fulfilled by the taxpayer prior to TIN deactivation in Vietnam

Obligations to be fulfilled by the taxpayer prior to TIN deactivation in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Who must register tax directly with the tax authorities in Vietnam?

According to Clause 2, Article 4 of Circular 105/2020/TT-BTC, the taxpayers subject to direct tax registration with tax authorities include:

(1) Enterprises operating in the sectors of insurance, accounting, auditing, lawyers, notarization, or other specialized sectors that are not required for enterprise registration at business registration authorities as per the specialized laws (hereinafter referred to as business entities)

(2) Public sector entities, business entities of armed forces; business entities of political organizations, socio-political organizations, social organizations, socio-professional organizations that conduct business as prescribed by law but are not required to apply for enterprise registration at business registration authorities; organizations of neighbor countries on land with Vietnam that conduct sale, barter at border marketplaces, checkpoint marketplaces and marketplaces in checkpoint economic zones; representative offices of foreign organizations in Vietnam; artels that are established and operating under the Civil Code (hereinafter referred to as business entities).

(3) Organizations established by competent authorities without production or business operation but taking on liabilities to government budget (hereinafter referred to as other entities)

(4) Foreign organizations and individuals, organizations in Vietnam that use foreign humanitarian aid and/or non-refundable aid to buy VAT-inclusive goods or services in Vietnam to provide non-refundable aid and/or humanitarian aid; diplomatic missions and consular offices and representative agencies of international organizations in Vietnam that are eligible for VAT refund as entities entitled to diplomatic immunity and privileges; ODA project owners that are eligible for VAT refund, representative offices of ODA project sponsors, organizations designated by foreign sponsors to manage ODA grant programs/projects (hereinafter referred to as other entities).

(5) Foreign organizations without Vietnamese’s legal status, foreign individuals doing independent business in Vietnam in accordance with Vietnam’s law and earning incomes in Vietnam or taking on tax liabilities in Vietnam (hereinafter referred to as foreign contractors or foreign sub-contractors).

(6) Overseas suppliers without permanent establishments in Vietnam that operate electronic commerce, business based on digital platform and other services together with organizations or individuals in Vietnam (hereinafter referred to as overseas suppliers).

(7) Enterprises, cooperatives, business entities, other entities and individuals that are responsible for withholding and remitting the taxes on behalf of other taxpayers and declare and determine their own taxes separately from those taxes of the said taxpayers as per the tax law (except for the income payers upon withholding and remitting personal income taxes on others' behalf); commercial banks, payment service intermediary providers or entities authorized by overseas suppliers to declare, withhold and remit taxes on behalf of overseas suppliers (hereinafter referred to withholding agents). An income payer shall, upon withholding and remitting a personal income tax, use the TIN that was already issued.

(8) Executives, general executive companies, joint ventures, organizations authorized by Vietnamese Government to receive profits distributed from petroleum fields in the overlapping areas, contractors, and investors entering into petroleum contracts or agreements, parent company - Petro Vietnam as the representative of host country that receives profits distributed from petroleum contracts or agreements

(9) Households, individuals engaged in production and business of goods or services, including individuals of neighbor countries on land with Vietnam engaging in sale and barter at border marketplace, checkpoint marketplaces, marketplaces in checkpoint economic zones) (hereinafter referred to as household/individual businesses).

(10) Individuals earning incomes subject to personal income tax (excluding individual businesses)

(11) Individuals who have dependents as per the law on personal income tax.

(12) Organizations and individuals authorized by tax authorities to collect amounts receivable (hereinafter referred to as authorized tax collectors).

(13) Other entities, households and individuals taking on liabilities to government budget.

2. Obligations to be fulfilled by the taxpayer prior to TIN deactivation in Vietnam

Pursuant to Article 15 of Circular 105/2020/TT-BTC, obligations to be fulfilled by the taxpayer prior to TIN deactivation are as follows:

- As for the taxpayer provided for in points (1), (2), (3), (4), (5), (6), (7), (8), (12), (13) of section 1:

+ The taxpayer shall submit a report on use of invoices as per the law on invoices;

+ The taxpayer shall file the tax return, remit tax payments and deal with overpaid taxes, excess VAT credits, if any) as prescribed in Article 43, 44, 47, 60, 67, 68, 70, 71 of the Law on Tax Administration 2019 with/to the tax authority;

+ For a managing entity with multiple affiliated entities, every affiliated entity shall complete the TIN deactivation before the managing entity completes its own TIN deactivation.

- As for the household/individual business mentioned in point (9) of section 1:

+ The taxpayer shall submit a report on use of invoices as per the law on invoices, if any;

+ The taxpayer shall pay the tax liabilities and deal with the overpaid taxes as prescribed in Articles 60, 67, 69, 70, 71 of the Law on Tax Administration 2019 to/with the tax authority, for a household/individual business paying the fixed amount of taxes.

+ The taxpayer shall file the tax return, remit tax payments and deal with overpaid taxes, excess VAT credits, if any) as prescribed in Article 43, 44, 47, 60, 67, 68, 70, 71 of the Law on Tax Administration 2019 with/to the tax authority, for a household/individual business paying the taxes based on declaration method.

- As for a household business upgraded to small and medium-sized enterprise as per the Law on Assistance for Small and Medium-Sized Enterprises, the household business shall pay the tax liabilities to the supervisory tax authority and undertake in writing with the tax authority that the new small and medium-sized enterprise shall inherit every tax liability from the household business as per the law on assistance for small and medium-sized enterprises.

- As for taxpayers being individuals provided for in points (10) and (11) of section 1:

The taxpayer shall pay the tax liabilities and deal with the overpaid taxes as prescribed in Articles 60, 67, 69, 70, 71 of the Law on Tax Administration 2019 to/with the tax authority.

Nguyen Ngoc Que Anh

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