What is the structure of TIN? Classification of structure of TIN in Vietnam

What is the structure of TIN? Classification of structure of TIN in Vietnam (Internet image)

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

1. What is the structure of TIN?

According to Clause 1, Article 5 of Circular 105/2020/TT-BTC, the structure of TIN is prescribed as follows

N₁N₂N₃N₄N₅N₆N₇N₈N₉N₁₀ - N₁₁N₁₂N₁₃

Where:

- The first two digits N₁N₂ indicate the province that issues TINs

- Seven digits N₃N₄N₅N₆N₇N₈N₉ are formed in a definite element in ascending order from 0000001 to 9999999.

- N₁₀ is the check digit.

- Three digits N₁₁N₁₂N₁₃ are formed in ascending order from 001 to 999.

- A dash (-) is used to separate the first 10-digit element and the last 3-digit element.

2. Classification of structure of TIN in Vietnam

The classification of structure of TIN in Vietnam according to Clause 3, Article 5 of Circular 105/2020/TT-BTC is as follows:

- 10-digit TINs shall be issued to enterprises, cooperatives, entities that have full legal status or entities without legal status but incurring tax liabilities; representatives of households, household businesses and other individuals (hereinafter referred to as independent entities).

- 13-digit TINs with a dash (-) used to separate the first 10 digits and the last 3 digits are used for affiliated entities and others.

- The taxpayers being business entities or other entities as prescribed in points a, b, c, d, n clause 2 Article 4 of Circular 105/2020/TT-BTC, whether or not they have legal status, once incurring tax liabilities and being accountable for their own tax liabilities, shall be issued with 10-digit TINs;

The affiliated entities thereof, established as per the law, once incurring tax liabilities and directly declaring and paying taxes, shall be issued with 13-digit TINs.

- Foreign contractors, foreign sub-contractors specified in point dd clause 2 Article 4 of Circular 105/2020/TT-BTC that apply for paying foreign contractor withholding tax directly with tax authorities shall be issued with 10-digit TINs by every contract.

If a foreign contractor, upon a contract, engages in a joint venture with Vietnamese business entities for undertaking business in Vietnam and these joint venture members establish a joint venture management board that keeps accounting records and has a bank account and is responsible for issuance of invoices;

Or the Vietnamese business entity, as the joint venture member, keeps the accounting records in general and shares profits to joint venture members, they shall be issued with a 10-digit TIN for tax declaration and payment for the contract purpose.

If a foreign contractor or foreign subcontractor has an office in Vietnam and has its foreign contractor withholding tax declared, withheld and remitted by the Vietnamese party, such foreign contractor or foreign subcontractor shall be issued with a 10-digit TIN for declaration of other tax liabilities (except foreign contractor withholding tax) in Vietnam and that TIN shall be notified to the Vietnamese party.

- An overseas supplier, specified in point e clause 2 Article 4 of this Circular, which has not been issued with a TIN in Vietnam shall be issued with a 10-digit TIN upon application for tax registration directly with the tax authority.

The overseas supplier shall use the above-mentioned TIN to declare and remit tax by themselves, or provide such TIN for a Vietnamese entity whom they authorize to declare and pay tax on their behalf, or provide such TIN for a commercial bank or payment intermediary service provider to declare and pay tax on their behalf and declare their withholding tax schedule.

- The withholding agents, specified in point g clause 2 Article 4 of Circular 105/2020/TT-BTC, shall be issued with a 10-digit TIN (hereinafter referred to as authorized TIN) to declare and pay taxes on behalf of the foreign contractors, foreign sub-contractors, overseas suppliers, organizations and individuals that have contracts and business cooperation documents.

A foreign contractor, foreign sub-contractors, specified in point dd clause 2 Article 4 of this Circular, which has their foreign contractor withholding tax declared and remitted by the Vietnamese party shall be issued with a 13-digit TIN according to the authorized TIN of the Vietnamese party to complete the certification of payment of foreign contractor withholding tax in Vietnam.

If the taxpayer changes tax registration information, suspends business/operation or resumes business ahead of schedule, deactivates TIN or reactivate TIN as prescribed associated with their TIN, the authorized TIN shall be updated by the tax authority corresponding to the information and status of the taxpayer’s TIN.

The taxpayer is not required to file the documentation required in Chapter II hereof associated with the authorized TIN.

- The executive, general executive company, joint venture, organization authorized by Vietnamese Government to receive profits distributed from petroleum fields in the overlapping areas as prescribed in point h clause 2 Article 4 of Circular 105/2020/TT-BTC shall be issued with a 10-digit TIN for every petroleum contract or agreement document or equivalent document.

A contractor or investor entering into a petroleum contract shall be issued with a 13-digit TIN according to the 10-digit TIN of every petroleum contract to pay the taxes incurred in each petroleum contract (including corporate income tax on income from participating interest in petroleum contract).

The parent company - Petro Vietnam that is the representative of host country to receive profits distributed from petroleum contracts shall be issued with a 13-digit TIN according to the 10-digit TIN of every petroleum contract to declare and pay tax on the profit distributed from each petroleum contract.

- For the taxpayers being households, household businesses, individual businesses and other individuals, specified in points i, k, l, n clause 2 Article 4 of Circular 105/2020/TT-BTC, a 10-digit TIN shall be issued to the representatives of the households, household businesses, individuals, and a 13-digit shall be issued to the places of business of the household businesses and individual businesses.

- If the organization or individual, specified in point m clause 2 Article 4 of Circular 105/2020/TT-BTC, has one or several authorized tax collection contract(s) with a tax authority, they shall be issued with an authorized TIN to remit the amount of taxes collected to the state budget.

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