Circular No. 127/2015/TT-BTC dated August 21, 2015 of the Ministry of Finance guiding the grant of enterprise identification numbers to, and assignment of tax agencies to manage, newly established enterprises

CIRCULAR

Guiding the grant of enterprise identification numbers to, and assignment of tax agencies to manage, newly established enterprises[1]

Pursuant to Law No. 78/2006/QH11 on Tax Administration and Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the Law on the State Budget and its guiding documents;

Pursuant to Law No. 67/2014/QH13 on Investment;

Pursuant to Law No. 68/2014/QH13 on Enterprises;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

In furtherance of the Government’s Resolution No. 19/NQ-CP of March 12, 2015, on major tasks and solutions for further improving the business environment and raising national competitiveness in 2015-2016;

At the proposal of the General Director of Taxation.

The Minister of Finance guides the automatic grant of enterprise identification numbers through electronic mode and assignment of tax agencies to manage enterprises as follows:

Article 1.Scope of regulation and subjects of application

1. Scope of regulation

a/ This Circular guides the automatic grant of enterprise identification numbers through electronic mode via the General Department of Taxation’s Tax Registration System and the exchange of tax registration information with the National Enterprise Registration Information System in accordance with the current Enterprise Law and Tax Administration Law;

b/ This Circular guides the assignment of tax agencies to manage enterprises established under the Enterprise Law and their branches and affiliated units, covering enterprise establishment, reorganization (division, split, consolidation, merger and conversion), and relocation to another province or centrally run city;

The assignment of tax agencies to manage newly established enterprises under this Circular shall be implemented from the effective date of this Circular. The assignment of tax agencies to manage enterprises decided before the effective date of this Circular shall be further implemented or must comply with provincial-level People’s Committees’ decisions approved by provincial-level People’s Councils.

2. Subjects of application

This Circular applies to:

a/ Tax agencies, including the General Department of Taxation, provincial-level Tax Departments and district-level Tax Sub-Departments;

b/ Provincial-level business registration agencies;

c/ Organizations and individuals registering the establishment of enterprises under the Enterprise Law;

d/ Other related organizations and individuals.

Article 2.Order of automatic grant of enterprise identification numbers

1. Principles of automatic grant of enterprise identification numbers

An enterprise identification number shall be granted automatically through electronic mode via the General Department of Taxation’s Tax Registration System right on the working day after a complete and valid dossier is received from the National Enterprise Registration Information System as prescribed in the Enterprise Law and Tax Administration Law.

2. Order of grant

Based on e-information on enterprise establishment registration transmitted from the National Enterprise Registration Information System, the General Department of Taxation’s Tax Registration System shall automatically check the completeness, accuracy and validity of relevant information of the enterprise registration dossier in accordance with the Enterprise Law and the Tax Administration Law.

a/ If information is complete and valid as prescribed:

To automatically create an enterprise identification number and assign a tax agency (provincial-level Tax Department or district-level Tax Sub-Department) to directly manage the enterprise in accordance with the concerned provincial-level People’s Council’s resolution on division of revenue sources, and with the Tax Administration Law.

To automatically transmit information on the enterprise identification number and tax agency directly managing the enterprise to the National Enterprise Registration Information System.

b/ If information is incomplete (lacking compulsory information) or invalid as prescribed:

To automatically create a notice of incompleteness and invalidity of information;

To automatically transmit information to the National Enterprise Registration Information System for the business registration agency to notify such to the enterprise for modification and supplementation of its enterprise registration dossier as prescribed.

3. After receiving the granted enterprise identification number and information on the managing tax agency from the tax agency, the business registration agency shall grant an enterprise registration certificate and, at the same time, print out a notice of the managing tax agency and hand it together with the enterprise registration result to the enterprise for carrying out tax-related procedures and performing tax-related obligations in accordance with regulations.

Article 3.Assignment of tax agencies to manage enterprises

1. Principles of assignment of tax agencies to manage enterprises

a/ The assignment of a tax agency to manage an enterprise shall be conducted on the General Department of Taxation’s Tax Registration System simultaneously with the grant of the enterprise identification number.

A tax agency shall be assigned to manage the enterprise based on the taxpayer’s information in the enterprise establishment registration dossier transmitted electronically by the business registration agency.

b/ The assignment of a tax agency to manage an enterprise shall be based on the management capacity of tax agencies at various levels and must comply with the State Budget Law’s provisions on the competence to manage and divide revenue sources in localities and the current Law on Tax Administration;

c/ The assignment of a tax agency to manage an enterprise must suit the organization of business activities of the enterprise and characteristics of each locality, area and region.

2. Based on the principles specified in Clause 1 of this Article and the provisions on division of revenue sources in the Resolution of the provincial-level People’s Council, the provincial-level Tax Department shall coordinate with the provincial-level Finance Department and related agencies in establishing criteria for assignment of tax agencies to manage newly established enterprises in the locality that are regulated by this Circular, and report such to the provincial-level People’s Committee for consideration and submission to the provincial-level People’s Council for decision:

To ensure automatic assignment on the Tax Registration System of the General Department of Taxation, criteria for assignment of tax agencies to manage newly established enterprises shall be established based on taxpayers’ information in enterprise establishment registration dossiers transmitted by business registration agencies. When establishing these criteria, attention should be paid to the following:

a/ Provincial-level Tax Departments shall manage the following enterprises:

a.1/ State enterprises.

Particularly for enterprises with state-contributed capital, provincial-level Tax Departments shall base themselves on the practical local situation and provisions of Clauses 1 and 2 of this Article to propose the assignment of tax agencies to manage such enterprises;

a.2/ Foreign-invested enterprises; and enterprises under BOT, BTO or BT projects that are established by investors to design, build, operate and manage the projects’ works and implement other projects under the law on investment;

a.3/ Enterprises applying cost-accounting according to the whole sector and enterprises operating in different geographical areas (such as hydropower, post, telecommunications or capital construction enterprises); enterprises doing large-scale business; and enterprises with budget revenues allocated to various provinces or to various districts in the same province as prescribed by law;

a.4/ Enterprises conducting specific and legally complicated business activities such as finance, banking, insurance, securities, real estate business, accounting, audit, legal activities or mining activities. Provincial-level Tax Departments shall base themselves on the practical local situation and the principles mentioned in Clause 1 of this Article to propose the assignment of tax agencies to manage these enterprises;

b/ District-level Tax Sub-Departments shall manage other enterprises operating in districts.

Article 4.Exchange of warnings about cases of violation of the tax law

1. Cases of violation of the tax law warned on the National Enterprise Registration Information System include:

a/ Individual corporate managers with signs of criminal offense whose files have been transferred by the tax agency to the investigation agency in accordance with the criminal procedure law and tax law;

b/ Enterprises having managers, members of the Members’ Councils, members of the Boards of Directors or general partners who were previously owners of enterprises (for private enterprises); chairpersons of the Members’ Councils, chairpersons of the Boards of Directors, directors, general directors (for limited liability companies and joint stock companies); general partners (for partnerships) or at-law representatives of enterprises which have been notified by tax agencies as no longer doing business at the addresses registered with state management agencies;

c/ Enterprises established against the Enterprise Law such as individuals being private enterprise owners or business household owners are not permitted to be private enterprise owners and vice versa; general partners are not permitted to be private enterprise owners or general partners of another partnership.

2. The General Department of Taxation shall provide information about individual founders of enterprises and individual corporate managers managed by tax agencies specified in Clause 1 of this Article for the Business Registration Management Agency of the Ministry of Planning and Investment to update the warning list on the National Enterprise Registration Information System.

3. When receiving enterprise registration dossiers, the business registration agency shall examine and scrutinize the cases specified in Clause 1 of this Article and coordinate with related tax agencies in requesting individual founders of enterprises and individual corporate managers to fulfill tax-related obligations and complete procedures in accordance with the tax law.

Article 5.Organization of implementation

1. Operating enterprises and organizations having managing tax agencies (provincial-level Tax Departments or district-level Tax Sub-Departments) assigned before the effective date of this Circular shall remain under the management of these agencies.

The assignment of tax agencies to manage new enterprises under the guidance of this Circular shall be implemented through December 31, 2016.

From January 1, 2017, to implement State Budget Law No. 83/2015/QH13, the Ministry of Finance shall provide specific guidance on the assignment of tax agencies to manage enterprises.

2. For enterprises and organizations that are granted enterprise identification numbers upon establishment and have their managing district-level Tax Sub-Departments assigned in accordance with this Circular, then carry out regular export production and business activities eligible for value-added tax refund (if any) according to regulations, the assignment of provincial-level Tax Departments to manage their tax refund must comply with the Tax Administration Law’s provisions on the competence to decide on tax refund.

3. Provincial-level Tax Departments shall notify the Ministry of Finance (the General Department of Taxation) of the assignment of tax agencies to manage local enterprises already decided by provincial-level People’s Councils as prescribed in Clause 2, Article 3 of this Circular.

Article 6.Effect

1. This Circular takes effect on October 10, 2015.

2. Documents guiding the assignment of tax administration of new enterprises which are contrary to this Circular shall be all annulled.

Article 7.Implementation responsibilities

1. The General Department of  Taxation shall coordinate with the Business Registration Management Agency of the Ministry of Planning and Investment in organizing the automatic grant of enterprise identification numbers in accordance with this Circular, ensuring best convenience for enterprises.

2. The General Department of Taxation shall implement, guide and examine the assignment of tax administration of enterprises at provincial-level Tax Departments and district-level Tax Sub-Departments according to the principles of assignment prescribed in this Circular.

3. Provincial-level Tax Departments, district-level Tax Sub-Departments and related agencies and organizations shall fully and strictly implement this Circular.

Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance for study and settlement.-

For the Minister of Finance
Deputy Minister
DO HOANG ANH TUAN