VietnameseCircular no. 85/2007/TT-BTC dated July 18, 2007 of the Ministry of Finance guiding the implementation of the Law on tax administration regarding tax registration
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Circular no. 85/2007/TT-BTC dated July 18, 2007 of the Ministry of Finance guiding the implementation of the Law on tax administration regarding tax registration
| Issuing body: | Ministry of Finance | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 85/2007/TT-BTC | Signer: | Truong Chi Trung |
| Type: | Circular | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 18/07/2007 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Tax - Fee - Charge |
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THE MINISTRY OF FINANCE ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
No. 85/2007/TT-BTC | Hanoi, July 18, 2007 |
CIRCULAR
GUIDING THE IMPLEMENTATION OF THE LAW ON TAX ADMINISTRATION REGARDING TAX REGISTRATION
Pursuant to the Law on Tax Administration;
Pursuant to the tax laws and ordinances and the Ordinance on Charges and Fees;
The Finance Ministry guides the tax registration, grant of tax identification numbers to taxpayers and use of tax identification numbers as follows:
Pursuant to the tax laws and ordinances and the Ordinance on Charges and Fees;
The Finance Ministry guides the tax registration, grant of tax identification numbers to taxpayers and use of tax identification numbers as follows:
Part I
GENERAL PROVISIONS ON TAX REGISTRATION
1. Tax registration
1.1. Tax registration means taxpayers’ declaration of their information in a set form and submission of declaration forms to tax administration agencies before starting to perform the tax obligation toward the State according to the provisions of law.
1.2. The General Department of Taxation is the state agency responsible for managing tax registration and the grant of tax identification numbers.
2. Tax registrants
2.1. Taxpayers obliged to make tax registration include:
a/ Organizations, households and individuals engaged in production, business and provision of services or goods;
b/ Individuals who have incomes liable to personal income tax;
c/ Organizations responsible for withholding and paying taxes on taxpayers’ behalf, including:
- State agencies, economic organizations and social organizations authorized to withhold personal income tax of persons being taxpayers in their units.
- Organizations and enterprises permitted by law to pay taxes on behalf of persons who have payable tax amounts.
- Vietnamese parties responsible for making tax registration, declaration and payment on behalf of foreign contractors or sub-contractors.
- Units authorized to collect charges and fees.
d/ Foreign organizations without the Vietnamese legal entity status, foreign independent practitioners conducting business activities in Vietnam in accordance with Vietnamese law. Foreign organizations and individuals conducting business activities without presence in Vietnam but earning incomes in Vietnam;
e/ Vietnamese citizens at home or on overseas working missions or working overseas and foreigners working in Vietnam and earning incomes liable to income tax according to the law on personal income tax;
f/ Other organizations and individuals involved in tax-related activities, such as: project management units, non-business units, organizations and individuals that have no tax liability but are eligible for tax refund or receipt of aid goods from abroad.
2.2. When carrying out tax registration procedures with tax agencies, any taxpayer obliged to make tax registration will be granted a tax identification number.
Payers of registration charge, land and housing tax or agricultural land use tax are temporarily not required to make tax registration.
3. Tax identification numbers
3.1. A tax identification number is a sequence of numerals encoded according to a uniform rule and granted to a payer of taxes, charges, fees and other revenues specified by the tax, charge and fee laws and ordinances (collectively referred to as tax law), including payers of export tax and import tax. Tax identification numbers are used to identify taxpayers and uniformly managed throughout the country.
3.2. A tax identification number is a sequence of numerals divided into the following groups:
N1N2N3N4N5N6N7N8N9N10N11N12N13
In which:
The first two numerals N1N2 represent the province code according to the list of province codes.
The seven numerals N3N4N5N6N7N8N9 are ordinal numbers starting from 0000001 to 9999999. N10 is the control numeral.
The ten numerals from N1 to N10 are granted to independent taxpayers and principal units.
The three numerals N11N12N13 are ordinal numbers starting from 001 to 999 assigned to dependent units or branches of independent taxpayers and principal units.
3.3. Principles for grant of tax identification numbers
a/ A taxpayer is granted a sole tax identification number for use throughout the course of operation from the date of tax registration till the termination of his/her/its existence. Tax identification numbers are used in making declaration and payment of all kinds of tax payable, including cases where a taxpayer is engaged in different business lines or conducts production and business activities in different geographical areas.
A granted tax identification number must not be re-granted to another taxpayer. When enterprises and business organizations cease to exist, their tax identification numbers will no longer be valid and may not be reused.
Particularly, tax identification numbers granted to taxpayers being owners of private enterprises, heads of business households or business individuals do not change throughout their life, including those individuals who cease but later resume their business activities.
b/ Ten-numeral tax identification numbers (N1N2N3N4N5N6N7N8N9N10) are granted to:
All taxpayers, except for the cases specified at Point 3.3.2 below to which 13-numeral tax identification numbers are granted.
c/ Thirteen-numeral tax identification numbers (N1N2N3N4N5N6N7N8N9N10N11N12N13) are granted to:
- Branches, representative offices, stores and workshops of enterprises conducting business activities and registering and paying taxes directly to tax agencies (except for branches of foreign companies headquartered in foreign countries);
- Dependent cost-accounting member units of corporations;
- Contractors to petroleum prospecting, exploration and exploitation contracts (except for contract-administering contractors); contractors and sub-contractors that do not directly pay taxes to tax agencies;
- Non-business units attached to corporations or enterprises which have tax liabilities;
- Owners of private enterprises, business individuals and heads of business households who have their business establishments or stores located in different districts, provincial towns or provinces. These individuals are, apart from the principal 10-numeral tax identification numbers, also granted 13-numeral tax identification numbers to make tax declaration and payment for their business establishments or stores to tax agencies in charge of the collection of taxes from those establishments and stores;
- Cooperative members, individuals and groups of individuals belonging to economic organizations doing business on a contractual basis, accountable for their business results and paying taxes directly to tax agencies;
- Project management offices operating under contracts of foreign contractors or sub-contractors and paying taxes directly in Vietnam.
Subjects defined at this Point are below referred to as “dependent units.” Units having dependent units are below referred to as “managing units.” Dependent units, whether practicing independent or dependent cost-accounting, are granted 13-numeral tax identification numbers.
For dependent units which are managed by managing units but register and pay taxes directly to tax agencies, their managing units (having 10-numeral tax identification numbers) shall declare them in the “list of dependent units” so that tax agencies can grant 13-numeral tax identification numbers. If managing units fail to make additional declaration of their dependent units, these dependent units shall make tax declaration and registration directly with tax agencies. Tax agencies shall grant 10-numeral tax identification numbers to these units for use in tax declaration and payment.
Part II
SPECIFIC PROVISIONS ON TAX REGISTRATION
I. Procedures for tax registration
1. Time limit for tax registration:
Entities obliged to make tax registration shall make tax registration according to a set form with tax agencies within 10 working days from the date:
- They are granted business registration certificates or establishment and operation licenses or investment certificates;
- They commence their business operation, if they have no business registration certificate, or their tax liabilities arise, if they are non-business organizations or individuals;
- The responsibility of organizations or individuals to withhold and pay taxes on taxpayers’ behalf arises;
- They start performing the task of collecting charges and fees prescribed by law;
- Their personal income tax liabilities arise (the date they receive their incomes);
- Refundable value-added tax amounts arise under the tax law, for project owners (or authorized representatives like work management units) and foreign contractors.
2. Tax registration dossiers
2.1. For taxpayers being business organizations (except for dependent units), a tax registration dossier comprises:
- A tax registration declaration form, made according to form No. 01-DK-TCT, and enclosed lists (if any).
- A copy of the business registration certificate or the license for foreign investment in Vietnam or the establishment decision.
Business organizations that are managing units of dependent units shall declare their dependent units in the list of dependent units. Tax agencies that manage those managing units shall grant tax identification numbers to managing units and concurrently to each of their dependent units on the list of dependent units, even to dependent units based outside provinces where managing units are located. Managing units shall notify 13-numeral tax identification numbers to their dependent units. Tax agencies that manage managing units shall notify 13-numeral tax identification numbers to tax agencies that manage dependent units.
2.2. For taxpayers being dependent units of business organizations, a tax registration dossier comprises:
- A tax registration declaration form, made according to form No. 02-DK-TCT, and enclosed lists (if any). The tax registration declaration form must show the 13-numeral tax identification number already notified by the managing unit.
- A copy of the business registration certificate of the branch or the license for foreign investment in Vietnam.
2.3. For taxpayers being individuals, groups of individuals or business households, a tax registration dossier comprises:
- A tax registration declaration form, made according to form No. 03-DK-TCT, enclosed with a list of stores and shops (if any) based outside the district, provincial town or province where the principal business establishment is located.
- A copy of the business registration certificate (if any).
- A copy of the people’s identity card.
Particularly for individuals who have stores and shops based outside the localities (provinces, cities, districts, provincial towns) where their principal establishments are located and make tax declaration and registration with district-level Tax Departments of localities where their store and shops are based, dossiers for tax payment registration are tax payment registration declaration forms made according to form No. 03.1-DK-TCT.
2.4. For taxpayers being foreign contractors and sub-contractors paying taxes directly in Vietnam, a tax registration dossier comprises:
- A tax registration declaration form, made according to form No. 04-DK-TCT.
- A copy of the license for business operation in Vietnam.
- A copy and the Vietnamese translation of the business license or the independent practice license and the tax registration certificate granted by the country of origin to the foreign contractor or sub-contractor.
- A list of project management offices of the foreign contractor or sub-contractor paying taxes directly in Vietnam (if any).
2.5. For project management units performing contracts of foreign contractors and sub-contractors paying taxes directly in Vietnam, a tax registration dossier comprises:
Foreign contractors and sub-contractors that pay taxes directly in Vietnam in the course of executing investment projects and have made tax registration and been granted 10-numeral tax identification numbers by tax agencies, when entering into contracts (under projects) in other localities, shall make tax registration declaration for project management units to be granted 13-numeral tax identification numbers or directly perform such contracts and make tax registration according to tax registration declaration form No. 04.3-DK-TCT.
For these entities, a tax registration dossier comprises:
- A tax registration declaration form, made according to form No. 04.3-DK-TCT.
- The contract signed with a Vietnamese party (the Vietnamese extract).
- The investment license or contracting license of the project management unit or the foreign contractor or sub-contractor directly performing the contract (if any).
2.6. For foreign contractors and sub-contractors not directly paying taxes in Vietnam, a tax registration dossier comprises:
For contracts of foreign contractors and sub-contractors and business cooperation contracts between Vietnamese parties and foreign parties which do not directly pay taxes in Vietnam, Vietnamese parties signing contracts with contractors shall make tax declaration and payment on behalf of foreign parties. A Vietnamese party is granted a 10-numeral tax identification number for declaring and paying taxes on behalf of foreign contractors and sub-contractors. If contracting Vietnamese parties have been granted tax identification numbers, they may not use these tax identification numbers in making tax declaration and payment on behalf of foreign contractors and sub-contractors.
A dossier of tax identification number registration of a Vietnamese party signing contracts and paying taxes for foreign contractors and sub-contractors comprises:
- A tax registration declaration form, made according to form No. 04.1-DK-TCT, enclosed with a list of foreign contractors and sub-contractors for whom the Vietnamese party declares and pays taxes.
- Contracts signed with foreign contractors (the Vietnamese extracts).
- A list of foreign contractors and sub-contractors to business cooperation contracts that pay taxes through the Vietnamese party. Each foreign contractor or sub-contractor on the list will be granted a 13-numeral tax identification number based on the tax identification number of the contracting Vietnamese party paying taxes on its behalf. That tax identification number is used to differentiate payable and paid tax amounts of each foreign contractor or sub-contractor by the time the contracting Vietnamese party declares and pays taxes to tax agencies on the former’s behalf. The contracting Vietnamese party shall make tax registration declaration for each contractor or sub-contractor according to tax registration form No. 04.2-DK-TCT, and carry out procedures for terminating 13-numeral tax identification numbers of foreign contractors and sub-contractors upon termination of contracts.
2.7. For taxpayers being foreign contractors, sub-contractors or foreign parties to business cooperation contracts that declare and pay taxes through Vietnamese parties, a tax registration dossier comprises:
- A tax registration declaration form, made according to form No. 04.2-DK-TCT, showing the 13-numeral tax identification number of the contractor.
- Contracts signed with the Vietnamese party (the Vietnamese party).
- Copies and Vietnamese translations of business licenses or independent practice licenses and tax registration certificates granted by the countries of origin to foreign contractors and sub-contractors.
2.8. For taxpayers being individuals paying income tax on high-income earners, a tax registration dossier comprises:
- A tax registration declaration form, made according to form No. 05-DK-TCT.
- A copy of the tax registrant’s identity card or passport, for foreigners (copy).
- Two 2 cm x 3 cm photos of the tax registrant (one to be stuck on the tax registration declaration and the other to be stuck on the tax identification number card).
Individuals who directly declare and pay income tax on high-income earners to tax agencies shall submit tax registration dossiers to tax agencies so as to be granted personal tax identification number cards.
2.9. For taxpayers being diplomatic missions, consulates and representative offices of international organizations in Vietnam (eligible for VAT refund), tax registration dossiers are tax registration forms made according to form No. 06-DK-TCT.
2.10. For taxpayers being organizations authorized to collect taxes, charges, fees and other revenues prescribed by law; project owners and foreign principal contractors of ODA projects; organizations withholding personal income tax and consisting of units not engaged in production, business or service activities, tax registration dossiers are tax registration forms made according to form No. 01-DK-TCT (filling in items 1, 2, 3, 4, 12 and 18 only).
Particularly for organizations and individuals that collect charges and fees belonging to the state budget, charge and fee collection registration declaration forms made according to form No. 1 enclosed with the Finance Ministry’s Circular No. 63/2002/TT-BTC of July 24, 2002, guiding charges and fees, are also required. Each charge- and fee-collecting unit is granted a tax identification number for common use for declaration and payment of charges and fees as well as taxes for production, business or service activities (if any).
2.11. For a number of special business lines and professions that require licenses granted by ministries or branches (such as credit, law practice, petroleum, insurance and healthcare), such licenses may be used instead of business registration certificates in tax registration dossiers.
As taxpayers are not required to append their seals on tax registration declaration forms, they can carry out procedures for tax registration and seal carving at the same time.
3. Supply of tax registration declaration forms
Taxpayers may receive tax registration declaration forms at the nearest tax agency or copies of the forms enclosed with this Circular or print tax registration declaration forms from the website of the General Department of Taxation (at http://www.gdt.gov.vn). Taxpayers may go to any tax agencies to inquire about how to fill in tax registration dossiers.
4. Places of submission of tax registration dossiers:
- Enterprises, units and organizations engaged in production, business or service provision shall submit their tax registration dossiers at Tax Departments of provinces or centrally run cities (below referred to as provinces) where they are headquartered.
- Dependent units of enterprises, units and organizations shall submit tax registration dossiers at Tax Departments of provinces where they are headquartered.
- Organizations and individuals responsible for withholding and paying taxes on taxpayers’ behalf shall make tax registration with tax administration agencies of localities where they are located or reside. Particularly, individuals paying income tax through their income-paying agencies shall submit their tax registration declaration forms to the income-paying agencies, which shall sum up and submit tax registration declaration forms of their staffs to tax agencies in charge of tax collection.
- Individuals paying income tax on high-income earners directly (not through income-paying organizations) shall make tax registration with tax agencies of localities where they earn taxable incomes or register their permanent or temporary residence.
- Cooperatives, cooperation groups, business households and individuals shall make tax registration with Tax Departments of districts, provincial towns or cities.
5. Receipt of tax registration dossiers
Tax officers shall receive tax registration dossiers, append seals of receipt, clearly stating the time of dossier receipt and the number of documents on the list of tax registration documents, for tax registration dossiers submitted directly at tax agencies. Tax officers shall issue appointment slips to tax registrants stating the date of notification of tax registration results, which must not be later than the deadline set in this Circular.
For tax registration dossiers sent by post, tax officers shall append seals showing the date of dossier receipt and record them in incoming-mail books of tax agencies.
For electronic tax registration, the receipt, examination and acceptance of tax registration dossiers shall be conducted through electronic data processing systems of tax agencies.
Tax officers shall examine tax registration dossiers. In case of necessity to supplement dossiers, tax officers shall notify such to dossier submitters on the date of dossier receipt, for directly submitted dossiers, or within three working days from the date of receipt of dossiers sent by post or electronically.
In localities which has implemented the Joint Circular on processing of business registration dossiers, tax registration dossiers and dossiers of application for seal carving permits under the inter-branch “one-stop shop” mechanism, the tax registration procedures and dossiers and places of receipt of tax dossiers comply with these provisions on inter-branch “one-stop shop” mechanism.
6. Grant of tax registration certificates
6.1. Time limit for grant of tax registration certificates
Tax agencies shall grant tax registration certificates within five working days, for tax registration dossiers submitted directly to provincial-level Tax Departments, or ten working days, for those submitted directly to district-level Tax Departments, from the date of receipt of complete tax registration dossiers (excluding the time for revision or supplementation of dossiers containing information wrongly or inadequately declared by taxpayers).
6.2. Tax registration certification
a/ Tax registration certificates: Taxpayers that fully carry out tax registration procedures and submit complete tax registration dossiers shall be granted by tax agencies tax registration certificates, made according to form No. 10-MST (except for individuals subject to income tax on high-income earners). A tax registration certificate has the following items:
- Name of the taxpayer;
- Tax identification number;
- Serial number and date of the business registration certificate or operation license or investment license, for business organizations or individuals;
- Serial number and date of the establishment decision, for non-business organizations;
- Serial number and date and place of issue of the identity card or passport, for non-business individuals;
- The managing tax agency;
- The date of grant of the tax identification number.
b/ Personal tax identification number cards: Individuals subject to income tax on high-income earners that fully carry out tax registration procedures and submit complete tax registration dossiers shall be granted personal tax identification number cards, made according to form No. 12-MST enclosed with this Circular (not printed herein). A personal tax identification number card has the following items:
- Name of the taxpayer;
- Tax identification number;
- Serial number and date and place of issue of the identity card;
- Address of permanent residence.
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