New Vietnamese Circular on Tax Code Registration
By Bich Lien
Aug. 21 – On May 22th, the Ministry of Finance granted Circular No.80/2012/TT-BTC regulating tax code registration under the Law on Tax Administration and replacing Circular No.85/2007/TT-BTC dated July 18, 2007.
Under Circular 80, organizations, households and individuals producing, trading, providing goods and services; individuals earning incomes subject to personal income tax; foreign organizations without Vietnamese’s legal status, foreign individuals doing independent business in Vietnam; other organizations and individuals related to tax issues such as: project management boards, non-business units, organizations and individuals without tax liability but eligible for tax refund or receiving aid from abroad will be issued with a sole tax code for the whole operation as from the tax registration until the shutdown (except for contractors).
The tax code of an enterprise after the business transformation shall be retained. For enterprises established under the Law on Enterprise, the tax codes are also the enterprise codes. The enterprise therefore does not need to apply separately for a tax code.
In addition, the procedure for registering a tax code is simplified, with a number of documents being removed from the list of required documents. Taxpayers are also only required to submit the registration form and the copy (not notarized) of business certificate (for enterprise), the copy (no notarized) of identify card or passport (for individual) and the timeline for approval is no more than 3 working days from the date of application, replace of 5 to 10 working days according to the previous regulation.
If a tax payer issued with the tax code engages in new business or production or expands the business engages in new business or production or expands the business to other provinces or cities (without establishing new branches or affiliated units), such tax payers must apply for tax registration at the local tax authorities where new business activities or business expansion arise and still use the issued tax code for declaring and paying tax.
The tax payers are individuals subject to personal income tax that complete the procedures and tax registration dossiers shall be issued with “the Tax registration certificate” or “the personal tax code card”.
Individuals paying personal income tax via multiple paying organizations shall apply for tax registration at one paying organizations for the tax code issuance. Individuals shall notify their tax codes to other paying organizations for them to make tax declaration and tax payment using those tax codes.
Under Circular 80, if an individual simultaneously pays personal income tax and does business, the personal income tax code shall be used for declaring and paying tax on the business. If a business individual is already issued with the tax code, such tax code shall be used for declaring and paying personal income tax.
When any information related to tax registration changing, organizations, households and individuals must notify the tax authorities in charge within 10 days as from the change occurs under the form No. 08-MST promulgated together with Circular 80.
Circular 80 takes effect on July 1, 2012.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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