The Ministry of Finance is proposing a draft Circular to replace Circular 105/2020/TT-BTC on tax registration. Specifically, Article 4 of the draft Circular provides guidance on tax registration subjects as follows:
* Subjects of Tax Registration Include:
- Taxpayers required to register taxes through the one-stop-shop mechanism as stipulated in Point a, Clause 1, Article 30 of the 2019 Law on Tax Administration.
- Taxpayers required to register taxes directly with tax authorities as stipulated in Point b, Clause 1, Article 30 of the 2019 Law on Tax Administration.
* Taxpayers Required to Register Taxes Directly with Tax Authorities Include:
- Enterprises operating in insurance, accounting, auditing, legal, notary, or other specialized fields that do not register through the business registration authority as per specialized laws (hereinafter referred to as Economic Organizations).
- Public service units, economic organizations of the armed forces, economic organizations of political, socio-political, social, socio-professional organizations engaging in business activities as per the law but not required to register businesses through the business registration authority; organizations from countries sharing land borders with Vietnam conducting goods transactions at border markets, border-gate markets, markets in border-gate economic zones; representative offices of foreign organizations in Vietnam; cooperatives established and operating as per the 2015 Civil Code but not required to register businesses through the business registration authority as per the Law on Cooperatives (hereinafter referred to as Economic Organizations).
- Organizations established by competent authorities that do not engage in production or business activities but incur obligations to the state budget (hereinafter referred to as Other Organizations).
- Foreign organizations and individuals, and organizations in Vietnam using humanitarian aid, non-refundable aid from foreign sources to purchase goods and services subject to VAT in Vietnam for non-refundable aid and humanitarian aid; diplomatic missions, consular offices, and representative offices of international organizations in Vietnam entitled to VAT refunds as per diplomatic immunity; ODA project owners eligible for VAT refunds, representative offices of ODA project donors, and organizations appointed by foreign donors to manage non-refundable ODA programs and projects (hereinafter referred to as Other Organizations).
- Foreign organizations without legal status in Vietnam, and foreign individuals conducting independent business activities in Vietnam complying with Vietnamese law and generating income in Vietnam or incurring tax obligations in Vietnam (hereinafter referred to as Foreign Contractors, Foreign Subcontractors).
- Overseas suppliers who are organizations without a permanent establishment in Vietnam or non-resident individuals conducting e-commerce, digital platform-based business, and other services with organizations and individuals in Vietnam (hereinafter referred to as Overseas Suppliers).
- Enterprises, cooperatives, economic organizations, other organizations, and individuals responsible for withholding and paying taxes on behalf of other taxpayers must declare and determine their tax obligations separately from the taxpayers’ obligations per the tax administration law (excluding income-paying agencies when withholding and paying personal income tax); commercial banks, payment intermediary service providers, or organizations and individuals authorized by overseas suppliers to declare, withhold, and pay taxes on behalf of overseas suppliers (hereinafter referred to as Withholding Agents). Income-paying organizations when withholding and paying personal income tax use the issued tax code to declare and pay the withheld personal income tax.
- Operators, joint operating companies, joint ventures, organizations assigned by the Vietnamese Government to receive Vietnam’s allocated shares in overlapping oil and gas fields, contractors, investors participating in oil and gas contracts, and the parent company Vietnam Oil and Gas Group representing the host country to receive profit shares from oil and gas contracts.
- Households and individuals conducting production and business activities as per the law but not required to register businesses through the business registration authority as per the Government’s regulations on household businesses, including resident individuals conducting e-commerce, digital platform-based business, and individuals from countries sharing land borders with Vietnam conducting goods transactions at border markets, border-gate markets, and markets in border-gate economic zones (hereinafter referred to as Household Businesses, Individual Businesses directly registering taxes with tax authorities).
- Individuals with income subject to personal income tax (excluding business individuals).
- Individuals who are dependents as per the personal income tax law.
- Organizations and individuals authorized by tax authorities to collect taxes.
- Other organizations, households, and individuals with obligations to the state budget.
