In a market economy with fierce competition, many domestic and foreign enterprises choose to set up transaction offices. So what are the legal regulations on transaction offices? Is it the same as a representative office and a transaction office with a tax code? To better understand this, today, LSX Lawfirm will give you an article about “Does the transaction office in Vietnam have a tax code?“, as follows:
Legal grounds
- Enterprise Law 2020
What is a transaction office?
The transaction office is the place to receive cases, work, and requests from customers. Transaction offices are not allowed to provide legal services. However, the concept of “transaction office” used in daily life is not a term appearing in legal documents.
Distinguish transaction offices from representative offices
Transaction offices and representative offices of enterprises are specified in article 44 of the Enterprise Law 2020 as follows.
Article 44. Branches, representative offices, and business locations of enterprises
- A branch is a dependent unit of an enterprise, responsible for performing all or part of the enterprise’s functions, including the function of authorized representatives. The branch’s line of business must be consistent with the business line of the enterprise.
- A representative office is a dependent unit of an enterprise, having the task of representing by authorization the interests of the enterprise and protecting those interests. Representative offices do not perform the business functions of enterprises.
- Business location is the place where an enterprise conducts specific business activities.
The Law on Enterprises does not have specific regulations on transaction offices, but in fact, transaction offices are often established as business locations of enterprises.
Difference between a representative office and a transaction office?
Representative office:
No business function, no license fee due to lack of business function
The more complex establishment needs board meetings and decision making
Having its own tax code is the enterprise code attached with 001 002….
Business location:
Can be given many different names (transaction office, warehouse)
Pay a license fee of 1,000,000 VND/per year
There is no separate tax code if it belongs to the same locality, if it is different, the business location still has its own tax code
Can be used for business
Simple setup procedure
Does the transaction office have a tax code?
Pursuant to Clause 2 and Point c, Clause 3, Article 5 of Circular 105/2020/TT-BTC stipulates as follows:
“Article 5. Tax code structure
- Enterprise identification number, cooperative identification number, and code number of dependent units of enterprises or cooperatives granted in accordance with the law on business registration and registration of cooperatives are tax identification numbers.
- Tax code structure classification
c) Taxpayers being economic organizations or other organizations specified at Points a, b, c, d, n, Clause 2, Article 4 of this Circular with full legal status or no legal person status but directly incur tax obligations and take self-responsibility for all tax obligations before the law to be granted a 10-digit tax code; Dependent units established in accordance with the law of the above-mentioned taxpayers, if tax obligations arise and directly declare and pay taxes, are granted a 13-digit tax code.”
Accordingly, Clause 2, Article 3 of this Circular, explained:
“Article 3. Interpretation of terms
In this Circular, the following terms construed as follows:
- “A dependent unit of an enterprise or cooperative” means a branch or representative office of an enterprise or cooperative in accordance with the law on business registration and registration of cooperatives.”
Thus, if the transaction office of the enterprise incurs tax obligations and directly declares and pays taxes, it will granted a separate 13-digit tax code.
Procedures for setting up transaction offices of enterprises
Enterprises have the right to set up their own transaction offices in the country and abroad (except for the type of business location that can only establish in the same province where the enterprise headquartered).
Procedures for setting up a transaction office of an enterprise are carried out according to the following steps:
Step 1: Prepare and submit the establishment dossier to the competent authority
The establishment profile for each type is different.
In case an enterprise establishes a branch or representative office.
Enterprises must send a notice of the establishment of a branch or representative office to the Business Registration Office where the branch or representative office is located. Records include:
Announcement of the establishment of a branch or representative office;
Decision and valid copy of meeting minutes of the Members’ Council, for limited liability companies with two or more members, of the company’s owner, or of the Members’ Council or the company’s president, for limited liability companies. one-member limited liability, of the Board of Directors, for joint-stock companies, of general partners, for partnerships, for the establishment of branches or representative offices;
A valid copy of the decision to appoint the head of the representative office branch;
A valid copy of one of the personal identification papers of the head of the branch or representative office.
For the establishment of a business location
Within 10 working days from the date of deciding to establish a business location, the enterprise shall send a notice of the establishment of a business location to the Business Registration Office.
The content of the notice includes the following basic contents:
Business code;
Name and address of the head office of the enterprise or the name and address of the branch (if the business location is located in the province or centrally run city where the branch is located);
Name and address of business location;
The field of operation of the business location;
Full name, place of residence, number of the people’s identity card or passport or other lawful personal identification as prescribed in Article 10 of this Decree of the head of the business location;
Full name and signature of the legal representative of the enterprise in the case of an enterprise’s direct business location or the full name and signature of the head of the branch in the case of an online business location. belonging to the branch.
Attached to the notice is a written authorization for Viet An Law Firm to carry out the procedures.
And
Step 2: Receive and process documents
The business registration office receives documents at the one-stop shop.
Upon receipt of a valid dossier of an enterprise, the Business Registration Office shall input information into the National Information System on Business Registration to request the identification number of the branch, representative office, and business location.
Within 03 working days from the day on which the valid application received, the Business Registration Office shall issue the Certificate of operation registration of the branch or representative office and update information on the business location in the establishment. National data on corporate registration for enterprises. In case the enterprise needs it, the Business Registration Office shall issue a Certificate of Business Location Registration.
Note:
In case an enterprise establishes a branch or representative office in another province or city where its head office is located, the Business Registration Office where the branch or representative office is located shall send information to the Business Registration Office. a business where the enterprise’s head office is located;
The establishment of a branch or representative office of an enterprise in a foreign country shall comply with the laws of that country;
Within 30 working days from the date of the official opening of a branch or representative office in a foreign country, the enterprise must notify in writing the Business Registration Office where it has registered;
Enterprises can declare online registration on the National Register of Business Registration Information.
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Related questions
Transaction office: The nature of a transaction office is a business location, so at the place where the transaction office is located, the enterprise can sell goods, provide services, and perform business activities as authorized by the transaction office. enterprise.
Transaction office: Different from a representative office because this is essentially the business location of the enterprise. Transaction office is just the name that an enterprise gives itself when registering to set up a business location. Name of a business location includes proper name + Company name.
When there is a need to establish a branch of a transaction office, a complete application must be completed at the business registration office where the branch office is located.
– Establishment of branches or representative offices in foreign countries in accordance with the laws of that country.
Conclusion: So the above is Does the transaction office in Vietnam have a tax code?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
