Procedures for registration of personal tax identification numbers for foreigners

Currently, there are many individuals and businesses interested in the issue of personal tax identification number registration for foreigners working in Vietnam. So what is procedures for registration of personal tax identification numbers for foreigners? LSX Lawfirm will answer this question in this article.

Legal grounds

Law on Personal Income Tax

Circular No. 111/2013/TT – BTC of the Ministry of Finance

Procedures for registration of personal tax identification numbers for foreigners

The registration of personal tax identification numbers for foreigners can be done in one of the following two ways:

Individuals submit an application for registration of personal tax identification numbers for foreigners directly at the tax office

– Tax registration dossiers include:

+ Copy of passport (Photocopy Passport) of individuals with foreign nationality and Vietnamese living abroad.

+ Tax code registration form, made according to form No. 05-DK-TCT:

• Full name of foreigner registered for personal tax identification number: Fill in full full name in capital letters.
• Date, month, year of birth of the registrant.
• Subscriber’s gender: check the gender box male or female.
• Nationality: specify nationality.
• Number of personal identification papers: write all types of documents that the registrant has.
• Residential Address: Specify the current residential address.
• Contact phone, email.
• Salary-paying agency at the time of registration: Fill in all information about the salary-paying company or enterprise currently working at the time of registration.

Submit application for registration of personal tax identification number for foreigners with income paying agency.

– Step 1: Prepare documents to submit to the income paying agency.

• The individual prepares and sends the power of attorney.
• Copy of passport (Photocopy Passport) of individuals with foreign nationality and Vietnamese living abroad.

– Step 2: Summarize, fill in the information and submit it to the General Department of Taxation.

• Summarize the individual’s tax registration information into the following tax registration declaration (check the box “Tax registration” on the declaration and fill in all the information).
• Submit to the General Department of Taxation via the Portal.

– Step 3: Receive and report the results.

• Firstly, the settlement time is no more than 03 working days from the date the tax authority receives the complete tax registration dossier as prescribed by the taxpayer.
• Secondly, the paying tax agency shall notify the list of tax identification numbers of individuals who have registered for tax through the collection-paying agency.
• Lastly, the income-paying agency is responsible for notifying the tax identification number to each individual or the reason why the tax identification number has not been issued for the individual to adjust and supplement information.

Regulations on registration of personal tax identification numbers for foreigners.

Accordingly the provisions of Circular No111/2013/TT – BTC of the Ministry of Finance:

Resident individual means a person who meets one of the following conditions: Being present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of presence in Vietnam, in which the arrival and departure dates are counted as one (01) day. Besides, the date of arrival and departure is based on the certification of the immigration authority on the passport (or travel document) of the individual upon arrival and departure from Vietnam. In case of entry and exit on the same day, it will be counted as one day of residence.
An individual present in Vietnam under the guidance at this point is his or her presence in the Vietnamese territory.

Having a regular place of residence in Vietnam in one of the following two cases:
– Having a regular place of residence as prescribed by the law on residence:
+ For Vietnamese citizens: permanent residence is a place where an individual lives regularly and stably for an indefinite period at a certain place of residence and has registered his/her permanent residence; accordingly the law on residence.
+ For foreigners: the place of permanent residence is the place of permanent residence stated in the permanent residence card or the place of temporary residence when applying for a temporary residence card issued by a competent authority of the Ministry of Public Security.”

Thus, if the foreigner whom your party is hiring laborers to work in Vietnam, ensures the provisions of labor law and residence management, has a temporary residence card, your party must register a tax code for this individual.

Taxable incomes of foreign workers

Accordingly the provisions of Article 3 of the Law on Personal Income Tax and Article 3 of Decree No65/2013/ND-CP, incomes subject to personal income tax include:

1. Income from business.

Business income is income earned from production and business activities in the following fields:

Firstly, incomes from production and trading of goods and services in all business fields and lines as prescribed by law, such as: production and trading of goods; construct, carriage, catering business, business services, besides, including rental services, land use rights, water surface, other assets.

Secondly, ncomes from independent practice activities of individuals in the fields; and professions for which a license or practice certificate is granted; as prescribed by law.

Lastly, incomes from production and business activities in agriculture, forestry, salt making, aquaculture and fishing do not satisfy the conditions for tax exemption guided at Point e, Clause 1, Article 3 of this Circular.

2. Income from salary and wages.

3. Income from capital investment.

4. Income from capital transfer.

5. Income from real estate transfer.

6. Income from winning prizes.

7. Income from royalties.

8. Income from franchising.

9. Income from inheritance.

10. Income from receiving gifts.

Hopefully, the article “Procedures for registration of personal tax identification numbers” will bring you useful information. If you still have problems, are unclear or need other legal support, please contact Lawyer X : 0833102102

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