Currently, there are many foreigners living and working in Vietnam. When residing and generating income in any territory, individuals are governed by the laws of the host country. Therefore, foreigners who do long-term business in Vietnam also need to pay attention to this issue. In particular, to carry out tax procedures, foreigners need to register for a personal tax identification number. In this article, LSX legal firm provides: “Register tax identification number for foreigners in Vietnam”
- Law on Personal Income Tax 2007, amended 2012
- Law on Tax Administration 2019
- Decree 65/2013/ND-CP
Tax identification number
Clause 5, Article 3 of the Law on Tax Administration 2019 provides for specific tax codes as follows:
“tax identification number” or “TIN” means a series of 10 or 13 digits and other characters assigned by tax authorities to taxpayers to serve tax administration.
The individual tax identification number is used to declare all incomes of an individual and pay taxes to the State Budget.
According to decree 65/2013/ND-CP, individuals having taxable incomes shall make tax registration with tax offices for the grant of tax identification number for themselves and for each dependent person from whom they enjoy reduction based on family circumstances.
Organizations and individuals paying taxable incomes shall make tax registration with tax offices in order to be granted tax identification numbers. In case income-paying organizations and individuals that are granted tax identification numbers before the effective date of this Decree may continue using these tax identification numbers.
In which cases do foreigners have to register tax identification numbers?
For resident individuals, taxable income is income earned inside and outside the territory of Vietnam, regardless of where the income is paid and received.
For non-resident individuals, taxable income is income earned in Vietnam, irrespective of where the income is paid and received.
Resident individual means a person who satisfies one of the following conditions:
Reside in Vietnam for 183 days or more
Being present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the date of arrival in Vietnam, in which the date of arrival and departure date is counted as one (01) day. The date of arrival and departure date based on the certification of the immigration authority on the passport (or passport) of the individual upon arrival and departure from Vietnam. In case of entry and exit on the same day, it is counted as one day of residence.
Individuals present in Vietnam according to the instructions at this point are their presence in the territory of Vietnam.
Having a regular residence in Vietnam
Have a regular residence in accordance with the law on the residence:
- For foreigners: the permanent residence is the permanent residence indicated in the permanent residence card or the temporary residence when applying for the temporary residence card issued by a competent authority affiliated to the Ministry of Public Security.
Have a house rented to live in Vietnam in accordance with the law on housing, with a lease contract term of 183 days or more in a tax year, specifically as follows:
- Individual who does not have or does not have a regular residence as instructed at Point b.1, Clause 1 of this Article but has a total of 183 days or more in the year to rent a house under the lease contracts. Taxes are also determined as resident individuals, even when renting a house in multiple locations.
- Rented house for living includes hotel, guest house, motel, inn, workplace, office, … regardless of whether the individual or person Employers hired for employees.
In case an individual has a regular residence in Vietnam as prescribed in this Clause but is actually present in Vietnam for less than 183 days in a tax year but he or she cannot prove that he or she is a resident of any country, That individual is an individual residing in Vietnam.
Proof of being a resident of another country is based on the Residence Certificate. In case an individual belonging to a country or a territory that has signed a tax agreement with Vietnam does not have provisions for issuance of a residence certificate, such individual shall provide a photocopy of the passport to prove the residence period.
Taxable income means incomes from:
- Incomes from goods production or trading or service provision.
- Incomes from independent professional activities of individuals possessing practice licenses or certificates in accordance with the law.
Salaries and wages
- Salaries, wages, and amounts of similar nature.
- Allowances, except for those paid under legal provisions on preferential treatment of persons with meritorious services; defense or security allowances; a hazard or danger allowances for persons working in branches, occupations, or jobs at places where exist hazardous or dangerous elements; allowances for attraction of laborers to work in certain branches or in certain regions specified by law; allowances for sudden difficulties, allowances for laborers having labor accident or suffering from occupational disease, lump-sum maternity or child adoption allowances; allowances for working capacity loss, lump-sum retirement allowances, monthly survivorship allowances, severance, and job loss allowances specified in the Labor Code, other allowances paid by the Social Insurance, and allowances for combat of social evils.
- Remuneration of all kinds.
- Sums of money earned for participation in business associations, boards of directors, control boards, management boards, and other organizations.
- Other monetary or non-monetary benefits received by taxpayers.
- Bonuses, rewards, except for rewards accompanying honorary titles conferred by the State or international or national prizes; rewards for technical renovations, creations, or inventions recognized by competent state agencies; rewards for detection and reporting of illegal acts to competent state agencies.
- Incomes from capital investment in other forms, except for government bond interests.
- Firstly, incomes from the transfer of capital holdings in economic organizations.
- Secondly, incomes from the transfer of securities.
- Thirdly, incomes from the transfer of capital in other forms.
Transfer of real estate
- Firstly, incomes from the transfer of rights to use land and assets attached to land.
- Secondly, incomes from the transfer of right to own or use residential houses.
- Thirdly, incomes from the transfer of right to lease land or water surface.
- Other incomes earned from the transfer of real estate.
- Lottery winnings.
- Sale promotion winnings.
- Betting or casino winnings.
- Winning in prized games and contests and other form of winning.
- Incomes from assignment or licensing of intellectual property objects.
- Incomes from technology transfer.
Other kinds of income
Taxable incomes from:
- Commercial franchising.
- Inheritances as securities, capital holdings in economic organizations or business establishments, real estate, and other assets subject to ownership or use registration.
- Gifts as securities, capital holdings in economic organizations or business establishments, real estate, and other assets subject to ownership or use registration.
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This article contains information about “Register tax identification number for foreigners in Vietnam”. In recent years, we have supplied effective legal advice to businesses and individuals at reasonable prices and with efficient results. We always update and keep our operations and services in line with the law by adhering to legal principles. If you need any further information from the firm’s solicitors, please contact LSX Law firm: +84846175333 or Email: firstname.lastname@example.org
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Frequently asked questions
First-time taxpayer registration.
Notifying changes to taxpayer registration information.
Notifying suspension of business operation.
Tax authorities shall issue taxpayer registration certificates to taxpayers within 03 working days starting from the date of receipt of taxpayers’ satisfactory taxpayer registration application as prescribed by law.
-Name of the taxpayer.
-Number, date of the business registration certificate or establishment and operation license or investment registration certificate for business organizations and individuals; number, date of the establishment decision for organizations not required to apply for business registration; information of identity card, citizen identification or passport for individuals not subject to business registration.
-Supervisory tax authority.