Vietnam tax registration for new companies: a simple guide

Vietnam tax registration is the step that gives a company its tax code, and for most new companies it happens at the same time as company registration. The Law on Tax Administration, No. 38/2019/QH14, has applied since 1 July 2020. Circular 105/2020/TT-BTC, which explains how to register, has applied since 17 January 2021. This guide covers who registers where, how long it takes, and which first filings to put on the calendar.

Sources: Law on Tax Administration No. 38/2019/QH14, closing article on effect; Circular 105/2020/TT-BTC, Article 23 on effect (English translations on english.luatvietnam.vn).

Most new companies register in one step

A company must get a tax identification number before it starts to do business or owes anything to the state budget. Most companies get it through the single-window process that comes with company registration. The tax registration form is not a separate job in that case. The company registration file already counts as the tax registration file.

The number is simple to understand. The code written on the enterprise registration certificate is also the tax identification number. A company has one number for its whole life, until the number is cancelled. A legal entity gets a 10 digit number. A branch or a similar unit gets a 13 digit number.

Because tax registration follows company registration here, the time limit is the same as the time limit for company registration under the law on enterprises.

Sources: Law on Tax Administration No. 38/2019/QH14, Articles 30, 31 and 33, Clause 1.

Who registers directly with the tax office

Some taxpayers do not use the single-window route. Circular 105/2020/TT-BTC lists them in Article 4. Examples include:

• Organizations that do not register as enterprises, such as non-business units.
• Foreign contractors and overseas service providers that earn income in Vietnam.
• Businesses in fields such as securities, insurance or law practice that register under their own sector rules.
• Business households and individuals with tax duties.

These taxpayers file a tax registration form and a copy of their licence or founding decision with the tax office. For organizations, that is the office where the head office sits.

Sources: Circular 105/2020/TT-BTC, Article 4, Clauses 1 and 2, and Article 7; Law on Tax Administration No. 38/2019/QH14, Articles 31 and 32.

The time limits to remember

There are two clocks. The first one belongs to the taxpayer. A taxpayer who registers directly with the tax office has 10 working days to do so. The clock starts when the taxpayer gets the licence or founding decision, or when another duty to the state budget starts, such as a duty to withhold tax for others.

The second clock belongs to the tax office. It must issue the tax registration certificate within 3 working days after it receives a complete and valid file. Under the earlier law the same step was allowed 10 working days, so the 2019 law made it faster. If a certificate is lost or damaged, the office must issue a new one within 2 working days of a valid request.

If a file is incomplete, the office must tell the taxpayer within 2 working days. A change in tax details, such as a new address, is also on a 10 working day clock for taxpayers who registered directly. For companies that registered through the single window, the change is made together with the change in company registration.

Sources: Law on Tax Administration No. 38/2019/QH14, Articles 33, 34 and 36; Circular 105/2020/TT-BTC, Articles 6 and 8; PwC Vietnam, newsbrief on the Law on Tax Administration, July 2019.

First filings to put on the calendar

Getting the tax code is only the start. After it, a new company has several dates to track. The law sets the general deadlines in Article 44.

• Monthly returns are due by the 20th day of the next month.
• Quarterly returns are due by the last day of the first month after the quarter ends.
• Annual tax finalization is due by the last day of the third month after the year ends. For a calendar year, that is 31 March.

Whether a company files monthly or quarterly depends on the tax and on its size, so confirm the rule for each tax with a tax adviser or the tax office. If a company closes or reorganizes, the return is due by the 45th day after the event.

Taxpayers must also write the tax code on invoices and business documents, and give it to banks when they open accounts. Plan to have it ready before the first invoice goes out.

Sources: Law on Tax Administration No. 38/2019/QH14, Articles 35 and 44.

The business license fee

New companies also face a yearly business license fee. Decree 139/2016/ND-CP sets three levels for organizations. A company with charter capital above VND 10 billion pays VND 3,000,000 a year. A company with charter capital of VND 10 billion or less pays VND 2,000,000 a year. Branches, representative offices and business locations pay VND 1,000,000 a year.

Timing matters. A company that has set up but has not started to trade must file the fee return within 30 days after it gets its business registration certificate and tax registration certificate. After that, the usual payment date is 30 January each year.

Decree 22/2020/ND-CP added a relief. A newly established organization that gets a new tax code and enterprise code is exempt from the fee for its first year of establishment, counted from 1 January to 31 December.

Sources: Decree No. 139/2016/ND-CP, Articles 4 and 5; Decree No. 22/2020/ND-CP, Article 1 (English translations on english.luatvietnam.vn).

A short checklist

• Confirm whether you use the single window or must register directly.
• Keep your enterprise registration certificate. It shows your tax code.
• If you register directly, file within 10 working days of your licence.
• Calendar the monthly, quarterly and annual return dates.
• File the business license fee return within 30 days of your certificate.
• Put the tax code on every invoice and give it to your bank.

This guide is general information, not legal or tax advice. Check the current text of each rule before you act.