Amend tax registration procedures so that individuals can use their personal identification number as their tax code.

05/14/2023 09:38 Nhat Linh Print article

ANTD.VN - The tax authority is drafting amendments to regulations on tax registration procedures to move towards using personal identification numbers as tax codes.

In the draft Circular amending and supplementing a number of articles on tax registration and electronic transactions in the tax sector, the Ministry of Finance proposed amending a number of contents in Circular No. 105/2020/TT-BTC guiding tax registration.

Specifically, the draft supplements the regulation that the personal identification number granted to an individual according to the provisions of the law on citizen identification is used as the tax code for the following cases: individuals, household representatives according to the provisions at points k, l, n, Clause 2, Article 4 of this Circular (except for business individuals who use the tax code granted according to the provisions at point a.2, point h, Clause 3, Article 5).

The draft also amends and supplements the classification of tax code structure. Accordingly, the 10-digit tax code is used for organizations and individuals including: Enterprises, cooperatives, organizations with legal status or organizations without legal status but directly incur tax obligations; Business households, business individuals who incur tax obligations from business activities; Individuals who have not been or are not granted a personal identification number according to the provisions of the law on citizen identification.

Taxpayers who are business households or business individuals conducting business activities at multiple locations will be granted a 13-digit tax code for the subsequent business locations of the business household or business individual.

Amend tax registration procedures so that individuals can use personal identification numbers as tax codes photo 1

The personal identification number will be used as the tax code.

Another important content in the draft is that the Ministry of Finance proposes to amend and supplement regulations on records, procedures, and tax registration procedures to meet the needs of individuals using personal identification numbers as tax codes.

Accordingly, there are 2 procedures for verifying taxpayer information. Specifically:

The first case is that the National Population Database (NDB) has not actively transmitted information to the Tax Database (TDB).

In this case, the tax authority is not allowed to proactively provide personal identification information to enter into the tax management system. Therefore, individuals must still carry out tax registration procedures with the tax authority to start using the personal identification number as a tax code, or register changes to information with the tax authority.

The simplified procedure is that taxpayers do not have to re-declare information already in the National Database (including permanent address, current address because the tax authority will automatically integrate this information from the National Database) and do not have to submit a copy of their identity card/citizen identification card (replaced by the tax authority using the service of authenticating personal identification number information from the National Database).

Based on the taxpayer's tax registration information, the tax authority sends query information to the National Database. After receiving feedback, the tax authority uses the data authenticated by the National Database to process the taxpayer's tax registration file, assign the personal identification number as the tax code or update the changed information.

The second case is that the National Database proactively transmits information to the National Database. In this case, individuals can use their personal identification number as a tax code immediately after it is issued, and the tax authority automatically activates the personal identification number as a tax code when the individual submits the first tax return.

In case an individual changes information, the tax authority will automatically update the changed information according to the information transmitted from the National Tax Database.

The draft Circular stipulates that for individuals who are not granted a personal identification number according to the law on citizen identification, if they have registered and activated a Level 2 electronic identification account according to the provisions of Clause 2, Article 14, Clause 2, Article 15 and Article 18 of Decree No. 59/2022/ND-CP; at the same time, the electronic identification and authentication system and the General Department of Taxation's Electronic Information Portal have been connected and operated, they can use the electronic identification account to carry out tax registration procedures with the tax authority electronically according to the provisions of Circular No. 105/2020/TT-BTC without having to submit a copy of the Passport or other personal identification documents that have been integrated into the electronic identification account.

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