Circular No. 95/2016/TT-BTC, issued by the Ministry of Finance on June 28, 2016, provides clearer regulations on the content of documents, procedures for tax registration, changes to tax registration information, and termination of tax identification numbers.
Accordingly, the Circular has stipulated the following specific contents:
First, broaden the scope of regulation.
Previously, Circular 80/2012/TT-BTC stipulated the scope of application for enterprises established and operating under the Enterprise Law in Article 1 and other provisions, but these provisions were inconsistent, leading to unclear and inconsistent application.
Therefore, to address the inconsistencies with the previous Enterprise Law, Circular No. 95/2016/TT-BTC supplements the regulations to clearly define the scope of application of the circular, and also stipulates that enterprises established and operating under the provisions of the Enterprise Law must comply with the provisions on enterprise registration of the Enterprise Law.
In cases where the Enterprise Law does not have a provision but the Tax Administration Law does, enterprises must comply with the provisions of this Circular, ensuring that the provisions on enterprise registration in the Enterprise Law do not overlap with the tax registration provisions of the Tax Administration Law and are easy to refer to when applying them.
Secondly, the regulations should provide more detailed and specific information about the scope of application.
The circular has categorized the subjects of application into six groups: taxpayers; authorized collectors; dependents; tax authorities; customs authorities; and related agencies, organizations, and individuals.
Thirdly, detailed regulations on the issuance and use of tax identification numbers.
The circular stipulates that taxpayers are assigned a single tax identification number to use throughout their entire operation, from tax registration to cessation of business.
Each individual is assigned a unique tax identification number (TIN) for use throughout their lifetime. Dependents of an individual are also assigned TINs for personal income tax deductions. The TIN assigned to a dependent is also the individual's TIN when obligations to the state budget arise. The TIN assigned to a household, group of individuals, or individual business is the TIN assigned to the individual representing the household business.
Taxpayers use their Tax Identification Number (TIN) to declare taxes, pay taxes, claim tax refunds, and carry out other tax-related procedures for all obligations payable to the state budget, even if the taxpayer operates in multiple locations. A previously issued TIN cannot be reused to issue to another taxpayer.
Fourth, clarify the process, procedures, and steps for tax registration.
This facilitates and helps organizations and individuals who need to register for tax to better understand the process, procedures, and steps involved in tax registration, while ensuring transparency and clarity in tax management in general and tax registration in particular.
Fifth, detailed and unified regulations on the termination and restoration of tax identification numbers for businesses.
Previously, there were no regulations requiring taxpayers to fulfill their tax obligations related to import and export activities with the customs authority upon the termination of their tax identification number. This resulted in taxpayers not having fully completed their obligations to the state budget when the tax authority closed their tax identification number.
Therefore, Circular No. 95/2016/TT-BTC adds to the dossier for terminating the tax code of a taxpayer a document confirming the completion of tax obligations for import and export activities issued by the Customs authority in cases where the entity engages in import and export activities.
Regarding the restoration of business tax identification numbers: To comply with Decree No. 78/2015/ND-CP, which stipulates the restoration of the legal status of a business after its business registration certificate has been revoked, Circular No. 95/2016/TT-BTC has added regulations on restoring tax identification numbers for both businesses and organizations, households, groups of individuals, and individual businesses, in order to align with these regulations.
Sixth, clearly define the tax identification number (TIN) status of taxpayers.
The tax identification number status reflects the operational status of a taxpayer being monitored by the tax authorities. This is one piece of information that has been made public but has not yet been legalized.
Furthermore, Joint Circular No. 01/2016/TTLT-BKHĐT-BTC dated February 23, 2016, issued by the Ministry of Planning and Investment and the Ministry of Finance, stipulated a list of business operating statuses being monitored by both the business registration authority and the tax authority to standardize business information. Therefore, Circular No. 95/2016/TT-BTC supplements the regulations on the list of tax identification number statuses of taxpayers.
Seventh, regulations regarding taxpayers who are not operating at their registered address.
(Taxpayer abandons business address): Previously, there were regulations requiring tax authorities to verify when taxpayers stopped filing or paying taxes but did not notify the tax authorities. However, this regulation did not fully specify the cases for verifying that a taxpayer is not operating at the registered address. This is a status of the taxpayer's tax identification number (reflecting the taxpayer's violation), and is one of the publicly available pieces of information as stipulated in the Tax Administration Law.
Previously, these cases were classified as businesses abandoning their registered address, but this regulation is not entirely suitable for practical application. Therefore, clear legal regulations are needed so that taxpayers know under what circumstances they will be notified by the tax authorities that they are not operating at their registered address, and the procedures for handling such violations by the tax authorities.
Circular No. 95/2016/TT-BTC dedicates Article 19 to regulating taxpayers who are not operating at their registered address. Accordingly, it stipulates the cases in which tax authorities conduct on-site verification to determine if a taxpayer is not operating at the registered address. It also clearly defines the procedures, timelines, and steps involved, from notifying the taxpayer to coordinating with local authorities in verifying the taxpayer's business operations within the area…
Furthermore, the circular stipulates that tax authorities must coordinate with competent state agencies to handle cases where taxpayers are not operating at their registered address.
Eighth, regulations specifying the circumstances under which taxpayers' tax registration information must be publicly disclosed.
Previously, there were no regulations on the public disclosure of tax registration information, but in practice, tax authorities have already publicly disclosed some tax registration information on the tax sector's website. Therefore, the Circular has added regulations on the public disclosure of tax registration information to create a legal basis for implementation.
The tax authorities publicly disclose taxpayer registration information on the General Department of Taxation's website in cases such as: taxpayers ceasing operations and having completed the procedures for terminating their tax identification number; taxpayers ceasing operations but not yet having completed the procedures for terminating their tax identification number; taxpayers not operating at their registered address; and taxpayers whose tax identification number has been restored. The publicly disclosed information includes: Name, tax identification number (TIN), address, TIN status, detailed reason in case the taxpayer's TIN status is unchanged, and the effective date of the information change.
With the new provisions in Circular No. 95/2016/TT-BTC, effective from August 12, 2016, it will contribute to creating transparency and clarity in tax registration, facilitating businesses in developing production and business activities, and promoting socio-economic growth.
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