It is necessary to register the adjustment of information on the Business Registration Certificate, Investment Registration Certificate, and register the changes with the tax authorities when switching from the 9-digit ID card to the 12-digit chip-embedded Citizen Identification Card in 2021.
It's advisable to update your information when switching from the 9-digit ID card to the chip-embedded Citizen ID card.
Currently, tens of millions of people nationwide are in the process of replacing their old identity cards (CMND) or citizen identification cards (CCCD) with chip-embedded CCCDs. The Ministry of Public Security anticipates that by July 2021, approximately 50 million people will have been issued chip-embedded CCCDs. Therefore, tens of millions of people will need to update their information and register their personal tax identification numbers to be integrated into the new identity card by July 2021.
Notably, Clause 2, Article 36 of the 2019 Tax Administration Law stipulates that individuals who register for tax directly with the tax authority, when there is a change in any of the information on the tax registration declaration form (including changes in ID card/citizen identification number...), must notify the tax authority directly managing them of the change in tax registration information. The notification period is within 10 working days from the date the change occurs.
According to Decree 125/2020/ND-CP dated October 19, 2020, on administrative penalties for tax and invoice violations, the act of delaying notification of changes in tax registration information will be subject to a warning or fines ranging from VND 500.000 to VND 7.000.000. This information has caused many taxpayers to worry about being penalized if they fail to notify or "forget" to update their tax declaration information.
Accordingly, when there is a change in information due to a change in ID card or citizen identification card, taxpayers must notify the tax authority to update the data in personal tax management in two ways. Specifically:
Firstly, taxpayers can change their information directly with the tax authority. To do this, taxpayers declare the changes they wish to make using Form 08-MST as per Circular No. 105/2020/BTC and attach a photocopy of their ID card/citizen identification card, or photocopies of relevant documents related to the information change, to the tax authority that directly issued the individual's tax identification number.
Secondly, this applies to cases where the taxpayer and the income-paying agency are managed by the same tax authority. In this way, the taxpayer can change their information through the income-paying agency. Thus, the individual submits photocopies of the relevant documents related to the information change to the income-paying agency. The income-paying agency prepares Form 05-ĐK-TH-TCT according to Circular 105/2020/BTC. On the form, they mark the box "change in tax registration information" and record the changed tax registration information. Then, the income-paying agency sends it to the tax authority managing the unit.
Within two working days from the date of receiving all the taxpayer's documents, the tax authority directly managing the taxpayer is responsible for updating the changed information in the Tax Registration Application System.
Cases where individuals are exempt from penalties for late updating tax registration information when renewing their chip-based citizen identity cards.
Regarding this matter, the General Department of Taxation stated that, in order to facilitate taxpayers during this round of changes to chip-embedded citizen identification cards, Clause 6, Article 11 of Decree 125/2020/ND-CP stipulates the following cases: Individuals not engaged in business who have been issued a personal income tax code but are slow to update their ID card information when receiving a citizen identification card; Income-paying agencies that are slow to notify changes to ID card information when taxpayers who are individuals authorized to settle personal income tax and have been issued a citizen identification card… will not be penalized.
The General Department of Taxation affirms that this new regulation is being applied to help taxpayers feel secure in declaring their personal tax identification numbers for integration into the new chip-embedded citizen identification cards. At the same time, tax authorities at all levels encourage taxpayers to update their tax registration information with the tax authorities when changing it, as this also protects the rights of taxpayers themselves.
Cases that require updating when switching from 9-digit ID cards to chip-embedded citizen ID cards.
For managerial positions in businesses such as: private business owners, Chairmen of the Board of Members, members of the Board of Members, company presidents, chairmen of the Board of Directors, members of the Board of Directors, directors or general managers, and legal representatives of businesses, when switching from 9-digit ID cards to chip-embedded citizen identity cards, they must register the information adjustment on the Business Registration Certificate, Investment Registration Certificate, and register the change with the tax authorities.
