Registering for a personal tax code is not something new for everyone, especially those who have worked. So what is a personal tax code, the most convenient way to register for a personal tax number, the benefits you get from this…
You understand that paying taxes is not only your responsibility but also your obligation to the country where you were born and the people in that country. However, reality shows that there are many articles, even news reports about tax evasion cases, they are diverse in professions such as famous singers, entrepreneurs who own high-value businesses. … So, for those who pay taxes and register for a personal tax code to do this, what benefits will they receive, otherwise, if they do not register or register for a tax code late, they will be subject to penalties. what. This article will cover issues related to personal tax identification numbers – the means for each person to pay their taxes as well as learn about what a personal tax code is.
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I. What is a personal tax code
?The first thing to be most effective for you when reading this article is that we need to understand what a personal tax code is. The individual tax identification number is the identification number for each individual, which is unique, meaning that no two individuals will share the same tax number. Through this code, it will be easier for the state to manage personal income tax of taxpayers. This code also makes it easy for individuals to declare income. You can apply for a personal tax identification number at the income paying agencies or at the tax authorities.
The personal tax code is directly related to personal income tax. So what is personal income tax, I will tell you more about PIT (personal income) so that you can better understand your personal tax code.
You can simply understand that PIT is the amount paid to the State Budget that income earners must deduct from their salary according to the timesheet or from that individual’s income sources. Paying personal income tax is the duty and right of citizens. This contributes to increasing state budget revenue thereby contributing to the development of the country. Personal income tax will have different levels, people without income such as students, non-working students will not need to pay tax; High-income earners will gradually increase the tax payment on their income.
What is a personal income tax number?
II. What is the personal tax code used for
?Individuals with regular income will be given a unique code by the tax authority to declare income. This number is the personal income tax number. So how is the personal tax code used:
For earners, the personal tax code is a way for them to show their responsibility to the state and country where they live. Paying personal income tax through owning an individual tax code will help them feel that life is truly meaningful to the community.
III. When to register for a personal tax identification number Taxable taxpayers need to register for a personal tax code so that the tax authority can issue a personal tax identification number for them and for each dependent to receive family background deduction.
Organizations/individuals paying taxable income need to register for a tax identification number in order for the agency to issue a tax code. In case income-paying organizations and individuals have been granted a personal tax identification number before the effective date of this Decree 65/2013/ND-CP, they can still continue to use the issued code. Individuals or organizations are required to register for personal income tax, including:
a. Individuals and organizations paying income:
Organizations, companies/enterprises and business individuals, including dependent branches, have legal status (legal status recognized by the state for a viable organization or individual, operate independently and, importantly, take responsibility for actions before the law.) Political organizations International and foreign organizations operating in Vietnam
b. An individual is a person whose income is subject to personal income tax
Individuals – people who can earn income from production and business activities, including agricultural households, are not exempt from personal income. In this case, the individual registers for personal income tax and receives a personal income tax identification number.
Individuals earning income from monthly salary including foreigners who are working for foreign enterprises but in Vietnam. Individuals with real estate transfer activities
c. Dependents are exempted from family circumstances
IV. What benefits do individuals enjoy when registering for a tax code
?It can be said that one of the issues that attracts the attention of individuals who register for a tax code is what benefits they receive from it. this or more specifically “what are the benefits of applying for a personal tax identification number”. In addition to this being the responsibility of all income earners to society and the community, they themselves also receive many things. favorable.
1. Calculated deduction for family circumstances for dependents
Circular 111/2013/TT-BTC regulating the reduction of family circumstances for dependents states that: taxpayers who have registered for a personal tax code and are granted a tax code will be eligible for family deduction. situation for dependents. This means that individuals who do not have a personal tax identification number will not be able to apply for a deduction for dependents.
2. Personal income tax deduction 10%
This means that individuals who register and already own a personal income tax number at the time of commitment will be entitled to a non-withholding of 10% of personal income tax. An individual is a person who has income in one place, not to the point of paying personal income tax, and has signed a commitment. Conversely, individuals who do not register as a tax code will be deducted 10% of their total income.
3. Tax reduction in case of natural disaster, fire, unexpected accident or serious illness
Some unexpected cases occur such as natural disasters, fires such as house fires… sometimes even individuals have accidents or find out they have a serious illness, so do they receive anything special when paying taxes? huh. The answer is yes. They can get a tax reduction when encountering the above cases, even in severe cases they can even enjoy tax exemption.
4. Personal income tax refund if overpaid
In the unfortunate event that you overpay your personal income tax, you worry about not knowing if you’ll get the change back. Then, Circular 111/2013/TT-BTC clearly stipulates in article 28 that personal income tax refund is only applicable to individuals who have registered and been granted a personal tax identification number at the time of filing. tax finalization. This is one of the benefits of registering for a personal tax code.
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5. To be provided with fast and convenient tax services
This is completely understandable, when you have your own personal identification number, you can completely look up your personal tax number, find your personal tax number and even check the tax rates you need to pay through websites. of the General Department of Taxation by logging into your account online. Below we will provide more detailed instructions on how to register for a personal tax number as well as where to register for a personal tax number.
V. Failure to register a personal tax code for employees is sanctioned
You understand that paying PIT is something sacred, it is the duty and right of every citizen. And since it’s an obligation, you need to take it seriously. So, if you don’t register for a personal tax code, what are the penalties for not having a personal tax number?
Article 7 of Circular 166/2013/TT-BTC has very clear provisions on the laws related to the act of not registering a personal tax code as below:
Submitting tax registration dossiers beyond the prescribed time from 1 to 10 days will be subject to a warning. Submitting a tax registration dossier beyond the prescribed time limit within 30 days will result in a fine ranging from VND 400,000 to VND 1,000, 000, depending on the severity and whether there are extenuating circumstances or not. If the tax registration dossier is submitted within 30 days, the fine will be from VND 800,000 to VND 2,000,000.
In short, with the act of not registering a personal tax code, there will be two penalties, a warning and a fine. In the fine level, the employee will have to pay a maximum fine of 2 million VND, this fine is calculated according to the number of days of late registration of the tax code.
VI. Dossier and procedures for personal tax identification number registration
You have understood the importance of registering and owning a personal tax identification number. So what are the documents and procedures to register for a personal tax code, whether it’s complicated or not, will be the things that interest you. Rest assured, because I will show you right now.
1. Dossier for registration of personal tax code
The application file for registration of an individual tax code is specified in accordance with Circular 95/2016/TT.BTC in Article 7, whereby the registration dossier is divided into two specific subjects as below:
a. For individuals submitting registration documents at tax offices:
Tax registration form Notarized copy of identity card/citizen identification card If the individual does not have Vietnamese nationality, the copy of identity card should be replaced by a valid passport.
b. For individuals filing at an income-paying agency
Authorization document Personal papers such as notarized copy of identity card, valid passport for foreigners and still valid.
2. Procedures for registration of personal tax identification numbers
There are many ways to register for a personal tax number, you can register for a personal tax number online or register for a personal tax number yourself at tax collection agencies. Most users now choose to register online because they can easily look up their personal tax code simply and quickly, even check their personal tax code without spending much time. Registration procedures are divided into 2 main forms:
a. For registration at the Tax authorities: Dossiers for registration of personal tax identification numbers at tax offices are usually paper documents. To register you need to go through 3 steps as below:
Step 1: Individuals prepare registration documents with all required documents.
Step 2: Tax registration information is aggregated into the tax registration declaration thanks to the enterprise. A standard tax registration form has the form No. 05-DK-TCT (in this declaration, there will be specific instructions for accurate information). See the photo below to understand better.
What is a personal tax code? Standard tax registration form.
Step 3: Receive and notify the results: the personal tax identification number registration dossier will be received and stamped as well as the time of receipt of the application.
b. For online personal tax code registration: You can understand to complete the procedure for registering a personal tax number or how to register for a personal tax number online in this case, you need to go through 2 steps:
Step 1: Access the website of the General Department of Taxation through the link: http://tongcucthue.org/. You need to declare the information on the tax registration return and submit the documents in your file (all compressed in electronic format). After successful registration, you can completely look up the personal tax code of the General Department of Taxation, extremely simple and convenient.
Step 2: The General Department of Taxation receives information and announces the results of declaration. The General Department of Taxation will notify the results by sending the results to the email address provided by the declarers in their records. Usually this process will take place within 3 days from the time of receiving the application documents. Some information you need to pay attention to:
Scenario 1: eligible to receive a personal tax identification number issued by the General Department of Taxation, you will receive a notice according to form 06/TBTĐT about agreeing to accept the registration and specifying the time to return the results. Case 2: The dossier is not eligible for issuance of a personal tax identification number will still receive a notice under form 06/TBTĐT, but this is a notice about the application’s disapproval and send additional information to personally complete the profile.
Above is the procedure to register for a personal tax code, it’s actually not too complicated, you just need to do the application and transfer all the information as I instructed.
VII. Personal tax identification number registration declaration form and instructions for recording
As for the personal tax code registration form, as mentioned above, form 05-DK-TCT is the most standard form today. (please refer to the image above). An individual identification number registration form will consist of two parts: the part for the tax authorities to record and the part for the tax code registrant to write.
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a. The section for tax authorities has a footnote below, the tax office will write 2 items: the date of receipt of the declaration and the tax code.
b. The section for individuals who register for personal tax identification numbers: the information declaration sections:
Full name of person applying for tax identification number Date of birth Gender Nationality Residence address, contact address… Address of income paying agency at the time of registration.
Below is a table of instructions on how to write a personal tax code registration declaration form:
What is a personal tax code: Instructions on how to declare and register
VIII. What is the place to submit an application for registration of a personal tax code tax:
Tax Department where the individual is living: For example, if you are working and living in Cau Giay district, you can submit an application for tax identification number registration in Cau Giay district. If you are a foreign individual who is using humanitarian aid money, you can pay it at the branch where that individual is living. Individuals residing in Vietnam and working for wages for foreign organizations, companies or Consulates in Vietnam will pay at the Tax Department directly responsible for management. Individuals who do not work in Vietnam but are residing in Vietnam will pay tax at the Tax Department directly managed.
So in this article, I have provided you with the basic and core knowledge related to your personal tax code, the benefits of registering for a tax code as well as how to register for a tax code. So if you are earning income but do not have a tax code, please register for a tax code right away!