Benefits of having a personal tax identification number
To fulfill tax obligations, individual employees need to be provided with a personal tax identification number. Currently, many people still do not know or do not understand clearly about personal tax codes. So what is a personal tax code? Benefits of a personal tax code and steps to register for a personal tax code. All questions related to personal tax codes will be answered by Smart Solutions For Business Company Limited(S4B Vietnam) in the article below. Let’s follow the article content to find the correct answer.
1. Overview of personal tax code
To understand the nature of personal tax codes, readers should read the general content of personal tax codes to get the most general view.
1.1. What is a personal tax identification number?
Personal tax code is a natural number sequence consisting of 10 or 13 digits and characters issued by the tax authority. The purpose of providing personal tax codes to taxpayers is to manage the tax amount that individual employees pay when tax obligations arise. Individuals declare their income using only one personal tax code provided.
What Is a Tax Identification Number (TIN)? Definition and Guide
1.2. Uses of personal tax code
Providing a personal tax code for people with regular income not only helps individuals declare their sources of income but is also used in the following cases:
Personal tax identification numbers help tax authorities identify personal information of taxpayers, and at the same time manage the amount of tax paid/need to be paid by that individual for the source of income.
Demonstrates the responsibilities and obligations of a citizen towards the country where the employee lives and works.
1.3. Benefits of personal tax code
Using a personal tax code gives employees extremely valuable privileges, specifically including:
- Deductions are made for family circumstances and dependents.
- Deduct personal income tax at a discount rate of 10%.
- In cases where employees have a serious illness or are affected by natural disasters, they will receive a tax reduction.
- Refund of personal income tax when overpaid.
- Provide quick tax-related services.
Individual Taxpayer Identification Number
>>>Read more: Tax accounting and auditing services in Vietnam
2. Register for a personal tax code
To fulfill tax obligations, individual employees need to register for a personal tax code. Currently, personal tax codes are registered and valid in two forms:
- Personal tax code is registered at the tax authority.
- Personal tax code is registered online.
Employees who register for a personal tax code through one of the two forms mentioned above will have their legality recognized.
3. Questions related to personal tax code
3.1. Who needs to register for a personal tax code?
Subjects needing to register for a personal tax code include:
- Individuals and organizations pay income to workers.
- Individual employees have taxable income.
3.2. Is there a penalty for not registering a personal tax code?
Accordingly, registering for a personal tax code is an expression of each citizen’s responsibilities and obligations towards the state and country in which they live. The content in Article 7 of Circular 166/2013/TT-BTC stipulates the level of penalties for individuals who do not register a tax code, specifically as follows:
- If you submit your tax code registration application 1 to 10 days past the deadline compared to the law, you will be fined with a reminder or warning.
- Submitting your tax code registration application within 30 days of the deadline will result in an administrative fine of between 400,000 and 1,000,000 VND.
- Submitting your tax code registration application more than 30 days late as prescribed by law will result in an administrative fine from 800,000 to 2,000,000 VND. This fine can be adjusted depending on the level of violation of the individual applying for tax code registration.
3.3. If I look up my personal tax code but it shows that it doesn’t exist, what should I do?
In cases where employees look up their personal tax code but receive the result “no suitable taxpayer was found”, they need to check the personal information previously declared to see if it is correct. or not and proceed to re-enter according to the website’s requirements.
If you are sure the information entered is correct but the system still reports an error when looking up, please contact the agency where your tax code is registered for specific instructions on how to correct the error or procedures to update the information. onto the system.
4. Conclusion
Above is all the information that Smart Solutions For Business Company Limited(S4B Vietnam) sends to readers to answer the question “What is a personal tax code and Benefits of having a personal tax identification number” at the beginning of the article. Hopefully, through the above content, readers will better understand personal tax codes as well as benefits when registering for personal tax codes. If you find the article content useful, please share this article with others who are also interested in personal tax codes.
S4B Vietnam
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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