PROCEDURE OF FIRST-TIME TAX REGISTRATION FOR NEWLY ESTABLISHED ENTERPRISES

PROCEDURE OF FIRST-TIME TAX REGISTRATION FOR NEWLY ESTABLISHED ENTERPRISES

In the context of a growing economy, establishing a new business is not only a business opportunity but also brings many challenges for entrepreneurs. One of the crucial and cannot-be-neglected steps for a newly established business is to carry out tax registration procedures for the company. In the ever-complex and constantly changing tax system, company leaders must face numerous challenges and requirements to thoroughly understand tax laws to minimize legal and financial risks. Below, Siglaw would like to introduce to our esteemed readers the procedures for first-time tax registration for newly established businesses.

Forms of first-time tax registration for newly established enterprises

Tax registration directly with tax authorities

According to Clause 2 Article 4 of Circular 105/2020/TT-BTC, the following enterprises will have to make their first tax registration directly with tax authorities:

• Enterprises operating in the fields of insurance, accounting, auditing, lawyers, civil servants or other specialized fields are not required to register their business through the business registration agency in accordance with specialized laws;
• Households and individuals engaged in the production and trading of goods and/or services, including individuals of countries sharing land borders with Vietnam, carry out activities of buying, selling and exchanging goods at border markets, border gate markets and markets in border-gate economic zones;
• Organizations and individuals authorized by tax authorities to collect;
• Other organizations, households and individuals have obligations to the state budget.

Tax registration in the form of an interconnected one-stop mechanism

In addition to the above-mentioned enterprises, other enterprises when established will carry out tax registration through the interconnected one-stop mechanism.

Procedures for tax registration for the first time

First tax registration dossier of business households and individuals

According to Point a, Clause 8, Article 7 of Circular 105/2020/TT-BTC, the first tax registration dossier of business households and individuals includes the following documents:

• Tax registration declaration according to form No. 03-DK-TCT issued together with Circular 105/2020/TT-BTC;
• ID card/CCCD/Passport (notarized copy);
• Successory table of dependent shops and shops according to form No. 03-DK-TCT-BK01 issued together with Circular 105/2020/TT-BTC;
• The business household registration certificate (if any) (notarized copy);
• Account documents (notarized copy);.

The first tax registration dossier of a newly established enterprise is required to register directly with the tax authority

According to Clause 1, Article 31 of the Law on Tax Administration 2019, for newly established enterprises, tax registration dossiers are business registration dossiers as prescribed by law, including:

• Tax registration declaration according to form No. 01-DK-TCT issued together with Circular 105/2020/TT-BTC;
• List of subsidiaries and member companies according to form BK01-DK-TCT issued together with Circular 105/2020/TT-BTC (if any);
• List of dependent units according to form BK02-DK-TCT issued together with Circular 105/2020/TT-BTC (if any);
• List of business locations according to form BK03-DK-TCT issued together with Circular 105/2020/TT-BTC (if any);
• List of foreign contractors and foreign subcontractors according to form BK04-DK-TCT issued together with Circular 105/2020/TT-BTC (if any);
• List of oil and gas contractors and investors according to form BK05-DK-TCT issued together with Circular 105/2020/TT-BTC (if any);
• Capital contribution statement of organizations and individuals according to form BK06-DK-TCT issued together with Circular 105/2020/TT-BTC (if any);
• The establishment and operation license, or the establishment decision or equivalent document issued by a competent authority, or the business registration certificate as prescribed by the law of the bordering country (for organizations of countries sharing land borders with Vietnam carrying out purchasing activities,  selling and exchanging goods at border markets, border gate markets, markets in Vietnam’s border-gate economic zones) (notarized copy);.

Initial tax registration dossier of newly established enterprise, in case of tax registration under the interlinked single-window system

For newly established enterprises under the single-window system, Point a, Clause 1, Article 30 of the Law on Tax Administration 2019 stipulates that enterprises and organizations shall carry out tax registration under the single-window mechanism together with enterprise registration, business registration, cooperative registration in accordance with the Law on Enterprises and other relevant regulations. Thus, for ordinary businesses, the first tax registration dossier is the enterprise registration dossier and the business registration code and the tax code.

An enterprise registration dossier includes:

• An application for business registration;
• The company’s charter, the list of members and copies of their legal papers in case of establishment of partnerships and limited liability companies;
• The company’s charter, the list of founding shareholders, the list of shareholders being foreign investors and copies of their legal papers in case of establishment of a joint-stock company;
• Legal papers of the individual who is the legal representative of the company (notarized copy);
• Investment registration certificate for enterprises with foreign investors;

Note: For documents issued by foreign competent agencies, copies of these documents must be consular legalized

Place and time of first tax registration procedures

After preparing the above documents, the enterprise will submit them at the Provincial Tax Department where the enterprise is located. Depending on the type of application, there will be different processing deadlines. In case the dossier is incomplete and requires explanation and supplementation of information and documents, the tax authority will notify the tax registrant according to form No. 01/TB-BSTT-NNT in Appendix II promulgated together with Decree No. 126/2020/ND-CP within 2 working days from the receipt of the dossier.

The process of first tax registration for a start-up business requires special attention and focus because of the wide range of forms that need to be submitted. Understanding legal regulations, mastering tax policies not only helps businesses avoid legal risks but also creates credibility for competent state agencies. Hopefully, the information and knowledge that Siglaw shared above will be useful to readers. If you have any questions about tax, or business establishment, please contact Siglaw us for the most professional, accurate and effective consults!

Siglaw Law Firm

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