Can branches use code Tax number of the enterprise to fulfill tax obligations to the tax authority?

The enterprise has a branch, and during its operation, some tax obligations arise with the state. So can I use the business’s tax code to fulfill tax obligations for the branch?

1. Can enterprise branches use the enterprise’s tax code to fulfill tax obligations to the tax authority?

The use of tax code for enterprise branches is stipulated in Clause 3, Article 30 of the Law on Tax Administration 2019 as follows:

Subjects for tax registration and tax code issuance

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3. The granting of tax codes is regulated as follows:

a) Enterprises, economic organizations, and other organizations are granted 01 unique tax code to use throughout the operating process from tax registration until tax code termination. Taxpayers that have branches, representative offices, or dependent units that directly perform tax obligations will be granted a dependent tax code. In case an enterprise, organization, branch, representative office, or dependent unit performs tax registration under the one-stop shop mechanism along with enterprise registration, cooperative registration, or business registration, the code recorded on the enterprise registration certificate, cooperative registration certificate, business registration certificate is also the tax code;

b) Individuals are granted a unique tax code for use throughout that individual’s life. Dependents of individuals are issued tax codes to reduce family circumstances for personal income taxpayers. The tax code issued to the dependent is also the tax code of the individual when the dependent incurs obligations to the state budget;

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According to the above regulations, the enterprise is granted a unique tax code to use throughout the operating process from tax registration until the tax code is invalidated.

In case the taxpayer has a branch, representative office, or direct dependent unit If you fulfill your tax obligations, you will be granted a dependent tax code.

Thus, compared to your case, if the enterprise branch directly performs tax obligations, it will be granted a dependent tax code. Therefore, you need to apply for a dependent tax code for the branch and use that tax code to fulfill your obligations to the tax authority..

2. How many digits are there in the tax code issued to a business branch?

Tax codes issued to enterprise branches are specified in Clause 2, Article 30 of the Law on Tax Administration 2019 as follows:

Subjects of tax registration and tax code issuance

1. Taxpayers must register for tax and be granted a tax code by the tax authority before starting production or business activities or incurring obligations to the state budget. Tax registration subjects include:

a) Enterprises, organizations and individuals carry out tax registration according to the one-stop shop mechanism along with enterprise registration, cooperative registration, business registration according to the provisions of the Enterprise Law and other relevant laws;

b) Organizations and individuals not falling into the cases specified in Point a of this Clause shall register tax directly with the tax authority according to regulations of the Minister of Finance.

2. The tax code structure is specified as follows:

a) 10-digit tax code is used for businesses and organizations with legal status; representatives of households, businesses and other individuals;

b) 13-digit tax code and other characters used for dependent units and other subjects;

c) The Minister of Finance shall detail this clause.

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Thus, the enterprise branch is a dependent unit, so the tax code issued to the enterprise branch has 13 digits.

3. Where must the enterprise branch record the issued tax code?

The use of tax codes is prescribed in Clause 1, Article 35 of the Law on Tax Administration 2019 as follows:

Use tax code

1. Taxpayers must write down the issued tax code on invoices, vouchers, and documents when performing business transactions; Open a deposit account at a commercial bank or other credit institution; declare taxes, pay taxes, exempt taxes, reduce taxes, refund taxes, not collect taxes, register customs declarations and perform other tax transactions for all obligations to pay to the state budget, including cases where taxpayers operate production and business activities in many different areas.

2. Taxpayers must provide tax identification numbers to relevant agencies and organizations or record tax identification numbers on records when carrying out administrative procedures under the one-stop shop mechanism with tax administration agencies.

3. Tax administration agencies, State Treasury, commercial banks coordinate to collect state budget, organizations authorized by tax authorities to collect taxes use the taxpayer’s tax code in tax management and tax collection into the state budget.

4. Commercial banks and other credit institutions must record tax codes in account opening documents and transaction documents through the taxpayer’s account.

5. Other organizations and individuals participating in tax management use the taxpayer’s assigned tax code when providing information related to determining tax obligations.

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Thus, according to regulations, business branches must record the issued tax code on invoices, vouchers, and documents when performing business transactions;

When opening a deposit account at a commercial bank or credit institution other;

When declaring tax, paying tax, exempting tax, reducing tax, refunding tax, not collecting tax, registering customs declarations and performing other tax transactions for all obligations payable to the state budget, including cases of production and business activities in many different areas.