What are subsection codes (NDKT codes), chapter codes? How to: Look up the chapter code, subsection code for tax payment of enterprises – Write down the chapter code, subsection code for electronic tax payment.
I. What is a chapter code? What is a subsection code?
1. Chapter code concept
The chapter is used to classify revenues and expenditures for the state budget based on the organizational system of agencies and organizations under a government level (generally called the governing agency) that are organized to manage their own budget. Each budget level will arrange a special chapter (other budget relations) to reflect on budget revenues and expenditures that are not included in the estimates assigned to agencies and organizations.
Accordingly, it can be roughly understood that the chapter code is the enterprise code classified according to government level.
2. Concept of sub-item code (NDKT code)
Sub-item codes are also called economic content codes (NDKT). These are codes for revenues and expenditures (taxes, fees, etc.) to the state budget, classified according to economic content and nature.
II. How to look up a business’s tax payment code
To look up tax payment code information to fill in the state budget payment form, businesses can apply one of the following methods:
➤ Method 1: Look up in Appendix I issued with Circular 324/2016/TT-BTC dated December 21, 2016.
➤ Method 2: Look up chapter code when paying taxes electronically.
When paying taxes electronically, on the state budget payment form, the tax payment chapter code will automatically display as shown below.
➤ Method 3: Look up chapter code information on the General Department of Taxation website. Follow these steps:
- Step 1: Access the General Department of Taxation website.
- Step 2: Enter the business tax code and confirmation code >> Click “Search”.
- Step 3: When the business information appears >> click on the business name for the system to display detailed information.
- Step 4: Check business information and chapter code as shown below.
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Some common tax payment codes that businesses often encounter:
➤ Chapter code 754:
As a “Non-state mixed economy”, managed by district/county level: Chapter codes of companies are being managed by the Tax Department of the city/district/county under the province.
➤ Chapter code 755:
As a “Private Enterprise”: The company’s chapter code is a private enterprise and is managed by the Tax Department of the city/district/county under the province.
➤ Chapter code 557 and chapter code 757:
According to the guidance on personal income tax accounting in Section 1000 “Personal income tax”, supplemented by Circular 93/2019/TT-BTC, personal income taxes paid by income paying agencies or by individuals:
- If managed by the Tax Department: Accounting for chapter code 557 – “Households, individuals”;
- If managed by the Tax Department: Record chapter code 757 – “Households, individuals” (do not record chapter code 857 – “Households, individuals”).
III. How to look up the tax payment sub-item code of an enterprise
To look up the sub-item code corresponding to state budget revenues and expenditures, businesses first need to clearly identify the type of money to be paid, then look up in one of the following ways:
➤ Method 1: Look up sub-item code information in Appendix III issued with Circular 324/2016/TT-BTC dated December 21, 2016.
➤ Method 2: Look up sub-item code when paying taxes electronically:
Select the content of state budget payments >> Select the tax item to be paid >> Click “Search”. The system will now display the NDKT codes, you tick the corresponding sub-item code.
For example: Select sub-item 1701 – Value added tax on domestically produced and traded goods (including services in the oil and gas sector).
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Some common tax payment sub-item codes of enterprises:
➤ Value Added Tax (VAT) payment sub-item:
- Sub-section 1701 – Value added tax on domestically produced and traded goods (including services in the oil and gas sector);
- Sub-section 1702 – Sub-section code for payment of value added tax on imported goods;
- Subsection 4931 – Late payment of value added tax.
➤ Sub-item of paying corporate income tax (CIT):
- Sub-section 1052 – Corporate income tax from production and business activities (including services in the oil and gas sector);
- Sub-section 4918 – Late payment of corporate income tax.
➤ Sub-item code for paying business license tax (business license fee):
- Sub-section 2862 – Business license fee level (grade) 1: Applicable to companies with charter capital over 10 billion, tax rate 3,000,000 VND/year;
- Sub-section 2863 – Business license fee level (level) 2: Applicable to companies with charter capital of 10 billion or less, tax rate of 2,000,000 VND/year;
- Sub-section 2864 – Business license fee level (grade) 3: Applicable to branches, representative offices, and business locations with a tax rate of VND 1,000,000/year.
>> Learn more: Business tax rates for different types of businesses.
IV. How to write chapter codes and sub-item codes for electronic tax payment
To pay taxes to the state budget, businesses follow these steps:
➤ Step 1: Log in to the Electronic Tax page >> Select “Pay tax” >> Select “Create payment slip”, the screen will now appear as follows:
➤ Step 2: In this step, you have 2 ways to make a payment slip to the state budget: pay according to the payable identification code (according to official dispatch 1483/TCT-KK) or temporarily pay the tax in advance.
Specifically each way is as follows:
- Method 1: Pay tax according to the payable identification code (pay tax according to ID code)
This method is applied in cases where the tax declaration is confirmed by the tax authority to issue a payable identification code (ID code).
To query information, select the paying bank >> Select the obligation type “All” >> Click “Query”. The system will now provide full information on tax obligations that the company must pay.
For example: If you choose VAT as the payment, then tick the value added tax payment >> Click “Continue”. The screen will then display the content of the state budget payments according to the query information from the tax (including the NDKT code and chapter code) as follows:
- Method 2: Prepay tax
If the system has not updated the tax amount to be paid but the business wants to pay the tax in advance, at the “Create payment receipt” interface, select “Temporary payment”.
Next, fill in all the information that has been looked up corresponding to the budget payment on the payment slip (enter the information yourself) and then click “Complete”.
V. Frequently asked questions about tax payment chapter codes and sub-item codes
1. How will I handle the case of submitting the wrong sub-item when making a tax payment receipt?
Wrong sub-item submission is no longer a strange issue for businesses. In case after paying money to the state budget, the taxpayer discovers that there is incorrect information on the payment slip, the following actions must be taken:
- Step 1: Prepare a verification letter according to form No. 01/TS;
- Step 2: Submit the verification letter to the tax authority electronically.
Note: The preparation and submission of the verification letter must be carried out in accordance with the provisions of Clause 2 and Clause 3, Article 69 of Circular 80/2021/TT-BTC dated September 29, 2021.
2. If a company signs a contract to lease assets (office rental) and is responsible for paying taxes on behalf of an individual, which chapter code and sub-item will it pay?
In case an organization declares and pays taxes on behalf of an individual as prescribed in Article 8 of Circular 40/2021/TT-BTC dated June 1, 2021, if tax obligations arise, they shall be paid according to the following chapters and sub-sections:
- For VAT:
- Chapter code 557 (if the individual is managed by the Tax Department) or chapter code 757 (if the individual is managed by the Tax Department or Regional Tax Department);
- Subsection code 1701.
- For personal income tax:
- Chapter code 557 (if the individual is managed by the Tax Department) or chapter code 757 (if the individual is managed by the Tax Department or Regional Tax Department);
- Subsection code 1014.