Individuals have 2 tax codes: What are the causes & solutions?

What is the reason why an individual has 2 tax codes? How to resolve the case of an individual having 2 tax codes? fdiinvietnam.com will provide detailed instructions in this article.

Reasons why an individual has 2 tax codes

According to regulations, each individual is only given one tax code (MST) to declare that individual’s income.

However, in reality, many individuals have 2 tax codes, for the following reason: The individual has been issued a tax code according to the old ID number (9 digits), but when reissuing a new ID card/CCCD (12 digits), they do not update the information with the tax authority. However, the enterprise does not know the above information and still registers a tax code for that individual with the new ID card/CCCD number (12 digits) and is issued an additional tax code by the tax authority. Thus, the individual has 2 tax codes.

Having 2 personal tax codes will lead to difficulties when synthesizing income from salaries and wages of employees to settle personal income tax (PIT). Below, fdiinvietnam.com will guide you to handle the case of an individual having 2 tax codes.

Instructions for handling cases with 2 personal tax codes

In Official Dispatch 896/TCT-KK issued on March 8, 2016, the General Department of Taxation has provided specific instructions on handling cases where individuals have 2 tax codes, specifically as follows:

• An individual who has been granted a personal income tax code, then changes his/her permanent residence registration to another province or city, and here the individual is granted a new ID card/CCCD (9 digits or 12 digits), or is granted a personal identification number according to the provisions of the Law on Citizen Identification, then this individual must carry out procedures to change tax registration information according to the provisions of current tax management laws. It is not allowed to register for a new personal tax code according to the new ID card or new personal identification number;
• If the tax authority in the province or city where the taxpayer moves to has issued a new personal tax code to the taxpayer according to the new ID number or new personal identification number, it must be responsible for revoking (cancelling) the tax code that has been issued in violation of this principle. At the same time, the tax authority must guide and support the taxpayer in using the issued tax code to declare, pay taxes or deduct income arising in accordance with the provisions of current tax laws.

>> Thus: In case of having 2 tax codes, individuals can only use the first tax code issued to declare and settle personal income tax. The tax authority is responsible for withdrawing (cancelling) the tax code issued later according to regulations.

Procedures for canceling personal tax codes and changing tax registration information

1. Documents and procedures for canceling personal tax code

How to submit documents: Individuals or businesses submit documents to cancel personal tax codes to tax authorities in the following forms:

• Submit application directly to tax authority;
• Submit application by post (if far from tax office, difficult to travel).

Time to process application: 3 – 5 working days. 

2. Change tax registration information (update citizen identification into tax code)

After successfully canceling the second personal tax code, the individual must contact the tax authority to carry out the procedure to change tax registration information, that is, update the new ID card/CCCD number for the first issued tax code.

How to submit documents: Individuals or businesses can submit documents directly to the tax authority in the following forms:

• Submit application directly to tax authority;
• Submit application by post (if far from tax office, difficult to travel).

Note:

In case the taxpayer is an individual who registers for tax directly with the tax authority, he/she must complete the procedure to notify changes in tax registration information within 10 working days from the date of change.

In case the taxpayer authorizes the income paying unit, the procedure for notifying changes in tax registration information must be carried out within 10 working days from the date of change.

According to the provisions of Clause 2, Article 6 of Decree 126/2020/ND-CP, when a taxpayer is an individual, when there is a change in tax registration information such as: Change in ID card/CCCD/passport number, the date of information change is 20 days (for mountainous districts, highlands or border and island areas, it is 30 days) from the date of issuance of ID card/CCCD/passport.

Some questions about handling cases with 2 personal tax codes

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