Concerns about tax codes when expanding business
Reader N.T.S (Ho Chi Minh City) expressed confusion in fulfilling tax obligations for asset leasing activities. This reader currently owns 02 assets used for lease located in the same tax management area. Previously, Mr. S. registered and declared the tax code (MST) for the location of the first asset.
The issue arises when the second asset goes into operation, Mr. S wonders whether he is allowed to use the MST issued earlier to declare for this new business location or not. In addition, this reader also asked about using the Land Use Right Certificate to register the MST before having a lease contract, in order to prepare legally.
I am very worried that if the procedure is not followed correctly, it will be penalized for late declaration or incorrect tax management principles, but the procedure for merging MST is quite complicated for non-professionals," the reader shared.
Regulations on identification codes and new location notifications
Regarding this issue, Sub-Department of Taxation Region 1 (Ho Chi Minh City) has provided detailed feedback based on the latest legal bases including the Law on Tax Administration No. 38/2019/QH14 and Circular No. 86/2024/TT-BTC of the Ministry of Finance.
According to regulations, taxpayers (including households and business individuals) must register for tax and be granted MSTs before starting business operations. However, for cases where individuals already have MSTs and new business locations arise, the process will be simplified through personal identification numbers.
At point d, clause 1, Article 22 of the Circular, it is stipulated: After initial tax registration, if an individual develops business activities or establishes an additional business location outside the registered address, the individual uses a personal identification number to declare and pay taxes to the Tax Sub-Department where the business activities are located.
This means that homeowners do not need (and are not allowed) to apply for a completely new 10-digit MST for the second house. Instead, the tax system will manage based on the household's personal identification number (CCCD) to link assets.
Specific procedures for leasing property owners
Regarding the implementation process, the tax authority clearly guides: When business households/individuals establish other business locations outside their headquarters, they do not have to register with the business registration agency. However, it is mandatory to notify the Tax authority where the new business location is located.
This notice is implemented through Declaration Form No. 01/TTS (for asset leasing activities) issued together with Circular No. 40/2021/TT-BTC.
Based on the declaration information in form 01/TTS, the Tax Management System (TMS) will update information and automatically generate an internal code of 13 digits. This code is used to manage separately for that business location and support individuals to declare taxes for subsequent periods.
Thus, reader N.T.S does not use the old MST to declare in bulk, but must carry out procedures to notify the new business location through declaration 01/TTS. At that time, the tax authority will issue a sub-code (13 digits) attached to the original MST to manage separately for this second asset. This needs to be done immediately when leasing activities arise to ensure compliance with legal regulations.
