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Customs-Tax

 Services of Tax Identity Number and Import Customs Policy of Finance Sector

Tax sector is responsible for issuing Tax Identity Number (TIN) and tax payment certificate.

1. Purpose of issuing tax identity number.

-        For the database in managing tax payers (national database);

-        For the statistics (investors) of tax payers;

2. Necessity in issuing Tax Identity Number.

  • For tracking:

1)      The hand-over of tax commitments of business units.

2)      The change of information of business units in: increase of fund, change of director’s name, relocation and others.

3. Issuance of Tax Identity Number.

After concerned parties have considered the proposal requesting the investment and deemed appropriate to approve the investment for investors, tax sectors will issue tax identity number to the business units in accordance with the proposal of Planning and Investment (IP) sectors, Industry and Commerce (IC) sectors and the Executive Council of Special Economic Zone and Specific Economic Zone (SEZ) in line with the regulations.

4. Requesting Tax Identity Number and tax payment certificate.

1. Requesting tax identity number of investors in concession activities and general activities (concession license or enterprise registration certificate) shall comply with the procedures stipulated by One-Stop Service of PI Sector or IC Sector, by filling out the form  tax identity number request as determined andpaying the levies in accordance with the implemented Statute on Levies and Service fees No.003/President, dated 26 December 2012;

2. If the established enterprise conduct business movement without tax identity number, without tax payment declaration in accordance with the regulations, without handing over the annual account closing report, without tax payment certificate, the enterprise will not only receive any Government policies, but will be treated with measures in line with the stipulated regulations.

(based on letter of announcement of Tax Department, Ministry of Finance No. 1212/MoF.TD, dated 03/01/2012.)

5. Structure of Tax Identity Number.

Structure of tax identity number consists of 12 digits as follows:

AAAAAAAAB - CDD

 

 

 

-        Group A consists of 8 digits.  These digits indicate tax payer code automatically generated by computerized system after the tax payer data input;

-        Group B consists of 1 digit. It is the inspecting digit to prevent the error in Group A;

-        Group C consists of 1 digit. It is number 9 or number 0; number 9 indicates that the tax payer is in Value Added Tax, and number 0 indicates the tax payer is not in Value Added Tax;

-        Group D consists of 2 digits. The digits indicate the branch of enterprises, companies, legal entity or organizations, and are limited from  01 to 99; in case of no branches 00 digit is assigned;

6. Certification of Tax Identity Number issuance.

          Tax Department, the provincial and municipal Tax Unit issue tax identity number certificate to tax payers in their governance with each set of digits set for tax identity number by Planning and Information Section.

 

Certificate of  tax identity number must include the following information:

-      Name of tax payer;

-      Legitimate representative, legal entity or organization;

-      Tax identity number;

-      Date of issuance of tax identity number;

-      Kind of business/sector/association/organization;

-      Business or vocational sectors;

-      Enterprise registration certificate, tax registration certificate and others.

7. Business Unit Decentralization.

1). Business Unit Decentralization

A. Tax Department: Responsible for managing large-scale business units with nationally tactical movement aspects, with foreign relations, with involvement of various parties, various vocational sectors, company groups with a lot of branches and agents both in the country and in foreign countries, such as: banks, financial institutes, hotels, tourism, large-scale production business units, public service business units, project operation business units or large-scale concession of Government such as: hydro-powers, natural resource excavation and others.

B. Provincial, municipal Tax Section:Responsible for managing large and medium scale business units, with provincial, municipal specific tactical movements, as assigned by Tax Department.

C. Tax Office of districts:Responsible for medium and small scale business units as assigned by provincial, municipal Tax Section.

D.Village levels: Perform duties in income collections as assigned by the district.

2).      Activity types that require tax identity number at central-local levels

Investors, after receiving the investment license from the Government, for example, receive the concession registration certificate from PI Sector or enterprise registration certificate from IC Sector:

  • Central level:

1. To be approved by Ministry of PI, for instance: land concession, hydro-power projects, mines, airlines, telecommunications, insurances, financial institutes and large-scale projects that belong to Government’s preferential rights (based on Investment Promotion Law 2009 in Article 15).

2. General activities to be approved by the Ministry of Industry and Commerce.

  • Local levels: Concession activities approved by provincial, municipal Planning and Investment Section, or general activities approved by provincial, municipal Industry and Commerce Section.

8. Procedures of issuing the tax identity number

1). Issuance of tax identity number for the establishment of representative office and company in new concession activities.

1. Registration of holdings of representative office/company requires the following complementary documents:

-        Proposal to request the registration of company property list;

-        Company property list;

-        Company regulations approved by IPD;

-        1 copy of the application for establishing the representative office;

After that, bring the documents to register the company holdings with State Property Management Department of Ministry of Finance or State Property Management Section at provincial/municipal levels (in case the approval is at provincial/municipal levels).

2. Filling out the form to request tax identity number requires the following complementary documents:

-        Referral letter of PI Sector requesting  tax identity number;

-        (Draft) registration certificate of representative office/concession registration certificate from PI sector;

-        1 copy of the application for establishing the representative office/company;

-        Regulations of representative office/company whose properties has been registered;

-        Rental contract and rental tax payment (if not rented, copy of land title deed);

-        Certificate of office location certified by village authority;

-        Staff name list (position and salary);

-        Company property list;

After filling out the forms and preparing the complete documents the company must submit the documents the company must submit the documents to finance section of Vientiane capital to request 9 digits and document declaring the payment of levies, then bring along the receipt and documents to submit and request the 12 digits tax identity number from Tax Department for handing over to IPD for registering in the registration of representative offices.

Remarks: In case the representative office is located in provinces, it is not necessary to submit to municipal or provincial Finance Section.  The submission can be done via Tax Department.

 

2). Application for tax identity number for general activities

  1. Application for the registration of company’s properties and regulations requires the following complementary documents:

-        Proposal requesting the registration of company property list;

-        Company property list;

-        company’s regulations certified by IC sector;

-        Copy of application for enterprise registration: 1 book;

  1. Prepare form to request tax identity number with requires the following documents:

-        Referral letter requesting  tax identity number from IC sector;

-        Copy of enterprise registration certificate;

-        Application for enterprise registration: 1 book;

-        company’s regulations whose properties has been registered;

-        Rental contract and rental tax payment (if not rented, copy of land title deed);

-        Certificate of office location certified by village authority;

-        Staff name list (position and salary);

-        Company property list;

After preparing the complete forms and documents the company must submit the documents to Finance Section of Vientiane Capital to request the 9-digitcodeandthe tax payment receipt, then bring the receipt and documents to Tax Department to request 12-digit tax identity number(for general activities, the Industry and Commerce Sector issues the enterprise registration certificate, not necessary to return to the Industry and Commerce Sector for the code.  The Tax officer will print the code in the enterprise registration certificate).

 

9. Complementary documents for applying for tax identity number

Persons, legal entity starting a new business must prepare documents to apply for tax identity number at tax sector as follows:

1. Application form for tax identity number with 1 photo of 3x4 size;

2. Application form for annual tax hand-over: 1 set;

3. Application form for registering tax identity number(for enterprise unit with legal entity status) in printed form No. 02/07: 1 set;

4. Application form for registering tax identity number(Annexe, information about rights/shares) in printed form No. 02.1/07, 1 set;

(Items 1 to 4 use Form of Finance Sector: 1 set

5. Concession registration certificate/investment license, enterprise registration certificate, approved paper from concerned sectors and other approved papers (if any): 3 sets;

6. Copy of national identity card, family book, residential certificate or passport of the enterprise owner or of the attorney: 2 sets;

7. Regulations or economic analysis of the enterprise: 2 sets;

8. Map of office location certified by local authority, contactable desk phone no., mobile phone no., fax no., email:   2 sets;

9. Staff list and salary of the enterprise: 2 sets;

10. Property list: 2 sets;

11. Rights certificate or rental contract for office, store, warehouse (with land and rental tax payment receipts): 2 sets;

12. Bank deposit book of director or stockholders: 2 sets;

Tax Sector, after receiving documents for tax identity number request, must immediately verify the correctness or completeness of the documents, if the documents are incomplete, the tax sector must advise the tax payer at that moment, if the documents are complete, the tax sector then issues tax identity number within 3 to 5 official working days from the date of receiving the correct and complete documents for the request of tax identity number.

10. Complementary documents for issuing the tax payment certificate

Persons, legal entity who operate the business, have income, are in either the value added tax system or not, no matter Lao or foreign citizens,  each fiscal year they must prepare a financial document report to request the tax hand-over certificate with the following complementary documents:

  1. Balance sheet before and after physical checking;
  2. Summary of assets and liabilities in the fiscal year;
  3. Report of outcome in the fiscal year;
  4. Summary of fixed assets and depreciation table;
  5. Summary of the hand-over of all tax types in the fiscal year with the tax hand-over certificates;
  6. Summary of the utilization of the receipts;
  7. Business income-expense plans and tax hand-over plans of the following fiscal year;

The Tax Sector, after receiving the fiscal year report, must immediately verify the correctness or completeness of the documents, if the documents are incomplete, the tax sector must advise the tax payer at that moment in order for them to prepare additional documents, if the documents are complete, the tax sector must re-verify the payment of tax types according to the annual balance sheet with the comparison of the actual tax hand-over figure and the actual tax hand-over certificates.  If it is found that the tax hand-over is complete, then issues the certificate to the tax payer within 3 to 5 official working days from the date of receiving the financial report; in case it is found that the payment of any tax type in the balance sheet is incomplete, the responsible staff must calculate and issue the payment order immediately.  After the enterprise hands-over the complete payments, the Tax Sector considers the issuance of tax hand-over certificate.

At district levels, the collection of tax commitment shall be conducted in the form of lump-sum payment as per Article 56 of Tax Law No. 05/NA, dated 20 December 2011.

11. Fee for Application form, Fee for registering the assets and requesting tax identity number:

1. Application for tax identity number (Tax Department): 25.000 Kip/set;
2. Application for tax identity number(Tax Section of Vientiane Capital): 30.000 Kip/set;
3. Fee for registering the company’s assets and regulations:

- Sole company limited, Representative office: 20.000 Kip.

- Partnership: 520.000 Kip.

4. Fee for registration is collected based on the enterprise registered fund as stipulated in Decree No. 003/President, dated 26 December 2012.

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Last update: 22 September 2017.