Electronically automated enterprise codes

Question: What are the rules on issuing electronically automated enterprise codes?

Answer:  Circular 127 stipulates the following new regulations:

1.Sequence of implementing the issuance of automated enterprise codes

According to Circular 127, the issuance of corporate codes to newly established enterprises is to be electronically automated on the Tax Registration System of the General Department of Taxation on the working day of receiving the complete and valid application file from the National Enterprise Registration Information Portal in the following procedures.

·  The Tax Registration System of the General Department of Taxation Registration will automatically check the information related to the enterprise registration application file;

·  If the information is complete and in accordance with the law, the Tax Registration System will automatically generate an enterprise code and assign a tax agency (Tax Department, Tax Sub-Department) to directly manage the newly registered enterprise. The Business Registration Agency shall issue the Enterprise Registration Certificate under the code and inform the enterprise of its direct tax management agency;

·  If the information is incomplete or invalid, the Tax Registration System shall automatically generate notices and communicate them to the National Enterprise Registration Information Portal for the Business Registration Agency to inform the enterprise of its adjustment.

2. Principle assigning a tax authority that directly manages an enterprise

Based on the establishment registration application file transferred by the Business Registration Agency, the Tax Registration System shall assign the Tax Authority to the directly manage the newly established enterprise in line with the management capacity of all levels of Tax Authorities and the organization of the enterprises business operations, and the characteristics of each locality, region and area. Specifically, the assignment criteria are as follows:

·  The Tax Departments directly manages State-owned enterprises, foreign-invested enterprises, those under any BOT-BTO/BT project, overall sector accounting enterprises, those operating in various areas, those on large-scale businesses; those with complex, specific business lines and so forth; and

·  The Tax Sub-Departments directly managing the remaining enterprises within their location of production and business in the districts.

Circular 127 took effect from October 10, 2015./.