New regime on tax registration in Vietnam under Circular 86/2024/TT-BTC

On December 23, 2024, the Ministry of Finance issued new regime on tax registration in Vietnam under Circular 86/2024/TT-BTC, which comes into force from February 6, 2025. This Circular replaces Circular 105/2020/TT-BTC, with the aim of advancing the tax registration procedures, creating favorable conditions for taxpayers in fullfilling their tax obligations. The issuance of Circular 86/2024/TT-BTC marks an important step forward in modernizing the tax administration system, guaranteeing tax collection’s transparency and efficiency.

Some new points in Circular 86/2024/TT-BTC compared to Circular 105/2020/TT-BTC

Tax registration entities (Article 4)

• Removing the list of enterprises registered under specialized laws (Point a, Clause 2, Article 4), in order to avoid the effect of specialized laws amendment upon the Circular. Meanwhile, at point a, clause 2, Article 4 of Circular 105/2020/TT-BTC, a number of enterprises are listed under specialized laws, include: insurance, accounting, auditing, lawyers, notaries.
• Not excluding the co-operative groups from the case of registration via the single-window system together with business registration, following point b, clause 2, Article 4 of Circular 105/2020/TT-BTC. Meanwhile, according to point b, clause 2, Article 4 Circular 86/2024/TT-BTC, co-operative groups that register to pay taxes directly to the tax authority, will not include co-operative groups registering for tax under the single-window system together with business registration, to exclude co-operative groups having tax registration under interlinked single-window system together with business registration following the Decree 92/2024/ND-CP.

Tax code structure (Article 5)

• Circular 105/2020/TT-BTC did not have this provision previously. Later, the tax code was issued to taxpayers who are foreign contractors registering to pay taxes directly with the tax authority. Circular 86/2024/TT-BTC added a provision for cases where there are many foreign contractors on the same contractor contract signed with the Vietnamese party and the contractors need to declare and pay taxes separately, each foreign contractor will be issued a separate 10-digit tax code (point d, clause 4, Article 5).
• Amending the provision on granting tax codes to pay on behalf of organizations with contracts or business cooperation documents, accordingly, taxpayers only register for a tax code to pay on behalf of organizations with a business cooperation contract or document, in this case if they need to be granted a separate tax code for the business cooperation contract (Point e, Clause 4, Article 5). Circular 105/2020/TT-BTC does not clearly state this provision. Therefore, the use of tax codes for payment on behalf of contracts and business cooperation documents causes difficulties in using invoices and refunding value-added tax.

Replacing tax codes with personal identification numbers from July 1st, 2025

Article 5 of Circular 86/2024/TT-BTC stipulates: The personal identification numbers of household representatives, business household representatives, and business individuals shall also replace the tax codes of such entities. Tax codes issued by tax authorities to individuals, households, and business households are implemented until June 30, 2025. From July 1, 2025, taxpayers, tax authorities, agencies, organizations, and other individuals involved in the use of tax codes shall use personal identification numbers instead of tax codes.

Separate Chapters on tax registration for taxpayers who are business households, individual businesses, households, and individuals

Circular 86/2024/TT-BTC has stipulated a separate Chapter, from Articles 22 to 34, specifically regulating tax registration procedures and locations for submitting initial registration dossiers, registering changes to tax registration information, temporarily suspending business operations, terminating tax codes and restoring tax codes for taxpayers who are business households, households, and individuals.

• In case a business household, household or individual has been granted a tax code before July 1, 2025, but the tax registration information of the business household representative, household representative or individual does not match the information of the individual stored in the National Population Database or is incomplete, to guarantee the relevance of the information with National Population Database before using the personal identification number instead of the tax code as prescribed in Clause 2, Article 38 of this Circular, taxpayer shall conduct the procedure to alter the tax registration information with the tax authority as prescribed in Clause 1 and Clause 4, Article 25 of Circular 86/2024/TT-BTC
• Business households, households, and individuals shall look up tax registration information that has been checked by the tax authority to see if it is suitable with the National Population Database on the General Department of Taxation’s Electronic Information Portal at: https://www.gdt.gov.vn, or on the General Department of Taxation’s Electronic Tax page at: thuedientu.gdt.gov.vn, or on the individual’s electronic tax transaction account on the iCanhan or eTaxMobile application (if the individual has been granted an electronic tax transaction account with the tax authority).
• In case of incorrect information, the taxpayer shall contact the directly managing tax authority or the Tax Department where the individual resides to update the correct information in the Tax Registration Application System.

Application of the National population database, electronic identification, and authentication in tax registration procedures

• Accordingly, tax authorities shall exploit personal information in the National Population Database by the roadmap for implementing the connection and sharing of information between the National Population Database and the Tax Database, to handle tax registration procedures for taxpayers as prescribed in and shall store and preserve information and data to guarantee the safety and confidentiality according to the law.
• Taxpayers are not required to re-declare to the tax authority in case that information is already available in the National Population Database and has been connected and shared with the tax database. Organizations and individuals use electronic identification accounts created by the Electronic Identification and authentication system to perform tax registration procedures as prescribed in the electronic environment.

Supplementing regulations on the settlement procedure for taxpayers following the backup process

Article 37 of Circular 86/2024/TT-BTC stipulates that tax authorities settle tax registration procedures for taxpayers specified in this Circular by the backup process in the following cases: the tax registration application system, or the National Business Registration Information System, or the National Population Database System encounters technical problems, or other force majeure cases.

Changes to tax registration forms

Some tax registration forms attached to the Circular 86/2024/TT-BTC also have changes compared to Circular 105/2020/TT-BTC.

When does the new regime on tax registration in Vietnam under Circular 86/2024/TT-BTC come into force?

According to Article 38 of Circular 86/2024/TT-BTC, this Circular takes effect from February 6, 2025, replacing Circular 105/2020/TT-BTC, except for the following cases:

• Tax codes issued by tax authorities to individuals, households, and business households are implemented until June 30, 2025.
• From July 1st, 2025, taxpayers, tax authorities, other agencies, organizations, and individuals regarding the use of tax codes as prescribed in Article 35 of the Law on Tax Administration shall use personal identification numbers instead of tax codes.

The above information is advice of Viet An Law on the new regime on tax registration in Vietnam under Circular 86/2024/TT-BTC. If you have any questions or need support, please contact Viet An Law for the best answer!