From February 6, 2025, when will taxpayers be issued with a 12-digit TIN in Vietnam?

From February 6, 2025, when will taxpayers be issued with a 12-digit TIN in Vietnam?

According to Clause 5, Article 5 of Circular 86/2024/TT-BTC which prescribes the structure of TINs as follows:

Structure of TINs

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5. The personal identification number for Vietnamese citizens issued by the Ministry of Public Security according to the laws on identification is a sequence of 12 natural numbers used as a substitute for the taxpayer’s TIN for individuals and dependents as stipulated in points k, l, n, Clause 2, Article 4 of this Circular; Furthermore, the personal identification number of the representative of the household, business household, and business individual is also used as a substitute for the TIN of that household, business household, and business individual.

Thus, based on the aforementioned regulation, the personal identification number of Vietnamese citizens issued by the Ministry of Public Security under the laws on identification, consisting of a sequence of 12 natural numbers, will substitute the TIN for individuals and dependents as stipulated in points k, l, n, Clause 2, Article 4 of Circular 86/2024/TT-BTC, specifically in circumstances such as:

- Individuals with incomes subject to personal income tax (excluding business individuals).

- Individuals who are dependents under the law on personal income tax.

- Organizations, households, and other individuals liable to the state budget.

Simultaneously, the personal identification number of the family representative, business household representative, and business individual will also be issued to replace the TIN of that household, business household, and business individual.

From February 6, 2025, when will taxpayers be issued with a 12-digit TIN in Vietnam? (Image from the Internet)

What obligations must be fulfilled before the TIN deactivation in Vietnam from February 6, 2025?

According to Article 30 of Circular 86/2024/TT-BTC which prescribes obligations that must be fulfilled before the deactivation of the effectiveness of TINs as follows:

(1) For business households registering taxpayer registration through the one-stop-shop mechanism; households, individual businesses stipulated at point i, Clause 2, Article 4 of Circular 86/2024/TT-BTC must complete obligations arising from business activities before deactivating the effectiveness of TINs due to business cessation as follows:

- Fulfill obligations regarding invoices according to the law on invoices if invoices are used.

- Complete tax declaration dossier submission, tax payment, and handle surplus tax amount according to the stipulations in Articles 43, 44, 47, 60, 67, 68, 70, and 71 of the Tax Administration Law 2019 with the tax administration authority (for business households, households, and business individuals paying taxes via the declaration method).

- Taxpayers fulfill their tax payment obligations and handle surplus tax amount according to regulations in Articles 60, 67, 69, 70, and 71 of the Tax Administration Law 2019 with the tax administration authority (for business households, households, and business individuals paying taxes via the prescriptive tax method).

(2) For business households converting to small and medium enterprises under the Law on supporting small and medium enterprises, business households must fulfill tax obligations with the directly managing tax authority or send a document to the tax authority committing that the small and medium enterprise will inherit all tax obligations of the business household according to the law on supporting small and medium enterprises.

(3) For individuals stipulated in points k, l, n, Clause 2, Article 4 of Circular 86/2024/TT-BTC, they must complete their tax obligations and handle overpaid amounts according to regulations in Articles 60, 67, 69, 70, and 71 of the Tax Administration Law 2019 with the tax administration authority before the deactivation of the TIN.

(4) The TIN of business households, households, business individuals ceases to be effective when business operations cease, but the TIN of the representative of the business household, household representative, and personal TIN does not cease to be effective and continues to be used for other tax obligations of the individual.

What are regulations on use of TINs in Vietnam?

According to Article 35 of the Tax Administration Law 2019, which prescribes the use of TINs as follows:

- Taxpayers must record the TIN they are assigned on invoices, documents, and materials when conducting business transactions; opening deposit accounts at commercial banks, or other credit institutions; declaring taxes, paying taxes, applying for tax exemption, tax reduction, tax refund, no taxation, registering customs declarations, and performing other tax-related transactions involving all obligations to the state budget, even in cases where the taxpayer conducts production and business activities in various locations.

- Taxpayers must provide their TIN to relevant agencies or organizations or record it in the documentation when performing administrative procedures under the one-stop-shop mechanism with the tax administration authority.

- Tax administration authorities, the State Treasury, commercial banks coordinating the state budget collection, organizations authorized by tax authorities to collect taxes must use the TIN of taxpayers in tax management and remittance to the state budget.

- Commercial banks and other credit institutions must include the TIN in the documentation for opening accounts and in transaction documents through the taxpayer’s account.

- Other organizations and individuals participating in tax administration must utilize the TINs assigned to taxpayers when providing information related to the dedeactivation of tax obligations.

- When the Vietnamese side pays for organizations or individuals conducting cross-border business activities via digital intermediary platforms without physical presence in Vietnam, the TIN assigned to these organizations or individuals must be used for tax deduction and remittance.