How to handle in the case where an individual has been issued more than one tax identification number in Vietnam according to Circular 86?
How to handle in the case where an individual has been issued more than one tax identification number in Vietnam according to Circular 86?
Based on Clause 4, Article 39 of Circular 86/2024/TT-BTC, the regulations are as follows:
Transitional Provisions
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- In the case where an individual has been issued more than one tax identification number, the taxpayer must update the personal identification number information for the issued tax identification numbers. The tax authority will integrate these tax identification numbers into the personal identification number, consolidating the taxpayer's tax data under the personal identification number.
Once a tax identification number has been integrated into the personal identification number, invoices, documents, tax records, and other legally valid papers that have utilized the individual's tax identification number will continue to be used for administrative tax procedures, proof of tax obligations, without needing to adjust the tax identification number information on invoices, documents, tax records to the personal identification number.
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Thus, according to the above regulations, if an individual is issued more than one tax identification number, the following actions are required:
The individual must update the personal identification number information for the issued tax identification numbers so that the tax authority can integrate these tax identification numbers into the personal identification number and consolidate the tax data according to the personal identification number;
Note: Once the tax identification number has been integrated into the personal identification number, invoices, documents, tax records, and other legally valid papers that have utilized the individual's tax identification number will continue to be used for administrative tax procedures, proof of tax obligations without needing to adjust the tax identification number information on invoices, documents, tax records to the personal identification number.
How to handle in the case where an individual has been issued more than one tax identification number in Vietnam according to Circular 86? (Image from the Internet)
What is an individual tax identification number used for in Vietnam?
Based on Article 35 of the 2019 Tax Administration Law, the usage of an individual tax identification number is outlined as follows:
(1) Individuals must enter the issued tax identification number on invoices, documents, and materials when conducting business transactions; opening bank deposit accounts at commercial banks, other credit institutions; filing taxes, paying taxes, tax exemption, tax reduction, tax refund, non-tax collection, customs declaration registration, and conducting other tax-related transactions for all obligations to the state budget, even if the taxpayer operates production or business activities across different localities.
(2) Individuals must provide the tax identification number to relevant agencies, organizations, or include it in files when carrying out administrative procedures under the inter-connected single-window mechanism with the tax administration authority.
(3) The tax administration authority, State Treasury, commercial banks coordinating in collecting state budget, organizations delegated by the tax authority to collect taxes utilize the individual's tax identification number in managing taxes and collecting taxes to the state budget.
(4) Commercial banks, other credit institutions must include the tax identification number in account-opening files and transaction documents through the individual's account.
(5) Other organizations, individuals involved in tax management utilize the issued tax identification number of individuals when providing information related to determining tax obligations.
(6) When the Vietnamese side pays money to an organization or individual engaged in cross-border business activities based on a digital intermediary platform without presence in Vietnam, the issued tax identification number for that organization or individual must be used for deduction and replacement tax payments.
(7) When a personal identification number is issued to the entire population, use the personal identification number in place of the tax identification number.
From July 1, 2025, will the individual tax identification number be the personal identification number in Vietnam?
According to Article 5 of Circular 86/2024/TT-BTC, the regulations are as follows:
Structure of Tax Identification Numbers
- Tax identification numbers include tax identification numbers for businesses, organizations, and tax identification numbers for households, business households, individuals. In which:
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b) The tax identification numbers for households, business households, individuals is a tax identification number issued by the tax authority for the cases specified at points a, đ, e, h of Clause 4 of this Article; is the personal identification number issued by the Ministry of Public Security according to the law on citizenship for cases where using the personal identification number replaces the tax identification number as regulated at Clause 5 of this Article.
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- The personal identification number of Vietnamese citizens issued by the Ministry of Public Security according to the law on citizenship is a sequence of natural numbers consisting of 12 digits used in place of the tax identification number of individual taxpayers, dependents specified at points k, l, n of Clause 2 Article 4 of this Circular; simultaneously, the personal identification number of the representative of a household, representative of a business household, individual business is also used in place of the tax identification number for that household, business household, individual business.
Additionally, based on Clause 2, Article 38 of Circular 86/2024/TT-BTC, the effective implementation is regulated as follows:
Effective Implementation
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- Tax identification numbers issued by the tax authority to individuals, households, business households will be valid until June 30, 2025. From July 1, 2025, taxpayers, tax administration authorities, agencies, organizations, and other individuals involved in the use of tax identification numbers as stipulated in Article 35 of the Tax Administration Law shall use the personal identification number in place of the tax identification number.
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From these two regulations, it is evident that from July 1, 2025, the individual tax identification number for subjects specified at points k, l, n of Clause 2, Article 4 of Circular 86/2024/TT-BTC will be officially replaced by the personal identification number, specifically for the following subjects:
- Individuals with income subject to personal income tax (excluding business individuals).
- Individuals who are dependents according to laws on personal income tax.
- Organizations, households, and other individuals with obligations to the state budget.
