Tax Departments of major businesses in Vietnam introduces 8 new points of Circular 86 on tax registration

Tax Departments of major businesses in Vietnam introduces 8 new points of Circular 86 on tax registration

On February 12, 2025, the Tax Departments of major businesses in Vietnam issued Official Dispatch 121/DNL-THNV in 2025 introducing several new points of Circular 86/2024/TT-BTC to facilitate taxpayers in applying the Circular easily and conveniently during the process of tax registration. The 8 new points of Circular 86 on tax registration include:

(1) On tax registration subjects (Article 4)

New Point 1: The list of enterprises registered under specialized legal provisions (point a Clause 2 Article 4) is removed, to avoid the situation where changes in specialized laws affect the regulations in the Circular.

Previously: Point a, Clause 2, Article 4 of Circular No. 105/2020/TT-BTC listed some enterprises according to specialized laws: insurance, accounting, auditing, lawyers, notary.

(2) On the structure of the tax identification number (Article 5)

New Point 2: Regarding the tax identification numbers issued to foreign contractors who register to pay taxes directly with the tax authorities, Circular 86/2024/TT-BTC supplements regulations for cases having multiple foreign contractors on the same contractor agreement signed with a Vietnamese party, and the contractors wishing to declare and pay taxes separately, then each foreign contractor will be issued a separate 10-digit tax identification number (point d, Clause 4, Article 5).

Previously: Circular No. 105/2020/TT-BTC did not have this provision.

New Point 3: Amends the regulation on tax identification numbers issued on behalf of organizations with business cooperation contracts or documents. Accordingly, taxpayers only register for a tax identification number issued on behalf of others if there is a demand for a separate tax identification number for the business cooperation contract (point e, Clause 4, Article 5).

Previously: Circular No. 105/2020/TT-BTC was not clear on this provision. Hence, the use of the tax identification number issued on behalf of the contract, business cooperation documents encountered obstacles in using invoices and VAT refund.

(3) On procedures for first-time tax registration (Article 7)

New Point 4: The List of dependent units form BK02-DK-TCT issued along with Circular 86/2024/TT-BTC is removed from the first-time tax registration application contents of the dependent unit (point a.2, b.2 Clause 1, Article 7).

New Point 5: Adds the location for submitting dossiers to the Tax Departments of major businesses in Vietnam in cases where taxpayers are managed by this department, for operators, joint operators, joint venture companies, organizations assigned by the Government of Vietnam to receive Vietnam's shares from oil and gas fields in overlapping areas, contractors, investors participating in oil and gas contracts, the mother company - Vietnam National Oil and Gas Group as the host country representative to receive the profit shares from oil and gas contracts (Clause 7, Article 7).

Previously: According to the regulation at Clause 7, Article 7 of Circular No. 105/2020/TT-BTC, the aforementioned taxpayers submitted the first-time tax registration applications at the tax office where the headquarters is located.

(4) On procedures for changing tax registration information (Article 10)

New Point 6: Adds the location for submitting dossiers to change tax registration information for contractors, investors participating in oil and gas contracts when transferring capital contributions in economic organizations or transferring a part of the benefits of participating in oil and gas contracts at the Tax Departments of major businesses in Vietnam in cases where the operator is assigned to this department for management (point c, Clause 1, Article 10).

Previously: According to the regulation at point b, Clause 1, Article 10 of Circular No. 105/2020/TT-BTC, the aforementioned taxpayers submitted the dossiers for changing tax registration information at the tax office where the operator is headquartered.

(5) On procedures for terminating the effectiveness of a tax identification number (Article 16)

New Point 7: Adds regulations to transfer excess paid amounts, undeducted VAT in case dependent units, split units being merged or consolidated terminate the effectiveness of the tax identification number but still have excess paid amounts, undeducted VAT to the managing unit or new units formed after splitting/merging/consolidation (point a.3, Clause 1, Article 16).

Previously: Circular No. 105/2020/TT-BTC did not have this provision.

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>>> View all 8 new points of Circular 86 on tax registration here

Tax Departments of major businesses in Vietnam introduces 8 new points of Circular 86 on tax registration (Image from Internet)

Which subjects are included in tax registration in Vietnam according to Circular 86?

Based on Article 4 of Circular 86/2024/TT-BTC, the subjects for tax registration include:

(1) Taxpayers subject to tax registration through the one-stop-shop mechanism as stipulated in point a, Clause 1, Article 30 of Law on Tax Administration 2019;

(2) Taxpayers subject to direct tax registration with the tax authorities as stipulated in point b, Clause 1, Article 30 of Law on Tax Administration 2019.

In which, taxpayers subject to direct tax registration with the tax authorities include:

- Enterprises operating in specialized sectors not required to register businesses through the business registration authority according to specialized laws (hereinafter referred to as Economic Organizations).

- Non-business units, economic organizations of the armed forces, economic organizations of political, socio-political, social, social-professional organizations carrying out business activities according to law but not required to register businesses through the business registration authority; organizations from countries sharing land borders with Vietnam engaging in trade activities at border markets, border gate markets, markets within the border economic zone; representative offices of foreign organizations in Vietnam; cooperative groups established and operating under Decree 77/2019/ND-CP dated October 10, 2019, by the Government of Vietnam on cooperative groups but not required to register businesses through the business registration authority according to Clause 2, Article 107 of Law on Cooperatives 2023 (hereinafter referred to as Economic Organizations).

- Organizations established by competent authorities without production, business activities but arising obligations with the state budget (hereinafter referred to as Other Organizations).

- Foreign organizations and individuals in Vietnam using humanitarian aid, non-refundable aid from abroad to purchase goods and services subject to VAT in Vietnam for non-refundable aid, humanitarian aid; diplomatic representative agencies, consular offices, and representatives of international organizations in Vietnam eligible for VAT refund for those enjoying diplomatic privilege exemptions;

ODA project owners eligible for VAT refund, ODA project sponsor representative offices, organizations designated by foreign sponsors to manage ODA programs, and projects not receiving ODA (hereinafter referred to as Other Organizations).

- Foreign organizations not having legal status in Vietnam, foreign individuals practicing independently in Vietnam in accordance with Vietnamese law, with income arising in Vietnam or incurring tax obligations in Vietnam (hereinafter referred to as Foreign Contractors, Foreign Subcontractors).

- Overseas suppliers having no fixed residence in Vietnam, foreign residents not residing in Vietnam conducting e-commerce, digital platform businesses, and other services with organizations, individuals in Vietnam (hereinafter referred to as Overseas Suppliers).

- Enterprises, organizations, individuals responsible for withholding and paying taxes on behalf of other taxpayers must declare and determine a separate tax obligation distinct from the taxpayer's obligation according to tax administration laws (excluding income-paying agencies withholding, paying personal income taxes); Commercial banks, intermediary payment service providers, or organizations, individuals authorized by the overseas suppliers are responsible for declaring, withholding, and paying taxes on behalf of the overseas suppliers (hereinafter referred to as Organizations, Individuals withholding payments). Income-paying organizations when withholding, paying personal income taxes use the issued tax identification number to declare, pay withheld personal income tax.

- Operators, joint operators, joint venture companies, organizations assigned by the Government of Vietnam to receive Vietnam's share from oil and gas fields in overlapping areas, contractors, investors under petroleum contracts, the mother company - Vietnam National Oil and Gas Group representing the host country receiving profit shares from petroleum contracts.

- Households, individuals with production and business activities according to law but not requiring business household registration through the business registration authority as per the Government of Vietnam regarding household businesses; business individuals from countries sharing land borders with Vietnam engaging in trade activities at border markets, border gate markets, markets within the border economic zone.

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

- Individuals who are dependents according to the personal income tax law.

- Organizations, individuals authorized by the tax authorities to collect.

- Other organizations, households, and individuals with obligations to the state budget.

What are regulations on the tax registration application in Vietnam in Circular 86?

According to Clause 1, Article 6 of Circular 86/2024/TT-BTC, the tax registration application is specified as follows:

The tax registration application includes the following types of documentation:

- First-time tax registration application;

- Dossier for changing tax registration information;

- Notification of temporary cessation of activities, business or continuation of activities after temporarily ceasing activities, business ahead of schedule;

- Dossier for terminating the effectiveness of the tax identification number;

- Dossier for restoring the tax identification number received in accordance with Clause 2, Clause 3, Article 41 Law on Tax Administration 2019.