Vietnam: Which entities are required to use personal identification numbers to replace personal tax identification numbers from July 1, 2025?
Vietnam: Which entities are required to use personal identification numbers to replace personal tax identification numbers from July 1, 2025?
According to Article 5 of Circular 86/2024/TT-BTC, the regulations are as follows:
Structure of Tax Identification Numbers
- Tax identification numbers include those for enterprises, organizations, and tax identification numbers for households, household businesses, and individuals. Specifically:
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b) Tax identification numbers for households, household businesses, individuals are the numbers issued by tax authorities for the cases stipulated in points a, đ, e, h of Clause 4 of this Article; they are personal identification numbers issued by the Ministry of Public Security in accordance with the law on identification for cases where personal identification numbers are used to replace tax identification numbers as stipulated in Clause 5 of this Article.
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- The personal identification number for a Vietnamese citizen issued by the Ministry of Public Security in accordance with the law on identification consists of a natural sequence of 12 digits used in place of the tax identification number of individual taxpayers and dependents as stipulated in points k, l, n of Clause 2, Article 4 of this Circular; simultaneously, the personal identification number of the representative of the household, household business, individual business is also used in place of the tax identification number of that household, household business, and individual business.
Additionally, based on Clause 2, Article 38 of Circular 86/2024/TT-BTC, regarding the effectiveness as follows:
Effectiveness
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- Tax identification numbers issued by tax authorities to individuals, households, household businesses are valid until June 30, 2025. Starting from July 1, 2025, taxpayers, tax management agencies, and other organizations and individuals involved in the use of tax identification numbers, as prescribed in Article 35 of the Tax Management Law, must use personal identification numbers instead of tax identification numbers.
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From the above regulations, it can be seen that from July 1, 2025, personal identification numbers will be used to replace personal tax identification numbers, applicable to the subjects stipulated in points k, l, n of Clause 2, Article 4 of Circular 86/2024/TT-BTC, specifically the following subjects:
- Individuals with income subject to personal income tax (excluding business individuals).
- Individuals who are dependents under the law on personal income tax.
- Organizations, households, and other individuals with obligations to the state budget.
Vietnam: Which entities are required to use personal identification numbers to replace personal tax identification numbers from July 1, 2025? (Image from the Internet)
How do individuals without personal identification numbers register tax in Vietnam?
According to Clause 4, Article 40 of Circular 86/2024/TT-BTC, it is stipulated as follows:
Implementation Responsibilities
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- Taxpayers, organizations, and related individuals who fall under the application subjects of this Circular must fully follow the guidance in this Circular.
In the event that an individual who is a Vietnamese citizen has not been issued a personal identification number, the individual must contact the local police agency to collect information into the National Population Database and be issued a personal identification number before proceeding with tax registration according to the regulations of this Circular.
During the implementation process, if obstacles arise, organizations and individuals are requested to promptly report them to the Ministry of Finance for study and resolution./.
Thus, in the case of a Vietnamese citizen without a personal identification number, proceeding with tax registration should be handled as follows:
(1) The individual must contact the local police agency to collect information into the National Population Database and to be issued a personal identification number before proceeding with tax registration.
(2) Once a personal identification number is obtained, the individual must carry out tax registration using the newly issued personal identification number.
Where to submit the initial tax registration dossier for individuals using personal identification numbers instead of tax identification numbers in Vietnam?
According to Clause 1, Article 22 of Circular 86/2024/TT-BTC, the location for submitting the initial tax registration dossier for individuals using personal identification numbers instead of tax identification numbers is as follows:
(1) For individuals engaged in the trade, business of goods and services as per the law but not required to register household businesses through the business registration agency under the regulations of the Government of Vietnam regarding household businesses; business individuals from countries sharing land borders with Vietnam engaged in buying, selling, and exchanging goods at border markets, border-gate markets, and markets within border-gate economic zones.
- At the District Tax Department or Regional Tax Department where the business location is situated for households, individual businesses with a fixed business location, or where individuals have real estate for lease.
- At the District Tax Department or Regional Tax Department where the individual business resides for individual businesses without a fixed business location.
(2) For individuals with income subject to personal income tax (excluding business individuals) and other individuals obligated to the state budget, paying personal income tax through an income-paying agency and authorized the income-paying agency for tax registration for the individual or dependents
- At the income-paying agency.
- In the case where the individual pays personal income tax at multiple income-paying agencies in the same tax period, the individual only authorizes tax registration at one income-paying agency and notifies the personal identification number of the individual and dependent to other income-paying agencies for purposes of deduction, declaration, and tax payment.
(3) For individuals with income subject to personal income tax (excluding business individuals) and other individuals obligated to the state budget, paying personal income tax not through an income-paying agency or not authorizing the income-paying agency for tax registration
- At the Tax Department where the individual works for resident individuals with wages, salaries paid by International organizations, Embassies, Consulates in Vietnam but such organizations have not implemented tax withholding.
- At the Tax Department where work arises in Vietnam for individuals earning wages, salaries paid by foreign organizations, individuals.
- At the District Tax Department, Regional Tax Department where the individual resides in other cases.
(4) For households and individuals not belonging to the aforementioned cases, tax registration through the tax declaration dossier:
- At the District Tax Department, Regional Tax Department where the household or individual has obligations arising with the state budget.
