What are 59 new points of Circular 86 on tax registration in Vietnam replacing Circular 105?

What are 59 new points of Circular 86 on tax registration in Vietnam replacing Circular 105?

On December 23, 2024, the Ministry of Finance issued Circular 86/2024/TT-BTC regulating tax registration, replacing Circular 105/2020/TT-BTC.

Circular 86 consists of 4 chapters and 40 articles, in which the regulations on tax registration procedures are separately structured for taxpayers being organizations and taxpayers being business households, households, and individuals.

Additionally, the General Department of Taxation has issued Official Dispatch 339/TCT-KK of 2025 introducing 59 new points of Circular No. 86/2024/TT-BTC compared to Circular 105/2020/TT-BTC as follows:

* POLICY 1: Subjects of tax registration (Article 4)

- New Point 1: Removal of the list of businesses registered under specialized laws (point a Clause 2 Article 4) to avoid the impact of amendments to specialized laws on the regulations in the Circular.

Previously: Point a Clause 2 Article 4 of Circular No. 105/2020/TT-BTC listed several businesses under specialized laws such as: insurance, accounting, auditing, lawyers, notary.

- New Point 2: Cooperative groups subject to direct tax registration with the tax authorities will not include cooperative groups registering tax registration through the one-stop-shop mechanism along with business registration, thereby amended as: "cooperative groups established and operating as per Decree No. 77/2019/ND-CP dated October 10, 2019, of the Government of Vietnam on cooperative groups, but not in cases of business registration through the business registration authority as per Clause 2 Article 107 of the Cooperative Law 2023" (point b Clause 2 Article 4), to exclude cooperative groups required to register tax registration through the one-stop-shop mechanism along with business registration as per Decree No. 92/2024/ND-CP dated July 18, 2024, of the Government of Vietnam on registration of cooperative groups, cooperatives, and unions of cooperatives.

Previously: According to the regulation at point b Clause 2 Article 4 of Circular No. 105/2020/TT-BTC, cooperative groups were not yet excluded from cases of registration through the one-stop-shop mechanism along with business registration.

* POLICY 2: Structure of TINs (Article 5)

- New Point 3: Regarding TINs issued to foreign contractors registering tax directly with the tax authorities, Circular 86/2024/TT-BTC supplements provisions for cases where there are multiple foreign contractors on a single contractor agreement with the Vietnamese party and the contractors wish to declare taxes and pay separately, each foreign contractor will be issued a separate 10-digit TIN (point d Clause 4 Article 5).

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

- New Point 4: Amend the regulation of issuing TINs for tax payment on behalf of organizations with business cooperation contracts or documents, such that taxpayers only register for a separate TIN in these cases if there is a need for a separate number for the business cooperation contract (point e Clause 4 Article 5).

Previously: Circular No. 105/2020/TT-BTC did not clearly state this regulation. Therefore, using the substitute TIN for contracts, business cooperation documents encountered difficulties in invoicing and VAT refunds.

* POLICY 3: Initial tax registration procedures

- New Point 5: Remove the appendix listing subsidiaries under form BK02-DK-TCT issued with this Circular from the documentation of the initial tax registration of subsidiaries (point a.2, b.2 Clause 1 Article 7).

- New Point 6: Add the location for submitting documentation at the Large Taxpayers Department in cases where the taxpayer is assigned to be managed by the Large Taxpayers Department for taxpayers such as operators, joint operating companies, joint venture enterprises, organizations assigned by the Government of Vietnam to receive the Vietnam share in oil and gas fields in disputed areas, contractors, investors participating in oil and gas contracts, parent company - Vietnam Oil and Gas Group representing the host country to receive the profit share from oil and gas contracts (Clause 7 Article 7).

Previously: According to regulation in Clause 7 Article 7 of Circular No. 105/2020/TT-BTC, the aforementioned taxpayers submitted initial tax registration documentation at the Tax Department where their headquarters were located.

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Download the 59 new points of Circular 86 on tax registration replacing Circular 105 here

What are 59 new points of Circular 86 on tax registration in Vietnam replacing Circular 105? (Image from the Internet)

Vietnam: How many types of TINs are there according to Circular 86?

Based on Clause 1 Article 5 of Circular 86/2024/TT-BTC, TINs include TINs for enterprises, organizations and TINs for households, business households, individuals. Specifically:

- TINs for enterprises, organizations are issued by the tax authority in accordance with Clauses 2, 3, 4 Article 5 Circular 86/2024/TT-BTC.

- TINs for households, business households, individuals are TINs issued by the tax authority for cases regulated at points a, đ, e, h Clause 4 Article 5 Circular 86/2024/TT-BTC; are personal identifier numbers issued by the Ministry of Public Security according to regulations on personal identification cards for cases using personal identifier numbers instead of TINs as per Clause 5 Article 5 Circular 86/2024/TT-BTC.

Thus, TINs are divided into two types: (i) TINs for enterprises, organizations and (ii) TINs for households, business households, individuals.

What are regulations on the receipt of taxpayer documentation in Vietnam?

Based on Clause 2 Article 6 Circular 86/2024/TT-BTC, regulations on the receipt of taxpayer documentation are as follows:

(1) For paper documentation:

- In the case of tax registration documentation submitted directly at the tax authority, the tax official checks the tax registration documentation. If the documentation is complete as per regulations, the tax official receives and stamps the receipt on the tax registration documentation, clearly stating the date of receipt, quantity of documents according to the list of documentation; makes a receipt slip and schedules result returns for documentation under the authority's obligation to provide results to taxpayers, and the processing time for each type of received documentation. If the documentation is incomplete according to regulations, the tax official does not receive it and guides the taxpayer to complete the documentation.

- In the case of tax registration documentation sent via postal services, the tax official stamps and records the date of receipt on the documentation, logging it in the tax authority's correspondence book. If the documentation is incomplete and requires explanation, additional information, or documents, the tax authority notifies the taxpayer using form 01/TB-BSTT-NNT in Appendix II issued together with Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing several provisions of the Tax Administration Law 2019 within 02 (two) working days from the date of receipt.

(2) For electronic tax registration documentation:

The receipt of documentation is executed according to regulations at Articles 13, 14 of Circular 19/2021/TT-BTC guiding electronic transactions in the field of taxation and Circular 46/2024/TT-BTC.