What are some new points regarding tax registration in Vietnam according to Circular 86, as per Official Dispatch 339/TCT-KK?

What are some new points regarding tax registration in Vietnam according to Circular 86, as per Official Dispatch 339/TCT-KK? 

On January 22, 2025, the General Department of Taxation issued Official Dispatch 339/TCT-KK of 2025, introducing new points regarding tax registration in Circular 86/2024/TT-BTC (replacing Circular 105/2020/TT-BTC), including:

* New points regarding tax registration subjects (Article 4 of Circular 86/2024/TT-BTC)

New Point 1: The removal of the listing of enterprises registering under specialized law (point a, clause 2, Article 4), to prevent amendments in specialized law from impacting the provisions of the Circular.

Previously: Point a, clause 2, Article 4 of Circular 105/2020/TT-BTC listed certain enterprises according to specialized law: insurance, accounting, auditing, lawyers, notaries.

New Point 2: Cooperative groups subject to direct tax registration with the tax authorities will not include those registering through a unified single-window mechanism together with business registration. It is amended as follows: “Cooperative groups established and organized according to the provisions of Decree 77/2019/ND-CP dated October 10, 2019, by the Government of Vietnam on cooperative groups but not subject to business registration through the business registration authority under clause 2, Article 107 of the Law on Cooperatives” (point b, clause 2, Article 4), to exclude cooperative groups in single-window mechanism tax registration along with business registration as per Decree 92/2024/ND-CP regarding cooperative group registration, cooperatives, cooperative alliances.

Previously: According to point b, clause 2, Article 4 of Circular 105/2020/TT-BTC, cooperative groups were not excluded from registering through a single-window mechanism along with business registration.

* New points regarding TIN structure (Article 5 of Circular 86/2024/TT-BTC)

New Point 3: Concerning TINs issued to foreign contractors directly registering with the tax authority, Circular 86/2024/TT-BTC adds provisions for cases where multiple foreign contractors are involved in the same contract with a Vietnamese party and wish to declare and pay taxes separately, granting each foreign contractor a separate 10-digit TIN (point d, clause 4, Article 5).

Previously: Circular 105/2020/TT-BTC did not specify this regulation.

New Point 4: Amendments concerning the issuance of TINs for paying on behalf of organizations with business cooperation contracts or documents, stipulating that taxpayers register for a separate TIN for the business cooperation contract only if needed (point e, clause 4, Article 5).

Previously: Circular 105/2020/TT-BTC did not clearly stipulate this, causing issues in using the TIN for the contract, business cooperation document in VAT invoice and refund.

* New points regarding initial tax registration procedures

New Point 5: Removal of the Annex listing dependent units, form number BK02-DK-TCT issued alongside this Circular from the composition of the initial tax registration dossier of dependent units (point a.2, b.2, clause 1, Article 7).

New Point 6: Supplementation of the location for submitting dossiers at the Large Enterprise Tax Department in cases where the taxpayer is assigned to be managed by the Large Enterprise Tax Department for taxpayers who are operators, joint operational companies, joint venture enterprises, or organizations assigned by the Government of Vietnam to receive the share of petroleum fields in overlapping areas, contractors, investors participating in petroleum contracts, parent companies - Vietnam Oil and Gas Group representing the host country to receive profits shared from petroleum contracts (clause 7, Article 7).

Previously: According to clause 7, Article 7 of Circular 105/2020/TT-BTC, such taxpayers submitted the initial tax registration dossier at the Tax Department where headquartered.

Note: Some new points listed above apply to taxpayers as organizations and their effectiveness.

View the full Official Dispatch 339/TCT-KK of 2025 introducing new points of Circular 86/2024/TT-BTC >>> Tải về

What are some new points regarding tax registration in Vietnam according to Circular 86, as per Official Dispatch 339/TCT-KK? (Image from the Internet)

When does Circular 86 on tax registration officially come into force?

According to Article 38 of Circular 86/2024/TT-BTC, Circular 86 on tax registration officially comes into force from February 6, 2025, replacing Circular 105/2020/TT-BTC guiding tax registration.

However, TINs issued by the tax authority to individuals, households, and business households are valid until June 30, 2025. From July 1, 2025, taxpayers, tax management agencies, other agencies, organizations, and individuals involved in the use of TINs must comply with the provision stated in Article 35 of Law on Tax Administration 2019 using personal identification numbers instead of TINs.

In cases where documents referenced in Circular 86 are amended, supplemented, or replaced, the new amended, supplemented, or substituted document shall prevail.

What are regulations on the use of TINs in Vietnam?

The use of TINs is implemented according to the provisions of Article 35 of Law on Tax Administration 2019 as follows:

- Taxpayers must record their assigned TIN on invoices, records, and documents when conducting business transactions; opening deposit accounts at commercial banks, other credit institutions; tax declaration, tax payment, tax exemption, tax reduction, tax refund, non-tax collection, registration of customs declarations, and other tax-related transactions for all obligations to pay the state budget, even if the taxpayer operates in multiple locations.

- Taxpayers must provide their TIN to related agencies, organizations, or record the TIN on the dossier when carrying out administrative formalities through the single-window mechanism with the tax administration agency.

- The tax administration agency, State Treasury, cooperative banks of national budget revenue, organizations authorized by the tax authority to collect taxes use taxpayers’ TINs in tax management and state budget collection.

- Commercial banks, other credit institutions must record the TIN in account opening dossiers and documents related to transactions over the taxpayer's account.

- Other organizations and individuals participating in tax management use the taxpayer's assigned TIN when providing information relevant to tax obligation determination.

- When the Vietnamese party pays to organizations or individuals conducting cross-border business activities based on a digital intermediary platform that does not exist in Vietnam, the provided TIN must be used for deduction and payment.

- When personal identification numbers are assigned to all residents, use the personal identification number instead of the TIN.