What are the 5 issues regarding the use of personal identification numbers in place of personal identification numbers by 2025 in Vietnam?

What are the 5 issues regarding the use of personal identification numbers in place of personal identification numbers by 2025 in Vietnam?

Below is a comprehensive summary of the five issues regarding the use of personal identification numbers in place of personal identification numbers according to Circular 86/2024/TT-BTC:

(1) Deadline for Mandatory Use of personal identification numbers in Place of personal identification numbers:

Based on Clause 2, Article 38 of Circular 86/2024/TT-BTC, the personal identification numbers issued by the tax authorities to individuals, households, and businesses will be implemented until June 30, 2025. Starting from July 1, 2025, taxpayers, tax authorities, organizations, and individuals involved in using personal identification numbers as per Article 35 of the Law on Tax Management 2019 will use personal identification numbers instead of personal identification numbers.

Thus, the mandatory period to use personal identification numbers in place of personal identification numbers begins on July 1, 2025.

(2) Use of personal identification numbers When Individual tax registration Information Matches National Database on Civil Information:

Per Clause 2, Article 39 of Circular 86/2024/TT-BTC, the use of personal identification numbers in this case is stipulated as follows:

If businesses, households, or individuals fitting the criteria for using personal identification numbers instead of personal identification numbers—as stated in Clause 5, Article 5 of Circular 86/2024/TT-BTC—have been issued personal identification numbers before July 1, 2025, and their tax registration information matches the individual information stored in the National Database, they will use their personal identification numbers starting from July 1, 2025, including adjusting tax obligations previously assigned by the previous tax number. Tax authorities will also manage the entire data of these entities using the personal identification numbers.

(3) Use of personal identification numbers When Individual tax registration Information Does Not Match the National Database:

According to Clause 3, Article 39 of Circular 86/2024/TT-BTC, if businesses, households, or individuals issued a tax number before July 1, 2025, have mismatched registration information, the tax authorities will assign the tax number to the "Tax Number Awaiting Personal Identification Number Update" status. Taxpayers must update their registration information per Clause 1, Clause 4, Article 25 of Circular 86/2024/TT-BTC before using personal identification numbers as stated in Clause 2, Article 38 of Circular 86/2024/TT-BTC.

(4) Use of personal identification numbers When an Individual Has More Than One Tax Identification Number:

As per Clause 4, Article 39 of Circular 86/2024/TT-BTC, if individuals possess more than one tax identification number, they must update their personal identification details accordingly to integrate their tax data under a single personal identification number.

Legal instruments involving the use of the previous tax number will remain valid for tax administration purposes, even after integration.

(5) If the Individual Has Not Been Issued a Personal Identification Number:

Clause 4, Article 40 of Circular 86/2024/TT-BTC stipulates that Vietnamese citizens not yet issued a personal identification number must contact the local police authority for information collection into the National Database for Civil Information, to receive a personal identification number before undertaking tax registration procedures as per Circular 86/2024/TT-BTC.

What are the 5 issues regarding the use of personal identification numbers in place of personal identification numbers by 2025 in Vietnam? (Image from the Internet)

Where is the location for first-time tax registration submissions for persons using personal identification numbers Instead of personal identification numbers in Vietnam?

Based on Clause 1, Article 22 of Circular 86/2024/TT-BTC, the locations for first-time tax registration submissions for persons using personal identification numbers instead of personal identification numbers are as follows:

(1) For individuals involved in production and business activities for goods and services according to legal stipulations not requiring registration through the business registration authority per Government regulations on household businesses; individuals engaging in trade at border markets with countries sharing land borders with Vietnam:

- At the Tax Sub-department or the regional Tax Sub-department where the business is located in the case of households or individuals with a fixed business location, or where individuals lease real estate.

- At the Tax Sub-department or the regional Tax Sub-department where the individual resides if they lack a fixed business location.

(2) For individuals with incomes subject to personal income tax (excluding business individuals) who remit tax through employers and have authorized these employers for tax registration:

- At the income-paying agency.

- For individuals paying tax through multiple payers in the same tax period, they authorize tax registration with one agency and inform other payers of their personal identification number and dependent details for withholding, filing, and payment procedures.

(3) For individuals with personal income tax obligations conducted independently of income payers or who haven't authorized them for tax registration:

- At the Tax Department where the individual works for those receiving income from international organizations, embassies, consulates in Vietnam where tax withholding has not been implemented.

- At the Tax Department where the work arises in Vietnam for those receiving wages from foreign payers.

- At the Tax Sub-department or the regional Tax Sub-department where the individual resides for other cases.

(4) For households or individuals outside the above cases registering through tax declaration:

- At the Tax Sub-department or the regional Tax Sub-department where the obligations to the state budget arise.

Vietnam: What does the first-time tax registration application for individuals using personal identification numbers instead of personal identification numbers include?

According to Clause 1, Article 22 of Circular 86/2024/TT-BTC, the first-time tax registration dossier for individuals using personal identification numbers instead of personal identification numbers includes:

(1) For households or individuals engaging in a business of goods and services without the necessity of business registration per government rules on household businesses, or trading at border markets:

- tax registration declaration form No. 03-DK-TCT issued with Circular 86/2024/TT-BTC, or tax declaration as required by tax management laws.

(2) For individuals under personal income tax obligations, paying tax via employers, and authorizing them for registration:

- tax registration dossier, including Authorization Document Form No. 41/UQ-DKT issued with Circular 86/2024/TT-BTC.

- Employers are responsible for compiling individual registration information to tax registration form No. 05-DK-TH-TCT included with Circular 86/2024/TT-BTC and to form No. 20-DK-TH-TCT for dependents, and submit them to the overseeing tax authority.

Employers use the personal identification number for withholding, filing, and tax payments legally.

(3) For individuals with taxable income obligations without going through payers or authorizing them:

- For taxable income individuals: tax registration form No. 05-DK-TCT included with Circular 86/2024/TT-BTC.

- For dependents: tax registration form No. 20-DK-TCT included with Circular 86/2024/TT-BTC.

(4) For households or individuals not covered in previous scenarios registering through tax declaration:

- Tax declarations according to tax management legal statutes. In linked government-tax authority situations, tax authorities will use the referral document from the relevant government agency when not provided a tax declaration.

Note: Post initial registration, if individuals commence business activities or establish new business locations outside the registered address, they must declare and pay taxes using their personal identification number with the respective Tax Sub-department following regulation by tax management legislation.