When does Circular 86 of 2024 come into force in Vietnam?

When does Circular 86 of 2024 come into force in Vietnam?

According to Clause 1, Article 38 of Circular 86/2024/TT-BTC, the regulations on the effective date are as follows:

Effective Date

1. This Circular shall come into effect from February 6, 2025, replacing Circular No. 105/2020/TT-BTC dated December 3, 2020, by the Ministry of Finance guiding tax registration, except as provided in Clause 2 of this Article.

Thus, Circular 86 of 2024 takes effect from February 6, 2025, and replaces Circular 105/2020/TT-BTC.

Vietnam: When does Circular 86 of 2024 come into force? (Image from Internet)

What are regulations on the receipt of tax registration application in Vietnam according to Circular 86?

According to Clause 2, Article 6 of Circular 86/2024/TT-BTC, the places for receiving tax registration application from taxpayers are specified as follows:

(1) For paper dossiers:

- In cases where tax registration application are submitted directly at tax authorities, tax officials shall check the tax registration dossier.

- If the dossier is complete according to regulations, the tax official shall accept the dossier, stamp acceptance on the tax registration dossier, clearly state the date of receipt, and the number of documents according to the list of dossiers; issue a receipt and appointment to return the results for dossiers that the tax authority has to return to taxpayers, specify the handling time for each type of dossier received.

If the dossier is incomplete according to regulations, the tax official shall not accept it and guide the taxpayer to complete the dossier.

- In cases where tax registration application are sent by post, the tax official shall stamp acceptance, record the date of receipt on the dossier, and register in the tax authority's register. If the dossier is incomplete and needs clarification, additional information, or documentation, the tax authority shall notify the taxpayer using form No. 01/TB- BSTT-NNT in Appendix 2 issued with Decree 126/2020/ND-CP dated October 19, 2020, by the Government of Vietnam detailing a number of articles of the Tax Administration Law 2019, within 02 (two) working days from the date of receipt of the dossier.

(2) For electronic tax registration application:

The reception of dossiers shall be implemented as regulated in Articles 13 and 14 of Circular 19/2021/TT-BTC dated March 18, 2021, of the Ministry of Finance guiding electronic transactions in the field of taxation and Circular 46/2024/TT-BTC dated July 9, 2024, amending and supplementing a number of articles of Circular 19/2021/TT-BTC (hereinafter referred to as Circular 19/2021/TT-BTC).

(3) Receipt of decisions, documents, or other papers related to tax registration from competent state agencies.

Who must register for tax registration in Vietnam?

According to Article 4 of Circular 86/2024/TT-BTC, the subjects who must register for tax registration include:

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

(2) Taxpayers subject to direct tax registration with the tax authority as specified in point b, clause 1, Article 30 of the Tax Administration Law 2019.

Among them, taxpayers who directly register with the tax authority include:

- Enterprises operating in specific sectors not required to register through the business registration authority according to sector-specific regulations (hereinafter referred to as Economic Organizations).

- Non-business units, economic organizations of the armed forces, economic organizations of political organizations, political-social organizations, social organizations, social-professional organizations engaged in business according to legal provisions but not required to register through the business registration authority; organizations of countries sharing land borders with Vietnam conducting purchase, sale, and exchange of goods at border markets, border gate markets, markets in economic border gate zones; representative offices of foreign organizations in Vietnam; cooperatives established and operating according to Decree 77/2019/ND-CP dated October 10, 2019, by the Government of Vietnam on cooperatives but not required to register through the business registration authority as specified in clause 2, Article 107 of the Cooperative Law 2023 (hereinafter referred to as Economic Organizations).

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

- Foreign organizations and individuals and organizations in Vietnam utilizing humanitarian aid, non-refundable aid from abroad to purchase goods or services with value-added tax in Vietnam for non-refundable aid, humanitarian aid; diplomatic representative agencies, consular offices, and representative offices of international organizations in Vietnam eligible for value-added tax refunds for privileged subjects exempt from diplomatic, consular duties;

ODA project owners eligible for value-added tax refunds, offices of ODA project sponsors, organizations designated by foreign sponsors to manage non-refundable ODA programs and projects (hereinafter referred to as Other Organizations).

- Foreign organizations without legal status in Vietnam, foreign individuals independently doing business in Vietnam in accordance with Vietnamese law having income arising in Vietnam or tax liabilities arising in Vietnam (hereinafter referred to as Foreign Contractors, Foreign Sub-Contractors).

- Overseas suppliers without permanent establishments in Vietnam, non-resident foreign individuals operating electronic commerce, digital platform-based business, 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 separate tax obligations from taxpayers according to tax administration laws (except income-pay agencies when withholding, paying personal income tax instead); commercial banks, intermediary payment service providers, or organizations, individuals authorized by overseas suppliers to declare, withhold, and pay taxes on behalf of overseas suppliers (hereinafter referred to as Withholding and Payment Agents). Income-paying organizations, when withholding, paying personal income tax instead, use the issued tax code for declaring and paying withholding personal income tax.

- Operators, common 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 participating in oil and gas contracts, parent company - Vietnam National Oil and Gas Group representing the host country receiving profits from oil and gas contracts.

- Households, individuals conducting production, business of goods and services according to law but not required to register as business households through the business registration authority as per the Government of Vietnam's regulations on business households; business individuals in countries sharing land borders with Vietnam engaging in purchase, sale, exchange of goods at border markets, border gate markets, markets in economic border gate zones.

- Individuals having income subject to personal income tax (except business individuals).

- Individuals as dependents under the provisions of personal income tax laws.

- Organizations, individuals authorized by the tax authority to collect

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