General Department of Taxation for large enterprises in Vietnam introduces certain new points of Circular 86/2024 on taxpayer registration

General Department of Taxation for large enterprises in Vietnam introduces certain new points of Circular 86/2024 on taxpayer registration​ (Image from the internet)

General Department of Taxation for large enterprises in Vietnam introduces certain new points of Circular 86/2024 on taxpayer registration

On February 12, 2025, the General Department of Taxation for large enterprises issued Official Dispatch 121/DNL-THNV regarding the introduction of new points from Circular 86/2024/TT-BTC.

To facilitate the easy and convenient application of the Circular by taxpayers in the process of taxpayer registration, the General Department of Taxation for large enterprises introduces some new points from Circular 86/2024/TT-BTC as follows:

* Regarding taxpayer registration subjects (Article 4)

Point 1: Removal of the list of enterprises registered under specialized legal provisions (point a Clause 2 Article 4) to avoid the impact on the Circular's provisions when specialized laws are amended.

Previously: Point a Clause 2 Article 4 of Circular 105/2020/TT-BTC listed certain enterprises under specialized laws: insurance, accounting, auditing, lawyers, notaries.

* Regarding the tax code structure (Article 5)

Point 2: For the tax code assigned to foreign contractors registering to pay tax directly with tax authorities, Circular 86/2024/TT-BTC supplements provisions for cases where there are multiple foreign contractors on a single contract with the Vietnamese side, and if the contractors wish to declare and pay taxes separately, each foreign contractor is issued a separate 10-digit tax code (point d Clause 4 Article 5).

Previously: Circular 105/2020/TT-BTC did not have this provision.

Point 3: Amendment of the rule regarding tax code issuance for organizations with cooperative business agreements, whereby taxpayers only register for a separate tax code in this case if there is a need for a distinct tax code for the cooperative business agreement (point e Clause 4 Article 5).

Previously: Circular 105/2020/TT-BTC did not clearly state this rule, thus leading to complications in using substitute tax codes for cooperative business agreements regarding invoice usage and VAT refund.

* Regarding initial taxpayer registration procedures (Article 7)

Point 4: Removal of the Payment List of Dependent Units form BK02-DK-TCT attached to this Circular from the initial taxpayer registration document components for dependent units (point a.2, b.2 Clause 1 Article 7).

Point 5: Add the location for submitting documents at the General Department of Taxation for large enterprises in cases where the taxpayer is assigned to the General Department of Taxation for large enterprises for management, comprising operators, joint operating companies, joint venture enterprises, 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 companies - Vietnam Oil and Gas Group representing the host country to receive shares of profits from oil and gas contracts (Clause 7 Article 7).

Previously: According to the provisions at Clause 7 Article 7 of Circular 105/2020/TT-BTC, the aforementioned taxpayers submitted initial taxpayer registration documents at the Tax Department where the headquarters is located.

* Regarding procedures for changing taxpayer registration information (Article 10)

Point 6: Add the location for submitting documents to change taxpayer registration information for taxpayers who are contractors, investors participating in oil and gas contracts when transferring capital share in economic organizations or transferring part of the rights in oil and gas contracts to the General Department of Taxation for large enterprises if the operator is assigned to the General Department of Taxation for large enterprises for management (point c Clause 1 Article 10).

Previously: According to the provisions at point b Clause 1 Article 10 of Circular 105/2020/TT-BTC, the aforementioned taxpayers submitted documents to change taxpayer registration information at the Tax Department where the operator's headquarters is located.

* Regarding procedures for termination of tax code effectiveness (Article 16)

Point 7: Add provisions to transfer the excess amount paid, uncredited VAT in cases where dependent units, divided units, or merged units are terminated but still have excess amounts paid, uncredited VAT, to the managing unit or newly established units after the split/merger/consolidation (point a.3 Clause 1 Article 16).

Previously: Circular 105/2020/TT-BTC did not have this provision.

* Regarding forms (Appendix II)

Point 8: Amend and supplement some forms applicable to taxpayers who are organizations as follows:

- For tax documents submitted by the taxpayer:

+ Amend forms: Taxpayer registration declaration (for organizations) Form 01-DK-TCT; Taxpayer registration declaration (for dependent units, business locations directly incurring tax obligations) Form 02-DK-TCT. The indicators regarding the legal representative's documents, director/general director, chief accountant, and accounting officers are replaced with personal identification numbers (for Vietnamese); simultaneously, the address information of the legal representative will be integrated from the national population database into the taxpayer registration declaration (previous forms attached to Circular no. 105/2020/TT-BTC declared document numbers for Vietnamese as ID/CCC, not integrated with the National Population Database).

+ Amend the Contractor List of Foreign Contractor Agreements, Foreign Subcontractors paying tax through the Vietnamese Party form 04.1-DK-TCT-BK attached to the Taxpayer registration declaration form 04.1-DK-TCT. Accordingly, add an indicator for the Vietnamese Party to tick the issuance of a 13-digit tax code for foreign contractors upon request (previous forms attached to Circular 105/2020/TT-BTC did not have this indicator, so the tax authorities issued a 13-digit tax code for all foreign contractors in the list).

- For documents, notices from the tax authorities:

+ Amend the Taxpayer registration Certificate form 10-MST to add a title appropriate with the tax authority issuing the Certificate of Taxpayer registration (previous forms attached to Circular 105/2020/TT-BTC had the title "Ministry of Finance").

+ Amend the tax code notification form 11-MST to clearly display the surrogate tax code for foreign contractors/foreign suppliers/cooperative individuals/cooperative organizations (previous forms attached to Circular 105/2020/TT-BTC did not clearly reflect the surrogate tax code for any specific case).

+ Amend the Tax Obligation Transfer Notice form 39/TB-DKT to supplement the detail of outstanding debts, excessive payments (chapter, sub-item, tax collection agency, administrative locality, ID) so that the taxpayer receiving the tax obligation transfer has complete information for debt payment, handling excessive payments (previous forms attached to Circular 105/2020/TT-BTC did not contain detailed information on debts, excessive payments).

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