Some new points in Circular 86/2024/TT-BTC on taxpayer registration in Vietnam

Some new points in Circular 86/2024/TT-BTC on taxpayer registration in Vietnam​ (Image from the internet)

Some new points in Circular 86/2024/TT-BTC on taxpayer registration in Vietnam

The General Department of Taxation issued Official Dispatch 339/TCT-KK on January 22, 2025, introducing new points of Circular 86/2024/TT-BTC.

On December 23, 2024, the Minister of Finance issued Circular 86/2024/TT-BTC regulating taxpayer registration, replacing Circular 105/2020/TT-BTC dated December 3, 2020. The General Department of Taxation introduces some new points on taxpayer registration in Circular 86/2024/TT-BTC (details are provided in the attached Appendix).

It is requested that the Director of Tax Departments in provinces and centrally governed cities, and the Director of the Large Enterprise Tax Department propagate and disseminate the contents of the taxpayer registration regulations in Circular 86/2024/TT-BTC to tax officials, taxpayers, and prepare the conditions to ensure enforcement.

For example, the new points on taxpayer registration subjects and the tax code structure in Circular 86/2024/TT-BTC are guided by the General Department of Taxation in the Appendix issued with Official Dispatch 339/TCT-KK dated January 22, 2025, as follows:

* Taxpayer registration subjects (Article 4)

- New Point 1: Remove the listing of enterprises registering under specialized laws (point a Clause 2 Article 4) to avoid the amendments of specialized laws affecting the regulations in the Circular.

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

- New Point 2: Partnerships that are subject to direct taxpayer registration with tax authorities will not include partnerships registering taxpayers through a one-stop-shop mechanism along with business registration, thereby amended to: “partnerships established and operating under the provisions of Decree 77/2019/ND-CP on partnerships but not falling under the case of business registration through business registration authorities as stipulated in Clause 2 Article 107 Cooperative Law” (point b Clause 2 Article 4), to exclude partnerships subject to taxpayer registration through a one-stop-shop mechanism along with business registration according to Decree 92/2024/ND-CP.

Previously: According to the provisions at point b Clause 2 Article 4 of Circular 105/2020/TT-BTC, it did not exclude partnerships falling under the case of registration through a one-stop-shop mechanism along with business registration.

* Tax code structure (Article 5)

- New Point 3: Regarding the tax code issued to taxpayers who are foreign contractors registering to pay tax directly with tax authorities, Circular 86/2024/TT-BTC adds regulations for cases with multiple foreign contractors under the same contractor contract signed with Vietnamese parties, and the contractors desire to declare and pay taxes separately, then each foreign contractor is issued a separate 10-digit tax code (point d Clause 4 Article 5).

Previously: Circular 105/2020/TT-BTC had no such regulation.

- New Point 4: Amend regulations on issuing a substitute tax code for organizations having business cooperation contracts or documents; thus, a taxpayer will only register for a substitute tax code issue if there is a need for a separate tax code for the business cooperation contract (point e Clause 4 Article 5).

Previously: Circular 105/2020/TT-BTC did not clearly stipulate this regulation. Therefore, the use of a substitute tax code of the contract or business cooperation documents encountered difficulties in using invoices and VAT refunding.

Refer to detailed content at Official Dispatch 339/TCT-KK dated January 22, 2025.

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