On December 23, 2024, the Minister of Finance issued Circular No. 86/2024/TT-BTC (“Circular No. 86”) on tax registration, replacing Circular No. 105/2020/TT-BTC (“Circular No. 105”). This Circular includes provisions related to subjects registering tax directly with tax authorities, tax code structure, tax registration procedures in accordance with the provisions of the Law on Tax Administration and measures to implement tax management functions for tax registration. ATA Legal Services will summarize and analyze some notable contents in Circular No. 86 as below.
1. Using personal identification number instead of tax code from July 1, 2025
Pursuant to Clause 5, Article 5 of Circular 86, from July 1, 2025, taxpayers will use personal identification numbers issued by the Ministry of Public Security instead of personal tax codes, tax codes of business household representatives, and business individuals. This helps to create maximum convenience for individuals in declaring and paying taxes, while helping tax authorities strengthen management of transactions through personal bank accounts.
Also from July 1, 2025, business households, households, and individuals who have been previously granted tax codes, if their tax registration information matches personal data in the National Population Database, will be allowed to use personal identification numbers instead of tax codes. This regulation also applies to adjustments and additions to tax obligations arising from the granted tax codes. At the same time, tax authorities will monitor and manage all data of business households, households, individuals, and data on registration of family deductions for dependents using personal identification numbers.
Note that for individuals who have been issued more than 01 (one) tax code, taxpayers must update their personal identification number information to consolidate tax data. In addition, invoices, documents, tax records, and other legal documents previously created are still legally valid and do not need to adjust information to the personal identification number.
2. Supplementing regulations on handling procedures for taxpayers according to backup regulations
According to Article 37 of Circular No. 86, the procedures for taxpayers to be processed according to the backup process are regulated. This is a new point reflecting practicality, creating more favorable conditions for taxpayers that Circular No. 105 had not previously mentioned or guided. Specifically, the tax authority will process tax registration procedures according to the backup process - processing paper documents - for taxpayers in the following cases:
- The tax registration application system, or the National Business Registration Information System, or the National Population Database System is experiencing technical problems.
- Other force majeure cases.
Within 30 days from the date of receipt of the notice from the General Department of Taxation that the tax registration application system has completed troubleshooting, the tax authority must update and supplement the resolved data and information for taxpayers according to the backup process into the tax registration application system.
3. Supplementing more cases where taxpayers must have their operating status verified at the registered address
In addition to the 4 cases specified in Circular No. 105, Circular No. 86 supplements the following cases in which taxpayers must have their operating status verified at their registered address:
- Tax authorities received dossiers for registration to use electronic invoices or dossiers for adjustment of registered information on electronic invoices, submitted by taxpayers who are classified as at risk, must have their operating status verified at their registered address.
- The tax authority received information about the issuance of a Business Registration Certificate, transmitted from the National Business Registration Information System to the Tax Registration Application System, in which the taxpayer is classified as at risk, must have their operating status verified at their registered address.
- Tax authorities grants the first Tax Registration Certificate or adjusts tax registration information, the taxpayer is classified as at risk and must have their operating status verified at their registered address.
Circular No. 86 takes effect from February 6, 2025, replacing Circular 105, except for the following cases which will take effect later: (+) Tax codes, will be granted to individuals, households, and business households by tax authorities, are implemented until June 30, 2025; (+) From July 1, 2025, taxpayers, tax authorities, other agencies, organizations, and individuals, related to the use of tax codes as prescribed in Article 35 of the Law on Tax Administration, shall use personal identification numbers instead of tax codes.
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