Official Letter 121/DNL-THNV of 2025 introducing new points of Circular 86/2024/TT-BTC issued by the Large Enterprise Tax Department.

On December 23, 2024, the Ministry of Finance issued Circular No. 86/2024/TT-BTC, which regulates tax registration, replacing Circular No. 105/2020/TT-BTC dated December 3, 2020. The new provisions in Circular No. 86/2024/TT-BTC applicable to taxpayers who are organizations will take effect from February 6, 2025.

To help taxpayers apply the Circular easily and effectively during the tax registration process, the Large Enterprise Tax Department introduces some new points in Circular No. 86/2024/TT-BTC as follows:

1. About tax registration subjects (Article 4)

   New point 1: The listing of enterprises registered under specialized laws (Point a, Clause 2, Article 4) is removed to avoid the impact of changes in specialized laws on the regulations in the Circular.

   Previous: Previously, Point a, Clause 2, Article 4 of Circular No. 105/2020/TT-BTC listed some enterprises under specialized laws: insurance, accounting, auditing, lawyers, and notaries.

2. About tax identification number structure (Article 5)

   New point 2: For foreign contractors registering directly with tax authorities, Circular No. 86/2024/TT-BTC adds provisions for cases with multiple foreign contractors in a single contract signed with a Vietnamese party, allowing each contractor to be assigned a separate tax identification number (TIN) with 10 digits (Point d, Clause 4, Article 5).

   Previous: Circular No. 105/2020/TT-BTC did not have this provision.

   New point 3: Modifies the regulation for assigning a tax identification number to organizations with a business cooperation contract, where taxpayers will only register for a TIN if needed for a specific contract (Point e, Clause 4, Article 5).

   Previous: Circular No. 105/2020/TT-BTC did not specify this. Therefore, issues arose regarding the use of the tax identification number for cooperation contracts, such as problems with invoicing and VAT refunds.

3. About first-time tax registration procedures (Article 7)

   New point 4: Removes the Table of Dependent Units (Form BK02-ĐK-TCT) from the first-time tax registration application for dependent units (Point a.2, b.2, Clause 1, Article 7).

   New point 5: Adds a provision on where to submit registration documents for taxpayers assigned to the Large Enterprise Tax Department, including those who manage joint companies, joint ventures, and oil and gas contractors (Clause 7, Article 7).

   Previous: According to Clause 7, Article 7 of Circular No. 105/2020/TT-BTC, these taxpayers submitted documents to the tax department where their headquarters were located.

4. About changing tax registration information (Article 10)

   New point 6: Adds a provision for submitting tax registration information changes for foreign contractors or investors in oil and gas contracts when transferring capital or contract rights to the Large Enterprise Tax Department (Point c, Clause 1, Article 10).

   Previous: Circular No. 105/2020/TT-BTC required these changes to be submitted to the tax department where the operator's headquarters were located.

5. About tax identification number cancellation procedures (Article 16)

   New point 7: Adds provisions for transferring overpaid tax amounts and unclaimed VAT in cases where a dependent unit is merged or split, and the tax identification number is canceled but there are still outstanding or overpaid amounts to be transferred to the parent unit or newly formed entities (Point a.3, Clause 1, Article 16).

   Previous: Circular No. 105/2020/TT-BTC did not include this provision.

6. About forms (Appendix II)

   New point 8: Revises and supplements some forms for organizations:

   • Changes to forms for tax registration applications:

     • Updates to the Tax Registration Declaration Form (for organizations) No. 01-ĐK-TCT and the Tax Registration Form for dependent units No. 02-ĐK-TCT. Legal representative and management information will now be replaced with personal ID numbers and address details integrated from the national population database.
     • Updates to the Table of Foreign Contractors’ Contracts to include the option to issue a 13-digit TIN for foreign contractors (Form No. 04.1-ĐK-TCT-BK).

   • Changes to tax authority notifications:

     • Modifies the Tax Registration Certificate Form No. 10-MST to reflect the issuing authority.
     • Revises the Tax Payment Notice Form No. 11-MST to clearly specify the TIN of the foreign contractor or cooperating entity.

The Large Enterprise Tax Department introduces these new points in Circular No. 86/2024/TT-BTC for taxpayers' awareness. To ensure compliance, taxpayers are encouraged to study the full text of Circular No. 86/2024/TT-BTC dated December 23, 2024, and Official Letter No. 339/TCT-KK dated January 22, 2025, from the General Department of Taxation on the new points in Circular No. 86/2024/TT-BTC.

The Large Enterprise Tax Department urges taxpayers to fulfill their responsibilities to the State Budget and collaborate with tax authorities. If there are any difficulties during implementation, taxpayers are encouraged to report them promptly to the Large Enterprise Tax Department for timely guidance and resolution.

See details here.