New Points in Circular 86/2024/TT-BTC on Tax Registration

New Updates in Circular 86/2024/TT-BTC on Tax Registration

Below are some key updates regarding tax registration subjects and the structure of tax identification numbers (TINs) in Circular 86/2024/TT-BTC, as guided by the General Department of Taxation in the Appendix issued with Official Letter 339/TCT-KK:

(1) Tax Registration Subjects (Article 4)

- Update 1: Eliminating the listing of businesses registered under specialized laws (Point a, Clause 2, Article 4) to prevent amendments in specialized laws from affecting the provisions of the Circular.

Previously: Point a, Clause 2, Article 4 of Circular 105/2020/TT-BTC listed certain businesses governed by specialized laws, such as insurance, accounting, auditing, legal, and notary services.

- Update 2: Adjustments regarding tax registration for partnerships
Partnerships that are required to register directly with the tax authorities now exclude those registered via the one-stop-shop mechanism along with business registration. The provision has been revised to:
"Partnerships established and operating under Decree 77/2019/ND-CP but not subject to business registration through the Business Registration Office under Clause 2, Article 107 of the Law on Cooperatives" (Point b, Clause 2, Article 4).
This change excludes partnerships that register tax through the one-stop-shop mechanism along with business registration under Decree 92/2024/ND-CP.

Previously: According to Point b, Clause 2, Article 4 of Circular 105/2020/TT-BTC, partnerships registered under the one-stop-shop mechanism were not explicitly excluded, leading to uncertainties.

(2) Tax Identification Number (TIN) Structure (Article 5)

- Update 3: New provisions on TIN issuance for foreign contractors registering tax directly with tax authorities
Circular 86/2024/TT-BTC adds a provision for cases where multiple foreign contractors are involved in the same contract with a Vietnamese entity.
If these contractors choose to declare and pay tax separately, each will be assigned a unique 10-digit TIN (Point d, Clause 4, Article 5).

Previously: Circular 105/2020/TT-BTC did not specify this case.

- Update 4: Revised regulations on TIN issuance for organizations making tax payments on behalf of business partners
The new provision states that a separate TIN for tax payments on behalf of a business cooperation contract (BCC) will only be issued if the taxpayer requests it (Point e, Clause 4, Article 5).

Previously: Circular 105/2020/TT-BTC did not clearly define this, causing challenges in invoicing and VAT refund processing for business cooperation contracts

📌 For full details, refer to Official Letter 339/TCT-KK dated January 22, 2025.