Personal identification number replaces tax code from July 1

According to the Department of Taxation ( Ministry of Finance ), starting from July 1, 2025, Vietnamese people who have been granted personal identification numbers according to the provisions of the Law on Citizen Identification will use this number instead of the tax code (MST) in transactions with tax authorities.

Not only individuals but also households, business households, and individual businesses use the identification number of the representative to fulfill tax obligations instead of using the current tax code.

Personal identification number will replace tax code from July 1, 2025. (Illustration photo)

“In case the taxpayer has never been granted a tax code, if he/she is a business household subject to tax registration along with business registration, he/she will carry out the registration procedure at the business registration agency according to current regulations. Meanwhile, individuals and representatives of households not subject to business household registration will have to carry out tax registration procedures before incurring the obligation to pay the state budget,” Tax Department said.

When registering, taxpayers must accurately declare three basic pieces of information: full name, date of birth, and personal identification number. This information must match the data in the National Population Database (NDB).

For cases that have been granted tax codes before July 1, 2025, if the information matches the National Tax Database, the tax authority will proactively switch to using personal identification numbers without incurring additional administrative procedures for the people.

“From July 1st onwards, the personal identification number will completely replace the old tax code in adjusting and supplementing arising tax obligations and in monitoring and managing information on registration for dependent deductions,” Tax Department said.

For individuals who are issued multiple tax codes, the tax authority requires updating the personal identification number for all issued codes to merge them into one. At that time, taxpayers can look up information on old tax codes and their obligations through the electronic tax system using a level 2 electronic identification account (VNEID).

As for business households and individuals with their own business locations, from July 1, the tax authority will not issue separate tax codes for each location. Instead, the representative of the business household will use a unique personal identification number to fulfill tax obligations at the location where the activity occurs.

Previously issued location tax codes will be automatically converted to personal identification numbers without requiring additional procedures.

According to the Tax Department, using personal identification numbers instead of tax codes brings many practical benefits to people and businesses. First of all, for people, the new regulation helps reduce administrative procedures, simplify the process of registration and tax information declaration.

“Taxpayers only need to declare three basic pieces of information correctly without having to submit additional copies of their citizen identification cards as before. In addition, synchronizing data with the population management system also helps the tax declaration and payment process to be faster and more accurate,” Tax Department said.

For businesses, using personal identification numbers will help simplify the tax registration process for employees, save effort in data comparison, and minimize errors when declaring personal income tax.

This is also an important step in the process of standardizing and synchronizing human resource management data, improving tax management efficiency.

Source: https://baolangson.vn/so-dinh-danh-ca-nhan-thay-the-ma-so-thue-tu-1-7-5050775.html