From July 1, 2025, the citizen identification number will also serve as the personal income tax identification number.

This is a notable point in Circular No. 86/2024/TT-BTC issued by the Ministry of Finance on December 23, 2024, replacing Circular 105/2020/TT-BTC, effective from February 6, 2025.

The legal basis for this change comes from the Law on Tax Administration and Article 12 of the 2023 Law on Identity Cards, which clearly stipulates that the 12-digit Citizen Identification Number (CCCD) is a unique, non-repeating identification code issued by the Ministry of Public Security. From July 1, 2025, all individuals obligated to pay taxes will use the CCCD number instead of the previous tax identification number. During the transition period, the tax identification number issued by the tax authorities will remain valid until June 30, 2025.

Circular 86 clearly stipulates the scope of application, including individuals with taxable income (excluding those currently engaged in business activities), dependents declared in personal income tax returns, households, business households, individual businesses, and organizations and individuals obligated to pay taxes according to the law. In particular, for business households, the representative individual will use their own Citizen Identification Number (CCCD) as the tax identification number for the entire household. This is a significant new feature, contributing to the consolidation of tax data and citizen identification nationwide.

The transition from tax identification numbers to citizen identification cards (CCCD) was implemented to simplify administrative procedures, synchronize data, enhance tax management efficiency, and provide greater convenience for citizens. Previously, people had to register for separate tax identification numbers, but now, with just a chip-embedded CCCD, they can use it to declare and pay taxes directly. This not only saves time and costs but also avoids data duplication and discrepancies, contributing to the development of a modern and accurate management system.

Synchronizing the National Population Database and the tax system will help authorities easily detect tax fraud and the misuse of multiple tax identification numbers. Simultaneously, using the Citizen Identification Card (CCCD) as the tax identification number allows citizens to easily look up their tax payment history, claim refunds, and fulfill other financial obligations using a single number on portals such as gdt.gov.vn, thuedientu.gdt.gov.vn, or applications like eTaxMobile and iCanhan.

Mr. Doan Van Hoa, Head of the Budgeting Department of the Tax Sub-Department of Region X, stated: The conversion process will be implemented automatically if the old Citizen Identification Card (CCCD) information and tax code have been accurately synchronized on the system. In case the data does not match or the CCCD is missing, the tax code will switch to the "awaiting CCCD update" status.

Therefore, taxpayers need to proactively go to the tax office to adjust their information and update their citizen identification number to ensure the consolidation of old tax identification numbers into a single number. This consolidation is especially important for those who previously had multiple tax identification numbers or inconsistent data.

The Ministry of Finance has also issued specific guidelines on how to check the status of tax identification numbers and update personal information on the system, while requiring electronic invoicing and tax declaration software to be upgraded to be compatible with the Citizen Identification Number (CCCD).

Citizens need to check and verify that their personal information, such as full name, date of birth, and address, in the tax system matches their citizen identification card data. If they do not yet have a chip-based citizen identification card, they should quickly apply for one to obtain a valid identification code. Regarding software, businesses and household businesses must ensure that their tax declaration and electronic invoice applications are updated promptly to avoid interruptions in fulfilling their tax obligations. An important note is that all documents, invoices, and receipts issued before July 1, 2025, retain their legal validity and do not require any revisions.

Using the Citizen Identification Card (CCCD) instead of the tax identification number not only saves costs for both citizens and tax authorities but also increases transparency and accuracy in data. Fraudulent activities such as falsifying information or using multiple tax identification numbers will now be more difficult to carry out, as the system will identify individuals through a single unique identification number. On the other hand, taxpayers can easily monitor and look up their tax history electronically without having to remember a lot of complex information.

More broadly, this is a significant step forward in the process of administrative reform and national digital transformation, affirming the increasingly close coordination between the Ministry of Public Security and the Ministry of Finance in managing citizen data and tax obligations.

When the Citizen Identification Card (CCCD) is used as a unique identification code, not only the tax sector but also many other sectors will benefit from data synchronization and interconnection, thereby improving the efficiency of state management in many areas.

In summary, the official replacement of the tax identification number with the 12-digit citizen identification number is a noteworthy reform in the field of public finance. The automation and synchronization of data between ministries and agencies will enhance transparency, improve tax management efficiency, and reduce administrative procedures, saving costs for citizens, households, and businesses. This is also a significant step in modernizing the tax system, moving towards transparent, convenient, and sustainable public governance.