What do people need to prepare when the identification number replaces the tax code?

From July 1, 2025, personal identification numbers will officially replace tax codes in all transactions.

Having just completed her job application, Ms. Nguyen Thi Thuy Quynh ( Hanoi ) was asked to provide her personal tax code. When looking it up, she was surprised to discover that she had had a tax code since 2019, when she was still a student, had never worked part-time and had no income. Her account on the system showed the status "waiting for update", making her worried that the data might be incorrect.

Not only Ms. Quynh, many people in Ho Chi Minh City and other localities also encountered similar situations. Mr. Nguyen Van Hoang (Binh Thanh District) recounted: "When I borrowed money from the bank, I was informed that I had a tax code. When checking the system, my name was there, but I had never registered. This caused inconvenience when doing procedures because I often had to verify again, which was both time-consuming and insecure."

According to the Ho Chi Minh City Tax Department, the phenomenon of “suddenly having a tax code” is not a system error but the result of the data synchronization process between the tax system and the National Population Database. When the information does not match, the tax code will be put into “pending update” status, requiring people to supplement and adjust.

Circular 86/2024/TT-BTC also clearly states that from July 1, 2025, the personal identification number (12 digits on the chip-embedded citizen identification card) will officially replace the tax code in all financial transactions.

Thus, for those who already have a tax code, the system will not “issue a new code” but will automatically attach and manage the existing tax code with the personal identification number. Simply put, from this point on, the personal identification number will also be the tax code of each citizen.

For example, if Mr. A previously had tax code 0123456789, after July 1, 2025, he will use the 12 numbers on his citizen identification card to declare and fulfill tax obligations, while the old code will be saved and synchronized in the system.

In case the data does not match the National Population Database, the tax code will be transferred to the “pending update” status, forcing the individual to supplement or edit the information. For those who have had multiple tax codes, the tax authority will consolidate and centrally manage them with a single personal identification number.

Thus, instead of two types of codes existing in parallel, from July 1, 2025, each citizen will only have one single code - personal identification number - which is both an ID card and a tax code, helping authorities manage more synchronously and transparently.

This conversion is one of the important reform steps of the tax sector to tighten income management, prevent tax loss and evasion, and reduce administrative procedures, making data more transparent and consistent.

Ho Chi Minh City residents declare real estate tax at tax offices.

Lawyer Tran Minh Quan (Ho Chi Minh City Bar Association) analyzed: “There are three reasons why people find themselves with tax codes even though they have not registered: Personal information is leaked; businesses falsely declare employees to deduct taxes; and the management system automatically generates codes when synchronizing data. If there is no notification mechanism, people are easily passive in the face of these changes.”

Dr. Nguyen Huynh Bao Khanh (Ho Chi Minh City University of Law) also said: “Automatically issuing tax codes based on identification numbers is a step forward in data management, but transparency must be ensured. The system should have a direct notification mechanism via text message or identification application so that individuals know and confirm promptly.”

A representative of the Ho Chi Minh City Tax Department affirmed that the tax sector is urgently reviewing data to ensure a more synchronous and transparent system. Accordingly, people are advised to proactively look up periodically on the General Department of Taxation Portal, eTax Mobile or the Electronic Tax application to detect and make early adjustments if there are any irregularities.

Lawyer Tran Minh Quan further emphasized that, in addition to technical solutions, it is necessary to tighten the responsibility of enterprises in labor declaration, and strictly handle false declarations. On the individual side, each person should limit the disclosure of identification numbers on social networks and proactively check their tax codes to avoid the risk of being exploited.

According to experts, the use of personal identification numbers to replace tax codes from July 1, 2025 is a major reform step, helping to simplify procedures and improve management efficiency. However, for the policy to come into effect, there needs to be synchronous coordination between tax authorities, police, banks, insurance, etc., along with initiative from the people. Only then can the goals of transparency, safety and efficiency be fully realized.

Hoang Tuyet - Huyen Tran (News and People Newspaper)

Source: https://baocantho.com.vn/nguoi-dan-can-chuan-bi-gi-khi-so-dinh-danh-thay-ma-so-thue-a190678.html