Is TIN reactivation considered taxpayer registration in Vietnam?

Is TIN reactivation considered taxpayer registration in Vietnam?

Based on the provisions in Clause 4, Article 30 of the Law on Tax Administration 2019, the TIN issuance is regulated as follows:

Subjects for taxpayer registration and TIN issuance

1. Taxpayers must carry out taxpayer registration and be issued a TIN by the tax authority before commencing production, business activities, or incurring obligations to the state budget. Subjects for taxpayer registration include:

a) Enterprises, organizations, and individuals conducting taxpayer registration through the one-stop-shop mechanism along with business registration, cooperative registration, business operation registration as per the provisions of the Enterprise Law and other related laws;

b) Organizations and individuals not falling under the case specified in point a of this Clause must directly register with the tax authority as stipulated by the Minister of Finance.

2. The TIN structure is specified as follows:

a) A 10-digit TIN is used for enterprises, organizations with legal personality; representatives of households, business individuals, and other individuals;

b) A 13-digit TIN and other characters are used for dependent units and other entities;

c) The Minister of Finance provides detailed regulations on this Clause.

3. TIN issuance is regulated as follows:

a) Enterprises, economic organizations, and other organizations are issued a unique TIN to use throughout their operation from registration to the termination of the TIN's validity. Taxpayers with branches, representative offices, or dependent units directly fulfilling tax obligations are issued a dependent TIN. In cases where enterprises, organizations, branches, representative offices, dependent units register through the one-stop-shop mechanism along with business registration, cooperative registration, and business operation registration, the number on the business registration certificate, cooperative registration certificate, and business operation registration certificate is also the TIN;

b) Individuals are issued a unique TIN to be used throughout their lifetime. A dependent of an individual is issued a TIN for the purpose of reducing the personal income tax liability for the taxpayer. The TIN issued to the dependent is also the individual's TIN when the dependent incurs obligations to the state budget;

c) Enterprises, organizations, and individuals responsible for withholding and paying taxes on behalf of another party will be issued a separate TIN for tax declaration and payment on behalf of the taxpayer;

d) The TIN already issued cannot be reused for issuance to another taxpayer;

dd) The TIN for enterprises, economic organizations, and other organizations remains unchanged after conversion, sale, gifting, donation, or inheritance;

e) The TIN issued to family households, business individuals is the TIN issued to the individual representing the household, business individual.

4. Tax registration includes:

a) Initial tax registration;

b) Notification of changes in taxpayer registration information;

c) Notification of temporary suspension of activities or business operations;

d) Termination of TIN validity;

đ) reactivation of TIN.

Taxpayer registration includes activities such as:

- Initial tax registration;

- Notification of changes in taxpayer registration information;

- Notification of temporary suspension of activities or business operations;

- Termination of TIN validity;

- Reactivation of TIN.

Thus, based on the above provisions, it can be concluded that reactivating a TIN is one of the taxpayer registration activities.

Is reactivating a TIN considered taxpayer registration? (Image from the Internet)

What does the application for TIN reactivation include if the establishment license was revoked by competent authorities in Vietnam?

According to Article 18 of Circular 105/2020/TT-BTC, the application for TIN reactivation is as follows:

* TIN reactivation application for taxpayers:

- Taxpayers specified in Clause 2, Article 4 of Circular 105/2020/TT-BTC whose establishment and operation license, or equivalent license, was revoked by competent authorities while the tax authority has terminated the TIN according to regulations. If subsequently, the competent authorities issue a document canceling the revocation, the taxpayer must submit a application requesting the reactivation of the TIN to the managing tax authority no later than 10 working days from the date the competent authority issues the document canceling the revocation.

The application includes:

+ A written request for TIN reactivation using form 25/DK-TCT attached to Circular 105/2020/TT-BTC;

+ A copy of the document canceling the decision to revoke the establishment and operation license, or an equivalent license, by the competent authority.

- After the tax authority issues a notice that the taxpayer is not operating at the registered address as stipulated in Article 17 of Circular 105/2020/TT-BTC but has not yet had their business registration certificate, cooperative registration certificate, branch or representative office registration certificate, household business registration, establishment and operation license, or equivalent license revoked and the TIN has not yet been terminated, the taxpayer submits a written request for TIN reactivation using form 25/DK-TCT attached to Circular 105/2020/TT-BTC to the managing tax authority before the tax authority issues a notice of TIN termination according to regulations.

- Taxpayers specified in Clause 2, Article 4 of Circular 105/2020/TT-BTC who wish to continue business operations after submitting a TIN termination application to the tax authority, but the tax authority has not yet issued a notice of TIN termination as stipulated in Article 14, Article 16 of Circular 105/2020/TT-BTC must submit a written request for TIN reactivation using form 25/DK-TCT attached to Circular 105/2020/TT-BTC to the managing tax authority before the tax authority issues a notice of TIN termination.

- Taxpayers who have submitted a TIN termination application due to division, consolidation, or merger to the tax authority under Article 14 of Circular 105/2020/TT-BTC and later have a document canceling the decision of division, consolidation, or merger contract, and where the business registration agency, cooperative registration agency has not terminated the operation of the divided, merged, or consolidated enterprise/cooperative, the taxpayer must submit a application requesting TIN reactivation to the managing tax authority before the tax authority issues a notice of TIN termination as stipulated in Article 16 of Circular 105/2020/TT-BTC.

The application includes:

+ A written request for TIN reactivation using form 25/DK-TCT attached to Circular 105/2020/TT-BTC;

+ A copy of the document canceling the division decision, merger contract, consolidation contract.

The taxpayer must fully complete their tax, invoice obligations as stipulated in Clause 4, Article 6 of Decree 126/2020/ND-CP before reactivating the TIN.

* TIN reactivation application under decisions, notices, or other documents from competent state agencies:

- Transaction notice to reactivate the legal status of the enterprise, cooperative, or dependent unit from the business registration agency, cooperative registration agency.

- Court decision to annul a declaration of an individual as deceased, missing, or lacking civil act capacity.

Thus, to reactivate a TIN in the event of license revocation by competent authorities, the necessary application includes:

[1] A written request for TIN reactivation using form 25/DK-TCT attached to Circular 105/2020/TT-BTC;

[2] A copy of the document canceling the revocation of the establishment and operation license or equivalent license issued by the competent authority.

When shall the reactivated TIN be used in Vietnam?

According to Clause 3, Article 40 of the Law on Tax Administration 2019, the regulation is as follows:

reactivation of TIN

1. Taxpayers registering along with business registration, cooperative registration, or business operation registration, if their legal status is reactivated under the laws on business registration, cooperative registration, and business operation registration, will simultaneously have their TIN reactivated.

2. Taxpayers registering directly with the tax authority may submit a application requesting TIN reactivation to the managing tax authority in the following cases:

a) The competent authority issues a document canceling the decision to revoke the business registration certificate or an equivalent license;

b) When intending to continue business operations after submitting a TIN termination application to the tax authority, but the tax authority has not yet issued a notice of TIN termination;

c) When the tax authority issues a notice that the taxpayer is not operating at the registered address but has not yet had their license revoked or TIN terminated.

3. The TIN may continue to be used for economic transactions from the effective date of the decision reactivating legal status by the business registration authority or from the date the tax authority issues a notice of TIN reactivation.

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Thus, when a TIN is reactivated, it will be usable for economic transactions from the effective date of the decision reactivating legal status by the business registration authority or from the date the tax authority issues a notice of TIN reactivation.