Shall a foreign contractor have the TIN deactivated upon the conclusion of a contract in Vietnam?

Shall a foreign contractor have the TIN deactivated upon the conclusion of a contract in Vietnam?

Based on Article 39 of the Tax Administration Law 2019 regarding the TIN deactivation as follows:

TIN deactivation

1. Taxpayers registered concurrently with enterprise registration, cooperative registration, business registration shall deactivate their TIN upon the occurrence of one of the following events:

a) Business operation ceases or dissolves, or files for bankruptcy;

b) The enterprise registration certificate, cooperative registration certificate, or business registration certificate is revoked;

c) The entity is divided, merged, or consolidated.

2. Taxpayers directly registered with the tax authority shall deactivate their TIN upon the occurrence of one of the following events:

a) Business operation ceases, and there are no more tax obligations for non-business organizations;

b) The business registration certificate or an equivalent license is revoked;

c) The entity is divided, merged, or consolidated;

d) The tax authority issues a notice that the taxpayer is not active at the registered address;

dd) The individual is deceased, missing, or loses civil act capacity according to legal regulations;

e) The foreign contractor at the conclusion of a contract;

g) Contractors, investors participating in oil and gas contracts at the conclusion of a contract or transferring all rights to participate in an oil and gas contract.

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Simultaneously, pursuant to Clause 4, Article 20 of Circular 105/2020/TT-BTC:

Tax Registration in Case of Organizational Restructure

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4. Consolidation of organizations

a) For organizations being consolidated:

Organizations being consolidated must conduct procedures to deactivate their TIN with the tax authority managing them directly as stipulated in Article 39 of the Tax Administration Law and Article 14 of this Circular.

Based on the dossier of TIN deactivation for organizations being consolidated, the tax authority carries out the procedures and processes to deactivate the TIN of the organization being consolidated in accordance with Article 39 of the Tax Administration Law and Articles 15 and 16 of this Circular.

b) For the consolidated organization:

The consolidated organization must conduct taxpayer registration procedures with the tax authority following regulations in Articles 31, 32, 33 of the Tax Administration Law and Article 7 of this Circular.

Based on the taxpayer registration dossier of the consolidated organization, the tax authority carries out the procedures and processes for issuing the TIN to the taxpayer following regulations in Article 34 of the Tax Administration Law and Article 8 of this Circular.

A consolidated enterprise must carry out the procedure for the deactivation of its TIN.

Therefore, the consolidation of enterprises will lead to the TIN deactivation for the enterprises being consolidated. The consolidated enterprise will proceed to apply for a new TIN according to regulations.

Shall a foreign contractor have the TIN deactivated upon the conclusion of a contract in Vietnam? (Image from the Internet)

Is a deactivation application form required in the dossier for the TIN deactivation in Vietnam?

According to Clause 4, Article 20 of Circular 105/2020/TT-BTC:

Tax Registration in Case of Organizational Restructure

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4. Consolidation of organizations

a) For organizations being consolidated:

Organizations being consolidated must conduct procedures to deactivate their TIN with the tax authority managing them directly as stipulated in Article 39 of the Tax Administration Law and Article 14 of this Circular.

Based on the dossier of TIN deactivation for organizations being consolidated, the tax authority carries out the procedures and processes to deactivate the TIN of the organization being consolidated in accordance with Article 39 of the Tax Administration Law and Articles 15 and 16 of this Circular.

b) For the consolidated organization:

The consolidated organization must conduct taxpayer registration procedures with the tax authority following regulations in Articles 31, 32, 33 of the Tax Administration Law and Article 7 of this Circular.

Based on the taxpayer registration dossier of the consolidated organization, the tax authority carries out the procedures and processes for issuing the TIN to the taxpayer following regulations in Article 34 of the Tax Administration Law and Article 8 of this Circular.

Simultaneously, based on Clause 3, Article 14 of Circular 105/2020/TT-BTC:

Dossier for TIN deactivation

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3. The dossier for TIN deactivation for taxpayers registered concurrently with enterprise registration, cooperative registration, business registration shall include a request for TIN deactivation form No. 24/DK-TCT issued with this Circular and other documents as follows:

a) The dossier for TIN deactivation of the enterprise, cooperative being divided, merged, or consolidated is one of the following documents: A copy of the division decision, a copy of the consolidation contract, a copy of the merger contract.

b) The dossier for TIN deactivation of the dependent unit of enterprises, cooperatives is one of the following documents: A copy of the decision or notice of the enterprise, cooperative regarding the deactivation of branch or representative office activities; a copy of the decision to revoke the certificate of branch or representative office operation registration by the competent state authority.

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Thus, as per regulations, the dossier for TIN deactivation must include a request for deactivation document.

[1] A request for TIN deactivation form No. 24/DK-TCT issued with Circular 105/2020/TT-BTC: Download

[2] A copy of the enterprise merger contract.

Shall the deactivation of a personal TIN also deactivate the TINs of their dependent units in Vietnam?

Based on Clause 3, Article 39 of the Tax Administration Law 2019 as follows:

The principles for TIN deactivation are stipulated as follows:

- The TIN shall not be used in economic transactions from the date the tax authority issues a deactivation notice;

- The TIN of an organization, once deactivated, shall not be reused, except as provided in Article 40 of the Tax Administration Law 2019;

- The TIN of a business household or individual business, upon deactivation of validity, the TIN of the representative of the business household shall not be deactivated and shall be used to fulfill other tax obligations of that individual;

- When a business, economic organization, or any organization and individual deactivates the validity of their TIN, they must simultaneously deactivate the validity of the TINs of their dependent units;

- When the taxpayer, as the managing unit, deactivates the TIN, the dependent units must also have their TINs deactivated.