Shall the income earners’ TINs be deactivated when their income payer’s TIN is deactivated in Vietnam?

Shall the income earners’ TINs be deactivated when their income payer’s TIN is deactivated in Vietnam?

Based on point d, clause 3, Article 39 of the Law on Tax Administration 2019, regulation on TIN deactivation is as follows:

TIN deactivation

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3. The principle for the termination of the TIN validity is prescribed as follows:

a) The TIN shall not be used in economic transactions from the date the tax authority notifies the termination of its validity;

b) The TIN of an organization, once deactivatd, shall not be reused, except as provided in Article 40 of this Law;

c) For a business household or business individual, when the TIN's validity ceases, the TIN of the representative of the business household remains valid and may be used to fulfill other tax obligations of that individual;

d) The income earners’ TINs will be deactivated when their income payer’s TIN is deactivated;

dd) For a taxpayer that is a managing unit terminating its TIN, the dependent units must also have their TIN validity deactivatd.

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According to the above regulation, the income earners’ TINs will be deactivated when their income payer’s TIN is deactivated.

Shall the income earners’ TINs be deactivated when their income payer’s TIN is deactivated in Vietnam? (Image from the Internet)

Vietnam: What does the TIN deactivation application include?

Based on clause 4, Article 39 of the Law on Tax Administration 2019, it is prescribed as follows:

TIN deactivation

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4. The TIN deactivation application includes:

a) A written request for termination of the TIN validity;

b) Other relevant documents.

5. Taxpayer registration in conjunction with business registration, cooperative registration, or business registration executes dissolution or termination of activity at the business registration agency, cooperative registration agency, or business registration agency in accordance with the laws. Before executing at the business registration agency, cooperative registration agency, business registration agency, the taxpayer must register with the tax authority that directly manages them to complete tax payment obligations as prescribed by this Law and other relevant laws.

6. Taxpayer registration directly with the tax authority submits the dossier for TIN deactivation to the tax authority managing them within 10 working days from the date of issuing a document for activity termination or business activity cessation or contract conclusion.

Thus, the TIN deactivation application includes:

- A written request for termination of the TIN validity;

- Other relevant documents.

What are obligations for taxpayers to fulfill before TIN deactivation in Vietnam?

According to the provisions of Article 15 of Circular 105/2020/TT-BTC, taxpayers must fulfill the following obligations before TIN deactivation:

- For taxpayers as prescribed in Points a, b, c, d, đ, e, g, h, m, n, Clause 2, Article 4 of Circular 105/2020/TTTC:

+ The taxpayer submits a report on the status of invoice usage as prescribed by law regarding invoices;

+ The taxpayer completes the tax return filing, tax payment obligations, and processes any excess tax payments, uncredited value-added tax (if any) as stipulated in Articles 43, 44, 47, 60, 67, 68, 70, 71 of the Law on Tax Administration 2019 with the tax management agency;

+ If the managing unit has subordinate units, all subordinate units must complete the procedure for TIN deactivation before the managing unit deactivats its TIN validity.

+ For business households, business individuals as prescribed in Point i, Clause 2, Article 4 of Circular 105/2020/TT-BTC:

+ The taxpayer submits a report on the status of invoice usage as required by law regarding invoices if invoices are used;

+ The taxpayer fulfills tax obligations and processes excess tax payments as prescribed in Articles 60, 67, 69, 70, 71 of the Law on Tax Administration 2019 with the tax management agency for business households, business individuals paying tax under the presumptive method.

+ The taxpayer completes the tax return filing, tax obligations, and processes any excess tax payments, uncredited value-added tax (if any) as prescribed in Articles 43, 44, 47, 60, 67, 68, 70, 71 of the Law on Tax Administration 2019 with the tax management agency for business households, business individuals paying tax according to the declaration method.

- For business households transitioning to small and medium enterprises as stipulated by the Law on Supporting Small and Medium Enterprises, the household must fulfill tax obligations with the tax authority that directly manages them or send a written commitment to the tax authority that the small and medium enterprise transitioning from the business household will inherit all tax obligations of the business household as prescribed by law on supporting small and medium enterprises.

- For individuals as prescribed in Points k, l, Clause 2, Article 4 of Circular 105/2020/TT-BTC:

The taxpayer fulfills tax obligations and processes excess tax payments as specified in Articles 60, 67, 69, 70, 71 of the Law on Tax Administration 2019 with the tax management agency.