Status 03: Taxpayer suspended business but has not deactivated TIN in Vietnam according to Circular 86?

Status 03: Taxpayer suspended business but has not deactivated TIN in Vietnam according to Circular 86?

Based on Appendix I issued together with Circular 86/2024/TT-BTC (document effective from February 6, 2025), there are 10 reasons leading to Status 03: Taxpayer suspended business but has not completed procedures to deactivate the TIN as follows:

These are the 10 reasons leading to Status 03 according to Circular 86/2024/TT-BTC (document effective from February 6, 2025).

Status 03: Taxpayer suspended business but has not deactivated TIN in Vietnam according to Circular 86? (Image from Internet)

What is the classification of the TIN structure issued by the tax authority in Vietnam from February 6, 2025?

Based on Clause 4, Article 5 of Circular 86/2024/TT-BTC (document effective from February 6, 2025), the classification of the TIN structure issued by the tax authority is as follows:

(1) A 10-digit TIN is used for businesses, cooperatives, organizations with or without legal entity status but directly incurred tax obligations (hereafter referred to as independent units); individuals who are foreign nationals or Vietnamese nationals living abroad without a personal identification number established from the National Database on Population.

(2) A 13-digit TIN with a hyphen (-) separating the first 10 digits and the last 3 digits is used for dependent units and other subjects as stipulated in points c, e, g, Clause 4, Article 5 Circular 86/2024/TT-BTC.

(3) Taxpayers who are economic organizations or other organizations according to points a, b, c, d, n, Clause 2, Article 4 Circular 86/2024/TT-BTC with or without legal entity status but directly incurred tax obligations and self-accountable before the law are granted a 10-digit TIN. Dependent units established according to the law of these taxpayers, if incurring tax obligations and directly declaring taxes, paying taxes, are granted a 13-digit TIN.

(4) Foreign contractors, foreign sub-contractors as stipulated in point đ, Clause 2, Article 4 Circular 86/2024/TT-BTC registering direct tax contractor payment with the tax authority are granted a 10-digit TIN for each contract. If there are many foreign contractors subject to direct tax payment with the tax authority on the same contract signed with the Vietnamese party and the contractors wish to declare and pay taxes separately, each foreign contractor is granted a separate 10-digit TIN.

In cases where foreign contractors join with Vietnamese economic organizations to conduct business in Vietnam based on a contractor agreement and the joint operation establishment forms a Joint Operation Board that performs accounting, has one bank account, assumes responsibility for issuing invoices; or a Vietnamese economic organization in partnership assumes joint accounting responsibility and shares profits with the partnership participants, they are granted a 10-digit TIN to declare and pay taxes for the contractor agreement.

In cases where foreign contractors, foreign subcontractors have offices in Vietnam and have had their taxes declared, deducted, and paid by the Vietnamese party on their behalf for contractor taxes, the foreign contractors, foreign subcontractors are granted a 10-digit TIN to declare all other tax obligations (excluding contractor taxes) in Vietnam and provide this TIN to the Vietnamese party.

(5) Foreign suppliers as stipulated in point c, Clause 2, Article 4 Circular 86/2024/TT-BTC without a TIN in Vietnam when taxpayer registration directly with the tax authority are granted a 10-digit TIN. Foreign suppliers use the assigned TIN to directly declare, pay taxes, or provide the TIN to organizations, individuals in Vietnam authorized by the foreign supplier or provide it to commercial banks, intermediary payment service providers to fulfill tax withholding, payment, and declare in the Tax Deduction List of the foreign supplier in Vietnam.

(6) Organizations or individuals conducting tax withholding, paying taxes on behalf of as stipulated in point g, Clause 2, Article 4 Circular 86/2024/TT-BTC are granted a 10-digit TIN (hereafter called substitute TIN) to declare, pay taxes on behalf of foreign contractors, foreign subcontractors, foreign suppliers, and organizations and individuals with a cooperation agreement or document if they require a separate TIN for the business cooperation agreement. Foreign contractors and subcontractors as stipulated in point d, Clause 2, Article 4 Circular 86/2024/TT-BTC registered and declared, and paid contractor taxes by the Vietnamese party are granted a 13-digit TIN in correspondence with the substitute TIN of the Vietnamese party to confirm completion of contractor tax obligations in Vietnam.

When taxpayers change taxpayer registration information, temporarily cease operations, business activities, resume operations, business activities before the schedule, deactivate the TIN, and restore the TIN as regulated for the TIN of taxpayers, substitute TINs are updated correspondingly by the tax authority according to the information, taxpayer status. Taxpayers are not required to submit dossiers as stipulated in Chapter 2, Chapter 3 Circular 86/2024/TT-BTC for substitute TINs.

(7) Operator, joint operating company, joint venture project, organization tasked by the Government of Vietnam with receiving the share of oil, gas profits of Vietnam from petroleum fields in overlapping areas according to point h, Clause 2, Article 4 Circular 86/2024/TT-BTC are granted a 10-digit TIN according to each petroleum contract or agreement or equivalent documents.

Contractors, investors participating in petroleum contracts are granted a 13-digit TIN based on the 10-digit TIN of each petroleum contract to fulfill separate tax obligations under the petroleum contract (including corporate income tax from income from transferring the participating interest in petroleum contracts).

The parent company - Vietnam National Oil and Gas Group representing the host country receives the share of profits divided from petroleum contracts are granted a 13-digit TIN based on the 10-digit TIN of each petroleum contract to declare and pay taxes for the share of profits divided according to each petroleum contract.

(8) Organizations, individuals as stipulated in point m, Clause 2, Article 4 Circular 86/2024/TT-BTC having one or more tax collection agency contracts with a tax authority are granted a substitute TIN to submit the collected amount from taxpayers into the state budget.

Vietnam: How many types of TIN are there according to Circular 86?

Based on Clause 1, Article 5 of Circular 86/2024/TT-BTC (document effective from February 6, 2025), there are 2 types of TINs: TINs for enterprises, organizations, and TINs for households, household businesses, individuals. In which:

- TINs for enterprises, organizations are issued by the tax authority as regulated in clauses 2, 3, 4, Article 5 Circular 86/2024/TT-BTC.

- TINs for households, household businesses, individuals are TINs issued by the tax authority in cases stipulated in points a, đ, e, h, Clause 4, Article 5 Circular 86/2024/TT-BTC; are personal identification numbers issued by the Ministry of Public Security as regulated by law on identification for cases using personal identification numbers instead of TINs as regulated in Clause 5, Article 5 Circular 86/2024/TT-BTC.