Vietnam: Shall the TIN of the household business's representative be deactivated when the household business ceases operations?

Vietnam: Shall the TIN of the household business's representative be deactivated when the household business ceases operations?

Based on Clause 4, Article 30 of Circular 86/2024/TT-BTC, the regulations are as follows:

Obligations to be completed before the TIN ceases to be effective

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3. For individuals stipulated in points k, l, n, Clause 2, Article 4 of this Circular, they must fulfill their tax payment obligations and handle any overpaid amounts in accordance with Articles 60, 67, 69, 70, 71 of the Tax Management Law with the tax management agency before the TIN ceases to be effective.

4. The TIN of a household business, family household, or business individual ceases to be effective when the business operations cease. However, the TIN of the household business's representative, family household's representative, or the individual's TIN does not cease to be effective and continues to be used to fulfill other tax obligations of that individual.

According to the above regulation, when a household business ceases operations, the TIN of the household business ceases to be effective, but the TIN of the household business's representative does not cease to be effective and continues to be used to fulfill other tax obligations of that individual.

Therefore, when a household business ceases operations, the TIN of the household business's representative does not cease to be effective and continues to be used to fulfill other tax obligations of that individual.

Vietnam: Shall the TIN of the household business's representative be deactivated when the household business ceases operations? (Image from the Internet)

When shall the TIN be deactivated in Vietnam?

According to Clause 1 and Clause 2, Article 39 of the Tax Management Law 2019, the TIN will cease to be effective under the following circumstances:

- For taxpayers registered simultaneously with enterprise registration, cooperative registration, or business registration, the TIN ceases to be effective in the following cases:

+ The taxpayer ceases business operations, dissolves, or goes bankrupt.

+ The competent authority revokes the enterprise registration certificate, business registration certificate, or cooperative registration certificate.

+ Mergers, consolidations, or splits occur.

- For taxpayers directly registered with the tax authority, the TIN will cease to be effective if it falls under one of the following cases:

+ Ceasing business operations or no longer incurring any tax obligations with a non-business organization.

+ Revocation of business registration certificate or equivalent license.

+ Mergers, consolidations, or splits occur.

+ The tax authority issues a notification that the taxpayer is not operating at the registered address.

+ A foreign contractor after the contract ends.

+ A contractor or investor in a petroleum contract when the contract ends or after transferring all interests in the petroleum contract to another party.

+ An individual dies, goes missing, or loses legal capacity as prescribed by law.

When can a taxpayer reactivate their TIN?

Based on Clause 1 and Clause 2, Article 40 of the Tax Management Law 2019, the regulations are as follows:

reactivation of TIN

1. Taxpayers registered along with enterprise registration, cooperative registration, or business registration, if reactivated to legal status under the provisions of law on enterprise registration, cooperative registration, and business registration, will simultaneously have their TIN reactivated.

2. Taxpayers directly registered with the tax authority can submit a dossier requesting the reactivation of their TIN to the directly managing tax authority in the following cases:

a) The competent authority issues a document canceling the revocation of the business registration certificate or equivalent license;

b) When there is a need to continue business operations after having filed a dossier requesting the cessation of the TIN's effectiveness to the tax authority, but the tax authority has not issued a notification of cessation;

c) When the tax authority issues a notice that the taxpayer is not operating at the registered address but has not revoked the license and the TIN has not ceased to be effective.

3. The TIN continues to be used in economic transactions from the date the decision to reactivate the legal status of the business registration authority takes effect or the date the tax authority issues a notification of TIN reactivation.

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Thus, a taxpayer can reactivate their TIN in the following cases:

(1) For taxpayers registered along with enterprise registration, cooperative registration, or business registration:

If reactivated to legal status under the provisions of law on enterprise registration, cooperative registration, and business registration, the TIN is simultaneously reactivated.

(2) For taxpayers directly registered with the tax authority, submit a dossier requesting TIN reactivation to the directly managing tax authority:

- There is a competent authority document canceling the revocation of the business registration certificate or equivalent license;

- There is a need to continue business operations after having submitted a dossier to cease the effectiveness of the TIN to the tax authority, but the tax authority has not issued a cessation notice;

- When the tax authority issues a notice that the taxpayer is not operating at the registered address but has not revoked the license and the TIN has not ceased to be effective.