Vietnam: What does an application for TIN deactivation include?

Vietnam: What does an application for TIN deactivation include?

Pursuant to Article 14 of Circular 105/2020/TT-BTC, the application for TIN deactivation are stipulated as follows:

* The documents for TIN deactivation for taxpayers directly registered with the tax authority include a written request to deactivate the TIN according to form No. 24/DK-TCT issued with Circular 105/2020/TT-BTC as prescribed in Articles 38 and 39 of the Tax Administration Law 2019 and other documents as follows:

- For economic organizations and other entities as prescribed at points a, b, c, d, n, Clause 2, Article 4 of Circular 105/2020/TT-BTC:

+ For the parent entity, the dossier includes one of the following documents: a copy of the dissolution decision, a copy of the division decision, a copy of the merger agreement, a copy of the consolidation agreement, a copy of the decision to revoke the operating registration certificate of the competent authority, a copy of the notification of deactivation of operation, or a copy of the conversion decision.

In case the parent entity has dependent units that have been assigned a 13-digit TIN, the parent entity must notify the dependent units to complete procedures to deactivate the TIN with the tax authority managing the dependent units before the TIN of the parent entity is deactivated.

In case the dependent unit deactivates the TIN but cannot fulfill the tax obligations to the state budget as per the Tax Administration Law 2019 and other related guidelines, the parent entity must submit a declaration of commitment to assume all tax obligations of the dependent unit to the tax authority managing the dependent unit and continue fulfilling the tax obligations of the dependent unit to the managing tax authority after the TIN of the dependent unit has been deactivated.

+ For dependent units, the dossier includes one of the following documents: a copy of the decision or notification of the deactivation of operation of the dependent unit, or a copy of the decision to revoke the operating registration certificate of the dependent unit by the competent authority.

- For contractors and investors participating in petroleum contracts, parent companies - Vietnam National Oil and Gas Group representing the host country receiving divisible profits from petroleum contracts; foreign contractors, and foreign subcontractors as prescribed in points dd, h, Clause 2, Article 4 of Circular 105/2020/TT-BTC (except for foreign contractors and foreign subcontractors granted TINs as stipulated in Point e, Clause 3, Article 5 of Circular 105/2020/TT-BTC), the dossier includes: a copy of the contract liquidation report or a copy of the document regarding the transfer of the entire capital contribution participating in the petroleum contract for investors participating in petroleum contracts.

- For business households; business individuals; business locations of business households, and business individuals as prescribed in point i, Clause 2, Article 4 of Circular 105/2020/TT-BTC, the dossier includes: a copy of the decision to revoke the Certificate of Household Business Registration (if any).

Enterprises, cooperatives, dependent units of enterprises, and cooperatives, before submitting the dossier to deactivate the operation of enterprises, cooperatives due to division, merger, consolidation, or deactivation of the operation of dependent units of enterprises at the business registration authority, cooperative registration authority, must submit the dossier to the directly managing tax authority to complete tax procedures and fulfill tax obligations within the prescribed time limit in the Enterprise Law 2020 (for enterprises) and other related laws.

In case the Enterprise Law 2020 and other related laws do not specify the time limit for taxpayers to submit the dossier to the tax authority, taxpayers must submit the dossier to the directly managing tax authority within 10 (ten) working days from the date of the decision on division, merger agreement, consolidation agreement, decision, or notification of the enterprise, cooperative about the deactivation of activity of branches, representative offices, or the decision to revoke the operating registration certificate of the branches, representative offices.

* The documents for TIN deactivation for taxpayers together with business registration, cooperative registration, and business registration include a written request to deactivate the TIN according to form No. 24/DK-TCT issued with Circular 105/2020/TT-BTC and other documents as follows:

- The dossier for deactivating the validity of the TIN of enterprises, cooperatives subject to division, merger, consolidation includes one of the following documents: a copy of the decision on division, or a copy of the consolidation agreement or merger agreement.

- The dossier for deactivating the validity of the TIN of dependent units of enterprises and cooperatives includes one of the following documents: a copy of the decision or notification of the enterprise or cooperative about the deactivation of activity of branches, representative offices; a copy of the decision to revoke the operating registration certificate of branches, representative offices by the competent authority.

* The dossier for TIN deactivation based on the decisions, notifications, and other documents of the competent state authority for each specific case such as:

- The decision to dissolve an enterprise, cooperative; The decision to revoke the business registration certificate, the operating registration certificate of branches, representative offices, and business locations; the dossier for registration to deactivate the activity of enterprises, cooperatives subject to division, consolidation, merger; the dossier for registration to deactivate the activity of branches, representative offices, and business locations of enterprises, cooperatives; Notifications of dissolution of enterprises, and cooperatives; Notifications of the deactivation of activity of enterprises, and cooperatives subject to division, consolidation, and merger; Notifications of the deactivation of activity of branches, representative offices of enterprises, cooperatives, issued by the business registration authority, cooperative registration authority.

- Decision, Notification of revocation of Household Business Registration Certificate; establishment and operation license or equivalent documents by the licensing authority.

- Decision on Bankruptcy declaration by the Court.

- Related documents by the competent authority confirming individual death, disappearance, or incapacity for civil acts (Death Certificate or Death Notice or documents replacing the Death Notice as prescribed by the civil status law, or court judgment declaring an individual as dead, missing, or incapacitated for civil acts).

- Notification of the taxpayer's inactivity at the registered address as prescribed in Article 17 of Circular 105/2020/TT-BTC.

Application for TIN deactivation in Vietnam (Image from the Internet)

What are obligations to be fulfilled by the taxpayer prior to TIN deactivation in Vietnam?

Pursuant to Article 15 of Circular 105/2020/TT-BTC, the taxpayer must fulfill the following obligations prior to TIN deactivation, specifically:

* For taxpayers as prescribed in points a, b, c, d, dd, e, g, h, m, n, Clause 2, Article 4 of Circular 105/2020/TT-BTC:

- The taxpayer must submit an invoice usage report as prescribed by the invoice law;

- The taxpayer must complete the obligations of filing tax returns, paying taxes, and handling overpaid taxes and non-deductible value-added taxes (if any) as prescribed in Articles 43, 44, 47, 60, 67, 68, 70, 71 of the Tax Administration Law 2019 with the managing tax authority;

- In case the parent entity has dependent units, all dependent units must complete the procedures to deactivate the validity of the TIN before the TIN of the parent entity is deactivated.

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

- The taxpayer must submit an invoice usage report as prescribed by the invoice law if there are invoice usage;

- The taxpayer must complete the tax obligations and handle overpaid taxes as prescribed in Articles 60, 67, 69, 70, 71 of the Tax Administration Law 2019 with the managing tax authority for household businesses and business individuals paying taxes by the presumptive tax method.

- The taxpayer must complete the obligations of filing tax returns, paying taxes, and handling overpaid taxes and non-deductible value-added taxes (if any) as prescribed in Articles 43, 44, 47, 60, 67, 68, 70, 71 of the Tax Administration Law 2019 with the managing tax authority for household businesses and business individuals paying taxes by the declaration method.

* For household businesses transitioning to small and medium enterprises as per the Small and Medium Enterprise Support Law, the household business must complete the tax obligations with the directly managing tax authority or have a written commitment sent to the tax authority stating that the small and medium enterprise transitioning from the household business inherits all tax obligations of the household business as prescribed by the law on small and medium enterprise support.

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

The taxpayer must complete the tax obligations and handle overpaid taxes as prescribed in Articles 60, 67, 69, 70, 71 of the Tax Administration Law 2019 with the managing tax authority.

What are cases of TIN deactivation in Vietnam?

Pursuant to Article 39 of the Tax Administration Law 2019, the cases for TIN deactivation are stipulated as follows:

* Taxpayers registered along with business registration, cooperative registration, or business registration deactivate the TIN's validity in the following cases:

- deactivate business activities or dissolve, declare bankruptcy;

- The business registration certificate, cooperative registration certificate, or business registration certificate is revoked;

- Division, merger, or consolidation.

* Taxpayers registered directly with the tax authority deactivate the TIN's validity in the following cases:

- deactivate business activities, no longer incur tax obligations for non-business organizations;

- The business registration certificate or equivalent license is revoked;

- Division, merger, or consolidation;

- The tax authority issues a notification that the taxpayer is not operating at the registered address;

- Individuals die, go missing, or lose civil act capacity as prescribed by law;

- Foreign contractors when concluding the contract;

- Contractors and investors participating in petroleum contracts when concluding the contract or transferring the entire right to participate in the petroleum contract.