Vietnam: What does the application for TIN deactivation of an individual or household business include from February 6, 2025?

Vietnam: What does the application for TIN deactivation of an individual or household business include from February 6, 2025?

Based on Article 29 of Circular 86/2024/TT-BTC (this document takes effect from February 6, 2025) regulating the documentation for TIN deactivation of an individual or household business as follows:

(1) The file for TIN deactivation of a business household under the single-window mechanism in the event of the cessation of a business household’s operation is the information about the cessation of the business household’s operation provided by the business registration authority to the tax authority through the National Business Registration Information System.

(2) The file for TIN deactivation of a household, individuals engaged in production, business activities, services according to the law but not required to register as a business household through the business registration authority under the regulations of the Government of Vietnam on business households; individual businesses of countries sharing a land border with Vietnam conducting business, exchanging goods at border markets, border-gate markets, markets in border-gate economic zones in the case of cessation of business activities is the written request for deactivation of the TIN form number 24/DK-TCT issued together with Circular 86/2024/TT-BTC.

(3) The file for TIN deactivation of a household, individuals specified at points i, k, l, n clause 2 Article 4 of Circular 86/2024/TT-BTC in the case of deceased individuals, missing, incapacitated individuals includes documents from competent authorities confirming the individual’s death, missing status, or incapacitation (death certificate or missing declaration or documents replacing the death certificate under the civil status law, or a court decision declaring a person deceased, missing, or incapacitated), or information in the National Population Database identifying the deceased or missing status.

(4) The file for TIN deactivation of a business household registered for tax under the single-window mechanism; household, individual business as stipulated at point i clause 2 Article 4 of Circular 86/2024/TT-BTC when notified by the tax authority as not operating at the registered address is the Notice regarding the taxpayer's non-operation at the registered address under the provisions of Article 32 of Circular 86/2024/TT-BTC.

Vietnam: What does the application for TIN deactivation of an individual or household business include from February 6, 2025? (Image from the Internet)

What are the obligations that must be fulfilled before TIN deactivation for an individual or household business in Vietnam?

Based on Article 30 of Circular 86/2024/TT-BTC (document takes effect from February 6, 2025) regulating the obligations that must be fulfilled before TIN deactivation for an individual or household business as follows:

(1) For business households registering taxpayer registration under the single-window mechanism; households and individual businesses as specified at point i clause 2 Article 4 of Circular 86/2024/TT-BTC, they must fulfill obligations arising from business activities before TIN deactivation due to business cessation as follows:

- Fulfill invoice obligations according to invoice laws if invoices are used.

- Complete tax return submission, tax payment, and handle excess tax payments according to provisions in Articles 43, 44, 47, 60, 67, 68, 70, 71 of Tax Administration Law 2019 with the tax management authority (for business households, households, and individual businesses filing taxes by the declaration method).

- Taxpayers complete tax payment obligations and handle excess tax payments according to provisions in Articles 60, 67, 69, 70, 71 of Tax Administration Law 2019 with the tax management authority (for business households, households, and individual businesses paying taxes by the fixed method).

(2) For business households transitioning to small and medium-sized enterprises according to Law on Support for Small and Medium-Sized Enterprises 2017, the business household must complete its tax obligations with the directly managing tax authority or send a written letter to the tax authority pledging that the small and medium-sized enterprise transitioning from the business household inherits all the tax obligations of the business household according to the law.

(3) For individuals specified at point k, l, n clause 2 Article 4 of Circular 86/2024/TT-BTC, they must complete tax payment obligations and handle excess payments according to provisions in Articles 60, 67, 69, 70, 71 of Tax Administration Law 2019 with the tax management authority before TIN deactivation.

Additionally, the TIN of a business household, household, or individual business will deactivate when business operations cease, but the TIN of the business representative, household representative, or individual will continue to be used for other tax obligations of that individual.

When will the TIN be deactivated?

According to clauses 1 and 2 Article 39 of Tax Administration Law 2019, the TIN will be deactivated in the following cases:

(1) Taxpayer registration along with enterprise registration, cooperative registration, business registration shall deactivate the TIN in one of the following cases:

- deactivation of business activities or dissolution, bankruptcy;

- Revocation of business registration certificate, cooperative registration certificate, business registration certificate;

- Division, merger, or consolidation.

(2) Taxpayer registration directly with the tax authority shall deactivate the TIN in one of the following cases:

- deactivation of business activities, no tax obligations arising for non-business organizations;

- Revocation of business registration certificate or equivalent license;

- Division, merger, or consolidation;

- Notified by the tax authority that the taxpayer is not operating at the registered address;

- Individual deceased, missing, incapacitated according to the law;

- Foreign contractors upon contract deactivation;

- Contractors, investors participating in petroleum contracts upon contract deactivation or transferring all participation rights in the petroleum contract.