What are obligations to be fulfilled by the taxpayer prior to TIN deactivation in Vietnam from February 6, 2025?

What are obligations to be fulfilled by the taxpayer prior to TIN deactivation in Vietnam from February 6, 2025?

Based on Article 30 of Circular 86/2024/TT-BTC (effective from February 6, 2025) regulating the obligations to be fulfilled by the taxpayer prior to TIN deactivation:

(1) For business households with taxpayer registration through the inter-agency one-stop mechanism; households, individual businesses as stipulated in point i, clause 2, Article 4 of Circular 86/2024/TT-BTC must fulfill obligations arising from business activities before the TIN ceases to be effective due to the deactivation of business activities as follows:

- Complete invoice obligations according to legal regulations on invoices if using invoices.

- Complete the filing of tax returns, payment of taxes, and handling of overpaid tax amounts as prescribed in Articles 43, 44, 47, 60, 67, 68, 70, 71 of the 2019 Law on Tax Administration with the tax administration agency (for business households, households, and individual businesses that pay taxes by declaration method).

- The taxpayer completes tax payment obligations and handles overpaid taxes as prescribed in Articles 60, 67, 69, 70, 71 of the 2019 Law on Tax Administration with the tax administration agency (for business households, households, and individual businesses that pay taxes on a fixed amount basis).

(2) For business households transitioning to small and medium enterprises under the provisions of the 2017 Support for Small and Medium Enterprises Law, the business household must fulfill tax obligations with the directly managing tax authority or provide a written commitment to the tax authority that the small and medium enterprise transformed from the business household will inherit all tax obligations of the business household under the law supporting small and medium enterprises.

(3) For individuals stipulated in points k, l, n, clause 2, Article 4 of Circular 86/2024/TT-BTC must fulfill tax payment obligations and handle overpaid amounts as per Articles 60, 67, 69, 70, 71 of the 2019 Law on Tax Administration with the tax administration agency before deactivating the TIN.

Additionally, the TIN of the business household, household, or individual business ends when business activities cease, but the TIN of the household representative, household head, or individual's identification number does not end and continues to be used for other tax obligations of the individual.

What are obligations to be fulfilled by the taxpayer prior to TIN deactivation in Vietnam from February 6, 2025? (Image from Internet)

When will the TIN be deactivated in Vietnam?

Pursuant to clause 1 and clause 2 of Article 39 of the 2019 Law on Tax Administration, the cases where the TIN will be deactivated are as follows:

(1) Taxpayers with taxpayer registration along with business registration, cooperative registration, business operation registration will have their TIN deactivated when:

- Ceasing business activities, or dissolution, bankruptcy;

- Having their business registration certificate, cooperative registration certificate, or business operation registration certificate revoked;

- Being split, merged, or consolidated.

(2) Taxpayers who register directly with the tax authority will have their TIN deactivated when:

- Ceasing business activities, no longer incurring tax obligations for non-business organizations;

- Having their business registration certificate or equivalent license revoked;

- Being split, merged, or consolidated;

- Receiving a notice from the tax authority that the taxpayer is not operating at the registered address;

- Individuals who die, go missing, or lose civil act capacity according to law;

- Foreign contractors upon contract completion;

- Contractors, investors participating in petroleum contracts upon contract completion or full transfer of interests in the petroleum contract.

When shall a TIN be reactivated in Vietnam?

Pursuant to clause 1 and clause 2 of Article 40 of the 2019 Law on Tax Administration, a TIN can be reactivated in the following cases:

- Taxpayers with taxpayer registration together with business registration, cooperative registration, business operation registration are restored their legal status under the law on business registration, cooperative registration, business operation registration will also have their TIN reactivated.

- Taxpayers who register directly with the tax authority can file a request for reactivation of the TIN with the direct tax authority in the following cases:

+ Having a competent authority issue a document canceling the document revoking a business registration certificate or equivalent license;

+ Needing to continue business activities after already submitting a request to deactivate the TIN to the tax authority, but the tax authority has not yet issued a notice to deactivate the TIN;

+ When the tax authority issues a notice that the taxpayer is not operating at the registered address, but the license has not been revoked and the TIN has not been deactivated.