What are principles of termination of tax identification numbers in Vietnam?

What are cases of termination of tax identification numbers in Vietnam?

According to the provisions in Clauses 1 and 2, Article 39 of the Tax Administration Law 2019, taxpayers will have their tax identification numbers terminated in the following cases:

- For taxpayers registering simultaneously for enterprise registration/cooperative registration/business registration, the tax identification number will be terminated in the following cases:

+ The taxpayer ceases business operations/dissolves/goes bankrupt.

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

+ The taxpayer is subjected to division, separation, consolidation, or merger.

- For taxpayers registering directly with the tax authorities, the tax identification number will be terminated if they fall under any of the cases listed below:

+ Cease business operations or no longer have any tax obligations with non-business organizations.

+ The business registration certificate or equivalent license is revoked.

+ The taxpayer is subjected to division, separation, consolidation, or merger.

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

+ Foreign contractors upon contract completion.

+ Contractors or investors participating in a petroleum contract upon contract termination or when they transfer all interests in the petroleum contract to another party.

+ Individuals who are deceased, missing, or have lost civil act capacity according to legal regulations.

What are principles of termination of tax identification numbers in Vietnam?​ (Image from the Internet)

What are principles of termination of tax identification numbers in Vietnam?

According to Clause 3, Article 39 of the Tax Administration Law 2019, the principles for terminating the tax identification number are stipulated as follows:

- The tax identification number must not be used in economic transactions from the date the tax authority announces its cessation;

- The tax identification number of an organization, once terminated, cannot be reused, except for cases specified in Article 40 of the Tax Administration Law 2019;

- The tax identification number of a business household or individual business, when terminated, does not result in the taxpayer representative’s identification number being terminated and can be used for other tax obligations of that individual;

- When an enterprise, economic organization, other organization, or individual terminates the tax identification number, the identification number for substitute taxpayers must simultaneously be terminated;

- If the managing unit of the taxpayer ceases to use the tax identification number, the dependent units must also terminate their tax identification numbers.

What are cases of restoration of the tax identification number of a business household in Vietnam?

According to Article 40 of the Tax Administration Law 2019, the restoration of a tax identification number is as follows:

Restoration of the tax identification number

1. Taxpayers registering simultaneously for enterprise registration, cooperative registration, business registration are restored to their legal status according to law on enterprise registration, cooperative registration, business registration, and are simultaneously restored their tax identification number.

2. Taxpayers registering directly with tax authorities may submit an application for restoration of their tax identification number to the directly managing tax authority in the following cases:

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

b) When the need arises to resume business operations after submitting a termination application, but the tax authority has not yet issued a cessation notice;

c) When the tax authority issues a notice that the taxpayer is not operating at the registered address but the license has not yet been revoked and the tax identification number has not yet been terminated.

3. The tax identification number can be used again in economic transactions from the effective date of the decision restoring the legal status of the business registration authority or the date the tax authority issues a restoration notice.

4. The application for restoring the tax identification number includes:

a) A written request to restore the tax identification number;

b) Other relevant documents.

Taxpayers who are business households can submit an application for restoration of their tax identification number directly to the tax authority in the following cases:

- The competent authority issues a document canceling the document revoking the business registration certificate or equivalent license;

- When the need arises to resume business operations after submitting a termination application but the tax authority has not yet issued a cessation notice;

- 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 tax identification number has not been terminated.