What is TIN status 06? Is a taxpayer that does not operate at registered location in Vietnam subject to TIN deactivation ?

What is TIN status 06?

Based on the List of TIN Statuses stipulated in Appendix 1 issued together with Circular 105/2020/TT-BTC, status 06 is defined as follows:

- Status 06 is the condition where the taxpayer is not active at the registered location. 

- When the taxpayer's TIN is in this status, it means the Tax Authority has issued a notification that the taxpayer is not active at the registered business location after cooperating with the competent authority to verify the taxpayer's headquarters' location.

Is a taxpayer that does not operate at registered location in Vietnam subject to TIN deactivation?

Based on clauses 1 and 2 of Article 39 of the Tax Administration Law 2019, the cases where a TIN is deactivated are stipulated as follows:

TIN deactivation

1. Taxpayers registering together with business registration, cooperative registration, or business operation registration shall deactivate the TIN in any of the following cases:

a) Ceasing business activities or dissolution, bankruptcy;

b) Revocation of the business registration certificate, cooperative registration certificate, business operation registration certificate;

c) Division, merger, consolidation.

2. Taxpayers directly registering with the Tax Authority shall deactivate the TIN in any of the following cases:

a) Ceasing business activities, with no longer arising tax obligations for non-business organizations;

b) Revocation of the business registration certificate or equivalent license;

c) Division, merger, consolidation;

d) Received by the Tax Authority a notification that the taxpayer is that does not operate at registered location;

dd) Individual deceased, missing, or losing the capacity for civil acts according to legal regulations;

e) Foreign contractors upon contract completion;

g) Contractors, investors participating in petroleum contracts upon contract completion or transferring entire participation rights in the petroleum contract.

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Thus, a taxpayer that does not operate at registered location and receiving a notification from the Tax Authority to that effect will have their TIN deactivated.

Is a taxpayer that does not operate at registered location in Vietnam subject to TIN deactivation? (Image from the Internet)

What are procedures for TIN deactivation when the Taxpayer does not operate at the registered location in Vietnam?

According to clause 6 of Article 17 of Circular 105/2020/TT-BTC, the procedures for the Tax Authority to deactivate the TIN of a taxpayer are stipulated as follows after the Tax Authority issues a notification that the taxpayer is that does not operate at registered location:

- For taxpayers directly registering with the Tax Authority who have fulfilled their tax, invoice obligations according to the Tax Administration Law 2019 and obligations before TIN deactivation as per Article 15 of Circular 105/2020/TT-BTC, or there are no arising tax, invoice obligations.

- For taxpayers who have debts of tax, late payment, fines, or outstanding payments erased for over 10 years since the payment into the state budget without tax obligations offset and without tax refund claim (taxpayer has fulfilled tax obligations) and completed invoice procedures according to invoice legislation.

In the case of taxpayers being enterprises or cooperatives, the Tax Authority sends a document with a list of deactivated TINs to the business registration authority, cooperative registration authority via the national enterprise registration information system, cooperative registration system to synchronize the legal status of the enterprise or cooperative between the Tax Authority and the business registration authority, cooperative registration authority.

What is the TIN reactivation application when the Taxpayer is that does not operate at registered location in Vietnam?

According to points b and c of clause 1, Article 18 of Circular 105/2020/TT-BTC, the dossier for TIN reactivation for a taxpayer is stipulated as follows:

- After the Tax Authority has issued a notification about the taxpayer that does not operate at registered location as regulated in Article 17 of Circular 105/2020/TT-BTC but the business registration certificate, cooperative registration certificate, branch or representative office operation registration certificate, business household registration certificate, establishment license, or equivalent license has not been revoked and the TIN effectiveness has not been deactivated, the taxpayer submits a Request for TIN reactivation form No. 25/DK-TCT issued together with Circular 105/2020/TT-BTC to the directly managing Tax Authority before the Tax Authority issues a notification on TIN deactivation according to the regulations.

- Taxpayers as regulated in Clause 2, Article 4 of Circular 105/2020/TT-BTC who wish to continue business activities after submitting the dossier to deactivate TIN effectiveness to the Tax Authority but the Tax Authority has not yet issued a notification on TIN deactivation as per Article 14, Article 16 of Circular 105/2020/TT-BTC shall submit a Request for TIN reactivation form No. 25/DK-TCT issued with Circular 105/2020/TT-BTC to the directly managing Tax Authority before the notification on TIN deactivation is issued.