What must individuals with two tax identification numbers in Vietnam do to avoid violating the law?

What is a tax identification number in Vietnam?

According to Clause 5, Article 3 of the Law on Tax Administration 2019, a tax identification number is a series of 10 or 13 digits and other characters issued by tax authorities to taxpayers for tax management.

What is a tax identification number in Vietnam?​ (Image from the Internet)

What must individuals with two tax identification numbers in Vietnam do to avoid violating the law?

According to Official Dispatch 896/TCT-KK in 2016 from the General Department of Taxation on issuing tax identification numbers for individuals paying personal income tax, the guidance for cases where individuals have 02 tax identification numbers is as follows:

- If they have been issued a personal income tax identification number and later change their ID card number from a 09-digit number to a 12-digit number, they must follow the procedures to change taxpayer registration information as prescribed. They are not allowed to be issued a new tax identification number according to the new ID card.

- If the local tax authority of the new location issues a new tax identification number for the taxpayer according to the new ID card, the new tax identification number must be revoked. At the same time, the taxpayer is guided and supported to use the previously issued tax identification number to declare and pay/deduct taxes on newly arisen incomes as per the regulations.

** In case of having 2 tax identification numbers, the individual needs to terminate the validity of the later-issued tax identification number and only use the initially issued tax identification number.**

What documents are required to terminate the validity of a tax identification number in Vietnam?

Based on Article 14 of Circular 105/2020/TT-BTC, the dossier for terminating the validity of a tax identification number is as follows:

* The dossier for terminating the validity of the tax identification number for taxpayers directly registering with the tax authority includes the application form for terminating the validity of the tax identification number (Form No. 24/DK-TCT) issued together with Circular 105/2020/TT-BTC as prescribed in Articles 38 and 39 of the Law on Tax Administration 2019, and other documents as follows:

- For economic organizations, or other organizations as stipulated in points a, b, c, d, n, Clause 2, Article 4 of Circular 105/2020/TT-BTC:

+ For the parent unit, the dossier includes one of the following documents: a copy of the dissolution decision, a copy of the decision to split, a copy of the merger contract, a copy of the consolidation contract, a copy of the decision to revoke the operation registration certificate issued by the competent authority, a copy of the notice of termination of operation, or a copy of the conversion decision.

In cases where the parent unit has dependent units that have been issued with a 13-digit tax identification number, the parent unit must issue a written notice of termination of operation to the dependent units, requesting them to follow the procedures to terminate the validity of the tax identification number with the managing tax authority of the dependent unit before terminating the validity of the tax identification number of the parent unit.

In case the dependent unit terminates the validity of its tax identification number but cannot fulfill its tax obligations to the state budget under the Law on Tax Administration 2019 and its guiding documents, the parent unit must submit a declaration of commitment to inherit all the tax obligations of the dependent unit to the managing tax authority of the dependent unit and continue to fulfill the tax obligations of the dependent unit with the managing tax authority after the tax identification number of the dependent unit has been terminated.

+ For the dependent unit, the dossier includes one of the following documents: a copy of the decision or notice to terminate the operation of the dependent unit, or a copy of the decision to revoke the operation registration certificate of the dependent unit issued by the competent authority.

- For contractors, investors participating in petroleum contracts, the parent company – Vietnam Oil and Gas Group representing the host country to receive the share of profits from petroleum contracts; foreign contractors, foreign subcontractors as stipulated in points d, h, Clause 2, Article 4 of Circular 105/2020/TT-BTC (excluding foreign contractors and subcontractors issued with a tax identification number under Point e, Clause 3, Article 5 of Circular 105/2020/TT-BTC), the dossier includes: a copy of the contract liquidation or a copy of the document on the transfer of the entire capital contribution in the petroleum contract for the investor participating in the petroleum contract.

- For households and business individuals; business locations of households and business individuals under point i, Clause 2, Article 4 of Circular 105/2020/TT-BTC, the dossier includes: a copy of the decision to revoke the business registration certificate (if any).

Enterprises, cooperatives, and dependent units of enterprises and cooperatives, before submitting the dossier to terminate the operation of enterprises and cooperatives that are split, merged, consolidated or terminating the operation of the dependent unit of the enterprise to the business registration authority, cooperative registration authority, must submit a dossier to the directly managing tax authority to follow tax procedures and complete tax obligations as prescribed in the Law on Enterprises 2020 (for enterprises) and other relevant laws.

In cases where the Law on Enterprises 2020 and other relevant laws do not stipulate 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 to split, the merger contract, consolidation contract, decision or notice of the enterprise, cooperative on terminating the operation of the branch, representative office, or the decision to revoke the operation registration certificate of the branch, representative office.

* The dossier for terminating the validity of the tax identification number for taxpayers registering for enterprise registration, cooperative registration, business registration includes the application form for terminating the validity of the tax identification number (Form No. 24/DK-TCT) issued together with Circular 105/2020/TT-BTC and other documents as follows:

- The dossier for terminating the validity of the tax identification number of enterprises, cooperatives that are split, merged, or consolidated includes one of the following documents: a copy of the decision to split, a copy of the merger contract, or a copy of the consolidation contract.

- The dossier for terminating the validity of the tax identification number of the dependent units of enterprises and cooperatives includes one of the following documents: a copy of the decision or notification of the enterprise, cooperative on terminating the operation of the branch, representative office; a copy of the decision to revoke the operation registration certificate of the branch, representative office issued by the competent authority.

* The dossier for terminating the validity of the tax identification number according to decisions, notices, or other documents of state authorities for each specific case as follows:

- The decision to dissolve the enterprise, cooperative; The decision to revoke the enterprise registration certificate, operation registration certificate of a branch, representative office, business location; the application dossier for terminating the operation of enterprises, cooperatives due to split, consolidation, merger; the application dossier for terminating the operation of branches, representative offices, business locations of enterprises and cooperatives; The notice of dissolution of the enterprise, cooperative; The notice of termination of the operation of enterprises, cooperatives due to split, consolidation, merger; The notice of termination of the operation of branches, representative offices of enterprises and cooperatives of the business registration authority, cooperative registration authority.

- The decision, Notice of revocation of the Household Business Registration Certificate; The license for establishment and operation or equivalent documents issued by the licensing authority.

- The court’s declaration of bankruptcy.

- Relevant documents confirming that an individual is dead, missing or lost civil capacity (Death Certificate or Death Report or documents replacing the Death Report as stipulated by the law on civil status, or the court’s decision declaring a person dead, missing, or losing civil capacity).

- The notice that the taxpayer does not operate at the registered address as prescribed in Article 17 of Circular 105/2020/TT-BTC.