When does a sole proprietorship have its TIN deactivated in Vietnam?

When does a sole proprietorship have its TIN deactivated in Vietnam?

A sole proprietorship will have its TIN deactivated in the cases stipulated in clauses 1 and 2 of Article 39 of the 2019 Law on Tax Administration as follows:

[1] A sole proprietorship with taxpayer registration together with business registration will have its TIN deactivated in the following cases:

- Cease business activities or dissolve, go bankrupt;

- Withdrawn business registration certificate;

- Merged, consolidated, or divided.

[2] A sole proprietorship with taxpayer registration directly with the tax authority will have its TIN deactivated in the following cases:

- Cease business activities, no longer incur tax obligations for non-business organizations;

- Withdrawn business registration certificate or equivalent license;

- Merged, consolidated, or divided;

- Tax authority notification that the taxpayer is not operating at the registered address;

- Individual is deceased, missing, or loses legal capacity according to the law;

- Foreign contractor upon completion of the contract;

- Contractor or investor participating in oil and gas contracts upon completion or transfer of all rights to the oil and gas contract.

When does a sole proprietorship have its TIN deactivated? (Image from the Internet)

What documents are required for deactivating the TIN of a sole proprietorship in Vietnam?

According to clause 4 of Article 39 of the 2019 Law on Tax Administration, the documents required for deactivating the TIN of a sole proprietorship include:

- Written request to deactivate the TIN;

- Other related documents.

Can the TIN of a sole proprietorship be reused after deactivation in Vietnam?

According to clause 3 of Article 39 of the 2019 Law on Tax Administration, the principles for deactivating the TIN are as follows:

Deactivating the TIN

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2. A taxpayer with taxpayer registration directly with the tax authority will have its TIN deactivated in the following cases:

a) Cease business activities, no longer incur tax obligations for non-business organizations;

b) Withdrawn business registration certificate or equivalent license;

c) Merged, consolidated, or divided;

d) Tax authority notification that the taxpayer is not operating at the registered address;

dd) Individual is deceased, missing, or loses legal capacity according to the law;

e) Foreign contractor upon completion of the contract;

g) Contractor or investor participating in oil and gas contracts upon completion or transfer of all rights to the oil and gas contract.

3. The principles for deactivating the TIN are as follows:

a) The TIN cannot be used in economic transactions from the date the tax authority announces its deactivation;

b) The TIN of an organization, once deactivated, cannot be reused, except in cases stipulated in Article 40 of this Law;

c) The TIN of a business household or personal business, once deactivated, will not deactivate the TIN of the head of the business household, which can be used to fulfill other personal tax obligations;

d) When a business, economic organization or other entity, and individual deactivates the TIN, the TIN used for tax payments on behalf shall also be deactivated simultaneously;

dd) When a parent entity deactivates its TIN, its dependent units must also deactivate their TINs.

According to the above regulation, the TIN of a sole proprietorship, once deactivated, cannot be reused except in cases stipulated in Article 40 of the 2019 Law on Tax Administration as follows:

- Taxpayer registration together with business registration or cooperative registration, if restored to legal status according to the law on business registration, cooperative registration, may also restore the TIN.

- Taxpayer registration directly with the tax authority submits an application for restoration of the TIN to the managing tax authority in the following cases:

+ The competent authority rescinds the document that withdraws the business registration certificate or equivalent license;

+ Wishes to continue business activities after submitting documents for termination of the TIN to the tax authority but the tax authority has not issued a deactivation notice;

+ Tax authority notification that the taxpayer is not operating at the registered address but has not had the license revoked or the TIN deactivated.

- The TIN can be continued to be used in economic transactions from the effective date of the legal status restoration decision by the business registration authority or the date the tax authority announces the restoration of the TIN.

- The application for restoration of the TIN includes:

+ Written request for restoration of the TIN;+ Other related documents.