When is a TIN not used in business transactions in Vietnam?

When is a TIN not used in business transactions in Vietnam?

Based on Article 39 of the Law on Tax Administration 2019 which regulates the TIN deactivation as follows:

TIN deactivation

1. Taxpayers who register together with business registration, cooperative registration, or business operation registration shall terminate the validity of their TIN in the following cases:

a) When ceasing business operations or dissolution, bankruptcy;

b) When their business registration certificate, cooperative registration certificate, or business operation registration certificate is revoked;

c) When being divided, merged, or consolidated.

2. Taxpayers who directly register with the tax authorities shall terminate the validity of their TIN in the following cases:

a) Ceasing business operations with no tax obligations for non-business organizations;

b) When the business registration certificate or equivalent license is revoked;

c) When being divided, merged, or consolidated;

d) When the tax authority issues a notice that the taxpayer is not operating at the registered address;

đ) When individual taxpayers pass away, are missing, or lose civil capacity as per legal regulations;

e) Foreign contractors upon contract deactivation;

g) Contractors and investors in petroleum contracts upon contract deactivation or full transfer of contract interests.

3. The principles for terminating the validity of a TIN are as follows:

a) The TIN shall not be used in business transactions from the date the tax authority notifies deactivation of its validity;

b) An organization's TIN, once terminated, cannot be reused, except for cases specified in Article 40 of this Law;

c) The TIN of a business household or individual business, when terminated, does not affect the validity of the TIN of the business household's representative, which can be used for other tax obligations;

d) When a business, economic organization, other organization, or individual terminates the validity of their TIN, they must simultaneously terminate the proxy TIN;

dd) The taxpayer acting as the managing entity terminates the validity of its TIN, then dependent units must also have their TINs terminated.

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Thus, according to the above regulation, the TIN is not used in business transactions from the date the tax authority notifies of its deactivation.

When is a TIN not used in business transactions in Vietnam? (Image from the Internet)

Vietnam: What does the application for requesting TIN deactivation include?

Based on clause 4, Article 39 of the Law on Tax Administration 2019, the regulation is as follows:

TIN deactivation

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4. The application for requesting TIN deactivation includes:

a) A written request for deactivation of the TIN's validity;

b) Other related documents.

5. Taxpayers registering with business registration, cooperative registration, and business operation registration should register for dissolution or cease operations at the business registration office or cooperative registration office as per legal regulations. Before registering at the business registration or cooperative registration office, the taxpayer must register with the direct managing tax authority to fulfill their tax obligations according to this Law and other relevant legal provisions.

6. Taxpayers who directly register with tax authorities must submit the dossier for deactivation of the TIN's validity to the direct managing tax authority within 10 working days from the date of issuing a cessation document, cessation of business operations, or contract deactivation date.

Thus, according to the above regulation, two types of application for requesting TIN deactivation:

[1] A written request for deactivation of the TIN's validity;

[2] Other related documents.

Vietnam: Does tax registration include the TIN deactivation?

Based on clause 4, Article 30 of the Law on Tax Administration 2019, the regulation is as follows:

Object of taxpayer registration and TIN assignment

1. Taxpayers must perform taxpayer registration and be issued a TIN by the tax authority before they start their production, business operations, or have obligations towards the state budget. The objects for taxpayer registration include:

a) Enterprises, organizations, and individuals performing taxpayer registration in a one-stop-shop mechanism with business registration, cooperative registration, and business operation registration as per the Enterprise Law and other related legal provisions;

b) Organizations and individuals not specified in point a shall directly register with tax authorities as specified by the Minister of Finance.

2. The structure of the TIN is specified as follows:

a) A 10-digit TIN is used for businesses, organizations with legal status, representatives of households, business households, and other individuals;

b) A 13-digit TIN with additional characters is used for dependent units and other entities;

c) The Minister of Finance shall detail this clause.

3. The assignment of TINs is specified as follows:

a) Enterprises, economic organizations, or other organizations are issued a unique TIN to use throughout their operation from taxpayer registration until the deactivation of the TIN's validity. Taxpayers with branches, representative offices, and dependent units directly conducting tax obligations will be issued dependent TINs. When enterprises, organizations, branches, representative offices, and dependent units perform taxpayer registration in a one-stop-shop mechanism with business registration, cooperative registration, and business operation registration, the number on the business registration certificate, cooperative registration certificate, or business operation registration certificate concurrently serves as the TIN;

b) Individuals are issued a unique TIN to use throughout their lifetime. Dependents of the individual taxpayer are issued TINs for eligible personal income tax reductions. The TIN for dependents concurrently serves as the TIN of the individual when the dependent incurs obligations to the state budget;

c) Enterprises, organizations, and individuals responsible for withholding and paying taxes for others are assigned a payment proxy TIN to carry out tax declarations and payments on behalf of the taxpayer;

d) The already assigned TIN shall not be reused for other taxpayers;

đ) The TIN of enterprises, economic organizations, and other organizations remains unchanged after conversion, sale, donation, succession;

e) A TIN assigned to households, business households, and individual businesses is the TIN of the individual representative of the household, business household, and individual business.

4. Tax registration includes:

a) Initial tax registration;

b) Notification of changes to taxpayer registration information;

c) Notification of temporary cessation of operations or business;

d) deactivation of TIN validity;

đ) Reactivation of TIN.

Thus, it is evident that taxpayer registration includes the TIN deactivation.