When shall a taxpayer registering directly with the tax authorities have their TINs deactivated in Vietnam?
When shall a taxpayer registering directly with the tax authorities have their TINs deactivated in Vietnam?
Pursuant to Article 39 of the Law on Tax Administration 2019, the conditions for deactivation of a TIN are stipulated as follows:
TIN deactivation
...
- A taxpayer registering directly with the tax authorities shall deactivate the TIN in the following cases:
a) Cessation of business activities, with no arising tax obligations for non-business organizations;
b) Revocation of business registration certificate or equivalent license;
c) Division, merger, or consolidation;
d) The tax authorities issues a notice that the taxpayer is not operating at the registered address;
dd) The individual dies, is missing, or loses civil capacity according to the law;
e) A foreign contractor upon the conclusion of the contract;
g) A contractor or investor participating in petroleum contracts upon the conclusion of the contract or transfer of the entire interest in the petroleum contract.
- Principles for TIN deactivation are specified as follows:
a) The TIN cannot be used in economic transactions from the date the tax authorities announces its deactivation;
b) The TIN of an organization, once deactivated, cannot be reused, except in cases specified in Article 40 of this Law;
c) The TIN of a business household or individual, upon deactivation, does not affect the validity of the TIN of the representative of the business household, which can be used to fulfill other tax obligations of that individual;
...
According to the above provisions, a taxpayer registering directly with the tax authorities shall deactivate the TIN in the following cases:
- Cessation of business activities with no arising tax obligations for non-business organizations;
- Revocation of business registration certificate or equivalent license;
- Division, merger, or consolidation;
- The tax authorities issues a notice that the taxpayer is not operating at the registered address;
- The individual dies, is missing, or loses civil capacity according to the law;
- A foreign contractor upon the conclusion of the contract;
- A contractor or investor participating in petroleum contracts upon the conclusion of the contract or transfer of the entire interest in the petroleum contract.
When shall a taxpayer registering directly with the tax authorities have their TINs deactivated in Vietnam? (Image from the Internet)
What are regulations on the classification of TINs in Vietnam?
Pursuant to Clause 3, Article 5 of Circular 105/2020/TT-BTC, the classification of TIN structure is as follows:
(1) A 10-digit TIN is used for enterprises, cooperatives, legal entities, or non-legal entities with direct tax obligations; representatives of households, business households, and other individuals (hereinafter referred to as independent entities).
(2) A 13-digit TIN and a hyphen (-) separating the first 10 digits from the last 3 digits are used for dependent units and other subjects.
(3) Taxpayers being economic organizations, or other organizations as specified in points a, b, c, d, n, Clause 2, Article 4 of Circular 105/2020/TT-BTC with full legal capacity or without but directly arising tax obligations and independently responsible for all tax obligations before the law are issued a 10-digit TIN;
Dependent units established in accordance with the law of the above-mentioned taxpayer, if tax obligations arise and directly declare and pay taxes, are issued a 13-digit TIN.
(4) Foreign contractors and foreign sub-contractors as specified in point đ, Clause 2, Article 4 of Circular 105/2020/TT-BTC registering to pay contractor tax directly with the tax authorities are issued a 10-digit TIN for each contract.
+ If a foreign contractor forms a consortium with Vietnamese economic organizations to conduct business in Vietnam based on a contractor contract and the consortium establishes a Joint Operation Board, the Joint Operation Board performs accounting, has a bank account, and is responsible for issuing invoices;
Or if the Vietnamese economic organization in the consortium is responsible for joint accounting and profit-sharing for the members of the consortium, a 10-digit TIN is issued to declare and pay taxes for the contractor contract.
+ If a foreign contractor or foreign sub-contractor has an office in Vietnam and has been declared by the Vietnamese side, deducted, and paid contractor tax, the foreign contractor or foreign sub-contractor is issued a 10-digit TIN to declare all other tax obligations (except for contractor tax) in Vietnam and provide the TIN to the Vietnamese side.
(5) Overseas suppliers as specified in point e, Clause 2, Article 4 of Circular 105/2020/TT-BTC without a TIN in Vietnam when registering directly with the tax authorities are issued a 10-digit TIN.
Overseas suppliers use the issued TIN to directly declare, pay taxes, or provide the TIN to organizations or individuals in Vietnam authorized by the overseas supplier or provide it to a commercial bank, intermediary payment service provider to perform withholding, paying for tax obligations and declaring in the withholding tax statements of overseas suppliers in Vietnam.
(6) Organizations and individuals responsible for withholding and paying on behalf of, as specified in point g, Clause 2, Article 4 of Circular 105/2020/TT-BTC, are issued a 10-digit TIN to declare and pay taxes on behalf of foreign contractors, foreign sub-contractors, overseas suppliers, organizations, and individuals with contracts or cooperative documents.
+ Foreign contractors and foreign sub-contractors as specified in point đ, Clause 2, Article 4 of Circular 105/2020/TT-BTC for whom the Vietnamese side declares and pays contractor tax are issued a 13-digit TIN according to the substitute tax number of the Vietnamese side to confirm the completion of the contractor's tax obligation in Vietnam.
+ When the taxpayer changes taxpayer registration information, temporarily suspends operations or business, or resumes operations or business ahead of schedule, deactivates the validity of the TIN, and restores the TIN according to regulations, the substitute TIN is updated by the tax authorities corresponding to the information and status of the taxpayer's TIN. The taxpayer is not required to submit a profile according to Chapter II of Circular 105/2020/TT-BTC regarding the substitute TIN.
(7) Operators, joint operators, joint-venture enterprises, organizations assigned by the Government of Vietnam to receive the profit share of oil and gas from oil and gas fields in overlapping areas as specified in point h, Clause 2, Article 4 of Circular 105/2020/TT-BTC are issued a 10-digit TIN for each petroleum contract or agreement or equivalent document.
+ Contractors, investors participating in petroleum contracts are issued a 13-digit TIN according to the 10-digit TIN of each petroleum contract to fulfill specific tax obligations under the petroleum contract (including corporate income tax on income from transferring interests in the petroleum contract).
+ The parent company - Vietnam National Oil and Gas Group represents the host country to receive the profit share from petroleum contracts and is issued a 13-digit TIN according to the 10-digit number of each petroleum contract to declare and pay taxes for the profit share under each petroleum contract.
(8) Taxpayers being households, business households, individual businesses, and other individuals as stipulated in points i, k, l, n of Clause 2, Article 4 of Circular 105/2020/TT-BTC are issued a 10-digit TIN for the representative of the household, the representative of the business household, the individual, and issued a 13-digit TIN for the business locations of the business household, individual business.
(9) Organizations and individuals specified in point m, Clause 2, Article 4 of Circular 105/2020/TT-BTC with one or more entrusted collection contracts with a tax authorities are issued a substitute TIN to pay the amount collected from taxpayers into the state budget.
Vietnam: How many TINs does an individual have?
Pursuant to Clause 3, Article 30 of the Law on Tax Administration 2019, the subjects of taxpayer registration and issuance of TINs are regulated as follows:
Subjects of Taxpayer Registration and Issuance of TINs
...
3. The issuance of TINs is regulated as follows:
...
b) **Each individual is issued a single TIN to be used throughout their lifetime. Dependents of the individual are issued TINs to reduce family deductions for personal income taxpayers. The TIN issued to the dependent is also the TIN of the individual when the dependent arises obligations with the state budget;
...
According to the above provisions, each individual is issued only a single TIN.
