When the enterprise’s TIN is deactivated, shall the TINs of branches also be deactivated in Vietnam?

When the enterprise’s TIN is deactivated, shall the TINs of branches also be deactivated in Vietnam?

Based on Point dd, Clause 3, Article 39 of the Law on Tax Administration 2019 regulating the principles for TIN deactivation as follows:

TIN deactivation

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

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

b) A TIN of an organization, when deactivated, shall not be reused, except in cases provided for in Article 40 of this Law;

c) When the TIN of a household enterprise or individual enterprise is deactivated, the TIN of the representative of the household enterprise shall not be deactivated and may be used to fulfill other tax obligations of that individual;

d) When a enterprise, economic organization, other organization, or individual deactivates the validity of its TIN, it must also deactivate the TIN of the tax substitutor;

đ) When the taxpayer, as the managing unit, deactivates its TIN, the dependent units must also have their TINs deactivated.

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Thus, according to the above regulations, when the enterprise, being the managing unit, is deactivated from its TIN validity, the branch of the enterprise (dependent unit) must also have its TIN deactivated.

When the enterprise’s TIN is deactivated, shall the TINs of branches also be deactivated in Vietnam? (Image from the Internet)

What are cases for TIN deactivation of a enterprise in Vietnam?

Based on Clause 1 and Clause 2, Article 39 of the Law on Tax Administration 2019, the cases for TIN deactivation of a enterprise are as follows:

(1) When a enterprise tax registration accompanies enterprise registration:

The enterprise deactivates its TIN validity when falling under one of the following cases:

- Ceasing enterprise operations or dissolving, going bankrupt;

- Having its enterprise registration certificate, cooperative registration certificate, or enterprise license revoked;

- Being divided, merged, or consolidated.

(2) When a enterprise tax registration is directly with the tax authority:

The enterprise deactivates its TIN validity when falling under one of the following cases:

- Ceasing enterprise operations, with no further tax obligations for non-trading organizations;

- Having its enterprise registration certificate or equivalent license revoked;

- Being divided, merged, or consolidated;

- Being notified by the tax authority that the taxpayer is not operating at the registered address;

- Individuals dying, missing, or losing civil legal capacity as stipulated by law;

- Foreign contractors when finishing contracts;

- Contractors, investors participating in oil and gas contracts when finishing contracts or transferring all rights to participate in oil and gas contracts.

What does the application for TIN deactivation submitted directly to the tax authority in Vietnam?

According to Clause 1, Article 14 of Circular 105/2020/TT-BTC, the application for TIN deactivation directly with the tax authority includes:

The dossier for TIN deactivation for taxpayers registering directly with the tax authority is the application for TIN deactivation using form No. 24/DK-TCT issued under Circular 105/2020/TT-BTC and other documents as follows:

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

+ For the managing unit, the dossier includes one of the following documents:

A copy of the dissolution decision, a copy of the division decision, a copy of the consolidation contract, a copy of the merger contract, a copy of the decision to revoke the certificate of operation registration by a competent authority, a copy of the notice to cease operations, a copy of the conversion decision.

+ In cases where the managing unit has dependent units already issued with 13-digit TINs, the managing unit must provide a notice of cessation of operations to the dependent units, requesting them to undertake procedures for TIN deactivation with the tax authority managing the dependent unit before the managing unit's TIN is deactivated.

+ If the dependent unit deactivates TIN validity but is unable to fulfill tax obligations with the state budget, the managing unit declares a commitment to inherit all tax obligations of the dependent unit, sends it to the tax authority managing the dependent unit, and continues to fulfill the tax obligations of the dependent unit with the tax authority managing the tax obligations of the dependent unit after the TIN of the dependent unit has been deactivated.

- For dependent units, the dossier includes one of the following documents: A copy of the decision or notice to deactivate operations of the dependent unit, a copy of the decision to revoke the certificate of registration for operations of the dependent unit by a competent authority.

- For contractors, investors participating in oil and gas contracts, the parent company - Vietnam National Oil and Gas Group representing the host country to receive profit shares from oil and gas contracts; foreign contractors, foreign sub-contractors stipulated at points đ, h Clause 2 Article 4 of Circular 105/2020/TT-BTC (except for foreign contractors, foreign sub-contractors issued a TIN as stipulated at Point e Clause 3 Article 5 of Circular 105/2020/TT-BTC), the dossier includes: A copy of the contract liquidation agreement or a copy of the document on transferring all equity participation in the oil and gas contract for investors participating in oil and gas contracts.

- For enterprise households, individual enterprisees, enterprise locations of enterprise households, individual enterprisees as stipulated at point i Clause 2 Article 4 of Circular 105/2020/TT-BTC, the dossier includes: A copy of the decision to revoke the Certificate of enterprise Household Registration (if applicable).