Will the TIN be deactivated if there is a termination of tax liabilities in Vietnam?

Will the TIN be deactivated if there is a termination of tax liabilities in Vietnam?

Based on Clause 2, Article 39 of the Law on Tax Administration 2019, the regulations on the TIN deactivation are as follows:

TIN deactivation

1. Taxpayers registered along with enterprise registration, cooperative registration, business registration shall deactivate the effectiveness of the TIN in one of the following cases:

a) deactivation of business activities or dissolution, bankruptcy;

b) Revocation of the business registration certificate, cooperative registration certificate, business registration certificate;

c) Division, merger, or consolidation.

2. Taxpayers directly registered with the tax authority shall deactivate the effectiveness of the TIN in one of the following cases:

a) deactivation of business activities, no further tax obligations arising for non-business organizations;

b) Revocation of the business registration certificate or equivalent license;

c) Division, merger, or consolidation;

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

dd) Individual death, missing, loss of civil act capacity as prescribed by law;

e) Foreign contractor upon contract completion;

g) Contractors, investors participating in petroleum contracts upon contract completion or transfer of all rights to participate in petroleum contracts.

3. The principles of deactivating the effectiveness of the TIN are stipulated as follows:

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

b) The TIN of an organization, once deactivated, shall not be reactivated, except for cases specified in Article 40 of this Law;

c) The TIN of a business household, business individual, when deactivated, shall not lead to the deactivation of the TIN of the representative of the business household and can be used to fulfill other tax obligations of that individual;

d) When businesses, economic organizations, other organizations, and individuals deactivate the effectiveness of their TINs, they must simultaneously deactivate the effectiveness of substituted TINs;

dd) Taxpayers who are managing units deactivating the effectiveness of their TINs must have their dependent units' TINs deactivated as well.

4. The dossier for requesting deactivation of the TIN effectiveness includes:

a) A written request for deactivation of the TIN effectiveness;

b) Other related documents.

5. Taxpayers who register with enterprise registration, cooperative registration, business registration must register dissolution or deactivation of activities at the enterprise registration, cooperative registration, business registration authority as prescribed by law. Before doing so at the enterprise registration, cooperative registration, business registration authority, the taxpayer must register with the direct tax management authority to complete tax obligations as prescribed by this Law and other related legal provisions.

6. Taxpayers directly registered with the tax authority must submit a dossier for deactivation of the TIN effectiveness to the direct managing tax authority within 10 working days from the date of the document deactivating activities or deactivation of business activities or contract completion.

Taxpayers directly registered with the tax authority must deactivate the effectiveness of the TIN in cases of deactivating business activities or no further tax obligations for non-business organizations.

Note: This applies to taxpayers directly registered with the tax authority.

Thus, according to the above regulations, in cases where there is a termination of tax liabilities for non-business organizations, the effectiveness of the TIN shall be deactivated.

Will the TIN be deactivated if there is a termination of tax liabilities in Vietnam? (Image from the Internet)

May a deactivated TIN be reactivated in Vietnam?

Based on Clause 3, Article 39 of the Law on Tax Administration 2019, the regulation is as follows:

The principles of deactivating the effectiveness of the TIN are stipulated as follows:

- The TIN shall not be used in economic transactions from the date the tax authority announces its deactivation;

- The TIN of an organization, once deactivated, shall not be reactivated, except for cases specified in Article 40 of the Law on Tax Administration 2019;

- The TIN of a business household, business individual, when deactivated, shall not lead to the deactivation of the TIN of the representative of the business household and can be used to fulfill other tax obligations of that individual;

- When businesses, economic organizations, other organizations, and individuals deactivate the effectiveness of their TINs, they must simultaneously deactivate the effectiveness of substituted TINs;

- Taxpayers who are managing units deactivating the effectiveness of their TINs must have their dependent units' TINs deactivated as well.

Thus, according to the above regulations, the TIN of an organization, once its effectiveness is deactivated, cannot be reactivated.

What are regulations on effect of TINs in Vietnam?

According to the regulations in Clause 3, Article 30 of the Law on Tax Administration 2019 as follows:

Subject of Taxpayer Registration and Issuance of TIN

...

3. The issuance of a TIN is stipulated as follows:

a) Enterprises, economic organizations, other organizations are issued a single TIN to use throughout the operation process from the time of taxpayer registration until the deactivation of the TIN effectiveness. A taxpayer having a branch, representative office, dependent unit directly performing tax obligations shall be issued a dependent TIN. For enterprises, organizations, branches, representative offices, dependent units performing taxpayer registration through a one-stop-shop mechanism together with enterprise registration, cooperative registration, business registration, the code on the enterprise registration certificate, cooperative registration certificate, business registration certificate is simultaneously the TIN;

b) Individuals are issued a single TIN to use throughout their lifetime. Dependents of individuals are issued a TIN for personal income tax deduction. The TIN issued to dependents is simultaneously the individual's TIN when they arise obligations to the state budget;

c) Enterprises, organizations, individuals responsible for deduction, tax payment are issued a substitute TIN to declare tax, pay tax on behalf of the taxpayer;

d) TINs once issued cannot be reactivated to issue to other taxpayers;

dd) The TIN of enterprises, economic organizations, other organizations after conversion of type, sale, gifting, inheritance shall be retained;

e) The TIN for families, business households, business individuals is the TIN for the representative individual of the family, business household, business individual.

Thus, according to the above regulations, an enterprise TIN is issued as a single TIN to be used throughout the entire operation process from the time of taxpayer registration until the deactivation of the TIN's effectiveness.