Will the TINs of merged enterprises in Vietnam be deactivated?

Will the TINs of merged enterprises in Vietnam be deactivated?

Under Article 39 of the Tax Administration Law 2019, the regulations are as follows:

TIN deactivation

1. Taxpayers who combine taxpayer registration with business registration shall have their TINs deactivated in one of the following cases:

a) Shutdown or dissolution, bankruptcy;

b) Revocation of certificate of enterprise registration, cooperative registration and/or business registration;

c) Full division, acquisition/merger, consolidation.

2. Taxpayers directly registered with tax authorities shall have their TINs deactivated when one of the following cases takes place:

a) Shutdown, termination of tax liabilities for non-business organizations;

b) Revocation of business registration certificate or equivalent license;

c) Full division, acquisition/merger, consolidation;

d) Notified by tax authorities that taxpayers do not operate at registered locations;

dd) An individual is dead, missing or incapacitated as prescribed by law;

e) A foreign contractor completes or terminates the contract;

g) Contractors, investors entering into petroleum agreements complete or terminate the agreements or transfer of all rights to enter petroleum agreements.

3. Rules for deactivation of TINs:

a) TINs shall not be used in business transactions starting from the date on which tax authorities announce their deactivation;

b) TINs of organizations shall not be reused once they are deactivated, except for the cases prescribed in Article 40 of this Law;

c) When the TIN of a household or individual business is deactivated, the TIN of the representative of such household business will not be deactivated and shall be used to fulfill other tax liabilities of that individual;

d) The income earners’ TINs will be deactivated when their income payer’s TIN is deactivated.

dd) When a managing unit’s TIN is deactivated, TINs of their dependent units must also be deactivated.

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Thus, according to the rules, the TINs of merged enterprises in Vietnam will be deactivated.

What does the application for TIN deactivation in Vietnam include?

Under Article 39 of the Tax Administration Law 2019, the regulations are as follows:

- The application for TIN deactivation includes:

- The written request for TIN deactivation;

- Other relevant documents.

- Taxpayers who combine taxpayer registration with business registration shall register for dissolution or shutdown at business registration authorities as prescribed by law. Before such registration at business registration authorities, taxpayers shall fulfill their tax liabilities to their supervisory tax authorities in accordance with this Law and other relevant provisions.

- Taxpayers directly registered with tax authorities shall submit the application for TIN deactivation to their supervisory tax authorities within 10 working days starting from the date of issuance of the decision on operation/business shutdown or contract termination.

Will the TINs of merged enterprises in Vietnam be deactivated? (Image from the Internet)

What are the regulations on TIN reactivation in Vietnam?

Under Article 40 of the Tax Administration Law 2019 regarding the TIN reactivation, the rules are as follows:

- TINs of taxpayers who combine taxpayer registration with business registration shall be reactivated together with as their legal status is reactivated.

- For taxpayers directly registered with tax authorities, the application for TIN reactivation shall be submitted to their supervisory tax authorities in the following cases:

+ The competent authority revokes the decision on revocation of business registration certificate or equivalent license;

+ The taxpayer wishes to resume their business operations after the TIN deactivation application has been sent to the tax authority, but the tax authority has yet to issue a notification on TIN deactivation;

+ The tax authority has issued an announcement that the taxpayer does not have business operation at the registered address but has not revoked the licence or deactivated the TIN.

- The use of a TIN may be resumed from the effective date of the decision to restore legal status issued by the business registration authority or the date the tax authority reactivates the TIN.

- An application for TIN reactivation shall include:

+ The written request for TIN reactivation;

+ Other relevant documents.