Cases of TIN deactivation in Vietnam

Cases of TIN deactivation in Vietnam (Internet image)

1. What is tax identification number (TIN)?

According to Clause 5, Article 3 of the Law on Tax Administration 2019, tax identification number (TIN) means a series of 10 or 13 digits and other characters assigned by tax authorities to taxpayers to serve tax administration.

Specifically:

- Taxpayers include:

= Organizations, households, household businesses and individuals paying taxes in compliance with provisions on taxation;

= Organizations, households, household businesses, individuals paying other amounts to the state budget;

= Organizations and individuals deducting tax from income.

- Tax authorities, including:

= General Department of Taxation, Departments of Taxation of provinces, and Sub-departments of Taxation of districts;

= General Department of Vietnam Customs, Departments of Customs, Post Clearance Audit Departments, Sub-department of Customs.

(Clause 1 and 2, Article 2 of the Law on Tax Administration 2019)

2. Cases of TIN deactivation in Vietnam

* Case 1:

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

- Shutdown or dissolution, bankruptcy;

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

- Full division, acquisition/merger, consolidation.

* Case 2:

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

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

- Revocation of business registration certificate or equivalent license;

- Full division, acquisition/merger, consolidation;

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

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

- A foreign contractor completes or terminates the contract;

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

(Clause 1 and 2, Article 39 of the Law on Tax Administration 2019)

3. Rules for deactivation of TINs in Vietnam 

According to Clause 3, Article 39 of the Law on Tax Administration 2019, rules for deactivation of TINs:

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

- TINs of organizations shall not be reused once they are deactivated, except for the cases prescribed in Article 40 of the Law on Tax Administration 2019;

- 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;

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

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

4. Prohibited activities in tax administration in Vietnam

Specifically, in Article 6 of the Law on Tax Administration 2019, prohibited activities in tax administration in Vietnam include:

- Collusion, connection, cover-up between taxpayers and tax officials, tax authorities for price transfer and/or tax evasion.

- Inconvenience, burden to tax payers.

- Taking advantage to seize or put tax money to illegal use.

- Deliberate avoidance of declaration or inadequate, late, inaccurate declaration of tax liabilities.

- Obstructing operations of tax officials.

- Using tax identification numbers of other persons to conduct violations against the law or allowing other persons illegal use of one’s tax identification number.

- Selling goods and providing services without issuance of invoices as prescribed by law, using illegal invoices and using invoices illegally.

- Alteration, misuse, illegal access or destruction to taxpayer information system.

Thanh Rin

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