Regulations on TIN deactivation and reactivation in Vietnam

Regulations on TIN deactivation and reactivation in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is tax identification number (TIN)?

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

2. Regulations on TIN deactivation in Vietnam

The invalidation of tax identification numbers under Article 39 of the Law on Tax Administration 2019 is as follows:

- 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.

- 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.

- 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 this Law;

+ 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.

- An application for requesting TIN deactivation shall include:

+ 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 the Law on Tax Administration 2019 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.

3. Regulations on TIN reactivation in Vietnam

According to Article 40 of the Law on Tax Administration 2019, the TIN reactivation is 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.

Quoc Dat

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