The procedure for TIN (tax identification number) deactivation, also known as the TIN closing procedure, is an important procedure when businesses or other organizations carry out procedures for business termination or dissolution, or bankruptcy. To help you understand more about the procedure for terminating the validity of tax identification numbers of tax-registered enterprises along with business registration, Hong Bang Law would like to advise as follows:

Legal grounds

• Law on Tax Administration 2019
• Enterprise Law 2020
• Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration.
• Circular No. 105/2020/TT-BTC dated December 3, 2020 of the Ministry of Finance guiding tax registration.

Requirements

Cases of invalidation of tax identification numbers

Pursuant to Article 39 of the Law on Tax Administration 2019, the cases of termination of the validity of an enterprise’s tax identification number include:

• Termination of business operations or dissolution or bankruptcy;
• Having the enterprise registration certificate, cooperative registration certificate, business registration certificate revoked;
• Divided, merged, consolidated.

Principle of invalidation of tax identification numbers

• Tax identification numbers cannot be used in economic transactions from the date on which the tax authority announces the termination of its validity;
• An organization’s tax identification number, once its validity has expired, may not be reused, except for the case specified in Article 40 of this Law;
• When the tax identification number of a business household or individual is terminated, the tax identification number of the business household representative will not be terminated and will be used to fulfill other tax obligations of that individual. ;
• When enterprises, economic organizations, other organizations and individuals terminate the validity of their tax identification numbers, they must simultaneously terminate the validity of the tax identification numbers paid on their behalf;
• If the taxpayer being the managing unit terminates the TIN, the dependent units must have their TIN invalidated.

Deadline requirements

The enterprise submits the application for TIN deactivation to the tax authority directly managing it within 10 working days from the date of the written termination of operation or business operation or the contract termination date.

Components of the application

• A written request for TIN deactivation, made according to form 24/DK-TCT issued together with Circular 105/2020/TT-BTC;
• An application for invalidation of the tax identification number of the divided merged or consolidated enterprise or cooperative is one of the following papers: A copy of the division decision, a copy of the consolidation contract, a copy merger contract.
• A dossier of TIN deactivation of the dependent unit of the enterprise and cooperative is one of the following documents: A copy of the decision and notice of the enterprise or cooperative on termination of payment activities; branches, representative offices; a copy of the decision on revocation of the operation registration certificate of the branch or representative office of the competent state agency.
• Decisions on the dissolution of enterprises and cooperatives such as dissolution decisions, meeting minutes
• A written certification of the fulfillment of tax obligations for import-export activities by the General Department of Customs if the enterprise has import-export activities.

The agency carrying out the procedures: Tax agency directly managing

Obligations must be fulfilled before the tax code is invalidated

• Submit reports on the use of invoices in accordance with the law on invoices.
• Completing the obligation to submit tax returns, pay taxes and handle overpaid tax amounts and uncredited value-added tax amounts (if any).
• All dependent units must complete the procedures for TIN deactivation before TIN deactivation of the managing unit.

Hong Bang Law Firm is a reputable unit in carrying out procedures for invalidation of tax identification numbers. If you need advice, more detailed answers as well as how to access this service, please contact directly the Deputy Director in charge of business: Lawyer Nhat Nam via hotline: 0912.35.65.75, or call our free legal consultation hotline: 1900.6575 and send email to lienheluathongbang@gmail.com

Wishing you and your family good health, peace, and success!

Best regards!