Enterprises operating in the fields of insurance, accounting, auditing, lawyer, notary public or other specialized fields are not required to register their business through the business registration agency under specialized laws branches or organizations that register tax directly with tax authorities such as representative offices of foreign traders in Vietnam, foreign contractors, etc. procedures for terminating tax identification numbers of these enterprises and organizations are permitted. How are the regulations? To help you understand more about the procedure for terminating the validity of the tax identification number of an enterprise that registers tax directly with the tax authority, Hong Bang Law would like to advise as follows:

Legal grounds

• Tax Administration Law 2019
• 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, conditions

Cases of invalidation of tax codes

According to Article 39 of the Law on Tax Administration 2019, the cases of invalidation of tax identification numbers of enterprises and organizations that register tax directly with tax authorities are prescribed as follows:

• Termination of business activities, no longer incurring tax obligations for non-business organizations;
• The business registration certificate or equivalent license is revoked;
• Divided, merged, consolidated;
• Noticed by the tax authority that the taxpayer does not operate at the registered address;
• Individuals are dead, missing, or have lost their civil act capacity as prescribed by law;
• Foreign contractors at the end of the contract;
• Contractors and investors participate in oil and gas contracts upon termination of the contract or transfer of all interests in participating in the oil and gas contract.

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 that has been terminated may not be used again, except for the case specified in Article 40 of the 2019 Law on Tax Administration;
• When the tax identification number of a business household or individual is invalidated, the tax identification number of the representative of the business household 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 at the same time 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

Enterprises shall submit a dossier of TIN deactivation to the tax authority directly managing them within 10 working days from the date of issuance of written termination of operation or business operation termination.

Obligations must be fulfilled before the tax identification number is invalidated

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

Components of the application for invalidation of tax authorities

• A written request for invalidation of tax identification number, form No. 24/DK-TCT issued together with Circular 105/2020/TT-BTC
• For contractors and investors participating in oil and gas contracts, the parent company – Vietnam National Oil and Gas Group, representing the host country, receives the profit divided from the oil and gas contracts; foreign contractors, foreign sub-contractors (except for organizations or individuals withholding payment on behalf of foreign contractors or foreign sub-contractors): A copy of contract liquidation, or a copy of the document on the transfer of the entire capital contribution to the oil and gas contract to the investor participating in the oil and gas contract
• For business households, business individuals, business locations: a copy of the decision on revocation of the business household registration certificate (if any)
• For economic organizations and other organizations:
• • For the managing unit, the dossier is one of the following papers: A copy of the dissolution decision, a copy of the division decision, a copy of the consolidation contract, a copy of the merger contract, a copy of the withdrawal decision Certificate of operation registration of a competent authority, copy of the notice of termination of operation, copy of the decision on transformation. In case the managing unit has dependent units, which have been granted a 13-digit tax code, the managing unit must send a written notice of operation termination to the dependent units to request the dependent unit carry out procedures for TIN deactivation with the tax authority managing the dependent unit before TIN deactivation of the managing unit.
  • For a dependent unit, the application is one of the following documents: A copy of the decision or notice on termination of operation of the dependent unit, a copy of the decision on revocation of the certificate of operation registration for the dependent unit.
• Decisions, notices, and other papers of competent state agencies in case of codetermination Tax in specific cases is prescribed in Clause 4, Article 14 of Circular 105/2020/TT-BTC

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 an email to lienheluathongbang@gmail.com

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