A Tax Identification Number can be locked when the tax authorities issue a notice that the business is not operating at its registered address, leading to many serious issues and legal consequences for the business.
Following are cases of tax identification number deactivated – consequences – reactivation:
CASES THAT TAX IDENTIFICATION NUMBERS DEACTIVATED
- 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.
CONSEQUENCES AND RULES WHEN TAX IDENTIFICATION NUMBERS DEACTIVATED
Tax identification numbers shall not be used in business transactions starting from the date on which tax authorities announce their deactivation;
- tax identification numbers of organizations shall not be reused once they are deactivated;
- When the tax identification number of a household or individual business is deactivated, the tax identification number 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’ tax identification numbers will be deactivated when their income payer’s tax identification number is deactivated.
- When a managing unit’s tax identification number is deactivated, tax identification numbers of their dependent units must also be deactivated.
TAX IDENTIFICATION NUMBER REACTIVATION
- The application for tax identification number 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 tax identification number deactivation application has been sent to the tax authority, but the tax authority has yet to issue a notification on tax identification number 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 license or deactivated the tax identification number.
The use of a tax identification number may be resumed from the effective date of the decision to restore legal status issued by the business
Do contact VIVA Business Consulting should you have any any query or question about regulations on Vietnam Tax Identification Number.
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