PROCEDURE FOR INVALIDATION OF TAX IDENTIFICATION NUMBERS FOR ORGANIZATIONS DIRECTLY APPLYING FOR TAXPAYER REGISTRATION WITH TAX AUTHORITIES

1. Legal Basis?

- Law on Tax Administration dated June 13, 2019;

- Law No. 56/2024/QH15 dated November 29, 2024, Amending and Supplementing a Number of Articles of the Law on Securities, Accounting Law, Law on Independent Audit, Law on the State Budget, Law on Management and Use of Public Properties, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, and Law on Handling of Administrative Violations;

- Circular No. 86/2024/TT-BTC dated December 23, 2024 on taxpayer registration.

2. What is Tax identification number (TIN)?

According to Clause 5, Article 3 of the Law on Tax Administration 2019 and Points a and b, Clause 4, Article 5 of Circular No. 86/2024/TT-BTC, Tax identification number (TIN) means a sequence of 10 or 13 numerals and other characters granted by a tax office to a taxpayer for the purpose of tax administration. Specifically:

- 10-digit TINs shall be issued to enterprises, cooperatives, organizations with juridical personality or organizations without juridical personality that directly incur tax obligations; Individuals who are foreign nationals or Vietnamese citizens residing abroad without a PIN established from the national database on population.

- 3-digit TINs with a dash (-) used to separate the first 10 digits and the last 3 digits shall be used for dependent units and others specified.

3. Cases of Invalidation of Tax identification numbers?

Clause 1 and 2, Article 39 of the Law on Tax Administration 2019 stipulates the cases of Invalidation of TIN as follows:

- In case Taxpayers that make tax registration together with enterprise registration, cooperative registration or business registration shall complete procedures for invalidation of TIN when falling into one of the following cases:

+ Terminating business activities or being dissolved or falling bankrupt;

+ Having their enterprise registration certificates, cooperative registration certificates or business registration certificates revoked;

+ Being divided, merged or consolidated.

- In case Taxpayers that make tax registration directly with tax offices shall complete procedures for invalidation of TIN when falling into one of the following cases:

+ Terminating business activities, or no longer having tax liabilities for non-business organizations;

+ Having their business registration certificates or equivalent permits revoked;

+ Being divided, merged or consolidated;

+ Being informed by tax offices that taxpayers no longer operate at the registered addresses;

+ Taxpayers being individuals are dead or missing, or lose their civil act capacity in accordance with law;

+ Taxpayers being foreign contractors terminate contracts;

+ Taxpayers being contractors or investors to petroleum contracts terminate contracts or transfer all benefits from petroleum contracts

4. Principles of invalidation of TIN?

Principles of invalidation of TIN are specifically provided in Clause 3, Article 39 of the Law on Tax Administration 2019 as follows::

- TIN may not be used in economic transactions from the date tax offices announce their invalidation;

- Organizations’ invalidated TIN may not be used, except the case prescribed in Article 40 of the Law on Tax Administration 2019;

- Upon the invalidation of TIN of business households or individuals, TIN of representatives of business households are not invalidated and may be used to perform other tax liabilities of such representatives;

- If enterprises, economic organizations, other organizations or individuals have their TIN invalidated, they are required to concurrently complete procedures for invalidation of TIN that are used to conduct on-behalf tax payment;

- If taxpayers being managing units have their TIN invalidated, their affiliates’ TIN shall be invalidated.

5. Dossier of request for invalidation of a tax identification number for organizations directly applying for taxpayer registration with tax authorities ?

According to Clause 4, Article 39 of the Law on Tax Administration 2019 and Clause 1, Article 14 of Circular No. 86/2024/TT-BTC, the dossier for of request for invalidation of TIN for organizations directly applying for taxpayer registration with tax authorities includes the following documents:

- A written request for invalidation of the TIN (Form No. 24/ĐK-TCT issued together with Circular No. 86/2024/TT-BTC);

- Other relevant papers:

Firstly, for the business organizations and other organizations specified in points a, b, c, d, and n clause 2 Article 4 of Circular No. 86/2024/TT-BTC:

+ For a managing unit, the dossier shall be either one of the following:

• Copy of dissolution decision;

• Copy of division decision;

• Copy of agreement on merger;

• Copy of agreement on acquisition;

• Copy of decision on revocation of certificate of operation registration of the competent authority;

• Copy of notification of closure;

• Copy of conversion decision.

*Note:

If the managing unit has dependent units issued with 13-digit TINs, the managing unit shall send a written notification of closure to the dependent units in order for them to complete the procedures for TIN invalidation with their supervisory tax authorities before invalidation of the managing unit's TIN.

If a dependent unit has its TIN invalidated but it is unable to cover the tax obligations to the state budget as prescribed in the Law on Tax Administration and guiding documents, the managing unit shall undertake in writing to incur every tax liability of such dependent unit with the supervisory tax authority of the dependent unit and keep covering tax obligations of the dependent unit to the tax authority managing tax obligations of the dependent unit even after the dependent unit’s TIN is invalidated.

+ For a dependent unit, the dossier shall be either one of the following:

• Copy of decision or notice of closure of a dependent unit;

• Copy of decision on revocation of certificate of dependent unit operation registration issued by the competent authority.

Secondly, for the contractor or investor entering into petroleum contract, parent company - PetroVietnam as the representative of host country that receives shared profits from petroleum contracts; the foreign contractor or foreign sub-contractor specified in points đ, h clause 2 Article 4 of Circular No. 86/2024/TT-BTC (other than the foreign contractor or foreign sub-contractor issued with the TIN as prescribed in point e clause 2 Article 5 of Circular No. 86/2024/TT-BTC), the dossier shall be:

• Copy of contract finalization, or;

• Copy of document on transfer of capital, in whole, contributed to enter into petroleum contract, for the investor to the petroleum contract.

6. Procedure for invalidation of tax identification numbers?

•  Competent authority: The tax office directly managing the taxpayer.
•  The Procedure:

Step 1: Prepare the dossier of request for invalidation of a TIN;

Step 2: Submit the dossier of request for invalidation of a TIN to The tax office directly managing the taxpayer;

Step 3: The tax office directly managing the taxpayer issue a Notice that the taxpayer has stopped operating and is following procedures for the TIN invalidation within 02 (two) working days from the date the tax authority receives the complete application for the TIN invalidation as prescribed, or upon receipt of information from the business registration authority;

The tax office directly managing the taxpayer issue a Notice to the managing unit, dependent units in the case where the tax authority has received an application for TIN invalidation from the managing entity but the dependent units have not followed procedures for invalidation of TIN;

Step 4: The tax office directly managing the taxpayer cooperate with the supervisory tax authority where the taxpayer incurs the liabilities to the state budget in settling the taxpayer’s obligations at the said supervisory tax authority, offsetting tax obligations or refunding as prescribed;

For import and export activities: The tax office directly managing the taxpayer request the customs authority to certify the fulfilment of tax obligations and other state budget revenues by the taxpayer within 3 working days from the date of issuance of the notice that the taxpayer has stopped operating and is following procedures for TIN invalidation.

Step 5: The tax office directly managing the taxpayer issue a Notice of taxpayer’s TIN invalidation within 3 working days from the day on which the taxpayer has fulfilled their tax obligations to the tax authority or the tax authority has completely transferred the tax obligations and other state budget revenues of the dependent unit to the managing unit, or of the divided, acquired or merging unit to the new units.

The procedure for tax identification numbers for organizations directly applying for taxpayer registration with tax authorities is a mandatory administrative process that requires taxpayers to comply fully, accurately, and in a timely manner in accordance with legal regulations. Strict compliance with this procedure not only demonstrates the organization’s responsibility toward the State but also helps ensure transparency and clarity in tax administration and business operations. Therefore, taxpayers should thoroughly understand the relevant regulations to correctly follow the procedure and avoid unnecessary legal risks.

 

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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