Cases subject to termination of tax code validity

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The tax code shall be invalid when enterprises stop their business operation, are dissolved or bankrupted. Photo: T.L

Accordingly, if taxpayers make tax registration together with corporate registration, cooperative registration, business registration, the tax code shall be invalid when enterprises stop their business operation, are dissolved or bankrupted.

The invalidation of tax code shall be applied to the following cases: enterprises have corporate registration, cooperative registration, business registration revoked; are divided, merged or consolidated.

The Law on Tax Administration in 2019 also stipulates that if taxpayers directly make tax registration with the Tax authorities, the invalidation of tax code shall be applied to one of following cases: enterprise stops their business operation, no longer incur tax obligations for non-business organizations; is revoked business registration certificate or equivalent permits; is divided, merged or consolidated; is notified by the tax authorities that the taxpayer no longer operates at the registered address; individuals are dead, missing or lose civil act capacity according to law provisions; foreign contractors upon termination of contracts; contractors and investors participate in signing petroleum contracts upon termination of contracts or transfer of all interests in petroleum contracts.

The Tax Administration Law of 2019 states that tax codes are not used in economic transactions from the date of the tax authorities announce the invalidation; the invalid tax code of the organization shall not be reused.

In addition, when the tax code of the business household or individual is invalid, the tax code of the representative of the business household shall be valid and used to fulfil other tax obligations of this representative.

When enterprises, economic organizations, other organizations and individuals terminate the validation of their tax codes, they must terminate the tax codes of payment substitutes. If tax payers who are managing units terminate the validation of tax codes, dependent units must terminate the validation of the tax codes.