WHEN A BUSINESS OR ECONOMIC ORGANIZATION TERMINATES THE VALIDITY OF THE TAX CODE, DOES IT HAVE TO TERMINATE THE VALIDITY OF THE TAX CODE PAYMENT ON BEHALF OF THEM?

When a business or economic organization terminates the validity of the tax code, does it have to terminate the validity of the tax code paid on behalf of the business? In what form does the tax authority receive the application for termination of the tax code? Through today’s article, let’s learn about this issue with Pham Consult!

Pursuant to Clause 3, Article 39 of the Law on Tax Administration 2019, the principle of tax code termination is stipulated as follows:

Termination of tax code

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3. The principle of tax code termination is stipulated as follows:

a) Tax codes shall not be used in economic transactions from the date the tax authority notifies the termination;

b) Tax codes of organizations that have terminated their validity shall not be reused, except in the cases specified in Article 40 of this Law;

c) When the tax codes of business households and business individuals terminate their validity, the tax codes of the business household representatives shall not be terminated and shall be used to perform other tax obligations of that individual;

d) When enterprises, economic organizations, other organizations and individuals terminate their tax codes, they must also terminate the validity of the tax codes paid on their behalf;

d) If the taxpayer is the parent unit that terminates the validity of the tax code, the dependent units must have their tax codes terminated.

Accordingly, when an enterprise, economic organization, other organization, or individual terminates the validity of the tax code, it must also terminate the validity of the tax code paid on its behalf.

The termination of the tax code is stipulated in Clause 2, Article 39 of the Law on Tax Administration 2019 as follows:

Termination of the tax code

1. A taxpayer who registers for tax together with business registration, cooperative registration, or business registration shall terminate the validity of the tax code when one of the following cases occurs:

a) Termination of business activities or dissolution or bankruptcy;

b) The business registration certificate, cooperative registration certificate, or business registration certificate is revoked;

c) Divided, merged, consolidated

2. Taxpayers who register for tax directly with the tax authority shall terminate the validity of their tax codes in one of the following cases:

a) Termination of business activities, no longer incurring tax obligations for non-business organizations;

b) Business registration certificate or equivalent license revoked;

c) Divided, merged, consolidated;

d) Tax authority issues a notice that the taxpayer is not operating at the registered address;

dd) Individuals die, go missing, or lose civil act capacity according to the provisions of law;

e) Foreign contractors upon termination of contracts;

g) Contractors and investors participating in petroleum contracts upon termination of contracts or transfer of all rights to participate in petroleum contracts.

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Accordingly, taxpayers who register for tax directly with the tax authority shall terminate the validity of their tax codes in cases where their business registration certificates or equivalent licenses are revoked.

According to Clause 1, Article 6 of Circular 105/2020/TT-BTC, it is stipulated that:

Receiving tax registration dossiers

1. Taxpayer dossiers

Tax registration dossiers include the first tax registration dossier; dossiers of changes in tax registration information; notices of temporary suspension of operations, business or resumption of operations after premature suspension of operations, business; dossiers of termination of tax code validity; dossiers of tax code restoration are received according to the provisions of Clause 2, Clause 3, Article 41 of the Law on Tax Administration.

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And according to Clause 2, Article 41 of the Law on Tax Administration 2019, the responsibilities of the Minister of Finance and tax authorities in tax registration are as follows:

Responsibilities of the Minister of Finance and tax authorities in tax registration

1. The Minister of Finance shall specify in detail the dossiers; prescribe the procedures and tax registration forms prescribed in Articles 31, 34, 36, 37, 38, 39 and 40 of this Law.

2. Tax authorities shall receive tax registration dossiers of taxpayers in the following forms:

a) Receive dossiers directly at the tax authority;

b) Receive dossiers sent by post;

c) Receive electronic dossiers via the tax authority’s electronic transaction portal and from the national information system on business registration, cooperative registration, and business registration.

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Thus, the tax authority receives the dossier for tax code termination in the following forms:

– Receive the dossier directly at the tax authority;

– Receive the dossier sent by post;

– Receive the dossier electronically via the tax authority’s electronic transaction portal and from the national information system on business registration, cooperative registration, and business registration.

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