28/08/2026
As part of Shinhan Bank Vietnam’s ongoing support to Business household and Corporate Customers in risk management and compliance awareness, we are pleased to share our latest monthly brief note on selected tax topics. Detailed information is available on the Shinhan Bank Vietnam website.
The following information is for reference purposes only and is designed to support our Valued Customers to identify key operational considerations early on and minimize future risks.
DISTINGUISHING “BUSINESS SUSPENSION” AND “INACTIVE AT THE REGISTERED ADDRESS” AS TAXPAYER STATUSES
When checking a taxpayer’s tax identification number (TIN) on the Tax administration Information System, a business may find that its status is recorded as “business suspension”. Meanwhile, another company that has not been operating for some time may be shown as “inactive at the registered address”. Are these two states any different?
Although both statuses suggest that a business is not operating as usual, they have different underlying causes, legal implications and required actions.
Case (A): “Business suspension” – Taxpayers voluntarily registers for a temporary suspension
Company (A) anticipates that it will not conduct business activities for a certain period this year and therefore proactively registers for a business suspension with its tax authority. Once the required procedure is completed, Company (A)’s status on the Tax administration Information System will be updated to “business suspension” for the registered suspension period.
Pursuant to the current regulations, a taxpayer must notify the competent tax authority of the business suspension no later than 01 working day before the suspension starts. Each suspension period will not exceed 12 months. If the taxpayer wishes to resume business operations before the registered end date, the relevant notification procedures must also be completed in accordance with the tax provisions.
Importantly, being registered as “business suspension” means that the taxpayer is not allowed to conduct business activities during the registered suspension period. Resuming operations before the registered end date without completing the required procedures will give rise to tax and tax administration risks, including consideration as a tax evasion behavior, depending on the circumstances.
A business suspension also does not automatically eliminate tax obligations arising before the aforesaid period. Taxpayers remain responsible for settling any outstanding tax obligations in accordance with applicable regulations. Last but not least, during a valid suspension period, taxpayers are exempt from submitting certain tax returns. For instance, this applies where the entire tax filing period falls within the registered suspension period.
Case (B): “Inactive at the registered address” – Not a voluntary business suspension from taxpayers
Company (B) is operating but has recently relocated without timely updating its address with the tax authority. Alternatively, following verification, the tax authority might determine that Company (B) is no longer operating at its registered location. In such situations, Company (B) could be recorded as “inactive at the registered address.”
If Company (B) continues to do business in practice, it should promptly determine the reason for that status and take the necessary steps to restore its appropriate tax status and/or update its tax registration information to reflect its actual setting.
Under the mentioned status of Case (B), it does not automatically terminate the taxpayer’s outstanding tax duties. The Law on Tax Administration indicates that a taxpayer no longer operating at its registered address is subject to specific tax administration measures. During that period, the taxpayer is subjects to the suspension of electronic tax transactions. In addition, once the tax authority has issued a notification confirming that the taxpayer is inactive at its registered premises, the taxpayer is not permitted to register for a business suspension. Furthermore, while this status remains in effect, the TIN is only used for certain procedures relating to termination or restoration of the TIN, as prescribed by tax laws. In some certain contexts, this status may also affect the ability of a beneficial owner of the company to leave Vietnam.
In contrast, even where a business has temporarily ceased operations in practice or believes that the tax status has been recorded incorrectly, “inactive at the registered address” should not be treated as an alternative form of lawful business suspension. Leaving the status unresolved until the business intends to resume operations would result in additional tax and administrative risks.
Key actions for taxpayers under each status (A), (B)
For Case (A) – “Business suspension”, the taxpayer should closely monitor:
1. The effective date of the business suspension;
2. The end date of the suspension period;
3. Whether the suspension notification has been properly submitted and accepted by the relevant authority;
4. Whether any business activities are conducted during the suspension period; and
5. Where the taxpayer intends to resume operations earlier than planned, whether the required notification procedures have been completed.
For Case (B) – “Inactive at the registered address”, the taxpayer should prioritize resolving the inactive status by:
1. Identifying the reason why the TIN has been recorded as “Inactive at the registered address”;
2. Reviewing and verifying the registered business address;
3. Checking any notifications or requests issued by the tax authority;
4. If the business remains operational, promptly completing the necessary procedures to demonstrate its actual operating status and restore the appropriate tax status; and
5. Reviewing outstanding tax filings, tax liabilities and other related tax obligations.
Why should businesses pay attention to tax statuses of themselves and their counterparties’?
A business may be in one of the above statuses or others while still having outstanding obligations with its counterparties or maintaining ongoing banking and financial transactions. Therefore, a taxpayer’s status is not merely an administrative record on the tax system but also has a practical impact on the business’s ability to conduct transactions.
When entering into transactions for the purchase or sale of goods and services, parties will pay attention to the counterparty’s TIN status, particularly when invoices are issued or received. If either party is found to have an unusual or inappropriate tax status, the parties should proactively review and address the issue to minimize potential complications relating to invoices, supporting documents and tax obligations.
Similarly, when a taxpayer maintains accounts with credit institutions, foreign bank branches, payment or payment intermediary service providers or conducts other financial transactions, identifying an unusual TIN status at an early stage allows the relevant issues to be resolved before they affect the transactions.
In conclusion, when checking a TIN on the tax authority’s electronic portal, businesses and individual business should clearly distinguish between “TIN under business suspension” and “TIN inactive at the registered address”. Understanding the distinction enables taxpayers and their counterparties to identify the appropriate next steps and avoid situations where a taxpayer assumes that it is merely “temporarily suspended,” while unresolved issues remain on the tax administration system.
This newsletter is prepared with reference to the Law on Tax Administration No. 108/2025/QH15, Decree No. 252/2026/ND-CP and Circular No. 89/2026/TT-BTC.
This material is provided only for general informational purposes at the publication time and does not constitute an assessment, conclusion, or opinion on any specific transaction, documentation, or counterparty of the Customers and the Bank. The content reflects general risk patterns observed in practice, in consideration, kindly consult with your competent authorities or independent tax consultants for appropriate guidance. The Bank will not be responsible for any loss or damage arising from reliance on this general information.
Within the scope of services permitted, Shinhan Bank Vietnam is always available to partner with Valued Customers in updating and sharing tax information to enhance financial management efficiency.
