Do enterprises submit terminal tax returns and financial statements upon shutdown in Vietnam?

Do enterprises submit terminal tax returns and financial statements upon shutdown in Vietnam?

According to Clause 6, Article 43 of the Law on Tax Administration 2019, it is stipulated as follows:

Tax declaration dossiers

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6. Tax declaration dossiers for cases of cessation of activities, termination of contracts, conversion of business entity type, or reorganization of enterprise include:

a) Terminal tax return;

b) Financial statements up to the point of cessation of activities or termination of contracts or conversion of business entity type or reorganization of enterprise;

c) Other documents related to tax finalization.

Therefore, in the case of an enterprise ceasing operations, the tax declaration dossier must include:

- terminal tax return;

- Financial statements up to the point of cessation of the enterprise's activities;

- Other documents related to tax finalization.

Do enterprises need to submit terminal tax returns and financial statements upon shutdown in Vietnam? (Image from the Internet)

Deadline for submitting tax declaration dossiers upon shutdown of enterprises in Vietnam

According to Article 44 of the Law on Tax Administration 2019, it is stipulated as follows:

Deadline for submitting tax declaration dossiers

1. The deadline for submitting tax declaration dossiers for taxes declared monthly, quarterly is as follows:

a) No later than the 20th of the following month for monthly tax declaration and payment cases;

b) No later than the last day of the first month of the following quarter for quarterly tax declaration and payment cases.

2. The deadline for submitting tax declaration dossiers for taxes calculated on an annual basis is as follows:

a) No later than the last day of the third month from the end of the calendar year or fiscal year for the annual tax finalization dossier; no later than the last day of the first month of the calendar year or fiscal year for the annual tax declaration dossier;

b) No later than the last day of the fourth month from the end of the calendar year for the personal income tax finalization dossier of individuals directly finalizing taxes;

c) No later than December 15th of the preceding year for the estimated tax declaration dossier of business households and individuals paying tax by estimation; in the case of new business households and individuals, the deadline for submitting the estimated tax declaration dossier is no later than 10 days from the commencement of business activities.

3. The deadline for submitting tax declaration dossiers for taxes declared and paid each time a tax obligation arises is no later than the 10th day from the date the tax obligation arises.

4. The deadline for submitting tax declaration dossiers for cases of cessation of activities, termination of contracts or reorganization of enterprises is no later than the 45th day from the date of the event.

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The deadline for submitting tax declaration dossiers upon shutdown of enterprises is no later than the 45th day from the date of the event.

Does the shutdown of enterprises in Vietnam result in the TIN deactivation?

According to Article 39 of the Law on Tax Administration 2019, it is stipulated as follows:

Deactivation of TINs

1. Taxpayers registering together with business registration, cooperative registration, or business operation registration shall invalidate their TINs in the following cases:

a) Cease business operations or dissolve, go bankrupt;

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

c) Split, merge, or consolidate.

2. Taxpayers registering directly with tax authorities shall invalidate their TINs in the following cases:

a) Cease business operations and no longer incur tax obligations with non-business organizations;

b) The business registration certificate or equivalent license is revoked;

c) Split, merge, or consolidate;

d) The tax authority issues a notice that the taxpayer does not operate at the registered address;

dd) Individuals die, go missing, or lose civil act capacity as prescribed by law;

e) Foreign contractors upon completing contracts;

g) Contractors and investors participating in petroleum contracts upon contract completion or transfer of all contractual interests.

3. Principles for invalidating TINs are stipulated as follows:

a) TINs shall not be used in economic transactions from the date the tax authority announces the deactivation;

b) The TINs of organizations whose TINs have been invalidated shall not be reused, except as prescribed in Article 40 of this Law;

c) The TINs of business households and business individuals whose TINs have been invalidated shall not invalidate the TINs of the household representatives, which shall continue to be used to fulfill other tax obligations of the individuals;

d) When enterprises, economic organizations, other organizations, and individuals invalidate their TINs, they must also invalidate their sub-unit TINs;

dd) Taxpayers who are managing units invalidating their TINs must invalidate their dependent units' TINs.

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Thus, enterprises that cease operations will have their TINs invalidated.