How to handle business suspension notices of taxpayers in Vietnam from February 6, 2025?
Shall taxpayers suspending business operations notify the tax authority in Vietnam?
Based on Clause 1, Article 12 of Circular 86/2024/TT-BTC (effective from February 6, 2025), the regulation is as follows:
Notice of suspension or resumption of business operations before the scheduled time
When suspending or resuming business operations before the scheduled time, taxpayers must notify as stipulated in Clause 1, Clause 2, Article 37 of the Law on Tax Administration, Article 4 of Decree No. 126/2020/ND-CP, and the following provisions:
1. Organizations not subject to business registration must send Notice Form No. 23/DK-TCT issued with this Circular to the direct tax authority within the timeframes specified in Point c, Clause 1, Clause 3, and Clause 4, Article 4 of Decree No. 126/2020/ND-CP.
- After the tax authority has issued a notice that the taxpayer is not operating at the registered address, the enterprise, cooperative, or cooperative group must follow procedures to restore the tax code as stipulated in Point b, Clause 1, Article 18, and Point b, Clause 1, Article 19 of this Circular before registering to suspend business operations with the business registration authority.
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Additionally, according to Article 37 of the Law on Tax Administration 2019, the following is stipulated:
Notification when suspending business operations
- Organizations, business households, and individual businesses subject to business registration that suspend operations with a time limit or resume operations before the scheduled time must notify as governed by the Law on Enterprises and other related laws. The tax authority relies on the taxpayer's notice or the competent state authority to manage taxes during the period the taxpayer suspends or resumes operations before the scheduled time governed by this Law.
- Organizations, business households, and individual businesses not subject to business registration must notify the direct tax authority at least 01 working day before suspending operations or resuming before the scheduled time to manage taxes.
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Thus, when taxpayers suspend business operations, they must notify the direct tax authority as follows:
- Taxpayers subject to business registration must notify according to the provisions of the Law on Enterprises 2020 and other relevant legal provisions;
- Taxpayers not subject to business registration must send Notice Form No. 23/DK-TCT issued with Circular 86/2024/TT-BTC to the direct tax authority no later than 01 working day before suspending operations.
How to handle business suspension notices of taxpayers in Vietnam from February 6, 2025?
According to Article 28 of Circular 86/2024/TT-BTC, the handling of notices for the suspension or resumption of business operations before the scheduled time by taxpayers, and handling of documents approving or resuming operations before the scheduled time by the competent state authority, shall be implemented as regulated in Clause 1, Clause 2, Article 37 of the Law on Tax Administration 2019; Clause 1, Clause 3, Clause 4, Article 4 of Decree 126/2020/ND-CP and the following provisions:
(1) For notices of suspension or resumption of business operations before the scheduled time for households and individual businesses as stipulated in Clause 1, Article 27 of Circular 86/2024/TT-BTC:
The tax authority shall process the dossier and issue an Acceptance or Rejection Notice of business suspension, form No. 27/TB-DKT issued with Circular 86/2024/TT-BTC to the taxpayer within 02 (two) working days from the date of receipt of a complete dossier from the taxpayer.
(2) In the case of household businesses that carry out taxpayer registration along with business registration, the tax authority updates the information about suspension or resumption of business operations of the household business into the taxpayer registration application system when receiving transaction information exchange about business suspension or resumption from the business registration authority, except in cases where the household business is notified by the tax authority of being inoperative at the registered address.
How to handle suspension notices of taxpayers in Vietnam from February 6, 2025? (Image from the Internet)
What are criteria for determining the suspension period of a taxpayer in Vietnam?
According to Clause 1, Article 4 of Decree 126/2020/ND-CP, the criteria to determine the suspension period of a taxpayer are as follows:
- For taxpayers carrying out taxpayer registration together with enterprise registration, cooperative registration, or business registration as regulated in Clause 1, Article 37 of the Law on Tax Administration 2019, it is the business suspension period recorded by the business registration authority, cooperative registration authority on the National Information System for Enterprise, Cooperative Registration.
+ The business registration authority, cooperative registration authority sends the business suspension registration information of the enterprise, cooperative to the tax authority electronically via the information exchange system for business registration and taxpayer registration within 01 working day or at the latest the next working day from the date the business registration authority, cooperative registration authority records it on the National Information System for Enterprise, Cooperative Registration.
- For taxpayers approved, notified, or required to suspend operations by a competent state authority as regulated in Clause 1, Article 37 of the Law on Tax Administration 2019, it is the period recorded in the document issued by the competent state authority.
+ The competent state authority sends the document to the direct tax authority managing the taxpayer within 03 working days from the date of issuance of the document.
- For taxpayers that are organizations, business households, and individuals not subject to business registration as stipulated in Clause 2, Article 37 of the Law on Tax Administration 2019, they must notify the suspension of operations to the direct tax authority no later than 01 working day before suspending operations.
+ The tax authority issues a confirmation notice to the taxpayer regarding the suspension registration period no later than 02 working days from the date of receipt of the notice from the taxpayer.
+ Taxpayers may suspend operations for no more than 1 year per registration. In the case of an organization, the total suspension period may not exceed 2 years for 2 consecutive registrations.
