Is it necessary to terminate the tax identification number when a business temporarily suspends its operations in Vietnam?

Is it necessary to terminate the tax identification number when a business temporarily suspends its operations in Vietnam?

Based on Article 39 of the Law on Tax Administration 2019:

Termination of Tax Identification Number Validity

1. Taxpayers registering together with enterprise registration, cooperative registration, business registration shall terminate their tax identification number validity under the following circumstances:

a) Termination of business operations or dissolution, bankruptcy;

b) Revocation of the enterprise registration certificate, cooperative registration certificate, business registration certificate;

c) Division, merger, consolidation.

2. Taxpayers directly registered with the tax authority shall terminate their tax identification number validity under the following circumstances:

a) Termination of business operations with no further tax obligations for non-business organizations;

b) Revocation of the business registration certificate or equivalent license;

c) Division, merger, consolidation;

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

dd) The individual dies, goes missing, or loses civil capacity according to the law;

e) Foreign contractors upon conclusion of the contract;

g) Contractors, investors participating in oil and gas contracts upon conclusion of the contracts or transfer of all their interests in the oil and gas contracts.

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Thus, suspending business operations does not fall under the cases requiring a temporary termination of the tax identification number validity.

Therefore, when suspending business operations, one does not need to temporarily terminate the tax identification number validity.

Is it necessary to terminate the tax identification number when a business temporarily suspends its operations in Vietnam? (Image from Internet)

Is it necessary to submit tax declaration documents when a business temporarily suspends its operations in Vietnam?

Based on Clause 2, Article 4 of Decree 126/2020/ND-CP:

Tax administration for taxpayers during the period of temporary suspension of operations or business

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2. During the period taxpayers temporarily suspend their operations or business:

a) Taxpayers are not required to submit tax declaration documents, except in cases where the suspension of operations or business is incomplete for the month, quarter, calendar year, or fiscal year. In such cases, monthly, quarterly tax declarations, and annual tax settlement documents still must be submitted.

b) Business households and individuals paying taxes according to a fixed amount method and temporarily suspending their activities will have their tax obligations reassessed by the tax authority according to the regulations of the Minister of Finance.

c) Taxpayers are not allowed to use invoices and not required to submit a report on the use of invoices. In cases where taxpayers,as per legal regulations regarding invoices, are permitted to use invoices, they must submit tax declaration documents and reports on the use of invoices as stipulated.

d) Taxpayers must comply with decisions and notices from the tax authority regarding debt collection, enforced execution of administrative decisions on tax administration, tax compliance inspections, and auditing as stated by the Law on Tax Administration.

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Thus, during the period of temporary suspension of operations or business, tax declaration documents do not need to be submitted, except in cases where the suspension is incomplete for the month, quarter, calendar year, or fiscal year. In those scenarios, monthly, quarterly tax declarations, and annual tax settlement documents still must be submitted.

What are the regulations regarding tax declaration document submission deadlines in Vietnam?

Based on Article 44 of the Law on Tax Administration 2019, the regulations on tax declaration document submission deadlines are as follows:

- The deadline for submitting tax declaration documents for taxes declared monthly or quarterly is as follows:

+ No later than the 20th day of the month following the month in which the tax obligation arises for monthly declarations and payments;

+ No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises for quarterly declarations and payments.

- The deadline for submitting tax declaration documents for taxes calculated on an annual basis is as follows:

+ No later than the last day of the third month after the end of the calendar year or fiscal year for annual tax settlement documents; no later than the last day of the first month of the calendar year or fiscal year for annual tax declaration documents;

+ No later than the last day of the fourth month after the end of the calendar year for personal income tax settlement documents submitted by individuals directly settling taxes;

+ No later than December 15 of the preceding year for tax declarations of business households, individuals paying taxes by a fixed amount; for new business activities by business households or individuals, the deadline is 10 days from the start of business operations.

- The deadline for submitting tax declaration documents for taxes declared and paid per occurrence is no later than the 10th day from the day the tax obligation arises.

- The deadline for submitting tax declaration documents in cases of business cessation, termination of contracts, or organizational restructuring is no later than the 45th day from the occurrence of the event.

- the Government of Vietnam sets the deadlines for submitting tax declaration documents for agricultural land use tax; non-agricultural land use tax; land levy; land rent, water surface rent; fees for mineral extraction rights; fees for water resource extraction rights; registration fees; license fees; state budget collections in accordance with laws on management and use of public property; transnational profit reporting.

- The deadline for submitting tax declaration documents for export and import goods follows the regulations of the Customs Law 2014.

- In cases where taxpayers file tax declarations electronically on the last deadline day but the tax authority's electronic portal faces technical issues, taxpayers are permitted to submit tax declaration documents and e-tax payment documents on the following day when the tax authority's electronic portal resumes operation.