Is the revocation of business registration certificate a case of tax chargeoff in Vietnam?

Is the revocation of business registration certificate a case of tax chargeoff in Vietnam?

Pursuant to Clause 5, Article 83 of the 2019 Law on Tax Administration which stipulates cases eligible for tax chargeoff as follows:

Cases Where Tax Debts Can Be Suspended

Taxpayers have been proposed by the tax administration authority through a written request for withdrawal or have had their business registration certificate, enterprise registration certificate, cooperative registration certificate, establishment and operation license, or practice license revoked by the competent authority.

The period for suspending debts is calculated from the date the tax administration authority issues a written request to the competent authority for withdrawal, or from the effective date of the decision to revoke the business registration certificate, enterprise registration certificate, cooperative registration certificate, establishment and operation license, or practice license.

According to the above regulation, in cases where the taxpayer has their business registration certificate revoked by the competent authority, they are eligible for the tax chargeoff.

Is the revocation of business registration certificate a case of tax chargeoff in Vietnam? (Image from the Internet)

Vietnam: What does the application for tax chargeoff include?

Pursuant to Clause 1, Article 23 of Decree 126/2020/ND-CP which prescribes the application for tax chargeoff as follows:

- For taxpayers specified in Clause 1, Article 83 of the 2019 Law on Tax Administration: Death certificate or death notice or documents replacing the death notice according to the law on civil status, or a court decision declaring a person deceased, missing, or incapacitated (original or certified copy or copy issued from the original register).

- For taxpayers specified in Clause 2, Article 83 of the 2019 Law on Tax Administration: Dissolution decision of the taxpayer and information on the name, enterprise code, and time of information posting by the business registration authority about the taxpayer who is undergoing dissolution procedures on the National Business Registration System (abbreviated as National Business Registration System).

- For taxpayers specified in Clause 3, Article 83 of the 2019 Law on Tax Administration: Notification from the competent court about the acceptance of a petition to open bankruptcy procedures (original or certified copy or copy issued from the original register).

- For taxpayers specified in Clause 4, Article 83 of the 2019 Law on Tax Administration: Certificate from the tax administration authority in collaboration with the commune-level People's Committee where the taxpayer has its headquarters or contact address, indicating that the taxpayer is not operating at the registered business address or contact address, and notification from the tax administration authority that the taxpayer is not operating at the registered address (original or certified copy or copy issued from the original register).

- For taxpayers specified in Clause 5, Article 83 of the 2019 Law on Tax Administration: Written request from the tax administration authority to the competent authority for withdrawal or a decision from the competent authority to revoke the business registration certificate or enterprise registration certificate or cooperative registration certificate or business household registration certificate or establishment and operation license or practice license or branch, representative office registration certificate (original or certified copy or copy issued from the original register).

What is the procedure for tax chargeoff in Vietnam?

According to Clause 3, Article 23 of Decree 126/2020/ND-CP, the procedure for tax chargeoff is carried out as follows:

- For cases eligible for the tax chargeoff according to Article 83 of the 2019 Law on Tax Administration, once the application is complete, the head of the tax management authority directly managing the taxpayer issues a decision to suspend debts according to Form No. 01/KN in Appendix III issued with Decree 126/2020/ND-CP for the tax debt amount at the start of the debt suspension period.

- In the event that a taxpayer has had a tax debt suspension decision issued by the tax administration authority, but the Court revokes the decision declaring a person deceased, missing, or incapacitated, or the taxpayer resumes business activities, the tax administration authority issues a decision to terminate the effect of the tax debt suspension decision according to Form No. 02/KN in Appendix III issued with Decree 126/2020/ND-CP. The tax administration authority calculates late payment interest from the date of issuance of the decision terminating the effect of the tax debt suspension decision until the date the taxpayer fully pays the tax debt into the state budget.

- In cases where a taxpayer has had a tax debt suspension decision issued by the tax administration authority, when they are eligible for debt cancellation according to Article 85 of the 2019 Law on Tax Administration, the tax administration authority issues a decision to terminate the effect of the tax debt suspension decision according to Form No. 02/KN in Appendix III issued with Decree 126/2020/ND-CP and proceeds to cancel the debt as per the regulation.

- For individual taxpayers, household and individual businesses, household heads, private business owners, and single-member limited liability companies that have had their debts suspended but are discovered by the tax administration authority to have established other business facilities or enterprises, the tax administration authority issues a decision to terminate the effect of the tax debt suspension decision according to Form No. 02/KN in Appendix III issued with Decree 126/2020/ND-CP and calculates late payment interest from the date of debt suspension to the date the taxpayer fully pays the tax debt into the state budget.