Shall the taxpayer's registration information be made public if they suspend operations in Vietnam?
Shall the taxpayer's registration information be made public if they suspend operations in Vietnam?
According to Clause 1, Article 22 of Circular 105/2020/TT-BTC, the cases of public disclosure of taxpayer registration information are as follows:
Public Disclosure of Taxpayer Registration Information
- The tax authority shall publicly disclose the taxpayer's registration information on the General Department of Taxation's electronic portal for the following cases:
a) Taxpayer suspends activities and has completed procedures to terminate the validity of the tax code (status 01).
b) Taxpayer suspends activities but has not completed procedures to terminate the validity of the tax code (status 03).
c) Taxpayer suspends operations, business (status 05).
d) Taxpayer is not operating at the registered address (status 06).
đ) Taxpayer reinstates the tax code according to Notice Form No. 19/TB-DKT issued with this Circular.
e) Taxpayer commits violations of the law on taxpayer registration.
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According to the above regulations, if the taxpayer suspends operations, the Tax Authority will publicly disclose the taxpayer's registration information on the General Department of Taxation's electronic portal.
Shall the taxpayer's registration information be made public if they suspend operations in Vietnam? (Image from Internet)
What is the basis for determining the period a taxpayer suspends operations in Vietnam?
According to Clause 1, Article 4 of Decree 126/2020/ND-CP, the basis for determining the period a taxpayer suspends operations is:
- For taxpayers registered along with business registration, cooperative registration, or business registration as prescribed in Clause 1, Article 37 of the 2019 Tax Administration Law, it is the period during which the enterprise, cooperative is recorded to suspend business activities by the business registration authority or cooperative registration authority on the National Information System for Business Registration or Cooperative Registration.
+ The business registration authority or cooperative registration authority shall send information on the suspension of business activities by the enterprise or cooperative to the tax authority via electronic means through the information exchange system on business registration and taxpayer registration within 01 working day or no later than the next working day from the date the business registration authority or cooperative registration authority records it on the National Information System.
- For taxpayers approved, notified or requested to suspend operations or business by a competent state agency as prescribed in Clause 1, Article 37 of the 2019 Tax Administration Law, it is the period recorded in the document issued by the competent state agency.
+ The competent state agency shall send documents to the tax authority directly managing the taxpayer no later than 03 working days from the issuance of the document.
- For taxpayers that are organizations, business households, or business individuals not required to register for business as prescribed in Clause 2, Article 37 of the 2019 Tax Administration Law, they must notify the tax authority directly managing them at least 01 working day before the suspension of operations or business.
+ The tax authority shall issue a confirmation to the taxpayer regarding the period they registered for suspension of operations or business no later than 02 working days from the receipt of the taxpayer's notification.
+ Taxpayers may suspend operations or business for no more than 1 year per registration. If the taxpayer is an organization, the total time of suspension of operations or business shall not exceed 2 years for 2 consecutive registrations.
What are taxpayers prohibited from doing during taxpayer’s business suspension in Vietnam?
According to Clause 2, Article 4 of Decree 126/2020/ND-CP, it is regulated as follows:
Tax Adminítration for Taxpayers During Suspended Operations or Business
Taxpayers must notify when they suspend operations or business as regulated in Article 37 of the Tax Administration Law and the following provisions:
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- during taxpayer’s business suspension or business:
a) Taxpayers are not required to submit tax returns, except when the taxpayer suspends operations or business for an incomplete month, quarter, calendar year, or fiscal year, they must still submit monthly, quarterly tax declarations; annual settlement dossiers.
b) Business households and individuals subject to lump-sum taxes suspending operations or business will have their tax obligations reassessed by the tax authority as per the regulations of the Minister of Finance.
c) Taxpayers are not allowed to use invoices and are not required to submit reports on invoice utilization. If the taxpayer is approved by the tax authority to use invoices according to the law on invoices, they must submit tax declarations and reports on invoice utilization as regulated.
d) Taxpayers must comply with decisions and notices from Tax Adminítration authorities regarding debt collection, enforcement of administrative Tax Adminítration decisions, audits, and inspections of tax law compliance, and sanctioning of administrative Tax Adminítration violations according to the Tax Administration Law.
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Thus, during taxpayer’s business suspension, taxpayers are prohibited from the following:
Taxpayers are not allowed to use invoices and are not required to submit reports on invoice utilization. If the taxpayer is approved by the tax authority to use invoices according to the law on invoices, they must submit tax declarations and reports on invoice utilization as regulated.
