What are the 07 enterprise’s legal statuses in Vietnam? When is the deadline for paying corporate income tax in Vietnam for Q4/2024?

What are the 07 enterprise’s legal statuses in Vietnam?

According to Article 41 of Decree 01/2021/ND-CP, the regulation of the 07 legal statuses of enterprises in the National Database on business registration includes:

(1) Temporary Suspension of Business

"Temporary suspension of business" is the legal status of an enterprise during the period of temporary business suspension as regulated in Clause 1, Article 206 of the Law on Enterprises 2020. The date of transition to the legal status "Temporary suspension of business" is the date the enterprise registers to commence the temporary suspension.

The end date of the "Temporary suspension of business" status is the expiration date of the temporary suspension period previously notified by the enterprise or the date the enterprise registers to resume business before the notified expiration date.

(2) No Longer Operating at Registered Address

"No longer operating at the registered address" is the legal status of an enterprise that, upon inspection and verification by the tax administration authority and related units, cannot be found at the registered address.

Information about an enterprise no longer operating at the registered address is provided by the tax administration authority to the business registration authority. Changes, updates, the timing of transition to and termination of this legal status are decided by the tax administration authority.

The tax administration authority is responsible for providing and updating the "No longer operating at the registered address" status to the business registration authority through the taxpayer registration information system connected to the National information system on business registration. The business registration authority records and updates the legal status provided by the tax administration authority into the National Database on business registration.

(3) Revocation of Business Registration Certificate Due to Tax Administration Enforcement

"Revocation of Business Registration Certificate due to tax administration enforcement" is the legal status of an enterprise whose Business Registration Certificate has been revoked by the Business Registration Office following a proposal by the tax administration authority to enforce a tax administration-related administrative decision.

The transition date to the legal status "Revocation of Business Registration Certificate due to tax administration enforcement" is the date the Business Registration Office issues the decision to revoke the Business Registration Certificate.

The end date of the "Revocation due to tax administration enforcement" status is the date the Business Registration Office reinstates the legal status of the enterprise based on a request from the tax administration authority in accordance with tax administration laws.

(4) In the Process of Dissolution, Has Been Divided, Merged or Consolidated

"In the process of dissolution, has been divided, merged or consolidated" is the legal status of an enterprise that has passed a resolution, decision to dissolve according to Clause 3, Article 208 of the Law on Enterprises 2020; enterprises have had their Business Registration Certificate revoked by the Business Registration Office, except for revocations due to tax administration enforcement; enterprises dissolved by a court decision under Clause 1, Article 209 of the Law on Enterprises 2020; enterprises being divided, merged, or consolidated and in the process of finalizing and transferring tax obligations to the tax authority due to being divided, merged, or consolidated.

The determination time for the transition to the legal status "In the process of dissolution, has been divided, merged or consolidated" is the time the Business Registration Office announces the enterprise status on the National information portal on business registration; companies divided, merged companies, and companies receiving mergers are issued business registration based on division, merger, or consolidation.

(5) In the Process of Bankruptcy

"In the process of bankruptcy" is the legal status of an enterprise that has received a court decision to open bankruptcy procedures in accordance with bankruptcy laws.

The determination time for the transition to the legal status "In the process of bankruptcy" is the time the Business Registration Office updates the enterprise status in the National Database on business registration.

(6) Dissolved, Bankrupted, Ceased to Exist

"Dissolved, bankrupted, ceased to exist" is the legal status of an enterprise that has completed its dissolution procedures according to regulations and is updated on its legal status by the Business Registration Office according to Clause 8, Article 208, Clause 5, Article 209 of the Law on Enterprises 2020; enterprises with a court-declared bankruptcy decision according to bankruptcy laws; enterprises ceased to exist due to division, merger, or consolidation according to Clause 5, Article 198, Clause 5, Article 200, Clause 4, Article 201 of the Law on Enterprises 2020.

The determination time for the transition to the legal status "Dissolved, bankrupted, ceased to exist" is the time the Business Registration Office updates the legal status in the National Database on business registration.

(7) In Operation

"In operation" is the legal status of an enterprise that has been issued a Business Registration Certificate and does not fall under the legal statuses specified in (1), (2), (3), (4), (5), and (6).

What are the 07 enterprise’s legal statuses in Vietnam? (Image from the Internet)

When is the deadline for paying corporate income tax in Vietnam for Q4/2024?

Pursuant to Clause 1, Article 55 of the Law on Tax Administration 2019 which stipulates the tax payment deadline as follows:

Tax Payment Deadline

1. In cases where taxpayers self-calculate their tax liability, the tax payment deadline is no later than the last day of the deadline for filing the tax return. In cases of additional tax return filings, the tax payment deadline is the filing deadline of the tax period with errors or omissions.

For corporate income tax, payment is quarterly, with the deadline being no later than the 30th of the first month of the following quarter.

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Therefore, the deadline for paying Corporate Income Tax for Q4/2024 is no later than January 30, 2025, which is the 2nd day of the Lunar New Year 2025.

However, under Article 86 of Circular 80/2021/TT-BTC it is regulated that if the tax filing deadline or tax payment deadline coincides with a public holiday, the deadline is extended to the following working day as per the Civil Code 2015.

Accordingly, the deadline for paying Corporate Income Tax for Q4 2024 will be postponed to the first working day after the Lunar New Year 2025 holiday.

Is the late tax payment interest deductible when calculating corporate income tax in Vietnam?

Based on Clause 2, Article 6 of Circular 78/2014/TT-BTC (amended by Article 4 of Circular 96/2015/TT-BTC) regulations regarding deductible and non-deductible expenses in determining taxable income for Corporate Income Tax are as follows:

Deductible and Non-Deductible Expenses for Determining Taxable Income

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2. Non-deductible expenses for determining taxable income include:

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2.36. Fines for administrative violations including: traffic violations, business registration policy violations, accounting and statistics policy violations, violations of tax laws including late tax payment interests as stipulated by the Law on Tax Administration, and other fines for administrative violations as prescribed by law.

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Thus, late tax payment interests are not deductible expenses when determining taxable income for Corporate Income Tax.