When is an enterprise registration certificate revoked due to tax decision enforcement in Vietnam?

What is the revocation of enterprise registration certificate due to tax decision enforcement in Vietnam?

Pursuant to Clause 3, Article 41 of Decree 01/2021/ND-CP regarding the legal status of enterprises, the revocation of enterprise registration certificate due to tax decision enforcement can be understood as follows:

- "revocation of enterprise registration certificate due to tax decision enforcement" refers to the legal status of an enterprise whose enterprise registration certificate has been revoked by the Business Registration Office upon the request of the tax administration agency to enforce the execution of administrative decisions related to tax management.

- The date when the legal status "revocation of enterprise registration certificate due to tax decision enforcement" becomes effective is the date when the Business Registration Office issues the decision to revoke the enterprise registration certificate.

- The date when the legal status "Revocation due to tax decision enforcement" ends is the date when the Business Registration Office restores the enterprise’s legal status based on the proposal from the Tax Administration Agency in accordance with the law on tax administration.

When is an enterprise registration certificate revoked due to tax decision enforcement in Vietnam?

Pursuant to Clause 1, Article 37 of Decree 126/2020/ND-CP regarding enforcement measures through revocation of the enterprise registration certificate as follows:

Enforcement by revocation of the enterprise registration certificate, business registration certificate, cooperative registration certificate, investment registration certificate, establishment and operation license, practicing certificate

1. Applicable Subjects

a) The enforcement measure of revoking the enterprise registration certificate or business registration certificate or cooperative registration certificate or investment registration certificate or establishment and operation license or practicing certificate or branch operation registration certificate, representative office registration (collectively referred to as the business registration certificate) is implemented when the tax administration agency cannot apply the enforcement measures stipulated in points a, b, c, d, đ, e of Clause 1, Article 125 of the Law on Tax Administration or has applied these measures but still cannot collect enough tax debts for the state budget or falls into the cases prescribed in Clause 3, Article 125 of the Law on Tax Administration.

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Thus, an enterprise may have its enterprise registration certificate revoked due to tax decision enforcement in the following cases:

- When the tax administration agency cannot apply the following enforcement measures:

+ Deduct money from the account of the enforced subject regarding the implementation of the administrative decision on tax management at the State Treasury, commercial banks, or other credit institutions; freeze accounts;

+ Withhold part of the salary or income;

+ Suspend customs procedures for exported and imported goods;

+ Suspend the use of invoices;

+ Seize assets, auction seized assets as prescribed by law;

+ Collect money, other assets of the enforced subject related to the implementation of the administrative decision on tax management that are held by other organizations, individuals.

- When the tax administration agency has applied these measures but still cannot collect enough tax debts for the state budget.

- In the case where the enforcement decision "Collect money, other assets of the enforced subject related to the implementation of the administrative decision on tax management held by other agencies, organizations, individuals" has not expired but is ineffective and the tax management agency has sufficient information and conditions to apply the enforcement measure of revoking the enterprise registration certificate.

When is an enterprise registration certificate revoked due to tax decision enforcement in Vietnam? (Image from the Internet)

How long is the proposal for revocation of the enterprise registration certificate sent to the taxpayer in Vietnam?

Pursuant to point b, Clause 3, Article 37 of Decree 126/2020/ND-CP regarding the proposal for revocation of the enterprise registration certificate as follows:

Enforcement by revocation of the enterprise registration certificate, business registration certificate, cooperative registration certificate, investment registration certificate, establishment and operation license, practicing certificate

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3. Proposal for Revocation

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b) The proposal for revocation must be sent to the enforced taxpayer and the competent state administration agency to revoke the business registration certificate within 03 working days from the date of completing verification of information of the subject to which enforcement measures are applied. From the date when the tax administration agency submits a proposal for revocation to the Business Registration Office until the Business Registration Office issues a revocation decision or replies with a non-revocation statement, the tax administration agency may apply appropriate enforcement measures to ensure effective tax management.

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Thus, the proposal for the revocation of the enterprise registration certificate must be sent to the taxpayer within 03 working days from the date of completing the verification of the information of the subject subject to enforcement measures.