Is the enterprise required to make a tax statement in case of business conversion in Vietnam?
What is tax statement?
Pursuant to Clause 10, Article 3 of the 2019 Law on Tax Administration in Vietnam defining tax statement as follows:
“Tax statement” means the calculation of tax accrued in a tax year or over the period from the beginning of a tax year to the termination of taxable activities, or over the period during which taxable activities occur as prescribed by law.
In addition, based on Clause 1, Article 7 of Decree No. 126/2020/ND-CP, the tax declaration dossier in Vietnam is defined as follows:
A tax declaration dossier consists of the tax return and documents that are the basis for determination of the taxpayer’s tax obligations, is prepared and sent by the taxpayer to the tax authority. A tax declaration dossier can be electronic or physical.
Is the enterprise required to make a tax statement in case of business conversion in Vietnam?
Is the enterprise required to make a tax statement in case of business conversion in Vietnam?
Pursuant to Clause 6, Article 43 of the 2019 Law on Tax Administration in Vietnam providing for this content as follows:
Tax declaration
1. The tax declaration dossier of taxes that are declared and paid monthly is the monthly tax return.
2. The tax declaration dossier of taxes that are declared and paid quarterly is the quarterly tax return.
3. The tax declaration dossier of taxes that are declared and paid annually is:
a) The annual tax declaration dossier, which consists of the annual tax return and other documents relevant to the tax payable; or
b) The terminal tax declaration dossier, which consists of the annual tax statement, the annual financial statement, the declaration of related-party transactions and other documents relevant to tax statement.
4. The tax declaration dossier of taxes that are declared and paid every time they are incurred consists of:
a) The tax return;
b) Invoices, contracts and other documents relevant to the tax liability as prescribed by law.
5. Customs dossiers of exports and imports specified by the Law on Customs shall be used as tax declaration dossiers.
6. The tax declaration dossier upon shutdown, contract termination, business conversion or business re-arrangement consists of:
a) The terminal tax return;
b) The financial statement up to the time of shutdown, contract termination, business conversion or business re-arrangement;
c) Other documents relevant to tax statement.
7. Multinational profit report if the taxpayer is the supreme parent company of a corporation in Vietnam and has transboundary related-party transactions and a global profit exceeding the limit, or the taxpayer has a supreme parent company in a foreign country in which it has the legal responsibility to submit the multinational profit report.
8. The government shall provide detailed guidance on tax declaration dossiers mentioned in this Article, taxes declared monthly, quarterly, annually and upon incurrence, terminal tax declaration; declaration of fees and charges collectable by overseas representative agencies of Socialist Republic of Vietnam; declaration, provision, exchange and use of information about multinational profit reports; identification of taxpayers eligible for quarterly declaration.
Thus, according to the above regulations, the business conversion is required to make a tax statement to complete the tax declaration dossier.
What are the cases of the deadline extension of tax declaration dossier in Vietnam?
Pursuant to Clause 1, Article 46 of the 2019 Law on Tax Administration in Vietnam providing for the deadline extension of tax declaration dossier as follows:
Deadline extension
1. In case a taxpayer is unable to submit the tax declaration dossier by the deadline due to a natural disaster, epidemic, fire or accident, the head of the supervisory tax authority will consider extending the deadline for submission.
2. The deadline shall be extended for up to 30 more days for monthly, quarterly, annual declarations and declaration upon tax incurrence; 60 more days for terminal tax declaration.
3. The taxpayer shall send a written request for deadline extension to the tax authority before the deadline, provide explanation and confirmation by the People’s Committee or police authority of the commune in which the event mentioned in Clause 1 of this Article occurred.
4. Within 03 working days from the day on which the taxpayer’s request is received, the tax authority shall inform the taxpayer in writing of whether such request is granted.
Thus, according to the above provisions, the deadline for submission of the tax declaration dossier is extended in case a taxpayer is unable to submit the tax declaration dossier by the deadline due to a natural disaster, epidemic, fire or accident.
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