Vietnam: What is the newest notification template on business suspension of household businesses? What is the suspension period of a household business requiring notification to the competent authority?
What is a household business in Vietnam?
According to Article 79 of Decree 01/2021/ND-CP, the regulation is as follows:
Household business
1. A household business is established by an individual or family household member who shall take responsibility for the business operations of the household business with all of their property. If a household business is established by members of a family household, one of them shall be authorized to act as the representative of the household business. The individual applying for registration of household business or the person authorized by the family household members to act as the representative of the household business shall be the owner of the household business.
2. Households engaged in agriculture, forestry, aquaculture, salt production, street vendors, nomadic or seasonal businesspeople, and service providers earning low revenues are not required to apply for establishment of household businesses, except for conditional business lines. The provincial People’s Committees shall specify the low revenues applied within their provinces.
Thus, a household business is established by an individual or family household member who shall take responsibility for the business operations of the household business with all of their property.
What is the suspension period of a household business requiring notification to the competent authority in Vietnam?
Under Article 91, Decree 01/2021/ND-CP, the regulations are as follows:
Business suspension and resumption of business ahead of notified schedule
1. If the suspension period is 30 days or longer, the household business must send a notification to the business registration authority of district where it was registered and its supervisory tax authority.
2. If the household business suspends business or resumes its business ahead of the notified schedule, the household business shall send a written notification to the business registration authority of district where it was registered at least 03 working days before the planned date of business suspension or resumption of business ahead of the notified schedule. Such notification must be enclosed with the copy of the minutes of the meeting of family household members on business suspension or resumption of business ahead of schedule if the household business is established by family household members. When receiving the notification, the district-level business registration authority shall give a confirmation slip to the household business. Within 03 working days from the receipt of the valid application, the district-level business registration authority shall issue a certificate of registration of business suspension or certificate of registration of resumption of business ahead of the notified schedule to the household business.
Thus, household businesses suspending operations for 30 days or more must send a notification of suspension as outlined above.
Do tax authorities in Vietnam still conduct tax administration during the suspension period of the household business?
Under Article 37, Law on Tax Administration 2019, the regulations are as follows:
Notification of suspension of operation/business
1. When organizations, household and individual businesses subject to business registration suspend from operation/business within a fixed period of time or continue to operate/do business before the notified time as prescribed in the Law on Enterprises and other relevant regulations, tax authorities shall conduct tax administration based on notifications from taxpayers or state authorities during the operation/business suspension or during the continuation of operation/business of the taxpayers as prescribed in this Law.
2. Organizations, household and individuals businesses not required to apply for business registration shall notify their supervisory tax authorities in no later than 01 working day before suspending operation/business or resumption of operation/business ahead of schedule.
3. The Government shall stipulate tax administration for taxpayers during operation/business suspension or resumption of operation/business ahead of schedule.
Thus, the tax authority shall, based on the notification of suspension from the household business or the competent authority, conduct tax administration during the suspension period of the household business.
What is the newest notification template on business suspension of household businesses in Vietnam?
The newest notification template on business suspension of household businesses in Vietnam is specified in Appendix III-4 issued together with Circular 01/2021/TT-BKHDT as follows:
Download the newest notification template on business suspension of household businesses in Vietnam: Here.
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