Notice Template of Temporary Suspension of Business for Household Businesses: How Many Days of Temporary Suspension Require Notification?
What is a Household Business?
Based on Article 79, Decree 01/2022/ND-CP, the regulations are as follows:
“Article 79. Household Business
1. A household business is registered by an individual or family members and is responsible with all its assets for the business activities of the household. In cases where family members register the household business, they shall authorize one member to represent the household business. The individual registering the household business, or the person authorized by family members to represent the household business, is the head of the household business.
2. Households engaged in agricultural, forestry, fishery production, salt making, and those who sell goods on a street, peddlers, trip traders, mobile businesses, seasonal businesses, or provide services with low income are not required to register the household business, except for businesses in conditional business sectors and industries. The People's Committees of provinces and centrally-run cities shall specify the level of low income applicable within their localities.”
A household business is registered by an individual or family members, and they are responsible with all their assets for the business activities of the household.
Sample Notification of Temporary Business Suspension for Household Business? How many days must a household business notify its suspension?
How long must a household business suspend operations before notifying state agencies?
Based on Article 91, Decree 01/2021/ND-CP, the regulations are as follows:
“Article 91. Temporary suspension of business, resuming business before the notified deadline of household business
1. In cases where business activities are suspended for 30 days or more, the household business must notify the district-level business registration authority where the business is registered and the tax authority directly managing it.
2. In cases where a household business suspends business activities, or resumes business before the notified deadline, the household business shall send a written notice to the district-level business registration authority where the household business is registered at least 03 working days before suspending business or resuming business before the notified deadline. The notice must be accompanied by a copy of the household meeting minutes about registering the temporary suspension or resuming business before the notified deadline in cases where family members register the household business. Upon receiving the notice, the district-level business registration authority shall issue a receipt to the household business. Within 03 working days from the date of receipt of the valid application, the district-level business registration authority shall issue a certificate confirming the temporary suspension of business registration, or the resumption of business registration before the notified deadline to the household business.”
Thus, household businesses suspending operations for 30 days or more must notify the temporary suspension of business as outlined above.
Do tax authorities still manage household businesses during the period of temporary suspension?
Based on Article 37, Law on Tax Administration 2019, the regulations are as follows:
“Article 37. Notification of temporary suspension of operations, business activities
1. Organizations, household businesses, and business individuals subject to business registration that temporarily suspend their operations, business activities for a fixed period, or resume operations before the notified deadline as per the Law on Enterprises and other relevant legal provisions, the tax authority shall base on the taxpayer's notice or the competent state agency to manage tax during the period the taxpayer temporarily suspends operations or resumes operations before the notified deadline according to this Law.
2. Organizations, household businesses, and business individuals not subject to business registration shall notify the directly managing tax authority at least 01 working day before temporarily suspending operations, business activities or resuming operations before the notified deadline for tax management purposes.
3. The Government of Vietnam shall prescribe the management of tax for taxpayers during the period of temporary suspension, business activities, or resuming operations before the notified deadline.”
Accordingly, the tax authority shall base on the notification of temporary suspension from the household business or the competent state agency to manage taxes during the period the household business temporarily suspends operations.
Sample Notification of Temporary Business Suspension for Household Businesses?
The current sample notification of temporary suspension of household business is specified in Appendix III-4 issued together with Circular 01/2021/TT-BKHDT as follows:
Download the latest sample notification of temporary suspension of household business: Here.
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