When is the debt freezing time if there is an employees' written request for initiation of bankruptcy process in Vietnam?
- When is the debt freezing time if there is a written request for initiation of bankruptcy process in Vietnam?
- Vietnam: What does the written request for initiation of bankruptcy process of employees included?
- What is the form of decision on debt freezing when an employee files a written request for initiation of bankruptcy process in Vietnam?
When is the debt freezing time if there is a written request for initiation of bankruptcy process in Vietnam?
Pursuant to Article 23 of Decree 126/2020/ND-CP stipulates as follows:
Debt freezing procedures, documentation and time
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2. Debt freezing time
a) In the cases specified in Clause 1 Article 83 of the Law on Tax Administration: The issuance date of the death certificate, death notice or their substitutes prescribed by civil registration laws; From the issuance date of the court’s declaration that a person is dead, missing or incapacitated to the date on which the court issues a decision to cancel such declaration.
b) In the cases specified in Clause 2 Article 83 of the Law on Tax Administration: From the day on which the business registration authority publishes information about the taxpayer’s undergoing dissolution on the National Enterprise Registration Information System to the date of business resumption or the date of completion of dissolution procedures or the date of debt cancellation.
c) In the cases specified in Clause 3 Article 83 of the Law on Tax Administration: From the date of issuance of the court’s notification of receipt of the taxpayer’s petition for bankruptcy or the day on which the taxpayer sends the petition for bankruptcy to a competent authority while following debt payment and settlement procedures as prescribed by the Law on Bankruptcy to the date of business resumption or the date of debt cancellation.
In case the court has issued the notice of receipt of the petition for bankruptcy, the tax debt will be frozen until the issuance date of such notice.
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Thus, In the case employees sending written requests for initiation of bankruptcy process, the debt freezing time is from the day on which the business registration authority publishes information about the taxpayer’s undergoing dissolution on the National Enterprise Registration Information System to the date of business resumption or the date of completion of dissolution procedures or the date of debt cancellation.
When is the debt freezing time if there is an employees' written request for initiation of bankruptcy process in Vietnam?
Vietnam: What does the written request for initiation of bankruptcy process of employees included?
According to Clause 2, Article 5 of the Law on bankruptcy 2014, employee is one of the subjects eligible to submit written requests for initiation of bankruptcy process:
Eligibility and liability to submit written requests for initiation of bankruptcy process
1. Any creditor of unsecured debts or partly-secured debts is entitled to send a written request for initiation of bankruptcy process after 03 months from the payment due date for the debts which the enterprise or cooperative does not pay..
2. Any employee, internal Trade Union (or the superior Trade Union if the internal Trade Union is not established) is entitled to send a written request for initiation of bankruptcy process after 03 months from the day on which the entity have to pay salaries and other debts to the employees.
3. The legal representative of each enterprise or cooperative is liable to send a written request for initiation of bankruptcy process when the entity is insolvent.
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Reference to Article 23 of Decree 126/2020/ND-CP stipulates as follows:
Debt freezing procedures, documentation and time
1. Documentation
a) In the cases specified in Clause 1 Article 83 of the Law on Tax Administration: The death certificate, death notice or their substitutes prescribed by civil registration laws; the court’s declaration that a person is dead, missing or incapacitated (original copy, extracted copy from master register or authenticated copy).
b) In the cases specified in Clause 2 Article 83 of the Law on Tax Administration: The taxpayer’s decision on dissolution and information about the taxpayer’s name, enterprise ID number, the time of the business registration authority publishes information about the taxpayer’s undergoing dissolution on the National Enterprise Registration Information System.
c) In the cases specified in Clause 3 Article 83 of the Law on Tax Administration: The court’s notification of receipt of the taxpayer’s petition for bankruptcy (original copy, extracted copy from master register or authenticated copy).
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Thus, the documentation to freeze the tax debt of the enterprise when the employee files a request to open bankruptcy procedures includes:
- The taxpayer’s decision on dissolution;
- Information about the taxpayer’s name, enterprise ID number, the time of the business registration authority publishes information about the taxpayer’s undergoing dissolution on the National Enterprise Registration Information System
What is the form of decision on debt freezing when an employee files a written request for initiation of bankruptcy process in Vietnam?
The form of decision on debt freezing when an employee files a written request for initiation of bankruptcy process is Form No. 01/KN in Appendix III issued with Decree 126/2020/ND-CP
Download the form of decision on debt freezing when an employee files a written request for initiation of bankruptcy process here
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