Do businesses suspending its business operations have to submit tax declaration dossiers in Vietnam?
Do businesses suspending its business operations have to submit tax declaration dossiers in Vietnam? Do businesses have to notify business resumption with the tax authority when business operation is resumed as planned in Vietnam?
Hello, my business deals in imported goods from Guangdong, but recently there is a problem with the border so the goods can't be returned. We plan to suspend business for a while and will apply for a temporarily suspending the business of the tax agency. So let us ask when we register like this, do we still have to submit tax declaration dossiers during the suspension or still have to pay as usual? In case the goods are returned to make the enterprise operate again within the time limit for registration of suspension, is it necessary to notify the tax authority again? Please advise.
Do businesses suspending its business operations have to submit tax declaration dossiers in Vietnam?
Pursuant to Clause 2, Article 4 of Decree 126/2020/ND-CP stipulating tax administration during taxpayer’s business suspension as follows:
2. During business suspension:
a) The taxpayer is not required to submit tax declaration dossiers, unless the suspension begins in the middle of a monthly/quarterly/annual tax period, in which case the tax declaration dossier of that month/quarter/year must be submitted.
b) For household businesses and individual businesses paying presumptive tax, tax authorities shall decide the tax payable upon their suspension in accordance with regulations of the Minister of Finance.
c) The taxpayer must not use invoices and are not required to submit invoice use reports. In case the taxpayer is permitted by the tax authority to use invoices in accordance with invoice laws, the taxpayer shall submit the tax declaration dossier and invoice use reports as per regulations.
d) The taxpayer shall implement the tax authority’s decisions and notices of debt collection, enforcement of tax decisions, inspection of compliance to tax laws and administrative penalties for tax offences in accordance with the Law on Tax administration.
Thus, if your business suspends its business with the tax authority, it is not required to submit a tax declaration dossier unless the suspension begins in the middle of a monthly/quarterly/annual tax period, in which case the tax declaration dossier of that month/quarter/year must be submitted in Vietnam.
Do businesses have to notify business resumption with the tax authority when business operation is resumed as planned in Vietnam?
According to Clause 3, Article 4 of Decree 126/2020/ND-CP, there are provisions as follows:
3. If the taxpayer is not required to send a notice of business resumption to the tax authority to which the business suspension notice is submitted if business operation is resumed as planned.
If the taxpayer shall send a notice of business resumption to the tax authority to which the business suspension notice is submitted, implement tax laws, submit tax documents and invoice use reports if business operation is resumed ahead of schedule.
In the cases specified in Point c Clause 1 of this Article, the notice shall be sent to the supervisory tax authority at least 01 working day before the resumption date.
According to this Article, you are not required to send a notice of business resumption to the tax authority to which the business suspension notice is submitted if business operation is resumed as planned in Vietnam.
Best Regards!
