Do individuals business that is not required to apply for business registration have to send business suspension notice in Vietnam?
Do individuals business that is not required to apply for business registration have to send business suspension notice in Vietnam? What must taxpayers comply with during business suspension in Vietnam?
Hello, I am a business man who is not eligible to business registration, recently due to a job, I had to suspend my business, so I would like to ask if I have to send business suspension notice to the agency? Please advise.
1. Do individuals business that is not required to apply for business registration have to send business suspension notice in Vietnam?
Pursuant to Clause 1, Article 4 of Decree 126/2020/ND-CP stipulating tax administration during taxpayer’s business suspension as follows:
The taxpayer shall send a business suspension notice in accordance with Article 37 of the Law on Tax administration and the following regulations:
1. Business suspension time:
a) If the taxpayer applies for taxpayer registration together with enterprise/cooperative/business registration as prescribed in Clause 1 Article 37 of the Law on Tax administration, the business suspension time is also the suspension time of the enterprise/cooperative recorded by the business registration authority on National Enterprise Registration Information System. The business registration authority shall send electronic information about the suspension to the tax authority within 01 working day or the next working day from the day on which such information is recorded on the National Enterprise Registration Information System by the business registration authority.
b) In case the business suspension is accepted, notified or requested by a competent authority as prescribed in Clause 1 Article 37 of the Law on Tax administration, the business suspension time will be that written on the document issued by such competent authority, which will be sent by the issuing authority to the supervisory tax authority of the taxpayer within 03 working days from its issuance date.
c) If the taxpayer is an organization, household business or individual business that is not required to apply for business registration as prescribed in Clause 2 Article 37 of the Law on Tax administration, the business suspension notice shall be sent to the supervisory tax authority at least 01 working day before the suspension date. The tax authority shall send a confirmation to the taxpayer within 02 working days from the day on which the taxpayer’s notice is received. The duration of business suspension must not exceed 1 year per notice. If the taxpayer is an organization, the total duration of business suspension must not exceed 2 years for 2 consecutive notices.
Clause 2, Article 37 of the Law on Tax Administration 2019 provides as follows:
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.
Thus, for business individuals not eligible to business registration according to regulations, the business suspension notice shall be sent to the supervisory tax authority at least 01 working day before the suspension date. Therefore, you are a business individual not eligible to business registration must send business suspension notice to the tax office in Vietnam.
2. What must taxpayers comply with during business suspension in Vietnam?
According to Clause 2, Article 4 of Decree 126/2020/ND-CP stipulates 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.
According to this Article, during business suspension in Vietnam, business must comply with the above regulations.
Best Regards!
