Vietnam: Tax administration during taxpayer’s business suspension

According to the Decree No. 126/2020/NĐ-CP of Vietnam’s Government, tax administration during taxpayer’s business suspension is prescribed as follows:

-  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.

- 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.

- 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.

- 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 offenses in accordance with the Law on Tax Administration of Vietnam.

Besides, 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.

View more details at the Decree No. 126/2020/NĐ-CP of Vietnam’s Government, effective from December 05, 2020.

Ty Na

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