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Vietnam: Principles of converting business households to enterprises

Bích Hoa

16:14, 07/05/2019

Recently, the General Department of Taxation issued the Official Dispatch No. 786/TCT-KK on March 12, 2019 providing guidelines for changing from business households to enterprises specified in Decree No. 108/2018/NĐ-CP of Vietnam’s Government.

The conversion from business households to enterprises shall comply with the following principles:

- An enterprise that is converted from a household business will be granted a new enterprise identification code according to the enterprise registration certificate, the tax identification numbers of the household businesses will be invalidated and the tax identification number of the terminated household business shall continue to be used as the personal tax identification number of its representative;

- Household business must fulfill their tax obligations at their supervisory tax authorities;

- In case a household business fails to fulfill its tax obligations, the small or medium-sized enterprises converted from the business household will inherit all the legitimate rights, obligations and interests of household business (unless otherwise agreed).

View more details at the Official Dispatch No. 786/TCT-KK issued on March 12, 2019.

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