Currently, due to the influence of Covid, many merchants are carrying out procedures to suspend operations. When carrying out the procedure to suspend the operation, which procedures related to tax procedures should be carried out is one of the questions that many people are interested in. To help customers understand more about tax procedures when temporarily shutting down, Hong Bang Law Firm would like to consult the following:

Legal grounds

• Tax Administration Law 2019
• Enterprise Law 2020
• Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration.
• Circular No. 105/2020/TT-BTC dated December 3, 2020 of the Ministry of Finance guiding tax registration.

Procedures for temporary suspension of operation and business

Notice of suspension

In case taxpayers register for tax together with business registration, cooperative registration, business registration:

• The suspension of business operations shall comply with the provisions of the Enterprise Law and other relevant laws. Pursuant to Clause 1, Article 206 of the Law on Enterprises 2020, an enterprise must notify in writing the business registration office where its head office is located no later than 03 working days before the date of business suspension.
• Profile includes:

• • Notice of business suspension;
  • The resolution, decision and copy of meeting minutes of the Members’ Council, for limited liability companies with two or more members, joint venture companies, of the Board of Directors, for joint-stock companies; Resolution, the decision of the company owner for one-member limited liability companies on business suspension.

For organizations, business households and individuals that are not subject to business registration:

• Notify to the tax authority directly managing at least 01 working day before suspending operation or business.
• The dossier includes: Notification form No. 23/DK-TCT issued together with Circular 105/2020/TT-BTC

Procedures related to tax returns and other reports to tax authorities

When suspending operations or business, taxpayers still have the following tax obligations:

• Taxpayers are not required to submit tax declaration dossiers, except where taxpayers suspend their operations or business for less than a full month, quarter, calendar year or fiscal year, they still have to submit monthly and quarterly tax declaration dossiers; annual settlement records.
• Business households and individuals paying tax by the presumption method temporarily stop operating, and their business is re-determined by the tax authority in accordance with regulations of the Minister of Finance.
• Taxpayers are not allowed to use invoices and are not required to submit invoice usage reports. In case the taxpayer is approved by the tax authority to use invoices in accordance with the law on invoices, he/she must submit a tax declaration dossier and submit a report on the use of invoices as prescribed.
• Taxpayers must comply with decisions and notices of tax administration agencies on urging debt collection, enforcing enforcement of administrative decisions on tax administration, inspecting and examining tax law observance, and handling tax laws. handle administrative violations of tax administration according to the provisions of the Law on Tax Administration

Initial tax consulting and declaration service of Hong Bang Law Firm

Hong Bang Law Firm is a partner providing many tax solutions for businesses. The company provides the following services:

• Consulting and declaration services to support other businesses, organizations and individuals in carrying out procedures for business suspension and tax closing with state agencies.
• Package tax declaration services by year, by quarter, by month: Reasonable cost and integrated package of all tax declaration activities of enterprises, completing books and documents, closing business transfer books storage;
• Tax declaration services at the request of businesses.

If you need advice, more detailed answers as well as how to access this service, please contact directly the Deputy Director in charge of business: Lawyer Nhat Nam via hotline: 0912.35.65.75, or call our free legal consultation hotline: 1900.6575 and send an email to lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!