PROCEDURES FOR TERMINATION TAX CODE WHEN DISSOLVE ENTERPRISE

1. Legal basis

- Circular 105/2020/TT-BTC

- Law on Tax Administration 2019

2. Overview of invalidating an enterprise's tax code

Pursuant to Article 39 of the Law on Tax Administration 2019

- Termination of validity of an enterprise's tax code is the state in which the enterprise's tax code on the tax authority's data system is locked or closed when the company stops operating and cannot perform related work. to tax codes such as: submitting declarations, paying taxes, changing business registration content.

Pursuant to Points a, b, c, Clause 1, Article 39 of the Law on Tax Administration 2019 stipulates cases of tax code termination:

+ Termination of business operations or dissolution or bankruptcy;

+ Revoked business registration certificate, cooperative registration certificate, business registration certificate;

+ Being divided, merged, consolidated.

3. Procedures for invalidating an enterprise's tax code

3.1. Dossier

3.1.1. Dossier for invalidation of tax code for taxpayers with tax registration along with enterprise registration, cooperative registration, or business registration

Pursuant to Clause 3, Article 14 of Circular 105/2020/TT-BTC

- Written request for invalidation of tax code, form No. 24/DK-TCT issued with this Circular

- Dossier for invalidation of tax code of a divided, merged or consolidated enterprise or cooperative is one of the following documents: Copy of division decision, copy of consolidation contract, copy merger contract.

- The dossier to deactivate the tax code of the dependent unit of the enterprise and cooperative is one of the following documents: Copy of the decision or notice of the enterprise or cooperative on termination of spending activities. branches, representative offices; copy of the decision to revoke the certificate of registration of branch or representative office operations of a competent state agency.

3.1.2. Documents for invalidation of tax code according to decisions, notices and other documents of competent state agencies

Pursuant to Clause 4, Article 14 of Circular 105/2020/TT-BTC

- Decision to dissolve enterprises and cooperatives; Decision to revoke the business registration certificate, operation registration certificate of branches, representative offices, and business locations; Registration dossier for termination of operations of enterprises and cooperatives due to division, consolidation or merger; Application for termination of operations of branches, representative offices, business locations of enterprises and cooperatives; Notice of dissolution of enterprises and cooperatives; Notice of termination of operations of enterprises and cooperatives due to division, consolidation or merger; Notice of termination of operations of branches and representative offices of enterprises and cooperatives by the business registration or cooperative registration agency.

- Decision and Notice of revocation of Business Household Registration Certificate; License for establishment and operation or equivalent document from the licensing agency.

- Decision to declare bankruptcy of the Court.

- Relevant documents from the competent authority certifying that the individual is dead, missing or has lost civil act capacity (Death certificate or death notice or documents in place of death notice according to the provisions of the Law). civil status law, or a court decision declaring a person dead, missing, or lacking civil act capacity).

- Notice of the taxpayer not operating at the registered address as prescribed in Article 17 of this Circular.

3.2. Procedures

Pursuant to Article 16 of Circular 105/2020/TT-BTC

Step 1: The enterprise submits the application to terminate the validity of the tax code to the directly managing tax agency within 10 working days from the date of the document terminating operations or business operations or the date of termination. end the contract.

Step 2: Tax authority receives

Pursuant to Clause 2 and 3, Article 16 of Circular 105/2020/TT-BTC on processing dossiers for tax code termination and returning results

- Check and resolve dossiers: Tax authorities check and resolve taxpayers' dossiers according to the law on tax registration and return settlement results via the electronic information portal to which the taxpayer Tax chooses to prepare and submit documents.

- In case the dossier is complete, follows the prescribed procedures and results must be returned: The tax authority sends the results of processing the dossier to the electronic information portal that the taxpayer chooses to prepare and send the dossier within the deadline. prescribed in Circular No. 105/2020/TT-BTC dated December 3, 2020 of the Ministry of Finance.

- In case the dossier is incomplete and does not follow the prescribed procedures, the tax authority will send a notice of non-acceptance of the dossier to the electronic portal where the taxpayer chooses to prepare and send the dossier. within 02 (two) working days from the date recorded on the Notice of receipt of documents.

 Step 3: Return application results

- The tax agency directly manages to update information and change the status of the taxpayer's tax code to the status "The taxpayer stops operating but has not completed the procedure to deactivate the tax code" within the same working day. or no later than the beginning of the next working day from the date of issuance of the Notice that the taxpayer has stopped operating and is carrying out procedures to deactivate the tax code, form No. 17/TB-DKT issued with the Notice. This Circular and the status "The taxpayer has stopped operating and has completed the procedure for terminating the tax code" within the working day or at the latest at the beginning of the next working day on the date of issuance of the Notice of Taxpayer's termination. Validity of tax code form No. 18/TB-DKT issued together with this Circular.

3.3. How to perform

- Submit directly at the Tax Authority headquarters or send via postal system;

- Submit electronically via the Electronic Information Portal of the General Department of Taxation/Electronic Information Portal of competent state agencies including the National Public Service Portal, Ministerial and Provincial Public Service Portals according to regulations on implementing the one-stop shop mechanism, one-stop shop in handling administrative procedures and have been connected to the electronic information portal of the General Department of Taxation/T-VAN service provider information portal. according to the provisions of Circular No. 19/2021/TT-BTC dated March 18, 2021 of the Ministry of Finance.

3.4. Fees and charges

- Fees are being waived

----------

For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

© 2023 VSE LAWYERS LIMITED LIABILITY LAW COMPANY – All rights reserved.

Attention: This legal update is not an advice and should not be treated as such.