Business Suspension Deadlines and Regulations on Tax
Enterprises facing difficulties and unable to continue operating will choose to suspend business instead of going through dissolution procedures. During the period of business suspension, the enterprise will not have to submit a tax return, unless the taxpayer suspends operations or does business for less than a full month, quarter, calendar year, or fiscal year. monthly and quarterly tax declarations; annual settlement records.
The maximum duration of business suspension
Also according to the provisions of Article 66, Decree 01/2021/ND-CP of the Prime Minister, the time limit for business suspension is not more than 1 year.
In case after the end of the business suspension period in accordance with the current law on this issue, the enterprise, representative office, branch, and location of business registration still continue to temporarily suspend operations. For business activities, there must be a second notice to the Business Registration Office with the basic content mentioned above.
- The total time to suspend business in consecutive times must not exceed 2 years.
- After receiving the dossiers in accordance with the provisions of current law, within 3 working days from the date the Business Registration Office receives the valid dossiers, then:
The business registration office will issue a certificate of the business, representative office, branch, and business location suspending business operations.
Regulations on paying license tax when suspending business
Pursuant to Point c, Clause 2, Article 1 of Decree 22/2020/ND-CP dated February 24, 2020, amending and supplementing a number of articles of Decree No. 139/2016/ND-CP dated October 4, 2016, of the Government. Government regulations:
5. The active fee payer shall send a written notice to the tax authority directly managing the suspension of production and business activities in the calendar year without having to pay the license fee for the year of business suspension with the following conditions: a written request for temporary cessation of production and business activities to be sent to the tax office before the prescribed fee payment deadline (January 30 of each year) and the license fee has not yet been paid in the year of application for suspension of production operation, business.
In case of temporary suspension of production and business activities, if the above conditions are not satisfied, the license fee for the whole year shall be paid.
That is, Enterprises that have carried out the procedures for announcing the suspension of operation for the whole year from January 1 to December 31 will not have to pay a license tax for that year of suspension.
Regulations on payment of VAT, PIT, and CIT when the temporary business suspension
During the period of business suspension, the enterprise will not have to submit a tax return, unless the taxpayer suspends operations or does business for less than a full month, quarter, calendar year, or fiscal year. monthly and quarterly tax declarations; annual settlement records.
Therefore, if the tax declaration file arises and must pay VAT, PIT, and CIT, the enterprise must still pay it in full and on time with the tax declaration deadline.
Regulations on tax debt payment and tax late payment debt when suspending business
During the time the enterprise suspends its business operations, the enterprise must fully pay the outstanding tax amount; continue to pay debts, and complete the performance of contracts signed with customers and employees, unless otherwise agreed upon by the parties.
You can read the previous article here: Business Suspension and Procedures
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