The operation of terminating the validity of the tax code is carried out at the tax administration agency with enterprises that want to dissolve. The procedure for terminating the validity of the tax code is the necessary procedure for dissolution at the tax office. To be able to that corporate tax code needs to meet the following conditions:
– Submit all types of tax declarations and reports
– Pay all taxes (no longer owed taxes)
Close the tax code for the business
Cases of closing the tax code of the enterprise
– The enterprise terminates its operation or dissolves or goes bankrupt;
– The enterprise has its enterprise registration certificate revoked, the certificate of registration
signing of cooperatives, business registration certificates;
– Reorganization of enterprises (division, separation, merger, consolidation);
Obligations that taxpayers must fulfill before the effective termination of the tax code
– Taxpayers shall submit reports on the use of invoices in accordance with the law on invoices;
– Taxpayers fulfill the obligation to file tax returns, pay taxes and process the amount of overpaid tax, the amount of value added tax that has not been deducted if any) as prescribed in Articles 43, 44, 47, 60, 67, 68, 70, 71 of the Law on Tax Administration with tax administration agencies;
– In case the managing unit has dependent units, all dependent units must complete the procedures for terminating the validity of the tax code before terminating the validity of the tax code of the managing unit.
Time limit and place for filing for termination of tax code validity
For enterprises: The termination of the validity of the tax code of the enterprise shall be carried out by the tax authority along with the time limit for the business registration agency to update the legal status of the enterprise (dissolution) on the National Database on Business Registration.
Dossier of termination of tax code validity
– Written request for termination of validity of tax code form No. 24/DK-TCT according to the form in Circular 105/2020/TT-BTC
– Decision on dissolution of the enterprise
– Notice of dissolution of the enterprise
The process of processing documents for termination of tax code validity
The directly managing tax authority implements:
a.1) Issue a Notice of the taxpayer’s shutdown and are carrying out procedures for terminating the validity of the tax code form No. 17/TB-DKT issued together with this Circular to the taxpayer within 02 (two) working days from the date the tax authority receives a complete dossier of termination of tax code validity as prescribed.
Issue a Notice to the managing unit or dependent unit according to the form No. 35/TB-DKT issued together with this Circular in case the tax authority receives a dossier of termination of the tax code of the managing unit but the dependent units have not yet carried out the procedures for terminating the validity of the tax code.
a.2) Coordinate with the tax authority managing the revenue where the taxpayer has incurred obligations to the state budget to finalize the taxpayer’s obligations at the tax authority managing the revenue (fully submit tax returns, report on the use of invoices, fulfill the obligation to pay taxes, invoices and process the amount of overpaid tax, the amount of value added tax that has not been deducted (if any)), handle the clearing of tax obligations or refund in accordance with the provisions of law
a.3) Carry out clearing or refund clearing procedures for the obligations of taxpayers in accordance with the Provisions of the Law on Tax Administration and the documents guiding its implementation.
In case the dependent unit terminates the validity of the tax code but is unable to fulfill the obligations still payable or owed after clearing or refunding clearing in accordance with the Provisions of the Law on Tax Administration and the documents guiding its implementation, the managing unit has made a written commitment to be responsible for inheriting the whole the tax liability of the dependent unit, the tax authority directly managing the dependent unit shall transfer the obligations of the dependent unit to the managing unit and issue a Notice on the transfer of tax obligations of the taxpayer in form No. 39/TB-DKT issued together with this Circular
to taxpayers as managing units, dependent units.
In case the divided, merged or consolidated unit terminates the validity of the tax code but is unable to fulfill the obligations still payable or owed after clearing or refunding clearing in accordance with the Provisions of the Law on Tax Administration and the documents guiding the implementation of the tax authority directly managing the divided unit, the merged or consolidated shall transfer obligations to the new unit and issue a Notice on the transfer of tax obligations by the taxpayer in form No. 39/TB-DKT issued together with this Circular to the taxpayers who are divided, merged, consolidated units and new units.
a.4) Request the Customs authority to certify that the taxpayer has fulfilled the obligation to pay taxes and other revenues under the state budget for import and export activities as prescribed in the Circular of the Ministry of Finance regulating customs procedures; customs inspection and supervision; export duties, import duties and tax administration on exported and imported goods and the Circular of the Ministry of Finance regulating electronic transactions in the field of taxation within 03 days from the date of issuance of the Notice on the shutdown of taxpayers and are carrying out procedures for terminating the validity of the tax code.
a.5) Issuing a Notice of taxpayer termination of the validity of the tax code form No. 18/TB-DKT issued together with this Circular within 03 (three) working days from the date on which the taxpayer has fulfilled the tax payment obligation with the tax administration agency or tax authority completes the transfer of all tax debt obligations and other revenues belonging to the state budget of the dependent unit to the governing unit, of the divided, merged, consolidated unit to a new unit as prescribed at this point.
The tax authority that manages the revenue performs:
b.1) Perform the tasks specified in Points a.2, a.3 of this Clause for revenues incurred in the locality.
b.2) Update the information of the taxpayer who has fulfilled the tax obligation for the revenue managed by the tax authority into the Tax Registration Application System on the same working day or at the latest at the beginning of the next working day on the day the taxpayer fulfills the tax payment obligation at the tax authority managing the revenue.
c) Particularly for business households and individuals doing business after the invalidation of the tax code of business activities, the tax code of the representative of the business household is still used to fulfill tax obligations for individuals.
In case of payment of an enterprise or a dependent unit of the tax authority issuing a Notice of termination of the validity of the tax code form No. 18/TB-DKT issued together with this Circular shall be replaced by a Notice of the taxpayer’s fulfillment of the tax payment obligation to submit the dossier <cantem/ termination of operation> to the agency <registrant business/registration of cooperatives> form No. 28/TB-DKT issued together with this Circular
Close the tax code for the subordinate unit (branch, representative office)
Cases of closing the tax code of the dependent unit
– The subordinate unit has a Decision to terminate the operation of the managing unit.
– The subordinate unit is terminated from the validity of the tax code when the managing unit terminates the validity of the tax code.
– The affiliated unit has its establishment and operation license revoked, or equivalent license in accordance with the provisions of law.
Obligations that taxpayers must fulfill before the effective termination of the tax code
– Taxpayers shall submit reports on the use of invoices in accordance with the law on invoices;
– The taxpayer fulfills the obligation to pay taxes
Dossier of termination of tax code validity
– Written request for termination of validity of tax code form No. 24/DK-TCT
– Certificate of tax registration or Notice of tax code (original); or dispatch accounting for loss of the Tax Registration Certificate or Tax Code Notice;
– The copy does not require certification of the Decision on termination of operation of the subordinate unit, or the Notice of termination of operation of the managing unit, or the Decision on revocation of the operation registration certificate for the subordinate unit of the competent authority;
– A written confirmation of the fulfillment of tax obligations for import and export activities of the General Department of Customs if the organization has import and export activities.
The process of processing documents for termination of tax code validity
– Within 2 working days of changing the status of the taxpayer “Taxpayers stop operating but have not completed the procedures for terminating the validity of the tax code”
– Within 03 (three) working days from the date on which the taxpayer has fulfilled the tax payment obligation with the tax authority and the customs office or the tax authority completes the transfer of all tax obligations of the subordinate unit to the governing unit as prescribed, tax authorities issue a Notice of taxpayers terminating the validity of the tax code form No. 18/TB-DKT issued together with this Circular to taxpayers (except for taxpayers who are enterprises).
Above is the article about “Termination of tax code validity” of Apra Law Firm. If you still have questions about the above issues and need to be answered, please contact the hotline for advice and support.
________________________________
For further information, please contact:
APRA LAW FIRM
Address: 7th Floor, No. 57 Tran Quoc Toan, Tran Hung Dao Ward, Hoan Kiem District, Hanoi City, Vietnam.
Email: info@apra.vn
Hotline: 024.23486234 – 0948495885
