📢 Over the past time, the Tax sector has continuously improved and supported businesses, households and individuals to comply with tax laws, contributing to building a transparent and fair business environment. However, some business owners, legal representatives and individuals still do not fully understand the importance of complying with tax and invoice regulations. In many cases, there are even intentional tax evasion and tax debts. negatively affect the tax system, causing loss of state budget revenue.
Problem
It is necessary to thoroughly handle and complete tax obligations when ceasing business operations (The Tax Department has sent a letter of recommendation)
Currently, many businesses, households and individuals have ceased operations but have not fully fulfilled their tax obligations as prescribed. According to the General Department of Taxation, some cases have not completed the procedures for terminating the validity of tax codes, have not notified the cessation of operations to the business registration agency or tax agency, or have not operated at the registered address.
More seriously, some entities still generate revenue but do not issue invoices, do not pay taxes, do not declare taxes, or under-declare, stop operations without notifying the business registration agency, tax authority when there is still tax debt, etc.
These acts are serious violations. Tax management Law , and Enterprise Law, considered tax evasion or tax debt.
📌 Pay attention to tax obligations after ceasing business operations and not operating at the registered address
If your business is in this situation, take the following steps immediately:
→ Check legal status: Verify whether the enterprise has submitted a notice of business suspension to the Department of Planning and Investment (DPI). If not, it needs to be done immediately.
→ Complete tax obligations:
- Submit all outstanding tax returns (VAT, CIT, PIT, etc.) up to the time of cessation of operations.
- Pay taxes, fines, late payment fees (if any) as notified by the tax department.
- If no revenue is generated, clearly state in the declaration or explanatory letter sent to the tax department.
→ Update registration address: If the enterprise is no longer operating at the old address, it is necessary to register a change of new address with the Department of Planning and Investment and notify the tax department.
→ Working with tax authorities:
- Submit a letter explaining the suspension of operations and committing to fulfill tax obligations.
- Request the tax department to check and confirm that there is no tax debt to avoid enforcement.
📌 Pay attention to tax obligations after announcing business dissolution
→ Complete dissolution procedures:
- Make sure to submit the dissolution notice to the Department of Planning and Investment and get approval.
- Carry out asset settlement, contract liquidation, debt repayment (if any).
→ Complete tax obligations:
- Submit final tax return (VAT, CIT, PIT) to the date of dissolution.
- Perform corporate income tax and personal income tax settlement for the entire period of operation.
- Pay all taxes, fines, and late fees as notified by the tax department.
→ Working with tax authorities on dissolution:
- Submit tax settlement documents and official dispatch requesting confirmation of completion of tax obligations.
- Prepare documents (accounting books, financial reports) for tax inspection.
- Receive tax audit report and tax clearance certificate.
- Notification of dissolution results: After being confirmed by the tax department, submit the notification of dissolution completion to the Department of Planning and Investment to delete the tax code and business registration.
Affect
Businesses face the risk of enforcement and heavy fines if they fail to fulfill their tax obligations.
Failure to fulfill tax obligations after ceasing business operations, not operating at the registered address, or dissolution without fulfilling tax obligations, can lead to serious consequences for the business.
The tax authority will apply coercive measures such as freezing your bank account, making it impossible for you to conduct financial transactions.
Additionally, you may be charged additional late payment penalties and hefty administrative fines, adding to your financial burden.
More seriously, if the violation persists, the enterprise may be prosecuted, greatly affecting its reputation, causing difficulties in restoring business operations or resolving legal issues later.
Solution
Coordinate and cooperate with tax authorities and fully perform obligations.
In principle “Taxpayers declare, pay and take responsibility for themselves”, the tax authority requests taxpayers to cooperate in implementing the following requirements:
🚀 Individuals who are business owners, representatives of businesses, business individuals, representatives of business households that have ceased operations but have not completed the procedures to terminate the validity of tax codes, businesses, business households, and business individuals that have issued invoices and then abandoned their business addresses but have not declared taxes, have under-declared taxes, or still owe taxes, should urgently contact the tax authority directly in charge to complete their obligations to declare and pay taxes to the state budget.
🚀 Proactively cooperate with tax authorities to fulfill the above tax declaration and payment obligations as a basis for taxpayers to overcome and fulfill their obligations to the state budget, avoiding risks and dangers of being handled by competent state agencies according to the provisions of law.
In case of not receiving proactive cooperation from taxpayers, tax authorities will proceed to publicize the list of taxpayer information according to regulations. Tax management Law; at the same time, consolidate and complete the dossier to transfer the request to the police agency to investigate, prosecute and strictly handle according to the law.
To avoid severe penalties, contact your local tax authority immediately to resolve outstanding obligations. Visit the General Department of Taxation Portal or contact your tax authority directly for detailed instructions. Compliance not only protects your business but also contributes to a fair and transparent business environment.
Refer to the Open Letter of the Tax Department on the implementation of tax obligations for enterprises, households and individuals that have ceased operations but have not completed the procedures for terminating the validity of tax codes; not operating at the registered address sent on April 11, 04.
