Does suspended business have to submit financial statement in Vietnam?

Quang Minh May 23, 2022

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Posts : Does suspended business have to submit financial statement in Vietnam? In the section LSX Lawfirm

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In certain cases, the company may suspend business for a period of time. Accordingly, enterprises must suspend all activities including branches and representative offices in accordance with the law. However, when temporarily suspending business, does the enterprise need to make reports and submit financial statements to the competent authority? If you do not understand clearly about the regulations, you may face some difficulties. So, in this article LSX legal firm will answer the question: “Does suspended businesses have to submit financial statement in Vietnam?”

Legal grounds

Circular 156/2013/TT-BTC
Decree 126/2020/ND-CP

Do you have to submit financial statements if you suspend your business?

Circular 156/2013/TT-BTC in Article 10, Clause 1, Point dd stipulates the principles of tax declaration and calculation as follows:

“If the taxpayer’s business is suspended and tax is not incurred, the tax declaration for the suspension period might not be submitted. If the taxpayer’s business is not suspended the whole calendar year or tax year, the annual terminal declaration must be submitted.”

According to the above provisions, if the taxpayer does not incur tax obligations during the period of business suspension, the taxpayer does not have to submit a tax return. On the other hand, if the business does not take the full calendar year or fiscal year off, it still has to submit the annual tax finalization dossiers.

However, before an enterprise suspends business, it must carry out procedures for business suspension as prescribed in Point dd, Clause 1, Article 10, Circular 156/2013/TT-BTC and Decree No. 43/2010/ ND-CP is as follows:

Enterprises and business households that temporarily suspend their business must notify in writing the business registration agency where they have registered and the tax office at least fifteen days before the temporary cessation of business.
In which, the notice content includes the name, address, company, name of the legal representative, the reason for suspension, and the duration of the business suspension.

The time limit for business suspension stated in the notice must not exceed one year. After the notice period expires; if the enterprise or business household continues to suspend its business, it must further notify the business registration agency. The total period of consecutive business suspension must not exceed two years.

In conclusion:

Taxpayers who suspend their business for the whole calendar year not required to submit annual tax finalization declarations. Enterprises not required to submit financial statements, CIT finalization declarations, and PIT finalization declarations.
If the taxpayer suspends business for less than a full calendar year, the enterprise must submit the financial statement, the CIT finalization declaration, and the PIT finalization declaration.

Does suspended businesses have to submit financial statement in Vietnam?

According to the provisions of Clause 2, Article 4, Decree 126/2020/ND-CP:
“2. During business suspension:
a) The taxpayer not required to submit tax declaration dossiers unless the suspension begins in the middle of a monthly/quarterly/annual tax period; in which case the tax declaration dossier of that month/quarter/year must be submitted.
b) For household businesses and individual businesses paying fixed tax, tax authorities shall decide the tax payable upon their suspension in accordance with regulations of the Minister of Finance.
c) The taxpayer must not use invoices and not required to submit invoice use reports. In case the taxpayer permitted by the tax authority to use invoices in accordance with invoice laws, the taxpayer shall submit the tax declaration dossier and invoice use reports as per regulations.
d) The taxpayer shall implement the tax authority’s decisions and notices of debt collection, enforcement of tax decisions, an inspection of compliance to tax laws, and administrative penalties for tax offenses in accordance with the Law on Tax administration.”
Besides, Circular 156/2013/TT-BTC, Article 10, Clause 1, Point dd:
“If the taxpayer’s business is suspended and tax is not incurred; the tax declaration for the suspension period might not be submitted. If the taxpayer’s business is not suspended the whole calendar year or tax year; the annual terminal declaration must be submitted.”
According to the above provisions, if the taxpayer does not incur tax obligations during the period of business suspension, then the taxpayer not required to submit a tax return. In contrast, if the business does not take the full calendar year or fiscal year off, it still has to submit the annual tax finalization file.

Business suspension service of LSX Legal Firm

Business suspension-a necessary solution for businesses when they cannot continue doing business for a specified period of time. Suspending business quickly will help businesses avoid unnecessary costs. Meanwhile, the business suspension process contains complicated procedures so if businesses do it themselves, they will face many risks. Using the business suspension service of LSX will make you feel secure in each stage of implementation.

To make your case more convenient, LSX will perform:

Legal advice related to new regulations in business suspension;
Representing in drafting and editing documents;
We commit the papers to be valid, and legal for use in all cases;
Represent to submit documents, receive results, and hand them over to customers.

With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.

Furthermore, using our service, you do not need to do the paperwork yourself, We guarantee to help you prepare documents effectively and legally.

Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.

After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.

Does business suspension have to pay wages to employees?

How to extend the business suspension?

Suspension of investment projects in Vietnam

Does business suspension have to pay salary?

The enterprise must reach an agreement with the employee on benefits and employment such as salary waiting for work, and temporary suspension. perform the contract because the company suspends business, etc. When the business suspension period expires, the company must continue to perform the labor contract with the employee.

Does the company suspending business have to pay social insurance?

Company must continue to pay social insurance premiums for employees; if the enterprise has no other agreements with the employee.

Term to suspend operations in business for individuals and organizations?

Enterprises: Taxpayers are entitled to suspend their operations of the business for no more than 1 year/each time. Organization: the total period of suspension of business shall not exceed 2 years for 2 consecutive registrations.

Contact LSX Law Firm

Finally, hope this article is useful for you to answer the question about: “Does suspended business have to submit financial statement in Vietnam?”. If you need any further information, please contact LSX Law firm : +84846175333 or Email: [email protected]