Currently, closing the tax code of a business household is one of the important procedures in case the business household requests dissolution or temporary suspension of operations. So what is the procedures for closing tax code of a business households online? Let’s find out related information through the article of Viet My Law and Accounting below.

1. In which cases will the tax code of a business household be closed in 2024?

A business household’s tax code is closed (or more precisely, the tax code is terminated) in the cases specified in Clause 2, Article 39 of the Law on Tax Administration 2019:

– Termination of business activities for the business household;

– The competent authority revokes the Business Household Registration Certificate.

Starting from July 1, 2023, the tax code of the business household is also the business household code automatically generated from the State’s Tax Registration Application System. This code is clearly printed on the Business Household Registration Certificate together with the business household registration code (according to Clause 1, Article 5b of Circular 01/2021/TT-BKHĐT supplemented by Circular 02/2023/TT-BTC).

According to Clause 1, Article 93 of Decree 01/2021/ND-CP, a business household will have its Business Registration Certificate revoked in the following cases:

– The content declared in the business household registration dossier is fake;

– Business activities are suspended for more than 06 consecutive months without notifying the Department of Finance – Planning where the business is registered and the Tax Authority;

– Business activities are prohibited, not complying with legal regulations;

– Business households are established by people who are not entitled to establish business households;

– Business households do not submit reports as required to the district-level Business Registration Authority within 03 months from the deadline for submitting reports/having a written request;

– Other cases according to the Court’s decision, request of competent authorities as prescribed by law.

Thus, the business household will have its tax code closed in the following 2 cases: Termination of business activities or revocation of the Business Household Registration Certificate.

2. How does the procedures for closing tax code for business households online take place?

To close the tax code, the business household needs to follow the following steps:

Step 1: Prepare a set of documents including the following types of documents:

– Document requesting to terminate the validity of the tax code form 24/DK-TCT Circular 105/2020/TT-BTC;

– Copy of the decision to revoke the Certificate of Business Registration (if any).

Step 2: Submit the complete application to the direct tax authority within 10 working days from the date of the document terminating the business operation.

In the case of electronic tax registration documents: The taxpayer will access the Electronic Information Portal that the taxpayer chooses to fill out the declaration and attach the documents as mentioned above according to the regulations in electronic form (if any), sign electronically and send to the tax authority via the Electronic Information Portal that the taxpayer has chosen.

Taxpayers shall submit dossiers (tax registration dossiers at the same time as business registration dossiers under the one-stop mechanism) to competent state management agencies as prescribed.

Competent state management agencies shall be responsible for sending information on the taxpayer’s received dossiers to the tax authorities via the General Department of Taxation’s Electronic Information Portal.

Step 3: Tax authorities shall receive and process the dossiers of business households:

– For paper tax registration dossiers:

• In case dossiers are submitted directly to the tax authorities: Tax officials shall receive and stamp the tax registration dossiers of business households, clearly stating the date of receipt of the dossiers, the number of documents according to the list of dossiers, write a receipt note for the date of return of results, and the deadline for processing the received dossiers.
• In case tax registration dossiers are sent by post: Tax officials shall stamp the receipt, clearly stating the date of receipt of the dossiers on the dossiers and recording the tax authority’s document number.

Then, check the tax registration dossier. If the dossier is incomplete, it is necessary to explain and supplement information and documents. The tax authority shall notify the taxpayer according to Form No. 01/TB-BSTT-NNT Appendix II of Decree 126/2020/ND-CP within 02 working days from the date of receipt of the dossier.

– For the case of electronic tax registration dossiers:

The tax authority shall receive the dossier for closing the tax code of the business household via the Electronic Information Portal of the General Department of Taxation, and shall check and process the dossier via the electronic data processing system of the tax authority.

* Electronic transactions in direct registration with tax authorities:

• Receiving dossiers: The General Department of Taxation’s electronic information portal sends a notice of receipt of the taxpayer’s submission of dossiers via the General Department of Taxation’s electronic information portal/the electronic information portal of a competent state agency or an organization providing T-VAN services no later than 15 minutes from the time of receiving the taxpayer’s electronic tax registration dossier.
• Checking and resolving dossiers: The tax authority will check and resolve the taxpayer’s dossier according to regulations and return the settlement results via the electronic information portal where the taxpayer has chosen to prepare and submit the dossier.
• If the dossier is complete, in accordance with the prescribed procedures and must return the results: The tax authority will send the results of the dossier settlement to the electronic information portal where the taxpayer has chosen to prepare and submit the dossier within the prescribed time limit.
• If the dossier is incomplete or does not comply with the prescribed procedures, the tax authority must be responsible for sending a notice of non-acceptance of the dossier to the Electronic Information Portal that the taxpayer has chosen to prepare and submit the dossier within 02 working days from the date stated on the Notice of receipt of dossier.

* In case of simultaneous registration with business registration under the one-stop mechanism:

• Receiving dossiers: The Electronic Information Portal of the General Department of Taxation will receive the dossiers from the business registration authority.
• Checking and processing dossiers: The tax authority checks and processes the taxpayer’s dossiers and returns the results of the processing via the National Information System on Business Registration and Cooperative Registration.

The tax authority sends the results of the processing of the dossiers via the National Information System on Business Registration and Cooperative Registration; or to the taxpayer’s email address in case the taxpayer has an electronic transaction account on the General Department of Taxation’s Electronic Information Portal.

3. Principles of closing tax codes for business households

Currently, closing tax codes for business households must comply with the basic principles stipulated in Clause 3, Article 39 of the 2019 Law on Tax Administration, specifically as follows:

First, the tax code of a business household will not be used in economic transactions from the date the tax authority announces the termination of validity;

Second, the tax code of a business household that has expired cannot be reused, except in the case of restoring the tax code as prescribed in Article 40 of this Law;

Third, when a business household terminates the validity of its tax code, it must simultaneously terminate the validity of the tax code paid on its behalf;

Fourth, when a business household is the parent unit that terminates the validity of its tax code, its dependent units must have their tax codes terminated.

The above is the content of the article guiding the procedures for closing tax code for business households online according to current regulations. Hopefully the above information will be useful to you. If you have any questions, please contact Viet My Law and Accounting immediately for the most detailed advice.