ASK
Please advise me that I want to terminate the branch operation, so do I need to notify the tax office? What is the penalty for late payment of license tax and license tax return?
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ANSWER
DHP LAW will answer your questions as follows:
Article 60 of Decree 78/2015/ND-CP stipulates the termination of operation of branches, representative offices and business locations as follows:
“first. When terminating the operation of a branch, representative office or business location, the enterprise shall send a Notice of termination of operation of the branch, representative office or business location to the Business Registration Office where the branch is located. branches, representative offices, business locations.
For the termination of operation of a branch or representative office, the Notice must be enclosed with the documents specified in Clause 2, Article 206 of the Law on Enterprises, in which the decision of the enterprise on the termination of branch operation is required. , representative office includes the decision of the business owner for a private enterprise, of the owner or the Chairman of the Members’ Council or the President of the company, for a one-member limited liability company, of the Board of Directors. member’s council, for limited liability companies with two or more members, of the Board of Directors, for joint-stock companies, of general partners, for partnerships on termination of branch operations, representative office.
- The Business Registration Office receives the notice, checks the validity of the dossier and changes the legal status of the branch, representative office, business location in the National Business Registration Database to the state of business registration. termination status; and at the same time issue a Notice on the termination of operation of the branch, representative office, business location… ”.
According to the above regulations, when terminating the operation of a branch, the enterprise needs to notify the Business Registration Office. When terminating the branch’s operation, the business registration authority shall guide the enterprise to the tax authority to carry out tax procedures.
According to the provisions of Point b, Clause 1, Article 17 of Circular 95/2016/TT-BTC on the application for invalidation of tax identification numbers as follows:
“b. For affiliated units, the dossier includes:
– A written request for invalidation of the tax identification number, form No. 24/DK-TCT issued together with this Circular;
– Tax registration certificate or Tax identification number notice (original); or a written explanation for the loss of the Tax Registration Certificate or Tax Identification Number Notice;
– A copy that does not require authentication of the decision to terminate the operation of the affiliated unit, or the notice on the termination of operation of the managing unit, or the decision to revoke the operation registration certificate for the affiliated unit of the competent authority;
– A written certification of fulfillment of tax obligations for import-export activities by the General Department of Customs if the organization has import-export activities.
When you terminate the operation of a branch that is a affiliated unit of the company, the company must submit a dossier to the tax agency directly managing the branch to invalidate the tax identification number granted to the branch. Thus, you have to notify the termination of operation to the Department of Planning and Investment, and at the same time need to notify the tax office to terminate the validity of the branch’s tax code.
If you do not notify the tax office, leading to the fact that the branch’s tax code still exists, you will be administratively sanctioned for late filing of the license tax return and late payment of excise tax as follows:
– The penalty for late submission of the license tax declaration depends on the number of days of late payment as prescribed in Article 9 of Circular No. 166/2013/TT-BTC :
“Article 9. Penalties for late submission of tax declaration dossiers compared with the prescribed time limit
- A warning will be imposed for the act of submitting tax declaration dossiers beyond the prescribed time limit from 01 day to 05 days with extenuating circumstances.
- A fine of 700,000 VND, if there are extenuating circumstances, the minimum fine level is not lower than 400,000 VND, or there are aggravating circumstances, the maximum fine level is not more than 1,000,000 VND for the act of submitting tax returns to the taxpayer. the tax authority beyond the prescribed time limit from 01 day to 10 days (except for the case specified in Clause 1 of this Article).
- A fine of 1,400,000 VND, if there are extenuating circumstances, the minimum fine level is not less than 800,000 VND or there are aggravating circumstances, the maximum fine level is not more than 2,000,000 VND for the act of submitting tax declaration dossiers. to the tax authority beyond the prescribed time limit from over 10 days to 20 days… ”.
– The penalty for late payment of license tax as prescribed in Clause 3, Article 3 of Circular No. 130/2016/TT-BTC is as follows:
“2. Determination of late payment interest.
- For tax arrears arising from July 1, 2016, the late payment interest is calculated at the rate of 0.03%/day on the late payment tax amount.
For support and advice on Business, Investment, Intellectual Property, Tax,… in the best way, please contact us with the following information:
DHP LAW
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