It depends on the specific circumstances.
The goal of tax payment processing is to obtain confirmation from the tax authorities that there are no outstanding tax debts. To obtain this confirmation, businesses should follow the guidelines below.
Cases where tax settlement is not required upon dissolution.
1. Pay corporate income tax at a percentage rate on revenue.
Businesses and organizations subject to corporate income tax at a percentage rate on revenue from the sale of goods and services as stipulated by the law on corporate income tax are undergoing dissolution or cessation of operations.
2. Businesses that have not generated revenue and have not used invoices.
A business is dissolved or ceases operations, but from the time it was granted a Business Registration Certificate or Enterprise Registration Certificate until the time of dissolution or cessation of operations, the business has not generated any revenue and has not used any invoices.
3. Revenue has been generated and invoices have been used, but the following conditions must be met:
Businesses subject to corporate income tax based on self-declaration may dissolve or cease operations if they meet the following conditions:
The average annual revenue (calculated from the year before tax settlement or audit to the time the business is dissolved or ceases operations) does not exceed 1 billion VND/year.
From the time a business has not yet undergone tax settlement or inspection until the time of its dissolution or cessation of operations, it has not been penalized for violating the law regarding tax evasion.
The amount of corporate income tax paid from the year that has not yet been settled or audited until the time of dissolution or cessation of operations is higher than the corporate income tax if calculated as a percentage of revenue from the sale of goods and services.
For the cases mentioned in points 1, 2, and 3 above, no later than 05 (five) working days from the date of receiving the dossier submitted by the taxpayer (including the dissolution or cessation of operations decision; documents proving that the taxpayer falls under the above-mentioned cases and has paid all applicable taxes, if any), the tax authority shall confirm that the enterprise has fulfilled its tax obligations.
Regulations regarding the percentage of revenue:
For services (including interest on deposits and loans): 5%.
Specifically for education, healthcare, and performing arts: 2%.
For goods trading: 1%.
For other activities: 2%.
Cases where tax settlement is required upon dissolution.
For cases where a business dissolves or ceases operations and does not fall under the exemptions mentioned above, based on actual needs, the tax authority directly managing the taxpayer will conduct tax settlement according to the plan issued by the tax authority.
According to current tax laws, businesses declare and pay taxes using the self-declaration, self-payment, and self-responsibility method. Therefore, in order to legally dissolve a business, companies are required to undergo tax settlement so that the tax authorities can verify the transparency and accuracy of the submitted reports before issuing a decision on the completion of the business's tax obligations.
