Headlines 17/05/2019 08:14 SA

Noticeable issues on taxes of enterprises transformed from household business

Hồng Thuận

This is the highlight of the Official Dispatch No. 786/TCT-KK providing guidance on transformation of households into enterprises under the provisions of the Government’s Decree No. 108/2018/ND-CP This document contains the following points:

- After transformation, enterprises will be granted new corporate codes inscribed in enterprise registration certificates.

TINs of household businesses will become invalid but still be continued for use as personal tax codes of representatives of household businesses.

- After being transformed, enterprises will inherit all tax rights and obligations from household businesses in the event that household businesses fail to fulfill their obligations before that.

In case of limited liability companies or joint stock companies established on the basis of transformation from household businesses, householders (representatives of household businesses) must:

Be held liable by offset all of their own property against outstanding debts of household businesses, unless otherwise agreed upon in accordance with laws.  

- In case of transferring tax obligations of household businesses to enterprises or householders, tax agencies in charge of managing household businesses must prepare notice of transfer of obligations of taxpayers according to prescribed procedures and hand over such tax obligations to tax agencies in charge of managing enterprises.

The Official Dispatch No. 786/TCT-KK was promulgated on March 12, 2019.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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