Stuck because businesses "leaving the city to return to their hometowns"
Reporting to the authorities, Mr. N.N.B - legal representative of M.B.C Company Limited (formerly headquartered in District 7, Ho Chi Minh City) said that they are in a deadlock due to administrative procedures related to old businesses.
Accordingly, Mr. B used to do business in Ho Chi Minh City but later moved his residence and workplace to Hanoi. Although he has stopped operating at the old headquarters in District 7, due to problems in handling lost paper invoices, he has not been able to complete the procedures to dissolve the business.
The prolonged incident caused his business to fall into a state of tax debt and administrative violations. The climax of the incident was that Mr. B. is currently subject to enforcement measures of temporary suspension of exit (ban on exit).
"Tax debt and being banned from entering and leaving the country greatly affect my current life and work to develop the economy. I have returned to Ho Chi Minh City to hope for a solution but have not yet received appropriate support to close the tax code and process the lost invoices" - Mr. B indignantly shared in the petition for help sent to the Ministry of Finance.
The solution for businesses to "disappear" from their registered address
Reviewing the case file, a representative of the District 7 - Nha Be District Tax Department (Baze Tax) determined that M.B.C Company had been notified by the tax authority about "Taxpayers not operating at the registered address" since November 23, 2022.
This is a common legal situation when a business leaves another place without notification, often called a "escaped" or "missing" business. To solve this situation and remove the ban on exit, the tax authority instructed businesses to carry out the "revivation" process to " extinguish" in accordance with the law.
Pursuant to Circular 86/2024/TT-BTC, businesses need to take the following steps:
1. Submitting documents to terminate the validity of tax codes: Enterprises in a state of "leaving the address" wanting to dissolve (both voluntary or compulsory) must submit documents to the tax authority for direct management. The dossier includes a document requesting to terminate the validity of the tax code (Form No. 24/DK-TCT) and a copy of the decision to dissolve or revoke the business license.
2. Complete the obligation to "clear" debt: Before having a tax code, businesses are required to fulfill the following obligations:
Regarding invoices: Resolutely handle unused invoices and lost invoices (as in Mr. B.'s case, a report of loss must be made and a fine must be paid if any) according to the provisions of the law on invoices.
Regarding finance: Submit complete tax declaration documents, pay full tax arrears, late payment fees, and fines to the state budget.
For Mr. N.N.B's specific case, the tax authority requires him to directly contact the Business Support Management Team for instructions on how to handle the lost paper invoices and calculate the tax debt accurately. Only when the full payment of tax arrears to the budget is completed will the measure of temporary suspension of exit be lifted.
