TERMINATION OF THE REPRESENTATIVE OFFICE’S OPERATION

1. Obligations before terminating the operation of Representative Office
   

1. Confirm not to owe any tax: Carry out the procedures for tax identification number (TIN) termination of the Representative Office.
   

• Chuẩn bị hồ sơ / Records to prepare:
• A written request for TIN deactivation, form No. 24/DK-TCT, enclosed with Circular 105/2020/TT-BTC.
  

• Copy of the Representative Office’s Decision or Notice of termination of operation.
  

• Thời gian xử lý hồ sơ / Processing time for records:
• The Tax Department where the Representative Office is located will process the records within 5 working days if the unit does not incur tax penalties or tax debts. 
  

In the event there are said amounts, the enterprise will pay additional fees for the tax authority to close the TIN. Specifically:

• Within 02 (two) working days from the date of receipt of the records for TIN deactivation by the Tax Department, the Tax Department shall carry out the Notice of taxpayer’s operation suspension and doing procedures for TIN deactivation.
  

• Within 03 (three) working days from the date of fulfillment of tax liability to the tax authority and customs authority, the Tax Department shall issue a Notice of TIN deactivation of taxpayer.
  

2. Confirm not to owe any social insurance premiums: Fulfilling obligations of paying insurance premiums to social insurance agency (if any).
   

1. Procedure of termination of Representative Office’s operation
   

1. Records of termination of Representative Office’s operation
   

• Notice of termination of The Representative Office signed by the authorized representative of the foreign company;
  

• List of creditors and unpaid debts, including tax debt and social insurance contributions (if any);
  

• List of employees and their respective current interests;
  

• Original Representative Office Establishment License.
  

Lưu ý / Note:

• After submitting the above documents to the Department of Industry and Trade, the Representative Office contacts the police office to return the seal.
  

2. Receiving agency and processing time
   

• Foreign companies shall submit Records of termination of Representative Office’s operation directly or by post to the Department of Industry and Trade.
  

Within 05 working days from the day on which the valid application is received, the Department of Industry and Trade shall announce on its website the termination of the Representative Office.

Lưu ý / Note:

• Foreign company and the Representative Office must publicly post the termination of operation at the headquarters of the Representative Office. 
  

• Legal responsibility when terminating the operation of Representative Office
  

1. The act of continuing to operate after the license expired without renewal.
   

Phạt tiền từ 30.000.000 đồng đến 50.000.000 đồng.

A fine ranging from 30,000,000 VND to 50,000,000 VND.

2. Fail to make periodic reports or report dishonestly on the operation of the Representative Office to the competent state management agency that issued the license as prescribed by the law.
   

A fine ranging from 10,000,000 VND to 20,000,000 VND.

3. If the Representative Office has employees, it is required to submit quarterly personal income tax report. If the report is submitted late more than 90 dates, a fine ranging from 15,000,000 VND to 25,000,000 VND will be imposed.
   

[1] Điều 14 Thông tư 105/2020/TT-BTC (Article 14 of Circular 105/2020/TT-BTC)

[2] Điều 36, Điều 37 Nghị định 07/2016/NĐ-CP (Article 36, Article 37 of Decree 07/2016/ND-CP)

[3] Điểm b khoản 2 Điều 18 Nghị định 99/2016/NĐ-CP (Point b, Clause 2, Article 18 of Decree 99/2016/ND-CP)

[4] Điểm b khoản 4 Điều 67 Nghị định 98/2020/NĐ-CP (Point b, Clause 4, Article 67 of Decree 98/2020/ND-CP)

[5] Điểm b khoản 2 Điều 67 Nghị định 98/2020/NĐ-CP (Point b, Clause 2, Article 67 of Decree 98/2020/ND-CP)

[6] Điều 13 Nghị định 125/2020/NĐ-CP (Article 13 of Decree 125/2020/ND-CP)

Contact PCA Company Services today. We will help you info@pcacompanyservices.com