On 12/03/2019, the General Department of Taxation issued Official Letter No.786/TCT-KK guiding the transfer of business households to enterprises under Decree 108/2018 / ND-CP. This Official Letter is valid on the issued day.
Accordingly, the principle of conversion from business households to enterprises is as follows:
– Enterprises converted from business households are granted new enterprise identification numbers according to their business registration certificates. The tax code of the household business is invalidated.
– Tax code of Business Households, upon termination of validity, shall still be used as personal tax identification numbers of business household representatives.
– Business households must be responsible for fulfilling their tax obligations, in case they are not completed, they must:
• Inheriting all legal rights, obligations and benefits of business households according to regulations (if converted into small and medium enterprises)
• Business owner (representative) is responsible for all of his assets for unpaid debts of business households, unless otherwise agreed upon (if converted into a responsible company). finite or joint stock company).
Thus, Official Letter 786/TCT-KK has timely contributed to solving problems of tax codes of business households and responsibilities of business households heads after converting to enterprises in time.