Tax Authority Issues Ultimatum to Dormant Businesses
Vietnam's Tax Authority has issued an ultimatum to nearly 300,000 businesses that have ceased operations but

The Tax Authority of Vietnam has revealed that the processing rate for businesses that have ceased operations but have not completed the tax deregistration process stands at only 36% across 34 provinces and cities. This alarming statistic has prompted the Tax Authority to issue an urgent directive to local tax departments, emphasizing the need to mobilize resources for the campaign titled "Clearing Tax Codes - Removing Business Obstacles."
According to the Tax Authority, significant efforts have been made to implement government and Ministry of Finance directives aimed at standardizing the campaign nationwide. As of September 8, local tax agencies have been actively working to address the list of businesses classified as inactive (status code 03) that have yet to finalize their tax registration cancellation. However, the average processing rate remains low at 36% for the 34 provinces and cities involved.
Some provinces have reported higher processing rates, including Lai Chau at 74.8%, Gia Lai at 66.6%, and Hanoi at 62.5%. Other notable mentions are Ninh Binh at 61.5%, Thai Nguyen at 53.7%, and Dak Lak at 49.3%. In contrast, Ho Chi Minh City has only managed a processing rate of 19.6%, which is significantly below the average for the 34 regions. Despite this, due to the high volume of cases, Ho Chi Minh City accounts for 26.1% of the total resolved cases nationwide.
The Tax Authority acknowledges that while the campaign "Clearing Tax Codes - Removing Business Obstacles" has shown initial positive results, the overall processing speed remains slow, and the quality of case resolutions needs further improvement. A portion of taxpayers has not received adequate guidance on the tax deregistration procedures, leading to inconsistencies in understanding and implementation among various units.
In light of the substantial number of taxpayers still pending resolution, the Tax Authority has urged local tax leaders to take decisive action to ensure the campaign's goals and timelines are met. They are to provide maximum support to taxpayers in overcoming challenges during this process, preventing any additional backlog due to avoidable delays.
For cases where taxpayers have fulfilled their tax obligations and are seeking to dissolve their businesses, the tax authority is required to issue confirmation notices within three working days, avoiding delays caused by internal issues. The Tax Authority stresses the importance of promptly resolving cases that meet the criteria for tax obligations and ensuring transparency in the guidance provided regarding necessary documentation and procedures.
Furthermore, the Tax Authority has committed to addressing any unreasonable requests for additional documentation from taxpayers and ensuring that all submissions are accepted without unnecessary delays or repeated requests for clarification.