Transfer of a Business
Transfer of a Business
The transfer of a business from one person to another person, in accordance with the following conditions shall not be subject to value added tax (VAT):
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- The business must be transferred from one person to another to continue its activities under the new ownership.
- The taxable person transferring the business shall notify tax department of the transfer of the business within 10 days of the date of the transfer.
- The taxable person transferring the business shall seek cancellation of his/her registration, if appropriate, and shall comply with the provisions of Article 81 of the Law on Taxation and relevant Articles of Chapter 5 of Sub-decree of Value Added Tax (VAT).
- The recipient of the business shall be registered for VAT as a taxable person at the time the business is acquired and shall account for tax on the stock and assets acquired at the time of their supply.
- The recipient of the business shall retain the tax records related to the business transferred for a period of 10 years as stated in Article 98 of the Law on Taxation.