A Monthly Tax

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):

    1.  The business must be transferred from one person to another to continue its activities under the new ownership.
    2. 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.
    3. 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).
    4. 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.
    5. 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.



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