Running a successful and sustainable business in Vietnam means that your business must comply with all related accounting and tax laws and regulations in the country. The most important part that you have to pay attention to for accounting law compliance is the deadlines.
Missing the tax and accounting deadlines will jeopardise your business tremendously. So, business owners, here is the information you have to keep in mind for compliance deadlines in Vietnam for 2020.
Tax and Accounting Compliance Calendar in Vietnam for 2020
There are four fiscal year periods you can choose from over the year in Vietnam but the most important ones are in the first quarter of 2020: January 30, 2020 and March 30, 2020.
January 30, 2020
This date is the deadline for tax payment and/or declaration for the previous year in Vietnam. All declarations shall be reported to the local tax office with HTKK software.
The types of taxes to be paid and/or declared are listed below:
- Corporate income tax (CIT) of Q4, 2019 – declaration and paid on estimates
- Personal income tax (PIT) of Q4, 2019 – declaration and payment
- Value-added tax (VAT) of Q4, 2019 – declaration and payment
In addition, Vietnamese companies will have to pay the annual business license tax by the same deadline.
Based on the type of your business and registered charter capital, the following is the list of business license tax amount you have to pay:
- VND 10 billion capital or less: VND 2 million
- More than VND 10 billion capital: VND 3 million
- Representative offices, branches, public service providers, business location and other business entities: VND 1 million
March 30, 2020
Another important deadline in Vietnam is March 30, 2020 for the submission of most of your reports:
- Financial statement or report of 2019: profit and loss, cash flow, balance sheet, and financial statement note
- Tax settlement declarations of 2019: CIT settlement declaration and PIT settlement declaration
- Statistic or compliance report of 2019
- FDI reports
You are only required to submit the financial statement by this deadline in 2020 if your company is registered before October 2019. Otherwise, you can do the submission together with your financial statement of 2020.
Other Corporate Compliance Deadlines in Vietnam
Apart from the important deadlines in Q1, there are several other deadlines your business must comply with quarterly, annually, and bi-annually:
Quarterly
- CIT payment
- VAT declaration and payment
- PIT declaration and payment
- Report of foreign labour use
Bi-annually
- Report of labour use
Annually
- FDI report
- Audited financial report
- CIT and PIT settlement reports
- Business license tax payment
Deadline Violation and the New Penal Code in Vietnam
You will face a fine if you fail to meet the set deadlines. The amount of fines depends on the number of days you’re late to submit the declaration and/or payment, ranging between VND 700,000 and VND 25,000,000. The penalty is more serious for non-payment: the abolishment of your company license.
On top of that, according to the Vietnamese New Penal Code, companies will be deemed criminal for tax evasion.
How Cekindo can Assist in Ensuring Tax and Accounting Compliance in Vietnam
Cekindo’s accounting experts work with businesses like yours to help you achieve compliance in Vietnam. We advise on how you should construct your financial reporting and accounting processes, we also assist you to ensure that your accounting activities match your business objectives.
Navigating the constantly changing Vietnamese laws and regulations should not be your core activities when running your business. Cekindo has a dedicated team of accounting specialists with commercial and practical experiences, who can provide you with accounting solutions swiftly – so that you can do what you do best by focusing on the essence of your business operations.
Let Cekindo fulfill your accounting needs in Vietnam. Get in touch with us by filling in the form below.