The Most Common Tax Infringements in Vietnam and How to Avoid Them
Posted 10.07. 2019 by Cekindo / Last update on 7.08. 2020
The details of taxation law in Vietnam can change from year to year. As a smart business owner, you absolutely do not want the Vietnamese tax authority to knock on your door later telling you that you have committed tax infringements.
Therefore, you need to clarify anything you don’t completely understand with regard to the tax law in Vietnam. The Department of Taxation in Vietnam has issued a checklist of the most common tax infringements to help you get started with your tax compliance.
This article gathers some of the key points from the checklist. Read through so you can take action to avoid any sorts of unwanted tax infringements in Vietnam.
Taxation in Vietnam: Common Tax Infringements Based on Industry
To make it easier for you, the most common tax infringements are categorised based on industry.
Export/Import and Trading Companies
Corporate Income Tax (CIT)
Depreciation of fixed assets that are not used
Salaries paid without contracts
Salary and bonus paid are higher than contracts
Illegal invoice use
Expenses on promotion and marketing exceeds prescribed cap
Recording expenses that are not related to the business
Using incorrect exchange rates
Value-added Tax (VAT)
Importing via foreign individuals who are not in business
Authorised organization not shown on the customs declaration
Output invoices cancellation without valid reasons.
Incorrect tax rates used
Failure to assign VAT input properly
Declaration of VAT for non business activities
Personal Income Tax (PIT)
Failure to declare PIT for all interests, loans, investments, and agent’s employees
Foreign Contractor Withholding Tax (FCWT)
Failure to declare the tax paid on behalf of foreign contractors
Cekindo is your go-to for all tax obligations. Our team consists of professional tax consultants and experienced business consultants. We will ensure that your business is in compliance with the tax regulations and law set by the government.
Get in touch with us to discuss taxation in Vietnam now by filling in the form below.