Vietnam has seen a remarkable rise in the number of new businesses being registered in recent years. A successful business in Vietnam, whether local or foreign-owned, is built on several foundations, including timely tax reporting and corporate compliances.
Find Out about Cekindo’s Corporate Tax & Compliance Services in Vietnam
The deadlines for 2021 compliance in Vietnam are coming. So is your company ready to meet the deadlines and avoid hefty fines and penalties?
Tax Compliance and Other Corporate Regulations in Vietnam
There are many business and legal challenges that Cekindo’s experienced team can help you handle easily. Here are some of the highlights:
1. Requirements for Report Submission
Below are the compulsory reports that companies need to submit:
Tax Authority:
- Business license report.
- Tax finalisation report (VAT, PIT, CIT).
- Using invoice report.
- Financial statement (FS auditted for FDI companies).
Labor Department
- Employment and labor report
- Registration of internal policy.
- Salary scale system report.
Statistic Department:
- Statistic report
- Annual Financial statement
DPI Department:
- FDI reports
2. Vietnam Taxation Compliance Deadlines
There are four fiscal periods in Vietnam that foreign companies can choose from:
- January 1 – December 31
- April 1 – March 31
- July 1 – June 30
- October 1 – September 30
If foreign businesses don’t opt for a specific fiscal year, the fiscal year period is automatically to be from January 1 – December 31.
Critical compliance deadlines of CIT finalization and Financial Statement are mostly in the first quarter of a fiscal year.
3. 2021 Tax Payment Deadline:
- The due date for tax payment is same the due day of tax reports submission.
- For PIT final payment is no later than 31st March of the following year.
- For CIT final payment, deadline is no later than the last day of the following fiscal year.
According to Point b – Clause 6 – Article 8 – Decree 126/ND-CP/2020 dated 19th Oct 2020 regulate:
“The total amount of provisional corporate income tax paid in the first 03 quarters of the year shall be at least 75% of the terminal tax. Otherwise, late payment interest shall be charged on the arrears over the period from the deadline for paying corporate income tax of the third quarter to the date of payment of the arrears”.
4. Annual Business License Fee and Business License Declaration:
Companies must to pay their annual business license fee before January 30 in yearly.
In case of any change in the ERC, which affects the business license payable amount (such as: opening more branches, opening more representative offices; increasing or reducing capital …) then the company must submit a business license report no later than 30th January of the following Calendar year.
Related: Accounting & Bookkeeping, Things To Know for Foreign-owned Companies
Depending on your company’s registered charter capital, the amount of business license tax can be categorized into the following:
- Registered charter capital of no more than VND 10 billion (US$430,000): VND 2 million (US$85) annual business license tax.
- Registered charter capital of more than VND 10 billion (US$430,000): VND 3 million (US$130) yearly business license tax.
- Representative offices (for Entity in Vietnam), branches, public service providers, business locations, and other business organizations: VND 1 million (US$40) yearly business license tax.
5. Report Submission Deadlines:
Most report submission deadlines fall in the first quarter of the following year – last day of March. And Vietnam authorities may require companies to submit specific reports annually, bi-annually, quarterly or monthly:
a. Annual submission
- Information on Business license (business license declaration (if any) and business license fee)
- Financial report (audited for FDI) that includes profit and loss, balance sheet, and cash flow, financial statement note.
- Corporate income tax finalisation and personal income tax finalisation
- Employment and labor report.
- Registration of internal policy (if any change)
- Salary scale system report (if any change)
- Statistic report.
- Financial report to Statistic Department.
- FDI reports
b. Bi-annual submission
- Employment and labor use report
c. Quarterly submission
- Personal income tax payment (if any) and declaration
- Corporate income tax payment (if any)
- Value-added tax payment (if any) and declaration
- Using invoice report (in case the company incurs revenue and registered to use tax invoice)
- Foreign employment and labor use report
d. Monthly submission (if revenue of preceding year is over 50 billion VND (US $2,150,000))
- Value-added tax payment (if any) and declaration
- Personal income tax payment (if any) and declaration
Deadline to submit monthly report: 20th of the following month.
Tax Outsourcing with Cekindo for 100% Compliance
It becomes increasingly vital for businesses to record their accounting and financial transactions accurately on a day-to-day basis. This is to ensure a company has stable financial health with full compliance with Vietnam taxation law. So here, Cekindo comes into the picture to support enterprises with tax outsourcing for 100% compliance.
Financial and taxation experts at Cekindo help companies best utilize their resources to avoid time-consuming clerical tasks and maintain accurate accounting records and submit all necessary tax reports on time.
If you are currently searching for a reliable tax outsourcing provider in Vietnam, your search ends here. Complete the form below to be connected to our tax specialists.