Representative Office Operations Reporting Service in Vietnam

Foreign representative offices in Vietnam must comply with the regime of annual operation reporting, whereby, before January 30 of each year, representative offices and branches are responsible for sending reports according to the form of the Ministry of Industry and Trade on their activities in the previous year by post to the licensing agency. Representative offices and branches are obliged to report, provide documents or explain matters related to their activities at the request of competent state management agencies. Regarding the report on the operation of the Representative Office of Foreign Traders in Vietnam, Viet An Tax Agent would like to send to customers the relevant regulations in the article below.

The concept of a representative office of a foreign trader

• A representative office of a foreign trader established in Vietnam, operating under an operation license issued by the Department of Industry and Trade of Ho Chi Minh City, with a round seal and tax identification number to maintain operation;
• A representative office is a dependent unit of a foreign trader that performs the function of a liaison office, researching the market, promoting business investment opportunities of the trader it represents;
• The representative office shall send a report according to the form of the Ministry of Industry and Trade on its activities in the previous year by post to the licensing agency;
• Representative offices are obliged to report, provide documents or explain matters related to their activities at the request of competent state management agencies.

When must the representative office make a report on its activities

• Before January 30 of the following year, each office must submit a report on the operation of the previous year according to the prescribed form to the head office of the licensing agency in the form of direct submission or submission by post.
• The office must also submit reports, documents and other explanations related to the operation situation as required by the authorities. This report form must be stored at the head office to serve activities when renewing/adjusting licenses during the operation process.

Main contents of the activity report that the representative office must carry out

Report on the employment situation:

The report on the activities of the office relates to:

• Permitted Commercial Activities
• Management and Promotion of Contracts
• Market Research
• Product Development
• Promoting Business Opportunities – Buying and Selling Good
• Other Activities

Risks when the representative office does not make the operation report in accordance with regulations

• Late submission of the report may be subject to a fine of up to VND 40 million and affect the consideration of office license renewal and other procedures in the future, and must submit an additional report attached.
• In case of signs of violation, the state agency can also conduct interdisciplinary inspection procedures including the coordination of the tax office – labor – the Department of Industry and Trade to work directly at the office headquarters.
• The last but not least point is that the presentation of the content of the activity report is also related to the basis for comparison with the labor declaration, declaration – payment and finalization of personal income tax of each employee and the head of the office, the content and presentation of these reports also affect the consideration of the time limit the term of the office license in subsequent times (one year, two years or five years).

The work of Viet An Tax Agent when reporting activities to the representative office

• Consultation on necessary procedures
• Exchanging and discussing with clients to learn about the activities of the Representative Office for the past year;
• Consult with the Representative Office on what needs to be reported.
• Preparation and submission of annual reports
• Provide the requirements of the Report for the Representative Office to refer to and complete;
• Draft the Operation Report for the Representative Office to consider.
• Review the English version of the Representative Office’s Operation Reports before signing and approving them;
• Translation of Activity Reports from English to Vietnamese;
• Complete Reports for final approval;
• Send the report to the Department of Industry and Trade directly managing the representative office;
• Contact the Department of Industry and Trade to obtain confirmation that the Representative Office’s Operation Report is in accordance with the prescribed Annual Report requirements.
• Support explanations/supplements if there are any issues/requests for clarification from the Department of Industry and Trade on the submitted Report.

How Viet An Tax Agent coordinates to manage annual operating reports according to regulations

• An overview of office operations.
• Evaluate records and reports related to labor relations management.
• Evaluate records and reports related to PIT management and compliance.
• Evaluate records and reports related to compliance procedures for foreigners working in the office.
• Prepare operational reports with appropriate contents, prevent risks and violations, help maintain the credibility of the office, create favorable conditions for the renewal of licenses or other compliance procedures of the office in Vietnam in the following years.
• On behalf of customers, explain all requests from state agencies.

If you have any difficulties or questions related to the representative office operation reporting service, please contact Viet An Tax Agent for the most specific advice.