Regulation of the annual tax report in Vietnam

The annual tax reporting is a regular activity of enterprises, often focusing on recording and synthesizing information about input VAT and output VAT invoices. This helps ensure accuracy and transparency in calculating taxes payable to tax administration agencies. In this article below, Viet An Law will present the regulation of the annual tax report in Vietnam.

Legal basis

• Law on Tax Administration 2019;
• Law on Personal Income Tax, as amended and supplemented in 2012, 2014, 2020.
• Law on Value Added Tax 2008, as amended and supplemented in 2014, 2016;
• Law on Corporate Income Tax, as amended and supplemented in 2014, 2020, 2022;
• Circular No. 133/2016/TT-BTC on accounting regime for small and medium enterprises.
• Circular No. 78/2014/TT-BTC guiding Decree No. 218/2013/ND-CP on corporate income tax, as amended and supplemented by Circular No. 25/2018/TT-BTC.

What is the tax reporting?

Tax reporting is the process of declaring input VAT invoices, including costs arising from the purchase or use of services, as well as sales invoices that the enterprise itself issues for the purpose of output VAT.

Tax reporting is considered as an important bridge between enterprises and tax administration agencies, allowing this agency to grasp the financial performance of enterprises.

What does the annual tax report include?

An annual tax reporting dossier includes 02 types:

• The tax finalization dossier: self-finalized tax declaration, personal income tax finalization, production activity results,…
• The financial report dossier: balance sheet, financial statement records, business performance report sheet, cash flow report, etc.

Details of documents required in the annual tax report

Some frequently asked questions related to tax reporting and annual tax reporting

What is the deadline for submitting monthly/quarterly/annual tax reports?

According to the provisions of the Law on Tax Administration and related documents, the deadline for submitting tax reports is prescribed as follows:

• Monthly tax report: Submit no later than the 20^th of the following month.
• Quarterly tax report: Submit no later than the 30^th day of the first month of the next quarter.
• Annual tax report: Submit no later than January 30^th of the following year.
• Tax declaration according to arising installments: Submit no later than the 10^th day from the date of arising.
• Annual tax finalization declaration: Submit no later than the 90^th day from the end of the fiscal year. In case an enterprise splits, merges, consolidates, converts ownership, dissolves, or terminates operations, the tax report submission deadline is the 45^th day from the date of the corresponding decision.

Enterprises need to pay attention to ensure compliance with deadlines to avoid fines related to tax payments.

What are the notes to make annual tax reports quickly and effectively?

To prepare annual tax reports quickly and effectively, enterprises need to pay attention to the following issues:

• Arrange invoices by date: Arrange and organize sales invoices by corresponding day and month, to make management easier and monitor the business process.
• Prepare copies of invoices: Copy and keep copies of invoices to avoid loss or disagreement. This can also help resolve future invoice issues.
• Monthly declaration and accounting: Use the accounting software to declare and account for monthly business activities. Before exporting data, check and edit the information to ensure accuracy.

Regulations on penalties and remedial measures related to annual tax reporting?

Note: Penalties will be doubled with enterprises.

Common errors in the annual tax reporting?

When making tax reports, enterprises should pay attention to the following errors to avoid errors in the reporting process

• Error “missing”, or “lost” bank records;
• Errors related to revenue: Some enterprises cannot distinguish unrealized revenue, so each time an invoice is issued, it is recorded as revenue, while there are no recorded costs of performing services, leading to the enterprise’s profits not matching reality, causing the enterprises to pay a lot of taxes;
• Failure to fully declare fixed assets, purchasing fixed assets without valid invoices;
• Missing the tax finalization dossier list;
• Missing the salary registration sheet; Accounting for salary costs but lacking the labor contract; Payroll sheet has no signatory.

Clients who need consulting on issues related to the regulation of the annual tax report in Vietnam, commercial and tax, please contact Viet An Tax Agent for the best support!