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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.

Regulation of the annual tax report in Vietnam

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    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

    Dossier’s name Documents
    Tax finalization dossier Legal dossier of an enterprise Enterprise registration, Investment Certificate (if any)
    Citizen ID card, passport of legal representative
    Company’s charter
    Financial regulations and salary, bonus regulations of the company
    Register the fixed asset depreciation method with the tax agency
    Bank account registration results
    Tax declaration dossier VAT declaration
    Current tax and contractor tax declaration
    List of invoices for goods and services purchased and sold
    Notice of invoice issuance, invoice printing contract
    Report on the invoice usage status
    Financial report
    Finalization of corporate income tax
    Finalization of personal income tax
    Dossier of salary, bonus, and leave Employee’s dossier
    Labor contract
    Appointment decisions and salary increase decisions
    Timesheets
    Table pay salaries
    Register of family allowances
    Commitment 02/CK-TNCN (if any)
    Authorization letter for PIT finalization
    Personal tax code registration for employees
    Insurance notice table and insurance payment records
    Dossier of the published debt Economic input and output contracts
    Appendix of economic contracts
    Records of debt reconciliation
    Loan dossier Loan contract
    Records of payment of loan principal and interest
    Record of Accounting Purchase and sale invoices
    Customs declaration, payment slip to the State Budget
    Revenue and expenditure patterns
    Import patterns
    Export patterns
    Other accounting patterns
    List of purchasing goods without invoice 01/TNDN
    Appendix book of the bank account
    Dossier of accounting Public diary book
    Cash fund book
    Purchase diary book
    Sales diary book
    Ledger accounts: All arising accounts
    Account detail book
    Cash fund book
    Bank deposit book (Details of each bank)
    Fixed asset depreciation table
    Allocation Table; prepaid expenses
    Table of raw material standards
    Project finalization estimate table
    Detailed table of import and export goods
    General and detailed accounts receivable book
    General and detailed accounts payable book
    Loan detail book
    Financial report dossier Tax finalization declarations Corporate income tax finalization declaration
    Personal income tax finalization declaration
    Financial report Balance sheet (Form B01-DN)
    Table of business results (Form B02-DN)
    Cash flow table (based on form No. B03-DN)
    Financial statement table (based on form B09-DN)

    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 20th of the following month.
    • Quarterly tax report: Submit no later than the 30th day of the first month of the next quarter.
    • Annual tax report: Submit no later than January 30th of the following year.
    • Tax declaration according to arising installments: Submit no later than the 10th day from the date of arising.
    • Annual tax finalization declaration: Submit no later than the 90th 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 45th 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?

    Behaviors Remedial measures Penalties
    Submit the tax declaration dossier later than 1 day – 5 days and there are extenuating circumstances. Forced to pay the full amount of late tax payment to the State Budget in case the taxpayer is late in submitting tax declaration dossiers, leading to late tax payment. Caution
    Submit the tax declaration dossier later than 1 day to 30 days Fine from 2.000.000 VND to 5.000.000 VND
    Submit the tax declaration dossier later than 31 to 60 days Fine from 5.000.000 VND to 8.000.000 VND
    Submit the tax declaration dossier later than 61 to 90 days Fine from 8.000.000 VND to 15.000.000 VND
    Submit the tax declaration dossier later than 91 days or more but not incurring any tax payable
    Failure to submit the tax declaration dossier but no tax payable arises Compulsory submission of tax declaration dossiers and appendixes attached to tax declaration dossiers
    Failure to submit appendices according to regulations on the tax administration for enterprises with associated transactions along with CIT finalization dossiers
    Submit the tax declaration dossier later than 90 days, arising in the tax amount must be submitted and the taxpayer has paid the full tax amount and late payment interest to the State Budget before the deadline that the tax agency announces the tax inspection decision or before the tax agency makes a record of the late submission of tax declaration dossiers. Fine from 15.000.000 VND to 25.000.000 VND

    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!

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