Tax accounting services for export company in Vietnam

An export company is also a type of enterprise that operates in the business of exporting goods. With the current market economy in Vietnam, companies operating in this field appear more in the market. However, due to the complexity of the tax accounting system for exporting companies, many exporting businesses are concerned and encounter difficulties in accounting for exporting company taxes. In the article below, Viet An Tax Agent will present the legal content related to tax accounting services for export company in Vietnam.

Common taxes and fees of exporting companies

Corporate Income Tax (CIT)

• It is a direct tax levied on businesses’ income from production and trading of goods and services.
• The corporate income tax rate for manufacturing enterprises is 20%, except for some cases that enjoy preferential tax rates.
• This is a tax paid quarterly.

Value Added Tax (VAT)

• Indirect taxes are levied on the added value of goods and services arising during the production and business process.
• The value added tax rate for domestically produced goods and services is 10%
• This is a tax paid monthly and quarterly.

Export Tax

• It is an indirect tax levied on the value of exported goods.
• Non-agricultural land use tax rates for production and business land are 0.03%, 0.07%, 0.15%, 0.2%, 0.3%, 0.4%, 0 ,5%, 0.6%, 0.7%, 0.8%, 0.9%, 1%, 1.1%, 1.2%, 1.3%, 1.4%, 1.5 %.
• This is a monthly tax payment.

Special Consumption Tax

• An indirect tax, levied on some goods and services that are not really necessary for people’s daily consumption needs. At the same time, there are certain harmful effects on users, the environment and society. In other words, the taxpayer is the producer or business person, but in reality the tax payer is the consumer of goods and services.
• Tax rates depend on certain items and are calculated directly into the price of the goods.

License Fee

• It is a direct tax levied on organizations and individuals engaged in production and business activities. The license tax rate for manufacturing enterprises depends on the registered business capital.
• The license tax rate for manufacturing enterprises depends on the registered business capital and is paid annually.

Environmental Protection Tax

It is an indirect tax, the object of tax collection is goods that cause negative impacts on the environment, the tax rate depends on certain items.

The time limit for tax declaration by exporting companies

The common tax deadline under Vietnam law includes:

• CIT: No later than the 30th day of the first month of the following quarter
• VAT:
  • No later than the last day of the first month of the following quarter (quarterly)
  • No later than the 20th of the following month (monthly)
• Export tax: No later than the 20th of the following month
• License fee: No later than January 30 every year

Trade defense taxes

The anti-dumping duty

An additional import tax is applied in cases where dumped goods imported into Vietnam cause or threaten to cause significant damage to the domestic manufacturing industry or prevent the formation of a domestic manufacturing industry.

Principles for applying anti-dumping tax include:

• Anti-dumping duties are only applied at a necessary and reasonable level to prevent or limit significant damage to the domestic industry;
• The application of anti-dumping tax is carried out when an investigation has been conducted and must be based on the investigation conclusions according to the provisions of law;
• Anti-dumping tax is applied to goods dumped into Vietnam;
• The application of anti-dumping tax must not cause damage to domestic economic and social interests.

Note: The duration of application of anti-dumping tax is not more than 5 years from the effective date of the decision to apply. In case of necessity, the decision to apply an anti-dumping tax can be extended.

Countervailing tax

An additional import tax is applied in cases where subsidized goods imported into Vietnam cause or threaten to cause significant damage to the domestic industry or prevent the formation of a domestic industry.

According to Clause 1, Article 13 of the Law on Export Tax and Import Tax 2016, conditions for applying anti-subsidy tax include:

• Imported goods are determined to be subsidized according to legal regulations;
• Imported goods cause or threaten to cause significant damage to the domestic industry or prevent the formation of a domestic industry.

Safeguard tax

An additional import tax is applied in cases where excessive imports of goods into Vietnam cause serious damage or threaten to cause serious damage to the domestic manufacturing industry or prevent the formation of a manufacturing industry. domestically produced.

Clause 1, Article 14 of the Law on Export Tax and Import Tax 2016 stipulates the conditions for applying self-defense tax including the following two conditions:

• The volume, quantity, or value of imported goods increases dramatically in absolute or relative terms compared to the volume, quantity, or value of similar or directly competitive goods produced domestically;
• An increase in the volume, quantity, or value of imported goods specified above causes or threatens to cause serious damage to the domestic industry producing similar goods or directly competing goods or prevent the formation of the domestic manufacturing industry.

Some companies export today

Intimex Group Joint Stock Company

Formerly known as Intimex Import-Export Company Branch in Ho Chi Minh City, with constant efforts following the motto “Prestige is top” has brought Intimex into a strong corporation, one of the leading brands. leading in Vietnam in the fields of processing and exporting agricultural products (coffee, pepper, rice, cashew nuts…); importing frozen food, iron, and steel; supermarket business and production and trading of construction materials… Up to now, Intimex Group has over 900 employees, a charter capital of 223 billion VND, import-export turnover of over 1 billion USD/year, and revenue Annual revenue reaches over 40 trillion VND. Intimex’s “multi-industry, multi-profession, multinational” operating network stretches from North to South with 6 branches and 14 member units in which the Group holds controlling shares, including 1 member unit. members established abroad.

Nestlé Vietnam Company Limited

Nestlé Vietnam Co., Ltd. was established in 1995, and is a 100% foreign-invested company, affiliated with Nestlé SA Group – the world’s largest food and beverage corporation currently present in 191 countries with 328,000 customers. employees globally, headquartered in Vevey – Switzerland. Currently, Nestlé Vietnam is operating 04 factories manufacturing food and beverage products located in Dong Nai and Hung Yen and recruiting more than 2,000 employees nationwide. All Nestlé factories in Vietnam are designed and built to meet the highest standards of consistent quality throughout the group, while always complying with Vietnamese laws on environmental protection, preventing pollution, and applying initiatives to reduce environmental emissions, save water, and aim for Zero environmental waste in production (Path to Zero).

Saigon Food Joint Stock Company

Saigon Food Joint Stock Company was established on July 18, 2003, with the original name Saigon Seafood Joint Stock Company (SG Fisco). As a reputable company in the field of manufacturing and trading frozen seafood and processed foods, Saigon Food has proactively expanded its products, markets, and distribution system. Not only does the company dominate the domestic market through the entire supermarket system in major cities in Vietnam, but the company also exports products to demanding markets such as Japan and the US.

Hanoi Import-Export Production Service Joint Stock Company

Hanoi Import-Export Production and Services Joint Stock Company (Haprosimex JSC), formerly known as Haprosimex Ho Chi Minh – Branch of Hanoi General Import-Export Production Company, was established in 1999. Haprosimex is one of the leading commodity companies. Vietnam has a lot of experience in the field of production and export of agricultural products and handicrafts.

Why should manufacturing companies use the tax accounting services of Viet An Tax Agent?

Viet An Tax Agent can provide tax services and business support for many large and small businesses across the country. Using Viet An Tax Agent can bring some advantages for businesses in Vietnam such as:

• Minimize risks for businesses
• Fully comply with tax obligations
• Save business costs

In addition to general benefits, businesses using the service enjoy many other benefits. Therefore, it will help businesses have time and not have to worry about tax laws or tax regulations for businesses to focus and feel secure on export business.

Some related questions about export company tax

Are export processing enterprises selling domestic goods subject to VAT?

According to Article 3 of the 2008 Value Added Tax Law, goods sold domestically from export processing enterprises are subject to VAT unless this type of goods belongs to the group of non-taxable subjects specified in Article 5 of the Law on Value Added Tax 2008.

Who is subject to import and export tax and VAT refund regulations for exported goods?

• Pursuant to Article 2 of the Law on Export and Import Taxes 2016, foreign enterprises that produce 100% of goods used for export must pay export and import taxes as for export and import purposes. domestic enterprises.
• Pursuant to Clause 1, Article 8 of the Law on Value Added Tax stipulates a tax rate of 0% applied to exported goods. Input value-added tax on exported goods is declared as deductible or refunded according to the law on value added tax.

Tax accounting services for export company in Vietnam of Viet An Tax Agent

• Consulting and guidance on when to issue sales invoices and record sales revenue;
• Consulting and guiding businesses to prepare documents attached to invoices so that invoices can be deducted from input value added tax and are deductible expenses when finalizing corporate income tax;
• Implement value-added tax declaration, and personal income tax deduction declaration, and report monthly and quarterly usage status;
• Representative of the business to perform tax declaration, personal income tax finalization, corporate income tax, and year-end financial statements;
• Regularly advise on accounting and tax laws for businesses during their operations.

Clients who need advice on issues related to tax accounting services for export company in Vietnam and other businesses, please contact Viet An Tax Agent for the best support.