Tax accounting services for FDI companies on a case-by-case basis

With the current increasingly strong international integration, more and more FDI enterprises appear in Vietnam. Therefore, the demand for tax accounting services for FDI companies on a case-by-case basis is also increasing. Viet An Tax Agent will introduce some regulation helping clients to be equipped when performing accounting at foreign-invested enterprises.

What is Accounting for FDI Enterprises

Performing accounting work at FDI companies is understood as the process of accounting and handling economic operations arising at enterprises with foreign direct investment capital into Vietnam.

When a foreign company invests in another country, your task will be to record and truthfully reflect its production and business activities through reports that comply with international accounting standards and tax administration laws in the country where the business is located.

The content of accounting work at an FDI company is generally quite complicated because it involves exchange rates, cash flow reports between the parent company and branches in different countries.

The purpose of FDI enterprise accounting is to provide honest and reasonable information about the company’s production and business activities to relevant partners. These partners include governments, shareholders, banks and large investors. This source of financial information will also be used to evaluate the effectiveness of domestic and foreign investment activities, thereby serving as a basis for managers to assess risks in the international business environment.

Tax accounting work at FDI companies

If you use tax accounting services for FDI companies on a case-by-case basis provided by Viet An tax agent, we will make statistics, manage and make specific types of reports as follows:

Managing cash flow inside the business

• Collect money from customers.
• Pay suppliers and pay salaries to employees, pay taxes (if any).
• Evaluate the exchange rate difference.
• Compare debts on a monthly or quarterly basis.
• Be proactive in setting up provisions for inventory price reductions or bad debts.

Fulfillment of tax obligations

• Prepare reports on VAT, PIT, import and export tax, and contractor tax on a periodic basis.
• Review and promptly notify business owners of tax incentives for FDI enterprises.
• Review the free trade agreements signed between the two sides to avoid FDI enterprises being taxed twice.
• Submit financial statements on time as prescribed by tax authorities in Vietnam at the end of the fiscal year.
• Understand and apply Vietnamese accounting standards (VAS) and international accounting standards (IFRS) in accounting for arising economic operations and make financial statements in international languages to send to foreign investors.

The importance of tax accounting services for FDI companies on a case-by-case basis

Tax accounting plays an extremely important role because it helps FDI companies both comply with tax administration laws in Vietnam and comply with international accounting standards. This ensures the legitimate interests of FDI enterprises when investing in production and business activities in Vietnam.

Viet An Tax Agent – the optimal choice for foreign investors in recording and statistics of accounting books according to international standards:

• Owning a team of experienced staff, knowledgeable about Vietnamese tax law and international accounting standards.
• Record and make reports according to regulations of the tax authority directly managing as well as administrative requirements.
• Accompany businesses and advise on tax policies as well as ways to optimize tax costs and limit the risk of tax arrears.
• Support enterprises in inspection, tax finalization and remittance of profits abroad legally at the request of investors.

Commitment of Viet An tax agent

Viet An Tax Agent is committed to providing tax accounting services for FDI companies on an effective basis at extremely affordable costs:

• Update legal information for businesses.
• Consulting on tax and economic policies for administrators.
• Data security related to the production and business activities of the enterprise.
• To make statistics and synthesize data and to be accountable to tax authorities upon request.

Above is all information related to tax accounting services for FDI companies according to the case. Please contact us via the hotline if you are a foreign investor and have not found a solution to comply with tax laws and international accounting standards!