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Tax accounting services for manufacturing company

In recent years business activities, and tax accounting operations in manufacturing enterprises have been relatively complex, requiring accountants to be meticulous, careful, and accurate. Calculating product costs is the most important operation in the accounting work of manufacturing enterprises. Viet An Tax Agent will provide comprehensive tax accounting services, consulting and completing the most careful, detailed, and complete accounting documents. Viet An Law hereby will provide tax accounting services for manufacturing company.

Tax accounting services for manufacturing company

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    Legal basis

    • Law on Tax Administration 2019.
    • Law on Corporate Income Tax 2008, as amended and supplemented in 2013, 2020, 2023.
    • Law on Personal Income Tax 2007, as amended and supplemented in 2012 and 2014.
    • Law on Export Tax and Import Tax 2016.
    • Law on Value Added Tax 2016, as amended and supplemented in 2013, 2014, 2016.
    • Decree 139/2016/ND-CP on licensing fees, as amended and supplemented by Decree 22/2020/ND-CP.

    What are manufacturing companies?

    Production is understood as the main activity in human economic activities. It is the process of making products for use, or commercial exchange. Manufacturing enterprises that use resources and means of production combined with the application of science and technology to produce goods to meet market needs.

    A manufacturing company is an enterprise that specializes in production activities, creating products to meet the needs of the market and consumers; often found in the form of manufacturing factories, concentrated in industrial zones, high-tech zones, and export processing zones according to the current production business concentration mechanism in Vietnam.

    Common taxes and fees of manufacturing companies

    According to the provisions of the Law on Tax Administration 2019, manufacturing companies usually need to pay attention to the following taxes and fees:

    Name Concept Tax rate Tax type Tax declaration deadline
    Corporate Income Tax Direct taxes are levied on businesses’ income from the 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. Quarterly. No later than the 30th day of the first month of the following quarter.
    Personal Income Tax A direct tax is applied to people with income from salaries, wages, or other income. Personal income tax rates for income from salaries and wages are applied according to the Partial Progressive Tax Schedule. Monthly or quarterly. – Monthly: the 20th day of the following month.

    – Quarterly: the last day of the first month of the next quarter.

    Value Added Tax Indirect taxes are levied on the added value of goods and services arising during the production and business process. The VAT rate for domestically produced goods and services is 10% (can be adjusted downward from time to time). Monthly or quarterly. – Monthly: No later than the 20th of the following month.

    – Quarterly: No later than the last day of the first month of the following quarter.

    Export Tax Indirect taxes levied on the value of exported goods The tax rate according to the percentage of each item will be subject to change at each time of tax calculation (Appendix I & II attached to Decree 26/2023/ND-CP effective from July 15, 2023) Monthly No later than the 20th of the following month.
    Import Tax Indirect tax levied on the value of imported goods Monthly No later than the 20th of the following month.
    Non-agricultural land use tax A direct tax levied on non-agricultural land used by organizations, households, and individuals. The non-agricultural land use tax rate for production and business land is 0.03% – 1.5%. Yearly No later than October 31 of each year.
    Licensing fee A direct tax levied on organizations and individuals engaged in production and business activities. Depending on the level of charter capital or investment capital:

    – Over 10 billion VND: 03 million VND/year.

    – Under 10 billion VND: 02 million VND/year

    – Branches, representative offices, business locations, public service units, and other economic organizations: 01 million VND/year.

    Yearly No later than January 30 every year
    Special Excise Tax An indirect tax, levied on luxury goods and services such as alcohol, beer, cigarettes, and gasoline. Special consumption tax rates for goods and services are prescribed according to the Tax Schedule specified in the Law on Special Consumption Tax. Monthly, except for some cases where payment is made each time it arises No later than the 20th of the month following the month in which tax liability arises.

    Documents that Clients need to provide when using tax services

    When using manufacturing company tax accounting services, Clients should note that they provide the following documents:

    • Tax reports;
    • Financial report;
    • Tax settlement documents;
    • Invoices, contracts, and other documents related to tax obligations according to the provisions of law;

    Why should your manufacturing company use tax accounting services?

    Taking responsibility and minimizing tax risks for businesses

    According to Circular 10/2021/TT-BTC, the Tax Agent is responsible for declaring, signing, and stamping tax declarations, tax records, tax payment documents, tax finalization records, tax refund records, tax exemption and tax reduction documents according to the provisions of the Law on Tax Administration and is responsible for providing accurate and timely documents and documentaries at the request of the tax administration department to prove the accuracy of the tax declaration, tax payment, tax finalization, request for exempted tax amount, reduced tax amount, refunded tax amount of taxpayers.

    Enterprises can feel secure in production and business

    When using tax accounting from a Tax Agent, businesses will have very convenient procedures for declaring, paying, and refunding taxes following the provisions of the Law on Tax Administration. All tax-related procedures will be carried out by Tax Agents. The company does not have to waste time and human resources on carrying out tax declaration, payment, and refund procedures. This has great significance for small and medium enterprises as well as large enterprises.

    Using tax accounting services will help businesses have time and not have to worry about tax laws or tax regulations and focus on their business.

    Cost savings

    The cost of using tax accounting services is lower than using accounting services or hiring an experienced accountant to do tax declaration procedures.

    Several manufacturing companies today

    No. Company name Business code Main business line code
    1 T & T PRODUCTION – TRADING COMPANY LIMITED 0302706602 1399: Production of other uncategorized textiles
    2 MINH NHAT PRODUCTION AND INVESTMENT COMPANY LIMITED 0982668590 1520: Shoe manufacturing
    3 GNG PRODUCTION GROUP JOINT STOCK COMPANY 0109714901 2640: Manufacture of consumer electronic products
    4 HAI VAN AQUATIC SEED PRODUCTION COMPANY LIMITED POST 4500607061 0323: Aquatic seed production
    5 MINH CHAU GENERAL PRODUCTION COMPANY LIMITED 0108384376 2013: Producing primary plastic and synthetic rubber

    Tax accounting service of Viet An Tax Agent

    • Consulting businesses to understand the regulations on Enterprise Law, Tax Law, and Accounting Law specifically related to the enterprise’s production products;
    • Consulting and guidance on when to issue sales invoices and record sales revenue;
    • Consulting on building production norms for each type of product of the enterprise;
    • Receive documents, classify and check the validity, reasonableness, and legality of documents arising in the month or quarter;
    • 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;
    • Balance input and output value-added tax for businesses;
    • Balance raw material inventory, labor costs, depreciation of machinery and production tools;
    • Representative declares and pays value-added tax, declares personal income tax deduction, and reports monthly and quarterly usage;
    • Complete documents and print accounting books.

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

    Disclaimer: This article was last updated in May 2024. Laws may have changed since then. Please contact Viet An Law to confirm the information in this article is current and for any legal assistance.

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