Tax declaration service for businesses in Vietnam

Tax is one of the revenues that businesses must regularly pay into the state budget to carry out state management activities. To help businesses grasp the types of taxes that must be declared today, Viet An Law Firm – Tax Agent provides general advice to you on tax declaration service for businesses in Vietnam in the article.

Legal basis

• Law on Tax Administration 2019.
• Decree 139/2016/ND-CP, as amended and supplemented by Decree 22/2020/ND-CP regulating license fee collection rates.
• Decree 126/2020/ND-CP details several articles of the Law on Tax Administration, as amended and supplemented by Decree 91/2022/ND-CP.

Tax declaration documents

• According to the provisions of Decree 126/2020/ND-CP, tax declaration documents are tax declarations and related documents as a basis for determining the taxpayer’s tax obligations, which may include forms. Declaration according to regulations with list and appendix (if any).
• Tax declaration dossiers are regulated according to tax declaration deadlines, including monthly, quarterly, annual (with tax finalization dossier at the end of the year), and each time it arises.
• Taxpayers submit tax declaration documents to state agencies electronically or on paper.

Corporate taxes need to be declared periodically

Under the provisions of the Law on Tax Administration and Decree 126/2020/ND-CP, taxes are declared monthly, quarterly, and annually, each time a tax liability arises and tax finalization is declared. are specified as follows:

Taxes declared monthly

• Value added tax, personal income tax.
• Special consumption tax.
• Environmental Protection tax.
• Resource tax.
• Fees and charges belonging to the state budget (except for fees and charges collected by representative agencies of the Socialist Republic of Vietnam abroad as prescribed in Article 12 of this Decree; customs fees; fees for goods, luggage, and means of transport in transit).
• Corporate income tax, special taxes, gas interests in natural gas exploitation and export activities.

Taxes declared quarterly

• Corporate income tax for foreign airlines and foreign reinsurance.
• Value-added tax, corporate income tax, and personal income tax for credit institutions or third parties authorized by the credit institution to exploit security assets while waiting for the declaration to be processed on behalf of the borrower. Pay taxes with secured assets.
• Personal income tax for organizations and individuals paying income subject to a tax deduction, but the organization or individual paying that income is subject to quarterly value-added tax declaration and chooses to declare personal income tax Quarterly; Individuals with income from salaries or wages directly declare tax to the tax authority and choose to declare personal income tax quarterly.
• Other taxes and revenues belonging to the state budget are declared and paid by organizations and individuals who declare and pay taxes on behalf of individuals who are required to declare quarterly value-added tax and choose to declare tax on behalf of individuals every quarter, except for the case specified in Point g, Clause 4 of this Article.
• Surcharges when crude oil prices increase (except for oil and gas activities of Vietsovpetro Joint Venture at Lot 09.1).

Taxes declared by year

• License fee in case the person paying the license fee is newly established or in the previous year there is a change in capital.
• Personal income tax for individuals working as lottery agents, insurance agents, and multi-level marketing agents that have not been deducted during the year because they have not yet reached the level of having to pay tax, but at the end of the year the individual is determined to be subject to paying tax.
• Types of taxes and revenues of business households, business individuals pay taxes according to the flat method, and individuals leasing property choose to declare taxes annually.
• Tax on agricultural and non-agricultural land use.
• Land rent and water surface rent are paid annually.

The type of tax declared each time a tax liability arises

• Value added tax of taxpayers falling into the case specified in Article 7.3 of Decree 126/2020/ND-CP or declaring tax using the direct method but incurring value added tax obligations for real estate transfer activities.
• Special consumption tax of taxpayers with export businesses who have not paid special consumption tax at the production stage and then do not export but circulate domestically.
• Export tax, import tax, self-defense tax, anti-dumping tax, anti-subsidy tax, special consumption tax, environmental protection tax, value added tax on exported and imported goods.
• Royalties tax on irregular profits.
• Value-added tax and corporate income tax that do not arise regularly for taxpayers are applied using the direct method of added value.
• Corporate income tax on real estate transfer and capital transfer activities of foreign contractors.
• Personal income tax on income from real estate transfer; income from capital transfer; income from capital investment; income from copyrights, franchises, and prizes from abroad; income from inheritance and gifts.
• Environmental protection fees for irregular mineral exploitation activities.
• Land use fees.
• Registration fee (for cases where registration fee is exempted).
• Land rent and water surface rent are paid once for the entire lease term.
• Value-added tax and corporate income tax of foreign organizations and individuals doing business in Vietnam or earning income in Vietnam are applied by direct or mixed methods when the Vietnamese party pays for foreign contractors.
• Oil and gas commissions; proceeds from reading and using oil and gas documents;
• Dividends and profits are distributed to the state capital invested in the company, with ministries, ministerial-level agencies, agencies under the Government, and localities representing the owner of the state capital when the company pays dividends and profits.

According to the provisions of Decree 126/2020/ND-CP, tax declaration documents in this case include:

• Tax return declaration;
• Invoices, contracts, and other documents related to tax obligations according to the provisions of law.

Tax finalization

Tax finalization includes (1) annual finalization and (2) finalization up to the time of dissolution, bankruptcy, termination of operations, contract termination, or business reorganization, including taxes:

• Natural resources tax;
• Corporate income tax (except for cases declared monthly, quarterly, or annually);
• The remaining after-tax profit after setting up funds of enterprises with 100% charter capital held by the State.
• Personal income tax for organizations and individuals that pay personal income taxable income from salaries and wages; Individuals with income from salaries or wages authorize tax finalization to organizations and individuals paying income; Individuals with income from salaries and wages directly settle taxes with tax authorities.
• Fees belong to the state budget.
• Corporate income tax of foreign carriers is temporarily paid quarterly and declared annually.
• Taxes, interest, and surcharges for the exploitation and sale of crude oil and natural gas.

Some special cases

Declare tax for each sale

This form of tax declaration applies to crude oil exploitation and export activities. Accordingly, businesses doing business in this field must declare the following taxes at each sale:

• Natural resources tax;
• Corporate income tax;
• Special taxes and surcharges when crude oil prices fluctuate increased by Vietsovpetro Joint Venture at Lot 09.1;
• The host country’s oil profits are divided.

Deadline for submitting tax declaration documents and other revenues: 35 days from the date of crude oil sale (the date of completion of crude oil export at the delivery point of domestically sold crude oil and exported crude oil).

In case of converting business type

In case the converting enterprise inherits all tax obligations of the converted enterprise, it is not required to declare tax finalization until the decision on enterprise conversion is made, and the enterprise declares final finalization at the end of the year.

During the time the taxpayer temporarily stops operations and business

• Taxpayers do not have to submit tax declarations, except in cases where taxpayers temporarily suspend operations or do business for less than a full month, quarter, calendar year, or fiscal year, they still have to submit monthly and quarterly tax declarations; annual finalization records.
• Taxpayers are not allowed to use invoices and are not required to submit invoice use reports.

For exported and imported goods

Tax declaration dossiers are customs dossiers according to the provisions of the Customs Law used as tax declaration dossiers.

For taxpayers have many different business activities

In case of the same type of tax, the taxpayer owns many businesses or cooperatives and carries out different business activities, then declares them together on one tax declaration, except in the following cases:

• Taxpayers with many business activities, including lottery and computer lottery activities, must prepare a separate value-added tax declaration, special consumption tax, and after-tax profit for lottery activities, computerized lottery.
• Taxpayers who have many business activities, including buying, selling, and processing gold, silver, and gemstones, must prepare a separate value-added tax declaration for the trading and processing of gold, silver, and gemstones.
• Taxpayers whose collection is assigned by a competent state agency must prepare a separate value-added tax declaration dossier for collection activities.
• Active taxpayers with investment projects eligible for value-added tax refund must prepare separate value-added tax declaration dossiers for each investment project; At the same time, the value-added tax amount of goods and services purchased for each investment project must be offset against the value-added tax amount payable (if any) of the activities and business being carried out at the same tax period.
• Taxpayers who are assigned to manage a business cooperation contract with an organization but do not establish a separate legal entity shall make a separate tax declaration for the business cooperation contract as agreed in the business cooperation contract.

Tax accounting services of Viet An law firm – Tax Agent

• Consulting on conditions, documents, procedures, and tax obligations that businesses need to comply with according to current regulations;
• Drafting tax declaration documents for businesses;
• Services of implementing tax declaration obligations of authorized enterprises at competent state agencies;
• Enterprise representatives pay taxes into the state budget to fulfill tax obligations;
• Tax declaration service for businesses in Vietnam;
• Provide regular tax legal advice to businesses during their operations.

If you need to use corporate tax accounting services, please contact Viet An Tax Agent for the best support.