Tax finalization service in Vietnam

Tax finalization in Vietnam is one of the important and mandatory obligations for businesses, organizations, and individual business entities. However, the tax finalization process can be quite complex and requires the executor to have in-depth knowledge of legal regulations, administrative procedures, and declaration forms. Therefore, many businesses choose tax finalization services as a solution to help them and individuals handle tax-related issues efficiently, accurately, and in compliance with legal regulations. The following article by Viet An Law will present legal matters related to tax finalization service in Vietnam.

Can taxpayers request a postponement of the tax audit at their premises?

• Upon receiving the audit decision, businesses should promptly review all their data, invoices, and documents. If everything is in order, they should be ready to welcome the audit team. However, if there are still many unresolved issues in the records, the first step is to utilize the tax finalization service in Vietnam and submit a written request to extend the tax finalization period.
• According to the provisions of Point c, Clause 5, Article 72 of Circular No. 80/2021/TT-BTC regarding audits at the taxpayer’s premises, it is stated as follows: “In case the taxpayer has a written request to postpone the audit period, the document must clearly state the reason and the postponement period, or if the tax authority has a force majeure reason to postpone the audit period, the tax authority must notify the taxpayer before the audit decision announcement deadline in the form No. 08/KTT issued with Appendix I of this Circular. During the audit process, if a force majeure reason arises, making it impossible to continue the audit, the audit team leader must report to the person who issued the audit decision to temporarily suspend the audit. The suspension period is not counted within the audit period.”
• Therefore, taxpayers have the right to request a postponement of the tax audit period. However, the taxpayer must have a written request for postponement, and the document must clearly state the reason and specific postponement period.
• The postponement of the tax audit period will also be implemented in case the tax authority has a force majeure reason to postpone the audit period and will notify the taxpayer before the audit decision announcement deadline.
• In case the tax authority agrees to postpone the audit period for the business, the business should contact Luat Viet An for support.

Documents Clients need to prepare before tax finalization

Corporate Records

• Business registration, investment certificates (if any);
• Company charter;
• Company financial regulations, specifically regarding salary calculation, allowances such as transportation, phone, uniform, medical expenses, etc.;
• Registration of fixed asset depreciation methods with the tax authority.

Tax Filing Records

• Review data on the purchase and sales invoice list to ensure it matches the monthly (quarterly) VAT tax returns and the balances of accounts 133, 3331 in the books;
• Ensure invoices are complete and organized according to the invoice list;
• Check payment receipts to the state budget for taxes: VAT, business license tax, corporate income tax, etc.;
• Invoice issuance notice, invoice printing contract;
• Review reports on invoice usage; Ensure canceled invoices have complete recovery minutes, and supplement if missing;
• Financial statements, corporate income tax finalization for the settled years.

Payroll Records

• Check personal income tax finalization returns to ensure they match the payroll and detailed account 334;
• Review employment contracts, employee records: resumes, identification cards (citizenship ID), relevant diplomas, etc.;
• Verify payroll, attendance sheets, and payment vouchers;
• Ensure salary and bonus decisions match the payroll;
• Ensure payroll and salary receipt slips have complete employee signatures.

Debt Records

• Input and output economic contracts;
• Economic contract appendices;
• Debt reconciliation minutes;
• Check balances of accounts 131, 331 for each customer, supplier, and ensure they match the debt reconciliation minutes.

Note: For customer advances, the contract must include an advance clause; For unpaid supplier amounts, the contract must include a payment extension clause.

Loan Records

• Loan contracts;
• Ensure the enterprise has contributed sufficient capital.

Detailed Account Ledger

• Review all detailed accounts and general ledger accounts;
• Verify inventory in and out summaries;
• Review fixed asset depreciation allocation tables, tool and equipment allocation, prepaid expense tables.

Procedures for Tax Inspection at the Taxpayer’s Premises

According to Decision No. 970/QD-TCT of 2023, the procedures for tax inspection are as follows:

Phase 1: Preparation for Tax Inspection at the Taxpayer’s Premises

• Issuance of the Inspection Decision
• The tax inspection decision at the taxpayer’s premises must be sent to the taxpayer no later than 3 (three) working days from the date of issuance.
• In cases where the tax authority or a department not directly managing the taxpayer conducts the inspection, one copy must be sent to the tax authority or department directly managing the taxpayer for distribution to relevant departments.
• Before announcing the inspection decision, the head of the inspection team must assign team members to carry out the inspection tasks according to the content stated in the inspection decision, using form No. 07/QTKT issued with the tax inspection procedures.
• The inspection decision can be revoked; the inspection can be postponed or temporarily suspended; the inspection decision can be adjusted if it is proven that the declared tax amount is correct and the full tax amount has been paid.
• If the taxpayer continues to operate normally and declares taxes but does not receive the inspection decision or intentionally avoids complying with the inspection decision, the inspection team will prepare an administrative violation report according to regulations.

Phase 2: Tax Inspection at the Taxpayer’s Premises

• Announce the tax inspection decision.
• Conduct the inspection at the taxpayer’s premises.
• Prepare the tax inspection report.
• Handle the inspection results at the taxpayer’s premises.
• Record the inspection diary.
• Supervise the inspection team.
• Monitor and urge the implementation of post-inspection results.
• If the tax authority’s database, information technology applications, and the taxpayer meet the requirements to work electronically or online, the inspection team and the taxpayer can conduct the inspection electronically, online, or through a combination of methods during the inspection at the taxpayer’s premises (working directly at the taxpayer’s premises, electronically, or online). It is encouraged for the inspection team and the taxpayer to work electronically and online, especially when utilizing the tax finalization service in Vietnam.

Why Choose the Tax Finalization Service of Viet An Law tax agency

Using the tax finalization service in Vietnam provided by Viet An Law tax agency offers businesses and individuals numerous benefits when fulfilling tax obligations. The personal income tax and corporate income tax finalization services at Viet An save time and effort by transferring information collection, calculation, and report preparation to experienced professionals. We ensure compliance with legal regulations, minimize tax violation risks, and optimize financial returns for clients. Working with Viet An experts also reduces errors, ensuring accuracy in tax finalization. With a commitment to thorough support, we help clients focus on their main tasks without worrying about taxes.

Tax Finalization Service of Viet An Law

• Consulting on tax regulations in general and tax finalization in particular;
• Performing tax finalization under customer authorization, including preparation, completion, and submission of finalization documents to competent state authorities;
• On behalf of the client, amending, supplementing documents, directly working with competent authorities when required;
• Providing other related tax finalization services as needed by the client.

Clients who need consultation on issues related to tax finalization services and other legal services, please contact Viet An Law for the best support.