Tax reporting is an extremely important task in the operation of a business. Whether a business generates profit or revenue, it must still fulfill tax reporting obligations. Accordingly, to avoid having to recruit personnel for corporate tax reporting and tax accounting, businesses can choose a comprehensive tax reporting service at a reasonable cost, ensuring expertise, quality, and meeting the operational needs of the business. Parallel to the dual status of a law firm and a tax agent, Viet An tax agent is proud to be a provider of comprehensive tax reporting service in Vietnam for businesses with the best service quality, most reasonable prices, and effective cooperation.
Special notes on tax reporting for newly established companies
After being granted an Enterprise Registration Certificate, even though businesses have not yet conducted business activities, they still must fulfill their tax reporting obligations within the prescribed time limit. In case, businesses do not submit tax reports (even if they are blank reports, meaning they do not have operational data), they will still be fined for late payment, or failure to submit tax reports, and may even have their tax code closed. Therefore, to avoid having your tax code unexpectedly closed and being fined for violations worth tens of millions of dong, business owners need to pay attention to their company’s tax reporting obligations during operations.
Types of tax reports that businesses required to submit
Periodic tax reports
- Value-added tax (VAT) reporting: done on a regular quarterly basis;
- Report on invoice usage (Quarterly);
- Personal income tax (PIT) report, specifically: Personal income tax deduction declaration (monthly or quarterly);
- Extend corporate income tax (if any).
Year-end tax report
- Annual financial reports;
- Tax finalization declaration ( year);
- Corporate income tax (CIT) finalization declaration.
Special tax reports
- Special consumption tax;
- Natural resources tax;
- Import-export tax,…
- Normally, after 3-5 years of operation, the tax authority will require the business to carry out tax finalization procedures for the previous years of operation. In special cases, the tax administration agency shall conduct tax inspection and finalization at the taxpayer’s headquarters no more than once in a year.
- However, now since the Law on Tax Administration takes effect from July 1, 2020, and especially when Circular No. 105/2020/TT-BTC takes effect from January 17, 2021, businesses have changes in tax administration units such as changes of headquarters address to another province or centrally run city or a change of headquarters address to another district level area but in the same province or city. directly under the Central Government, changing the direct tax authority. Accordingly, if a business warehouse changes its headquarters address to a different district or province, it is necessary to carry out tax finalization procedures. Except for cases where the enterprise has just made tax finalization or the company has just been established and has not yet generated revenue or tax payment obligations.
Deadline for submitting tax reports
Deadline for submitting quarterly tax reports
- Quarter 1 tax report: Due no later than April 30;
- Quarter 2 tax report: Due no later than July 30;
- Quarter 3 tax report: Due no later than October 30;
- Quarter 4 tax report: Due no later than January 30 of the following year;
Deadline for submitting annual tax reports
- Annual financial statements: Enterprises should note that even if the company does not conduct business activities, it still must prepare and submit financial reports for the year of operation. The latest deadline for submitting the previous year’s financial statements is March 30 of the following year.
- License tax declaration: If there is a change in the company’s charter capital during the year, the enterprise shall declare license tax before January 30 of the year following the year the capital change occurred.
Deadline for paying annual taxes
Deadline for payment of value-added tax and provisional corporate income tax (if any)
- Quarter 1: Deadline is April 30;
- Quarter 2: Deadline is July 30;
- Quarter 3: Deadline is October 30;
- Quarter 4: Deadline is January 30 of the following year;
Deadline for paying license tax
If the business has no capital changes, it only has to pay license tax every year before January 30 without needing to submit a license tax declaration.
Extension of tax payment deadline in 2023
Extend the deadline for paying value-added tax (VAT) except value-added tax at the import stage
Decree 12/2023/ND-CP on extending the deadline for paying value-added tax, corporate income tax, personal income tax, and land rent in 2023, effective from April 14, 2023, until December 31, 2023. Accordingly, the deadline for paying value-added tax in 2023 is extended for businesses with tax payable as follows:
Monthly and quarterly value-added tax payment deadlines are extended as follows:
- The deadline for paying value-added tax for the March 2023 tax period is October 20, 2023.
- The deadline for paying value-added tax for the April 2023 tax period is November 20, 2023.
- The deadline for paying value-added tax for the May 2023 tax period is December 20, 2023.
- The deadline for paying value-added tax for the June 2023 tax period is December 20, 2023.
- The deadline for paying value-added tax for the July 2023 tax period is December 20, 2023.
- The deadline for paying value-added tax for the August 2023 tax period is December 20, 2023.
- The deadline for paying value-added tax for the first quarter of the 2023 tax period is October 31, 2023.
- The deadline for paying value-added tax for the second quarter of the 2023 tax period is December 31, 2023.
If an enterprise or organization has branches or affiliated units that declare value-added tax separately from the tax authority directly managing the branch or affiliated unit, the branches and affiliated units will also be eligible for an extension of value-added tax payment.
Extending the deadline for paying corporate income tax in 2023
Decree 12/2023/ND-CP on extending the deadline for paying value-added tax, corporate income tax, personal income tax, and land rent in 2023 for businesses with tax liabilities submitted as follows:
- Extending the tax payment deadline for temporarily paid corporate income tax amounts of the first and second quarters of the 2023 corporate income tax period of the enterprise.
- The extension period is 03 months from the end of the corporate income tax payment deadline according to the provisions of the law on tax administration.
Enterprises balance the provisional corporate income tax rate and synthesize revenue and expenses at the end of the year to finalize the total corporate income tax payable in the year (if any).
Benefits for customers using tax reporting services of Viet An Tax Agent
- Free use of two services in one: legal consulting and tax reporting services, issues related to accounting activities;
- Be advised, informed, and anticipate arising problems and risks that may occur during the company’s accounting and tax reporting activities;
- Proactively remind businesses to prepare documents, balance tax estimates, and report to businesses before the tax reporting period;
- There are no costs incurred after signing the tax reporting package contract with Viet An Tax Agent;
- Have experts with good experience and professional qualifications take full charge of your business’s accounting and tax declaration activities;
- Viet An tax agent is fully responsible for tax declaration and tax reporting of businesses when any risks arise for the business from tax declaration activities. Therefore, for businesses where the business owner is not knowledgeable about taxes and accounting, the solution of using tax reporting services is the optimal and effective solution, saving costs for tax accounting personnel of the company. Viet An tax agent believes it is the best companion for business operations.
Tax reporting service packages of Viet An Tax Agent
- Monthly tax reporting service package;
- Quarterly tax reporting service package;
- Tax reporting service package according to each time it arises;
- Declare year-end tax reports;
- Finalization of personal income tax;
- Contractor tax declaration;
- Full yearly tax reporting service package: Reasonable cost and comprehensive integration of all tax declaration activities of the business, completing books and documents, closing books, and transferring them to the business for storage;
- Tax reporting services as required by businesses.
05 new points related to tax reporting activities and tax obligations of businesses in 2023
- Enterprises can extend the tax payment deadline according to Decree 12/2023/ND-CP on extending the payment deadline for value-added tax, corporate income tax, personal income tax, and land rent in 2023 for businesses that have tax payable. Note that the extension will only be granted if the business has carried out the extension application procedures.
- Most tax authorities require businesses to finalize taxes if they change their headquarters to move districts or provinces. Except for cases where the settlement has just been settled or operations and revenue have not yet arisen;
- In 2023, the policy will reduce VAT by 2% specifically: the Value Added Tax (VAT) tax rate on essential goods will decrease from 10% to 8%. From July 1, 2023, to December 31, 2023, there will be a “2% reduction in the value-added tax rate, applicable to groups of goods and services currently applying a 10% tax rate (remaining 8%), except for some of the following groups of goods and services: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, products from prefabricated metals, mining products (not including coal mining), coke, refined petroleum, chemical products, goods, and services subject to special consumption tax”.
- Extension of special consumption tax payment for domestically produced cars, specifically: On June 21, 2023, the Government issued Decree 36/2023/ND-CP on extending the special consumption tax payment deadline for domestically produced or assembled cars.
- 50% reduction in registration fees for domestically produced cars The Government issued Decree 41/2023/ND-CP dated June 28, 2023, regulating registration fee rates for cars, trailers, or Semi-trailers pulled by cars and similar vehicles produced and assembled domestically. The Decree regulates, from July 1, 2023, to December 31, 2023, the first registration fee collection rate for cars, trailers, or semi-trailers pulled by cars and other vehicles. Similarly, domestically produced and assembled cars are equal to 50% of the rate specified in Decree No. 10/2022/ND-CP dated January 15, 2022, of the Government regulating registration fees; Current Resolutions of the People’s Council or Current Decisions of the People’s Committee of provinces and centrally run cities on local registration fee collection rates and documents amending, supplementing and replacing (if any).
Some questions about tax reporting and declaration
How is the corporate income tax rate determined?
Except for special cases, from January 1, 2016, until now, all businesses applying tax rates of 20% and 22% have switched to applying tax rates of 20%.
A newly established company does not generate revenue, do invoices have to be reported for tax?
Even though the company does not generate revenue and expenses, it does not have to pay taxes (except for license tax in the years after the first year of establishment), but the company still has to submit quarterly tax reports.
Does a company with no revenue at the end of the year have to submit a tax report?
Similar to the VAT declaration, reporting on invoice usage (for companies that have issued VAT invoices), even if no revenue is generated, the company still has to prepare a tax report and submit it at the end of the financial year. The latest deadline for submitting previous annual tax reports is March 30 of the following year.
Does a newly established company have to submit a license tax declaration?
Newly established companies do not have to pay license tax in the first year but must still submit a license tax declaration before January 30 of the year following the year of establishment. To avoid forgetting right after establishing a company, you should always submit your license tax declaration. Specifically, Article 10 of Decree 126/2020/ND-CP stipulates a “Time limit for submitting tax declaration documents for land revenues, license fees, registration fees, rights grant fees, and other revenues according to the law on management and use of public assets. Taxpayers comply with the regulations on the deadline for submitting tax declarations according to the provisions of Article 44 of the Law on Tax Administration. Regarding the deadline for submitting declarations of land revenues, license fees, registration fees, licensing fees, and other revenues according to the law on management and use of public assets as prescribed in Clause 5 Article 44 of the Law on Tax Administration is implemented as follows:
- License fees
- a) License fee payers (except business households and individual businesses) are newly established (including small and medium-sized enterprises transferred from business households) or have established additional dependent units or business locations or starting production or business activities, submit the license fee declaration no later than January 30 of the year following the year of establishment or start of production or business activities.
In case there is a change in capital during the year, the license fee payer shall submit the license fee declaration no later than January 30 of the year following the year in which the change information occurred”.
Without revenue, do I have to pay license tax?
After the first year of establishment, whether or not there is revenue, the company still has to pay license tax (business fees) according to the company’s charter capital. The deadline for paying license tax is January 30 every year.
If you have any questions related to tax reporting service in Vietnam, please contact Tax Agent – Viet An Law Firm for the fastest and best support!