Accounting and Tax issues in Vietnam
I. Accounting and tax management in Vietnam
One of the biggest challenges facing foreigners is accounting and tax issues in Vietnam. Every company is obliged to report the results of its business activities to the Tax Department. Tax reports are submitted only by USB token with a digital signature of the responsible person in Vietnam. It is quite difficult to find a competent accountant to compile your Tax Reports. Such work is only possible for highly qualified specialists who are able to quickly and effectively challenge calls for unconventional policies. Our company's specialists provide a simple way to avoid problems with controlling authorities and protect the company from unforeseen penalties or more serious sanctions.
Depending on the goals and objectives of your business, you can choose one of the packages for accounting support or apply for the development of an individual option:
BASIC - 130 USD /per quarter:
Quarterly submission of zero tax return form
STANDART - from 250 USD/ per month:
- Monthly turnover is no more than 120 000 000 VND /5 000 USD
- Quarterly submission of correct tax return form
FOR THE LARGE BUSINESS - from 350 USD/ per month:
- Monthly turnover is more than 120 000 000 VND /5 000 USD
- Quarterly submission of correct tax return form
- Visiting a qualified accountant
"Leadership TSC" offers not just consultations on accounting and tax issues in Vietnam, but fully-fledged recommendations for managing the business, ensuring that it is maximally profitable and acting in accordance with the Law. We improve your reputation as an executive taxpayer in the controlling authorities.
II. VAT refunding in Vietnam
The value of added tax rate in Vietnam:
- 0% apply to export, reinsurance abroad, credit services abroad, foreign financial investments, and foreign portfolio investments;
- 5% apply to goods such as water, fertilizer, medicine, educational equipment, toys, science and art books, natural agro-industrial products, animal feed, services of scientific and agricultural appointment;
- 10% apply to most part of goods and services;
- some kinds of goods and services, such as transfer of land rights, some financial and medical services, education, life insurance and non-profit insurance, public transport, transfer of computer technologies, and materials for manufacturing of export products exempted from VAT.
VAT refunds help enterprises to manage their assets and increase competitiveness. Although the conditions are specified clearly within the law, the practice of VAT refunds in Vietnam is not common practice. The majority of companies and their accountants either don’t know of the possibility, or they aren’t able to apply it in practice.
The most common types of VAT refunds are through:
- Refund of custom clearance VAT ;
- Refund paid VAT on the basis of supply or service contracts.
"Leadership TSC" will complete paperwork for tax refunds and control for prompt payment. The price of this service is calculated individually starting from 100 USD.
III. Tax benefits in Vietnam
Since October 15th, 2014, new benefits on Corporate Tax have come into effect with respect to profiting from the development and implementation of new technologies. The Law on New Technologies is fully exempt from corporate tax for the first 4 years (instead of 1 year as previously) and 50% for the next 9 years, and partial exemption or reduction of the VAT rate for the following profit:
- Profit received from scientific and technological developments;
- Profit from the sale of goods produced using new technologies (if they were first used in Vietnam);
- Profit from agricultural activities, using new technologies;
- Profit from the processing of agricultural products using new technologies.
In addition to the benefits provided by national tax legislation, foreign investors can take advantage of the double taxation avoidance agreements. More about benefits here.
Vietnam has signed Agreements of Mutual Cooperation with 62 countries including Russia, Uzbekistan, Belarus, Ukraine, and Kazakhstan.
Further, there are Cooperation Agreements within the framework of Vietnam's accession to the WTO, which relates to foreign trade and customs clearance.
Every year, opportunities for foreign investors become more transparent and reliable. Companies receive very pleasant tax benefits and support from official authorities.
IV. Business audits in Vietnam
Business audits are an important procedure for any operating enterprise along with accounting and tax issues in Vietnam. It represents an independent inspection of accounting and internal audit, compliance of financial and business operations with legislation, and reliability of reporting. You can see the overall picture of your activities objectively and unbiasedly.
- Reviewing proper accounting procedures;
- Restore accounting;
- Reviewing draft contacts for quality and consistency;
- Reviewing the resource efficiency, timeliness and completeness of declared revenues and the payments records;
- Reviewing receivables and payables (including VAT);
- Developing a scheme for optimizing taxation.
Our task is not only to confirm the reliability of the reporting indicators but also to identify gaps in financial activity, allowing the customer to be able to understand the economics of an enterprise as a whole.
Obviously, it is better to entrust the task to experienced specialists who are able not only to form an objective picture but also to impartially express an opinion without covering up other people's mistakes.
Having successfully passed the audit, your company will receive recognition of quality, and acquire additional weight and reliability in your partner's eyes, investors, and creditors. In addition, the audit helps determine the direction of further development and improvement of the company's activities.
Leadership TSC is the best choice to trust your paperwork.