Accounting and Tax issues
I. Accounting and tax management in Vietnam
Every company is obliged to report on 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 сhallenges called for unconventional policies. Our company's specialists is a simple way to avoid problems with controlling authorities and to protect the company from unforeseen penalties or more serious sanctions.
Depending on the goals and objectives of your business, you can choose below one of the packages for accounting support or apply for the development of an individual option:
BASIC - 25 USD /per quarter:
submitting zero tax return form
STANDART - from 100 USD/ per month:
- monthly turnover is no more than 120 000 000 VND /5 000 USD
- quarterly submitting of correct tax return form
FOR THE LARGE BUSINESS - from 300 USD/ per month:
- monthly turnover is more than 120 000 000 VND/ 5 000 USD
- quarterly submitting of correct tax return form
- visiting qualified accountant
Leadership TSC offer not just consultations on accounting, but full-fledged recommendations for managing the business, so that it is maximally profitable and acted in accordance with the Law. We improve your reputation as an executive taxpayer in the controlling authorities.
II. VAT refunding in Vietnam
The value 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 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 the 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, materials for manufacturing of export products exempted from VAT.
VAT refund helps to enterprises to manage their assets and increase the competitiveness. Although the conditions are specified in the law clearly, practice of VAT refund in Vietnam shows not a good statistic. The most part of companies and their accountants don’t know of that possibility or they know but they aren’t able to apply it in practice.
The most common types of VAT refund through:
- refund of custom clearance VAT ;
- refund paid VAT on the basis of supply or service contracts.
Leadership TSC will paperwork tax refund and control for prompt payment. The price of this service is calculated individual from 100 USD.*
*It is included in the package of services for our customers.
III. Tax benefits in Vietnam
Since October 15, 2014 new benefits on Сorporate Tax come into effect with respect to profit from the development and implementation of new technologies. The Law on New Technologies provides fully exempt from corporate tax is effective 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 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 (the agreement with the Kazakhstan has not yet entered into force).
As well as Cooperation Agreements within the framework of Vietnam's accession to the WTO, which relate 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 audit in Vietnam
Business audit is an important procedure for any operating enterprise and 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 picture of your activities objectively and unbiased.
- Reviewing proper accounting procedures;
- Restore accounting;
- Reviewing draft Contacts for quality and consistency;
- Reviewing the resource efficiency, the timeliness and completeness declared revenues, the payments records;
- Reviewing receivables and payables (including VAT);
- Develop 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 impartially express an opinion without covering up other people's mistakes.
Having successfully passed the audit, your company receives recognition of quality, acquires additional weight and reliability into 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.