Understanding the Tax Filing Process for Businesses

This article provides a detailed guide on tax filing for businesses in Vietnam. It covers the types of taxes that businesses need to pay, the required documents and vouchers for tax filing, completing tax returns accurately and completely, submitting tax returns through various channels, and the option to hire tax consultants for assistance. Following these steps will help businesses ensure tax compliance, avoid penalties, and optimize their tax obligations legally. Tax filing can be a complex and time-consuming process, especially for those unfamiliar with tax laws. However, filing taxes on time and in full is important to avoid penalties. This article provides a detailed guide on the tax filing process for businesses, including the necessary steps, procedures, and documents. Businesses must follow the correct procedures to ensure tax compliance and avoid violations. 1. Determining the Types of Corporate Taxes to be Paid Businesses in Vietnam are required to pay the following main types of taxes. Corporate Income Tax, CIT The current general tax rate in Vietnam is 20%. However, there are preferential CIT rates for certain industries, business sectors, or geographical areas. Value Added Tax, VAT Personal Income Tax, PIT Business License Fees Other taxes and fees as prescribed by law, such as Special Consumption Tax, Import Tax, Environmental Protection Tax, Land Use Tax for non-agricultural purposes. 2. Documents and Vouchers Required for Tax Filing The documents and vouchers required for tax filing depend on the type of tax being paid by the business and the specific regulations for each type of tax. However, in general, the following documents and vouchers are required for tax filing. Invoices Input Invoices These are invoices issued by suppliers of goods and services to the business. Output Invoices These are invoices issued by the business to customers who purchase goods and services. Invoices must contain all the information required by law. Receipts and Disbursements Receipts These are documents that record the receipt of money from customers by the business. Disbursements These are documents that record the payment of money by the business to suppliers or other expenses. Receipts and disbursements must be prepared in accordance with accounting law. Accounting Books Businesses must maintain all accounting books as prescribed by law, including the general journal, the general ledger, the detail ledger, etc. Accounting books must be recorded completely, accurately, and promptly, and must be kept securely. Financial Statements Businesses must prepare financial statements periodically, quarterly, annually, in accordance with accounting law. Financial statements are the basis for calculating the business's corporate income tax. Tax Returns Businesses must prepare tax returns in accordance with the tax laws for each type of tax that the business pays. Tax returns must be filled out completely and accurately and submitted to the tax authority by the prescribed deadline. Other Related Documents Businesses must retain other documents related to tax filing, including economic contracts, minutes of member council slash shareholders meetings, decisions of the owner on important matters of the business, etc. Properly storing all documents and vouchers will help businesses manage their business activities effectively and comply with the law. 3. Completing Tax Returns A tax return is a form used to report the tax status of a business. Tax returns are filled out and prepared based on the templates promulgated by the tax authority. Businesses can download tax returns from the website of the General Department of Taxation or receive them at the local tax office. Note, fill in the information on the tax return accurately and completely. File and pay taxes on time. 4. Submitting Tax Returns The location for submitting tax returns depends on the type of tax the business needs to pay and the specific regulations for each type of tax. Tax returns can be submitted through the following channels. Submit directly to the tax office. Submit by post. Submit through the National Public Service Portal website through the ntu.gdt.gov.vn. Submit through a tax agent service company. 5. Hiring Tax Consultants If a business encounters difficulties in preparing tax returns, they can hire a tax consultant from TPM for assistance. Tax consultants can help businesses identify the types of taxes to be paid, collect the necessary documents, complete tax returns, and submit tax returns. Save time and effort, the consultant will perform the complex tax filing procedures for you. Ensure compliance with tax laws. Tax experts who are knowledgeable about tax laws will help you file your taxes on time, in full, and accurately, avoiding errors and violations. Optimize tax obligations, the consultant will advise you on how to minimize your tax burden legally. For free consultation on tax agent services, please contact TPM Tax Agency and Consulting Corporation. By optimizing the tax filing process and using professional tax consulting services, your business will save time, money, minimize risks, and focus on more effective business development.