Accounting in Vietnam
The Law on Accounting of Vietnam requires that the financial statements of all enterprises established in Vietnam should be prepared in accordance with Vietnamese Accounting Standards and System (VASs). Vietnam is currently working on updating the VASs to fully adopt the IAS and IFRS by 2020. The Vietnamese Dong (VND) is the functional and reporting currency in Vietnam, and all reports must be prepared in Vietnamese. Foreign invested entities are required to be audited at least once a year. Those entities must appoint auditing firms from the list of practicing auditors and audit firms qualified to provide audit services as approved and published by MOF annually. Within 90 days from their reporting date, foreign invested entities are required to submit statutory audited financial statements to its applicable licensing body, Department of Finance at provinces and cities under the jurisdiction of the central government where such enterprise’s head offices are located, local tax authority and department of statistics.
Taxation in Vietnam
An enterprise established under the law of Vietnam must pay tax on its worldwide income. A foreign enterprise with a permanent establishment in Vietnam must pay tax on all income arising in Vietnam and on foreign income that relates to the permanent establishment. A foreign enterprise without a permanent establishment in Vietnam must pay tax only on income arising in Vietnam. A permanent establishment includes branches, plants and a location in Vietnam where natural resources are mined, construction sites, establishments providing services, agents, and representatives. Foreign investors are likely to be subject to common taxes such as Corporate Income Tax (CIT), Value Added Tax, Personal Income Tax, Foreign Contractor Tax, and other various taxes affecting specific activities (e.g. special sales, natural resources tax, etc). All taxes are imposed at the national level, and there are no local taxes. The standard CIT rate is currently 25%. Enterprises operating in the oil and gas industry are subject to CIT rates ranging from 32% to 50%, depending on the project. Various tax incentives are granted for regulated encouraged sector investments, encouraged business locations, large manufacturing investments, etc.
Our Tax and Accounting Services
Based on our rich experience in consulting services, we offer all the essential services you will need in setting up and running your business in Vietnam. Our flexible tax and accounting service packages are designed to fit your ongoing needs and requirements to help you focus on your business itself.
Scope of work :
- Statutory bookkeeping. Maintaining your books and records in accordance with local rules and directives and preparing and filing all required reports and specifications. (Vietnamese Accounting Standards (VAS).
- Monthly payroll management
- Quarterly payroll management
- Monthly Income Tax Returns (Preparing tax filings (VAT, CIT)>
- Quarterly Income Tax Returns (Preparing tax filings (VAT, CIT)
- Maintaining the general and subsidiary ledgers
- Processing sales and purchase ledger invoices
- Profit and loss account, balance sheet and cash flow statements
- Converting accounts to comply with the local regulations
- Consolidated reporting. Monthly and quarterly assistance in preparing output accounting reports and accounting reconciliation, including the reconciliation between statutory and (company or group) management reports.