Business Tax Timeline In Vietnam

Business Tax Timeline In Vietnam

The business tax timeline in Vietnam is one of the most crucial things for any business operating in any country. By being aware of which cooperate tax deadlines are approaching will save you from costly penalties and potentially even worse scenarios.

To help you prepare for upcoming tax filing deadlines, we would like to present the list of the business tax timeline in Vietnam. This business tax timeline in Vietnam is applied for the most popular taxes incurred during each fiscal year.

This list is still valid up to date and we will constantly update it if there are any new changes informed by the Tax authorities.

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MONTHLY OR QUARTERLY FILING?

First of all, you need to determine if your business files taxes by MONTH or by QUARTER.

It depends on the previous year’s revenue that your company made.

     Company with quarterly tax declaration

Taxpayer with previous year revenue is less than 50 billion VND
New established business taxpayer

     Company with monthly tax declaration

Taxpayer with previous year revenue is greater than 50 billion VND

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GENERAL DEADLINE FOR MONTHLY, QUARTERLY, AND YEARLY FILING

Monthly filing: The 20th of the following month.
Quarterly filing: The last date of the first month of the following quarter.
Yearly filing: The 31st March of the following year.

The business tax timeline in Vietnam does not have extension filing similar to some other countries such as the United States. So, ensure that you meet those timelines.

Business tax timeline in Vietnam

 

Notes:

CIT: Corporate Income Tax
VAT: Value Added Tax
PIT: Personal Income Tax

business tax timeline in Vietnam

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FOREIGN CONTRACTOR TAX (FCT)

FCT tax filing is compulsory whenever you use the services in Vietnam or buy products to use in Vietnam from a foreign company located outside of Vietnam.

Two types of services that are usually incurred the FCT tax are software license and marketing. Those come from Google Gsuite, Skype, Salesforce, Facebook, Google Ads…

Online training is considered a service performed in Vietnam. Online training service provided by a foreign company located outside of Vietnam is still taxable for FCT.

FCT tax filing timeline:

If the business decides to declare FCT for each time incurred, the deadline for tax filing and tax payment will be ten (10) days from the date that the tax obligation is incurred.
If the business decides to declare FCT on the monthly basis, the deadline for tax filing and tax payment will be by the twentieth (20th) of the following month.

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TAX PENALTY LEVEL FOR MISSING TAX DEADLINE

Warning Notice: For late filing from 1 – 5 days, depends on the situation.
400,000 VND – 1,000,000 VND: For late filing from 1 – 10 days.
800,000 VND – 2,000,000 VND: For late filing from 11 – 20 days.
1,200,000 VND – 3,000,000 VND: For late filing from 21 – 30 days.
1,600,000 VND – 4,000,000 VND: For late filing from 31 – 40 days.
2,000,000 VND – 5,000,000 VND: For late filing from 41 – 90 days.

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Note:

The penalty range above is applied to each tax filing.
If there is tax liability associated with the late tax return, the tax interest will be 0.03% per day from the date the tax liability is incurred.

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ISSUES THAT MIGHT BE INCURRED DURING THE FILING PERIOD

Tax portal gets overloaded/error

Due to the high intensive access in the short period of time, the tax portal might get frozen, unable to access, or the interface is corrupted, etc. And unfortunately, we cannot use this matter as an excuse to the tax authority for late filing. We are not able to submit the hardcopy to replace online filing either. The tax department will not accept it. Everything must be filed online.

The tip to get over this is to file at night time or avoid 1-2 days around the tax deadline (20th or end of the month) which is less access to the tax portal.

Currently, the token providers are also offering an alternative solution is to submit it via their gateway instead of via the Tax portal website. And of course, their gateway is connected directly to the Tax authority. It’s called T-van. It’s tremendously helpful to rectify this problem.

Technical issue/computer configuration

To access the tax portal, the laptop used to file taxes must be set up to meet some technical requirements. We are also required to install some small apps or extensions to support signing off on the tax portal. And the token provider’s customer support is really helpful to resolve this problem.

Our advice is to file a bit early, 5-7 days in advance before the tax deadline, even 10 days in advance. We will have more time to get support from the token provider’s customer service department. They usually need to log into our laptop via the Ultraviewer app to set things up or fix the error.

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SUMMARY AND ADVICE

Being compliant with the local regulations is one of the keys to having an outstanding business performance when the business comes to any due diligence process. And to prevent from being late, all the tax returns should be filed in advance 7-10 days before it reaches the deadlines. That way you are able to find a solution/support for any error/problem incurred.

To achieve that, you also need to be well-prepared with the accounting data. It should be maintained on the monthly basis by an experienced accountant. Otherwise, you will have less than 30 days to collect all the data, supporting documents, and prepare the tax return for a whole quarter, which can be overwhelming.

We hope the business tax timeline in Vietnam above will help you prepare for upcoming tax deadlines and keep your business operations smooth and hassle-free.

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