Annual renewal of a Vietnam LLC in 2023
Since 2003, Healy Consultants Group helps multi-national Clients timely accurately and completely discharge their annual legal, accounting, audit and tax obligations.
Vietnam LLC renewal steps
Together with our Client, our in-house Accounting and Tax Department will action the following:
- On or before the anniversary date of company incorporation, our Client will i) sign Healy Consultants Group’s re-engagement letter ii) settle our renewal invoice fees and iii) agree the optimum accounting year end date.
- On behalf of our multinational Clients, our in-house Legal and Compliance Department settles the Vietnamese government business licence fees and regulatory license (if any).
- Within a month after that accounting year end date, our Client emails Healy Consultants Group with a trial balance of income and expenses and assets and liabilities. We agree simple, practical strategies to legally minimise corporation tax.
- Immediately thereafter, Healy Consultants Group will email our Client i) draft financial statements for the Vietnamese LLC and ii) a draft of the annual statutory tax return.
- Over the following months, our in-house Accounting and Tax Department will i) submit the draft financial statements for independent statutory audit ii) supervise the Vietnamese auditors and iii) shelter our Client from insignificant administrative queries.
- Following completion of the independent statutory audit, our Firm submits signed audited financial statements to the General Department of Taxation, together with an accurate and complete corporation tax return.
Healy Consultants Group’s Vietnam company renewal fees:
Annual professional services Annual fee (US$) Registered legal registered office 1,200 Monthly & quarterly government reporting 7,320 Accounting and tax fees for a dormant company 1,950 Accounting and tax fees for an active company 7,970 Estimated third party auditor fees for the financial statements 750 Estimate of Vietnamese government fees payable 155
Accounting and tax considerations
- In accordance with Vietnam regulations, all foreign-owned Vietnamese entities are required to submit audited annual financial statements statements to the General Department of Taxation.
- The standard corporate income tax (CIT) rate is 20% and between 32% – 50% for oil and gas companies.
- Annual corporate income tax returns must be filed with the General Department of Taxation within 90 days of the end of the fiscal year.
- Companies are required to make quarterly income tax payments based on estimates.
- Accounting records must be kept in the local currency Vietnamese Dong. They must also be written in Vietnamese, though they may be accompanied by a common foreign language such as English.
- Only Vietnam-based auditing companies can audit annual financial statements for foreign business entities. These statements must be filed with the licensing agency, the Ministry of Finance, the statistics office, and tax authorities 90 days before the end of the year.
- Before any Vietnamese company can repatriate profits, it must submit i) audited financial statements and ii) complete tax filings to the authorities. Thereafter, the company must inform the local taxation office and these profits can only be remitted through the company’s capital account.
- Vietnam allows 100% foreign ownership in most sectors.
- A private Vietnam company is required to maintain both a local registered address and a resident legal representative.
- Before the government approves company registration, the company must sign an office premises lease agreement.