Vietnam import and wholesale subsidiary completes annual accounting and tax filings
Since 2003, Healy Consultants Group assists multinational Clients with business set up in Vietnam, including i) annual accounting and tax obligations ii) legal registered office and iii) tax registration.
In late 2020, we were engaged by an existing Client, whose business is the import and wholesale of pad printing equipment, to complete the annual accounting and tax filings , along with the renewal of other corporate services, for their Vietnam subsidiary.
In January 2021 our Client settled our renewal fee, including i) the provision of registered office for one year ii) business license fee iii) annual corporate income tax filing with the Vietnamese General Department of Taxation (GDT) and iv) quarterly Value Added Tax (VAT) and Personal Income Tax (PIT) filings.
- I emailed my Client a detailed engagement project plan outlining i) the documents required to progress the Vietnamese company renewal process ii) a breakdown of weekly and monthly deliverables and iii) an estimated timeline to complete the engagement.
- The engagement project plan is designed to help our Clients visualise the engagement and understand the timelines to legally complete the annual obligations of its Vietnam subsidiary. The Client can therefore prepare the necessary documents to efficiently and effectively complete the required renewal steps in a timely manner.
- The financial year-end of the Vietnam subsidiary is 31 December. The company has to meet the following deadlines.
Filings Deadline Annual corporate tax filings 31 March VAT and PIT (Jan-Mar) 31 March VAT and PIT (Apr-Jun) 31 July VAT and PIT (Jul-Sept) 31 Oct VAT and PIT (Oct-Dec) 31 Jan
Accounting and tax filings
- The Client supplied me with a trial balance for the financial year ended (FYE) 31 December 2020. I reviewed and confirmed the accuracy of the trial balance.
- Immediately thereafter, our auditor in Vietnam started the audit.
- In the meantime, my team and I completed the annual business license fee payment for our Client’s Vietnam subsidiary with the Ministry of Industry and Trade.
- Our auditor requested some samples of i) invoices and ii) supporting documents from the Client to finalise the draft report.
- The Client supplied us with the additional documents and reverted to the auditor’s queries.
- The auditor finalised the report and sent the draft unqualified audited financial statement for FYE 31 December 2020 to the Client.
- Once the Client approved the draft report, I sent the signing pages to the director of the Vietnam subsidiary for their signature.
- Immediately after, the Client signed off the report and the auditor issued the final unqualified report.
Annual and quarterly filings
- Our team prepared the draft corporate tax return form and sent it to the Client for their approval.
- Once the Client approved and signed the return, our tax agent lodged the same with the Vietnamese with the GDT tax portal.
- The Vietnam entity is also required to file quarterly i) VAT and ii) PIT returns with GDT.
- Every 10th of the following month, the Client sent us with the i) bank statements and ii) sales and purchase invoices issued during the filing period.
- Thereafter, our local team will prepare the draft VAT and PIT return and send it to our Client’s review.
- Immediately after securing the Client’s approval, we did lodge the same with GDT via the tax portal.
- Our team have completed the VAT and PIT filings for March, June, September and December quarter of 2021.
- Following engagement completion, Healy Consultants Group emailed a summary of obligations to our Client, including i) financial statements ii) receipt of the business license fee payment and iii) acknowledgement of the corporate tax return and VAT and PIT filings.
- For staff learning purposes, our Client supplied us with engagement feedback.
- Our Business Website Department also requested a professional reference from our Client as well as an online review.