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Vietnam's overseas remittances, audits and taxes | Explain tax returns and penalties!

  • All foreign-invested companies are required to audit their annual financial statements before transferring profits to their respective markets.
  • Tax penalties in Vietnam (late taxes and additional taxes)
  • Vietnam is growing rapidly in ASEAN, but the tax system is time consuming and complicated.

Before transferring the profits to the parent company, the foreign-affiliated companies operating in Vietnam are required to meet the legal requirements for the whole year. These include statutory audits, audited financial statement submissions, and tax returns. Not only are these procedures mandated by law, but they also provide an opportunity to confirm the financial health of a company.

Vietnam legal audit

In compliance, all foreign invested companies are required to have their annual financial statements audited by an independent auditing firm. Vietnam statutory audits are conducted according to Vietnamese standards for auditing, but financial reporting must be conducted according to Vietnamese accounting standards.

Vietnam's accounting standards can differ significantly from those of the parent company, so it is important to check with experts for differences.

Tax filing and overseas remittance

Audited financial statements and tax returnsWithin 90 days from the end of each fiscal yearMust be done in. Fulfill these obligations andNotify local tax office 7 business days in advanceAfter implementing, foreign investors can remit profits overseas.

Penalties for Vietnamese companies (late taxes and additional taxes)

punishment tax

Penalties (delinquent tax and additional tax) will be required if Vietnamese companies are not able to file and pay taxes accurately within the deadline.

Late tax is required for taxpayers who have not filed or paid their tax within the deadline.Unpaid tax amount and number of days late A fine equivalent to 0.03% of the tax amount per dayIs required. In addition to late tax, there are additional tax penalties for those who do not file their tax returns. For tax evasion shortfalls20% heavy taxIs required separately. For taxpayers who intentionally evade taxes3 times the tax evasion amountSince fines are required, it is necessary to pay close attention to whether you are properly filing and paying taxes.

Overseas remittance from Vietnam

Vietnam is one of the fastest growing countries in ASEAN, but it also has a complicated and time-consuming tax system in ASEAN. The Vietnamese government has been making significant improvements in legal requirements and procedures in recent years. Therefore, it is necessary to understand the matters that the tax system is revised every year and the procedure is improved.

In order to comply with Vietnamese law and ensure that profits can be transferred without problems, we recommend that you check with a specialized Vietnamese institution/company as appropriate. We strongly recommend that you consult with a person who has a thorough understanding of tax reforms and changes in standards.