Accounting services in Vietnam (ASV)
Being one of the top most well-known brands providing excellent Accounting services for Foreign Invest Enterprises (FIE) operating in Viet Nam, VINASC – with a strong multi disciplinary experienced consultant team – proudly introduce to you. ( Accounting services in Vietnam)
Despite the fact that Vietnam is turning to be an open environment for which draw upon attractive foreign investment and economic development incentive policies in lately, it is always there those difficulties in understanding and complying with the law in Vietnam for FIE.
Accounting service was born to be an independent third party to help businesses carrying out procedures, control risks better and limit financial losses in the business process.
It is true that ASV have been developing and a part of fullfil domestic demands, but it is necessary for foreign investors in possession of Vietnamese law confusion, must be in want of a higher requirements and demands – including language, law and legal support.
Those are basically groups of work VINASC are specialized in:
1. Initial business form:
- Business establishment: Business Registration Certificate; Investment Registration Certificate; Business license.
- Form for seal and seal announcement.
- Form for invoicing, issuing and using invoices.
- Form for banking and investment capital contribution.
- Initial form for tax, labor and insurance.
2. Form for tax during operating activities of business.
- Monthly, quarterly tax prescription: VAT, PIT; incurred tax (if any): Foreign contractor tax and other related ones.
- Incurred tax prescription (if any): Foreign contractor tax; another related tax
- Annual tax prescription: License tax; CIT.
- Calculating and making annual tax clearing payment.
3. Accounting transactions:
- Accounting books.
- Allocating and calculating cost of products, cost of sale.
- Monthly, quarterly (if any) and annual Financial Statement (acc. Vietnam fiscal year).
- Carrying out procedures for Financial statements auditing as prescribed.
4. Procedures for other reports:
- Monthly, quarterly and annual statistic.
Within the scope of this article, we will present about content related to accounting services.
Accounting services in Vietnam are understood as accounting and tax procedures for businesses which are service groups 2 and 3 according to the above classification.
Which businesses and investors are using accounting services?
- The reason for which most of the domestic enterprises use accountant service is because of the weakness in organization and management which leads to an ineffective accounting that cannot meet the management
- Requirements and comply with the law.
- Foreign and foreign-invested enterprises – who always focus on legalization, profit and loss efficiency are using accounting services too. Therefore, accounting services are considered as an independent consulting unit outside the current accounting system and an auditing unit according to regulations.
- Group of businesses and investors have the need to be advised and control operations according to management requirements.
What is the method implement accounting services in Vietnam?
Accounting services in Vietnam are mostly considered as mere service providers, not providing personnel services. Therefore, services will be performed mainly at the service provider.
At Vinasc, we will negotiate with customers a monthly schedule base on the most favorable for both parties. As follows:
- At the beginning of the month, we will receive information, dossiers and documents of the business;
- Journalizing, accounting and reporting are carried out at Vinasc’s office;
- We will work with the client about issues that have been discovered, additional documents, and things to be resolved to complete the report.
- Tax reports worksheet and accounting books will be sent to clients for checking.
- After the client agrees on the data, the next procedures with state agencies will be implemented by Vinasc according to the Law.
So, which dossiers and documents do businesses need to provide for Vinasc?
In Vietnam, the strict compliance with the regulations on invoices and documents is one of thoes difficult requirements for businesses. However, this is businesses obligations and rights in simultaneously. Enterprises have rights when they comply with the invoice as well, this is the basis to protect the right of enterprises to tax authorities.
- Input invoice: Invoices for purchasing materials, goods, other operating expenses …
- Import declarations and documents: Import of goods, materials, machinery, asset…
- Output invoices.
- Bank transaction documents.
- Input and output inventories receipts.
- Contracts, other documents (if any).
Do customers feel secure when handing over dossiers and documents to an accounting service provider?
- Enterprises are always committed to confidentiality of information and comply with professional ethical standards.
- Enterprises can agree to hand over in the forms such as: Copy, scanned …
- At Vinasc, if the form of handing over documents is copy, scan .., periodically, at least at the end of the year, the originals will be checked and compared.
What are the monthly and quarterly service results?
- Value added tax report, personal income tax declaration …
- Mistakes, errors need to be corrected, added review report.
- Accounting books journalizing, accounting software data update.
- Cost allocating and carrying forward in order to calculate cost of products, cost of sale…
What are year-end service results?
- Financial statement;
- Accounting books;
- Corporate income tax clearing payment reports
- Personal income tax clearing payment reports
- Statistical reports
- Investment, industrial zone reports…
- Working with an auditing company on financial statements. (Excluding issuing audit reports).
Some contents about risks or procedures that need to consider additional beside traditional accounting services:
- PIT clearing payment for individuals who have another income sources outside the enterprise, or individuals who did not authorize but got deducting PIT at enterprise. In the second case, it is necessary to issue PIT deducting receipts for individuals rightly to the Law.
- Enterprises need to collect enough information about dependents, records about dependents so that there is no risk to the enterprise in the future.
- Enterprises need to consider whether they are in the case required to submit the market price determination in associated transactions document?
- Enterprises should proactively determine the non-deductible expenses when calculating CIT.
- Enterprises should proactively carry out procedures for year-end audit to have no negative audit opinion, procedures such as: inventory, assets, cash; Debt reconciliation, investments and other financial obligations in particular.
- Please note that accounting services are provided in accordance with agreements of the contract, that means there are no guarantee that the enterprise’s obligations have been fulfilled according to the law.
Reasons why you should choose Vinasc’s accounting service in Vietnam:
- Strong multi disciplinary experienced accounting team;
- We are specialized in providing and serving foreign businesses, so we can use and communicate in different languages;
- We always commit and comply with information security;
- We always respect and adhere to the commitment;
- We apply an affordable policy fee;
What another service does Vinasc offer?
In addition to accounting services, now Vinasc is also able to provide customers with services such as:
- Investment advisory services;
- Legal advisory services;
- Consulting services and carrying out licensing procedures;
- Auditing service in Vietnam;
- Office services…
Vinasc accounting service other important contents notes:
1. Tax refund:
– Subjects to be entitled tax refund are the input sales tax on exports and the input sales tax of new investment projects.
– Circumstances that lead to enterprises not being entitled to tax refund even though they are eligible for tax refund:
- The accountant does not have sufficient dossiers and documents as prescribed.
- New investment projects do not comply with commitments on progress, declaration form is incorrect as prescribed
For new investment projects: Enterprises should carefully consider the progress of project implementation, the roadmap for timely monitoring and tax refund.
2. Transfer profits abroad
– According to regulations, businesses are guaranteed and entitled to transfer profits abroad when they have fulfilled their tax, financial obligations … according to the law.
– Dossiers to transfer profits abroad: The minutes and decisions on profit distribution are submitted to the tax authority and this same file is submitted to the licensed bank where the enterprise opens the investment account.
Circumstances that an enterprise has difficulty in transferring profits abroad is because enterprise does not comply with investment procedures, such as opening a capital account, making capital contribution …