Taxation is a complex and constantly changing field, directly impacting business costs and risks. A sound tax strategy not only helps businesses comply with regulations but also optimizes their tax obligations within the legal framework.
This article provides a comprehensive overview of Vinasc’s tax consulting services — including VAT, corporate income tax, personal income tax, contractor tax, related party transactions, tax refunds, and tax audit support — with a focus on foreign-invested enterprises.
Overview of tax consulting services
Tax consulting services help businesses understand and fulfill their tax obligations correctly. In addition, they help identify legal optimization opportunities and prevent tax arrears and penalties. Therefore, effective tax consulting requires both regulatory knowledge and practical experience.
For FDI businesses, tax consulting also covers contractor tax, related-party transactions, and transfer pricing. In particular, these areas may create significant risks without proper management.
With 15 years of experience, Vinasc closely follows changes in tax policies. As a result, our team can recommend solutions tailored to each business’s specific needs.
1. Corporate tax consulting
Corporate tax consulting helps businesses build a solid compliance foundation and proactively address their tax obligations.
Types of taxes businesses must pay
Businesses typically have to pay: business license tax, VAT, corporate income tax, personal income tax, and possibly contractor tax, resource tax, or excise tax depending on the industry.
Corporate tax compliance planning
A compliance plan helps businesses track obligations and deadlines, prepare complete documentation, and optimize tax costs legally, avoiding overpayments or underpayments.
Common tax risks
Common risks include using invalid invoices, misaccounting of expenses, late filing, and omission of contractor tax obligations. These risks are easily detected during audits and inspections.
When does a business need tax advice?
Businesses should seek advice when dealing with complex transactions, expanding operations, involving foreign elements, or preparing for tax settlements and audits.
🔗 See in-depth article: Corporate Tax Consulting.
2. Tax consulting for FDI enterprises
Foreign direct investment (FDI) enterprises have many specific tax obligations that need to be carefully managed to avoid risks.
Types of taxes applicable to FDI enterprises
In addition to regular taxes, FDI enterprises often need to be aware of contractor tax on payments made abroad and obligations related to related-party transactions.
Common tax risks for FDI businesses
Common risks include: missing related-party transaction records, omissions in contractor tax, and ineligible expenses paid to the parent company.
Transactions with the parent company overseas and tax obligations.
Payments such as interest, royalties, and service fees to the parent company often incur contractor tax and require documentation to prove their reasonableness in order to be deductible when calculating corporate income tax.
Tax issues that foreign investors need to be aware of.
Investors should be aware of project-specific tax incentives, obligations to declare related-party transactions, and regulations regarding profit repatriation.
🔗 See in-depth article: Tax consulting for FDI businesses.
3. VAT tax consulting
Value Added Tax (VAT) is the most frequently encountered tax and the most prone to errors in business tax declarations.
Taxable and non-taxable subjects of VAT
Most goods and services are subject to VAT, but some are exempt or not required to be declared or paid. Correct identification helps ensure accurate tax declarations.
Conditions for deducting input VAT
To be eligible for deduction, input invoices must be valid, relate to taxable activities, and have non-cash payment documentation for invoices exceeding the prescribed threshold.
How is the VAT rate determined?
VAT rates are applied according to regulations for each group of goods and services. Applying the wrong rate may result in retroactive tax collection or the exclusion of tax deductions.
Common mistakes when filing VAT returns
Common errors include: incomplete declaration of output invoices, invalid invoice deductions, incorrect declaration period, and wrong tax rates. Regular reviews help to minimize these errors.
🔗 See in-depth article: VAT tax advice.
4. Corporate Income Tax Consulting
Corporate income tax is directly related to determining deductible expenses and taxable income.
Deductible expenses when calculating corporate income tax.
Deductible expenses must be actual expenses incurred, related to business operations, and supported by valid invoices and documents as required by regulations.
Expenses that are not deductible when calculating corporate income tax.
This includes expenses without valid invoices, exceeding prescribed limits, not related to business purposes, or expenses disallowed under tax laws.
How to determine taxable corporate income
Taxable income is determined by revenue minus deductible expenses, plus other income. Accurate determination helps avoid tax arrears.
How are corporate income tax losses carried forward?
Businesses are allowed to carry forward losses continuously for a specified period (usually up to 5 years) from the year the loss is incurred, helping to reduce tax obligations in subsequent years.
🔗 See in-depth article: Corporate Income Tax Consulting.
5. Personal Income Tax Consulting
Personal income tax is an obligation that businesses must deduct and declare on behalf of their employees.
What types of income are subject to personal income tax?
Taxable income includes salaries, wages, and similar payments, along with other income as stipulated by law. Some income is exempt or deductible.
How to calculate personal income tax for employees.
Personal income tax on salaries is calculated according to a progressive tax rate schedule after deducting personal allowances, mandatory insurance, and exempted amounts.
Personal income tax for foreigners
Foreign nationals, whether resident or non-resident, will have different tax calculation methods. Accurately determining residency status is crucial, especially for FDI professionals and personnel.
How is personal income tax finalized?
At the end of the year, businesses settle personal income tax on behalf of employees who authorize them to do so; individuals with income from multiple sources settle their own tax according to regulations.
🔗 See in-depth article: Personal Income Tax Advice.
6. Contractor tax consulting
Contractor tax is a specialized type of tax that is often overlooked by businesses that deal with foreign partners.
What is contractor tax?
Contractor tax is a type of tax applied to foreign organizations and individuals who earn income in Vietnam from providing goods and services to Vietnamese businesses.
Which entities are required to pay contractor tax?
Foreign contractors are subject to taxation, but Vietnamese businesses are often obligated to deduct, declare, and pay the tax on their behalf when making payments to foreign partners.
How to calculate tax for foreign contractors
Contractor tax includes VAT and corporate income tax, calculated as a percentage of revenue depending on the type of activity. The method of determination depends on the nature of the contract.
Deadline for declaring and paying contractor tax
Businesses typically file tax returns on a per-payment basis or monthly, and pay taxes within the stipulated deadline to avoid late payment penalties.
🔗 See in-depth article: Contractor tax advice.
7. Related-party transaction advisory
Related-party transactions and transfer pricing are areas of particular interest to tax authorities, especially with regard to FDI enterprises.
What are affiliate transactions?
Related-party transactions are transactions between related parties, for example, between a subsidiary and a parent company. The prices of these transactions must conform to market price principles.
Which businesses are required to declare related-party transactions?
Businesses that have transactions with related parties must declare information about these related-party transactions along with their corporate income tax returns and prepare the necessary documentation as required.
Transfer pricing documentation
The documentation includes proof that the transaction price conforms to market prices, a comparative analysis, and the pricing methodology. Missing documents may result in an assessment.
Tax risks in related-party transactions
Risks include having income or expense types assessed and taxes collected if the transaction price is deemed inconsistent with market value or if the documentation is incomplete.
🔗 See the in-depth article: Affiliate trading advice.
8. Tax Refund Services
VAT refunds help businesses recover a large amount of input tax, but require thorough documentation.
Conditions for VAT refund
Businesses are eligible for tax refunds in cases such as exports and investment projects, provided they meet the requirements regarding invoices, supporting documents, and bank payments.
Tax refund application
The application file includes: a tax refund request form, a list of invoices, payment documents, and other documents proving eligibility for a refund in each case.
Tax refund verification process
The tax authorities categorize refund applications into either “refund first – audit later” or “audit first – refund later” categories, and then verify their validity before making a refund decision.
Reasons why businesses are denied tax refunds.
Common reasons include: invalid invoices, improper payments, incomplete documentation, and failure to prove eligibility for a tax refund.
🔗 See in-depth article: Tax refund services.
9. Tax inspection and audit
Being well-prepared for tax audits and inspections helps businesses minimize the risk of being subject to back taxes and penalties.
What preparations should businesses make when undergoing a tax audit?
Businesses need to prepare complete accounting records, documents, contracts, and explanatory files, and have knowledgeable personnel to work with the inspection team.
What aspects do tax authorities typically inspect?
Common checks include: invoice validity, deductible expenses, VAT declarations, contractor tax, and related party transaction obligations.
Rights and obligations of businesses during tax audits.
Businesses have the right to explain, reserve their opinions, and file complaints; at the same time, they have the obligation to provide truthful records and cooperate with the tax authorities.
How should the conclusions of a tax audit be handled?
Businesses need to review the conclusions, fulfill their obligations if correct, or file a complaint through the proper procedure if there are grounds. Vinasc supports businesses throughout this process.
🔗 See in-depth article: Tax inspection and audit.
Transparent work processes at Vinasc
Thanks to the fact that most documents can now be processed online, coordination between Vinasc and its clients has become simpler and more convenient when both parties are in good faith. The entire process is carried out via email on a fixed monthly schedule.
| Time / Step | Content |
| 20th – 25th of each month | Vinasc sent an email reminding customers to prepare their documents. |
| Days 1-2 of the following month | Vinasc sends emails requesting customers to provide documents. |
| Receiving & Processing | Based on the received documents, Vinasc proceeds with the work; if anything is missing or needs clarification, further communication will be conducted via email. |
| Notification of completion | Once completed, Vinasc will send an email notification for customers to confirm. |
| Confirm & continue | If the client agrees, Vinasc proceeds with the next steps; if not, both parties continue discussions until an agreement is reached. |
With email-based communication, all exchanged information is fully archived, allowing businesses to proactively monitor and control data without relying on a single individual.
Why do FDI businesses choose Vinasc?
Beyond simply providing services, Vinasc also offers peace of mind to foreign investors thanks to values maintained over the past 15 years:
- Comply with the law and keep commitments regarding progress and quality.
- Receive free updates on policy changes that may affect customers.
- Our team of nearly 50 specialists provides multilingual support, making it convenient for foreign investors.
- All communications are tracked via email, allowing businesses to retrieve them at any time.
- A single point of contact throughout the entire process, ensuring customers don’t have to explain things from scratch.
Close coordination between businesses and Vinasc is essential. In particular, businesses should provide documents on time to ensure quality and progress.
In addition, Vinasc’s customers receive free updates via email and Zalo OA. These updates cover relevant changes in policies and laws. As a result, businesses can proactively maintain compliance and reduce potential risks.
Ultimately, business owners, legal representatives, and directors remain responsible for legal compliance. Therefore, choosing an experienced consulting firm can help businesses minimize compliance risks.
Furthermore, businesses remain responsible for archiving their records and documents under applicable regulations. The service provider only collects documents for processing. However, the parties may establish a separate agreement for document archiving.
Regarding the service scope, Vinasc’s accounting service package focuses on accounting and tax matters. It does not include legal representation or litigation. However, Vinasc offers a separate legal consulting service when businesses require additional legal support.
Frequently Asked Questions (FAQ)
Does Vinasc support FDI enterprises regarding contractor tax and related-party transactions? Yes. These are specialized areas that Vinasc regularly advises FDI enterprises on, including preparing documentation and optimizing legal compliance.
Does Vinasc provide support when businesses are subject to tax audits? Yes. Vinasc assists in reviewing and preparing explanatory documents and accompanies businesses throughout the entire meeting with the tax authorities.
Will businesses receive updates on new tax policies? Yes. Vinasc customers receive free updates via email and Zalo OA on changes to tax policies that may affect their businesses.
Conclude
In summary, businesses should take tax consulting services seriously. Even minor mistakes can create significant legal risks and additional costs later.
For foreign investors, choosing a partner with strong knowledge of Vietnamese law is particularly important. Moreover, multilingual capabilities can make the entire process smoother and safer.
With 15 years of experience, Vinasc provides tax consulting services with transparency and regulatory compliance. In addition, we remain committed to service quality and timely delivery.
Therefore, let Vinasc be your trusted partner. We help make every step of tax compliance smoother and more secure.
Contact us for consultation.
If your business needs tax consulting services, the Vinasc team is always ready to advise you — quickly, legally, and with dedication. Let Vinasc be your partner in the growth of your business in Vietnam.
Contact — Vinasc Accounting and Tax Consulting Company Limited:
- Hotline: 0947 112 118 or 0971 112 118
- Email: Vinasc.hcm@gmail.com
- Website: https://vinasc.vn
- Zalo OA: https://zalo.me/1108220964917000230