VinaSC Accounting services in Vietnam

 

I. Introduction To Vinasc’s Accounting Services in Vietnam

This section helps customers understand the scope of work or job content within Vinasc’s quotation letter and accounting service contract. It also helps businesses identify responsibilities for performing and complying with other administrative procedures outside the scope of accounting.

1. Commonly Used Terms:

• Management Accounting Report – On-Demand Accounting Report: This is a report created according to a specific template requested by the business or by the Ministry of Finance, but released earlier than the general legal deadline.
• Full-Service Accounting: This is an accounting service that performs basic accounting tasks as listed under item 2 below. This is to avoid misunderstanding that Vinasc is responsible for carrying out all the administrative procedures that businesses must do, as listed in section IX below.
• Chief Accountant Service: This is a separate accounting service, mainly organizing and maintaining the accounting system within the enterprise. It includes compliance guidance for accountants and signing off on accounting and tax reports (excluding signing original accounting documents).
• Responsibility for Preparing Accounting Documents: Customers are legally responsible for the original documents and must provide them fully for Vinasc to perform the service.

2. Vinasc’s Accounting Services in Vietnam Include:

• Recording accounting books
• Accounting for assets, tools, and allocating depreciation
• Calculating and aggregating costs for project products, cost of goods sold, and services
• Preparing accounting reports, such as: Profit and Loss Statement, Trial Balance, Cost Report, and Inventory Report
• Preparing VAT reports and reconciling with the electronic invoice system of the General Department of Taxation
• Preparing Personal Income Tax (PIT) reports and comparing them with payroll and accounting books
• Estimating Corporate Income Tax (CIT) quarterly
• Registering insurance, reporting labor increases, and decreases as they occur
• Year-end: Preparing financial statements, finalizing CIT and PIT reports

Thus, Vinasc’s accounting services in Vietnam cover not only bookkeeping and financial reporting but also tax procedures and labor-related procedures within the enterprise.

II. Basic Contents Of The Quotation Letter And Accounting Service Contract – Accounting Services in Vietnam

This section aims to help customers understand the basic content of the quotation letter and accounting service contract, making it easier to review and decide on cooperation or suggest items for further discussion or exchange.

1. Scope of Accounting Work Vinasc Will Perform:

• Reviewing legal and business-related documents concerning the company’s financial activities
• Collecting accounting documents such as invoices, contracts, and other related accounting documents provided by the customer
• Reviewing and checking the completeness of invoices and documents
• Declaring Value Added Tax (VAT) monthly/quarterly, and Personal Income Tax (PIT) from wages and salaries monthly/quarterly as per regulations
• Preparing financial statements and accounting books as per regulations
• Reconciling books with tax records to ensure compliance with tax and accounting laws
• Performing annual statistical procedures as required
• Reporting on labor usage as required
• Handling procedures related to social insurance, health insurance, etc.
• Signing as the preparer on forms
• Handing over accounting books, financial statements, and related tax declaration documents according to legal regulations
• Explaining data for transactions related to tax authorities, social insurance offices, and labor offices
• Discussing with the management about issues that may need consideration for the future activities of the enterprise

2. Tasks Outside the Accounting Service Contract.

These tasks will be quoted and performed separately if requested.

• Changing the enterprise registration certificate, including updating information, adding business sectors, adjusting capital, transferring capital, and related tax obligations
• Legal consulting, including updating new laws and advising on compliance
• Work permits and temporary residence permits for foreigners
• Periodic monthly/quarterly statistical reports; Industrial zone and economic zone reports
• Issuing invoices and creating original documents
• Calculating salaries, drafting labor contracts, and related employee documents
• Preparing transfer pricing documentation
• Transfer pricing determination documents
• Tax consulting and refund procedures
• Other procedures listed in section IX

3. Services Vinasc Does Not Provide:

• Personal tax obligations for individuals with income outside the company
• Customs procedures and related documentation

4. Results of the Accounting Service Contract in Vietnam:

• Accounting books at year-end
• Financial statements
• Monthly and quarterly tax reports as required
• Year-end financial statements
• Related accounting documents
• Accounting data in Excel and 3Tsoft software

5. Fee and Payment Terms – Accounting Services in Vietnam:

• Fees are determined and fixed for one year or as per the contract.
• Payment terms are after Vinasc completes the monthly work.

6. Responsibilities of the Parties Regarding Documentation and Reporting:

• The customer’s primary and important responsibility is to provide documents and be legally responsible for them.
• Vinasc’s primary and important responsibility is to use the customer’s documents to accurately calculate figures and timely perform procedures and reports as required.

The scope of responsibilities and work helps customers control the compliance with administrative procedures within the enterprise. Typically, enterprises have an organizational structure with separate departments, each responsible for their respective administrative procedures, not solely the accounting department or service.

III. Vinasc’s Accounting Service Fee Policy in Vietnam

This section helps customers understand the basis for proposing the accounting service fees, fee adjustment policies, and related fee content.

1. Basis for Determining the Accounting Service Fee:

Vinasc’s accounting service fees are determined based on the following factors:

• Location of the business headquarters: Which province or city?
• Customer’s business line: Trade + Services + Construction + Manufacturing…
• Scale of the enterprise: Revenue + Personnel + Branches + Business locations.
• Scale of economic transactions: Number of invoices, number of transactions…
• Organizational model or the existence of departments within the enterprise.
• Specific service requirements: These are often management needs like templates, timing, etc., differing from the usual Ministry of Finance or General Department of Taxation requirements.

2. Fee Adjustment Policy Depends on the Following Factors:

• Significant changes in the following year compared to the previous year regarding the factors listed in item (1)
• New customer requests or adjustments to previous requests that increase time and work

3. Vinasc’s Service Fee Commitments:

• We commit that the service fees will not change within the year as per the agreed contract;
• No additional costs for tasks within the contract scope, including financial reporting, tax finalization, or year-end audit.
• The above commitments exclude force majeure events or changes requested by the customer.

IV. Accounting Service Cooperation And Implementation Process in Vietnam

1. Quotation Proposal and Acceptance Process

Step 1: Receive information on accounting service requirements, including 6 factors for determining service fees:

• Location of the business headquarters: Which province or city?
• Customer’s business line: Trade + Services + Construction + Manufacturing…
• Scale of the enterprise: Revenue + Personnel + Branches + Business locations.
• Scale of economic transactions: Number of invoices, number of transactions…
• Organizational model or the existence of departments within the enterprise.
• Specific service requirements: These are often management needs like templates, timing, etc., differing from the usual Ministry of Finance or General Department of Taxation requirements.

Step 2: Propose a quotation letter, including work content and service fees. Specific content as in section II.

Step 3: Explain, discuss, and agree on the work content and service fees.

2. Discussion and Agreement on Contract Content:

At Vinasc, the contract content is consistent with the quotation letter regarding work and service fees. This process only discusses the time frame and payment procedures.

3. Documentation Provision Process:

Adequate preparation and provision of documents will help the service be implemented according to plan and ensure quality. Vinasc highly values the cooperation and compliance of both parties in this process. Specifically of steps:

1. Vinasc’s team will understand, check, and review to gain knowledge about the customer’s business field. This understanding will help Vinasc propose suitable document preparation.
2. Monthly, by the 26th, Vinasc will email a list of documents for the customer to prepare.
3. At the end of the month, Vinasc will email requesting the provision of documents according to the list sent on the 26th.
4. Depending on the agreed time or regulations, Vinasc will send a draft or official report to the customer.
5. After completing the month’s work, Vinasc will email thanks for the customer’s cooperation and suggestions for service improvement (if any).

Thus, we perform the work mainly through email.

4. Service Implementation and Legal Compliance Process:

At Vinasc, we have specialized departments, such as document reception, legal, accounting, tax, etc. The internal service implementation process at Vinasc includes the following steps:

Step 1: Document Reception Department: Receives, classifies, and checks completeness according to the list sent to the customer. Missing documents will be reported back via email to receive fully. Then, the documents will be transferred to the data entry department in the accounting software.

Step 2: The data entry department will enter the accounting software according to the agreed process and content.

Step 3: The review and quality control department for accounting and tax will check. After the quality control department agrees, the related department will prepare and issue the related report.

Thus, the service implementation process at Vinasc involves several specialized departments, not just a specific specialist.

5. Service Result Provision Process – Accounting Services in Vietnam

Depending on the specific content and customer requirements, different results will be provided. However, it is usually done in 2 steps:

Step 1: Notify and send the customer a draft report or estimated figures

Step 2: After the customer agrees on the content, Vinasc will issue the official report and send it to the customer or related State agency.

V. Agreement On Report Issuance Time For Customers: Accounting Services in Vietnam

1. Legally Required Deadlines:

Within the scope of the accounting service contract, there will be many procedures that businesses must comply with, each having different execution timelines. Thus, typically under the service contract, Vinasc will be obligated to fully execute the procedures, reports, and documents according to legal regulations. Under this timeline, Vinasc is not obligated, nor does the customer have the right, to request Vinasc to perform according to any other timeline. Vinasc will be held responsible if it fails to comply or is not timely (except in cases of force majeure).

2. Customer-Requested Deadlines:

These are the timelines agreed upon in the service contract specifying the completion time of the report or service earlier than the legal deadline. These deadlines are set to meet the internal management needs of each business.

3. Reasonableness in Agreed Report Completion Times:

Typically, reasonable timelines are defined in legal documents for businesses to follow. Therefore, when a customer has different needs, the following three aspects should be considered:

• Is the preparation and provision of documents by the customer feasible?
• Is the time from the final provision of documents to the completion deadline suitable and feasible for Vinasc to execute?
• Does the completion deadline affect the quality of the service?

VI. Results According To The Accounting Service Contract in Vietnam

1. Monthly Results:

Depending on the business, there may be all or part of the following documents:

Accounting Document Group:

• Accounting books, including the general ledger and detailed account books as per Circular 200 – Guidelines on the accounting regime.
• Fixed asset depreciation schedule, tool and equipment allocation table, and prepaid expense table.
• Inventory report, including raw materials, tools and equipment, goods, and finished products.
• Income statement.
• Trial balance.
• Debt report, including accounts receivable and payable.

Tax Document Group:

• VAT return (if the business declares VAT monthly).
• Purchase invoice list and sales invoice list (if the business declares VAT monthly).
• VAT payment slip if tax obligation arises.
• PIT return (if the business declares PIT monthly).
• Personal tax identification number, dependent registration documents.
• Contractor tax return and payment slip (if the business has contractor tax obligations).

Insurance and Labor Document Group:

• Documents and results for increasing labor, increasing social insurance, health insurance, etc., if the business increases labor in the month.
• Documents and results for decreasing labor, decreasing social insurance, health insurance, etc., if the business decreases labor in the month.

2. Quarterly Results:

Depending on the business, there may be all or part of the following documents, Quarterly:

Accounting Document Group:

• Accounting books, including the general ledger and detailed account books as per Circular 200 – Guidelines on the accounting regime.
• Fixed asset depreciation schedule, tool and equipment allocation table, and prepaid expense table.
• Inventory report, including raw materials, tools and equipment, goods, and finished products.
• Income statement.
• Trial balance.
• Debt report, including accounts receivable and payable.

Tax Document Group:

• VAT return (if the business declares VAT quarterly).
• Purchase invoice list and sales invoice list (if the business declares VAT quarterly).
• VAT payment slip if tax obligation arises.
• PIT return (if the business declares PIT quarterly).

Insurance and Labor Document Group:

• Documents and results for increasing labor, increasing social insurance, health insurance, etc., if the business increases labor in the quarter.
• Documents and results for decreasing labor, decreasing social insurance, health insurance, etc., if the business decreases labor in the quarter.

3. Semi-Annual Results:

• Labor report for the first six months of the year.

4. Annual Results:

Year-End Accounting Document Group:

• Accounting books, including the general ledger and detailed account books as per Circular 200 – Guidelines on the accounting regime.
• Fixed asset depreciation schedule, tool and equipment allocation table, and prepaid expense table.
• Inventory report, including raw materials, tools and equipment, goods, and finished products.
• Income statement.
• Trial balance.
• Debt report, including accounts receivable and payable.
• Financial statements before audit as required.
• Annual statistical report.
• Year-end labor report.

Year-End Tax Document Group:

• Corporate Income Tax (CIT) finalization return.
• Personal Income Tax (PIT) finalization return.
• List of tax calculations and deductions for employees.

VII. Types Of Taxes And Fees Businesses Must Pay Annually

This section helps investors understand the taxes and fees that must be paid in a year of business operations. It includes:

• Initial procedures and costs (for newly established businesses).
• Value Added Tax (VAT) and VAT refunds.
• Personal Income Tax (PIT).
• Corporate Income Tax (CIT).
• Import duties.
• Other taxes.

DETAILED INFORMATION ON PAYABLE ITEMS

1. Procedures and initial costs when establishing – Accounting Services in Vietnam:

   1. Initial procedures:

      • Registration of license tax. This is a mandatory procedure within 30 days from the date of issue of business license;
      • Initial tax registration, including: Registration of depreciation method, registration of accounting regime, and registration of tax calculation method;
      • Registration of Insurance and initial records of labor;
      • Opening a bank account.

   2. Additional expenses that the enterprise must bear:

No.	Expense	Amount	Note
1	License Fee
		3.000.000	Level I. Applied to enterprises with capital of more than 10 billion VND
		2.000.000	Level II. Applied to enterprises with capital from 10 billion VND or less
		1.000.000	Representative office, branch, business location
2	Purchase of electronic invoice	1.600.000	For 1,000 invoices.
3	Purchase of digital signature – Token	3.000.000	Can be used for 03 years

 

2. Value Added Tax (VAT). This is a tax that applies to most businesses with the following tax rates:

   1. VAT rates:

• • • 0% rate applies to exported goods and services.
    • 5% rate mainly applies to goods and services related to agriculture, healthcare, and education.
    • 10% rate is the main rate applied to most goods and services in the market.

Except for some specific sectors, businesses will apply the VAT calculation method using the tax deduction method. Specifically, according to the following formula:

VAT payable = Output VAT – Input VAT.

Example: In January 2024, a business purchased goods worth 10,000,000,000 VND with a corresponding tax of 10%, which is 1,000,000,000 VND. During the month, the business sold all goods for 15,000,000,000 VND with a tax rate of 10%, which is 1,500,000,000 VND.

Therefore, in January 2024, the business must pay a VAT of: 1,500,000,000 VND – 1,000,000,000 VND = 500,000,000 VND.

1. 2. VAT refund: Businesses are only allowed to receive a VAT refund in the following two cases and meet the condition of having a tax balance of 300 million VND or more for at least 12 consecutive months.

• • • Exporting businesses
    • Businesses with initial investment projects such as factories, warehouses, etc.

3. Personal Income Tax. This tax applies to both Vietnamese and foreign employees working for enterprises.

   1. The tax rates applied to Vietnamese employees and foreign employees who are residents of Vietnam are as follows:

Level	Annual Taxable Income (million VND)	Monthly Taxable Income (million VND)	Tax rate (%)
1	Up to 60	Up to 5	5
2	Over 60 to 120	Over 5 to 10	10
3	Over 120 to 216	Over 10 to 18	15
4	Over 216 to 384	Over 18 to 32	20
5	Over 384 to 624	Over 32 to 52	25
6	Over 624 to 960	Over 52 to 80	30
7	Over 960	Over 80	35

1. 2. For foreign workers not residing in Vietnam, all income is subject to a tax rate of 20%.

4. Corporate Income Tax (CIT): The standard corporate income tax rate for all businesses operating in Vietnam is 20%. However, certain cases qualify for preferential tax rates. The main preferential cases include:

• Investment Sector Incentives: Detailed information.
• Investment Location Incentives: Detailed information.

The typical preferential tax rate is: a 10% tax rate for 15 years, with a 4-year tax exemption, and a 50% reduction in payable tax for the following 9 years.

For example: Company A, established in 2023 and operating in the software production sector, qualifies for incentives if its documentation meets the conditions:

• From 2023 to 2026, Company A is exempt from corporate income tax.
• From 2027 to 2035, a 5% tax rate is applied (50% reduction from the 10% tax rate).
• From 2036 to the end of 2037, a 10% tax rate is applied.
• From 2038 onward, the standard 20% tax rate is applied, similar to other businesses.

5. Import Duties: The tax rate applied by customs authorities varies depending on the item and the time.

6. Other Taxes: This includes contractor tax, special consumption tax, environmental protection tax, etc. These taxes are applicable only to certain businesses operating in specific sectors or engaging in infrequent economic activities.

VIII. Social Insurance, Health Insurance, And Other Contributions When Employing Labor

This section helps businesses understand compliance requirements and plan financials when employing labor.

1. Related Procedures of Accounting Services in Vietnam:

• Reporting increases and decreases in the number of employees participating in Social Insurance and Health Insurance.
• Handling insurance procedures related to maternity leave, sick leave, etc.

2. Contributions:

   1. For Vietnamese employees:

Employer pays			Employee pays
Social Insurance	Unemployment Insurance	Health Insurance	Social Insurance	Unemployment Insurance	Health Insurance
17,5%	1%	3%	8%	1%	1.5%
21,5%			10.5%
Grand Total 32%

1. 2. For foreign employees:

Employer pays			Employee pays
Social Insurance	Unemployment Insurance	Health Insurance	Social Insurance	Unemployment Insurance	Health Insurance
17,5%	–	3%	8%	–	1.5%
20,5%			9.5%
Grand Total 30%

Notes:

• The above deductions are made monthly, based on the employee’s salary, and are paid to the governmental agencies as regulated.

IX. Administrative Procedures Businesses Must Adhere To

This is crucial content to help businesses fully comply and minimize financial and legal risks when operating in Vietnam. We also want to note that the content and administrative procedures listed below are not solely the responsibility of the accounting department, accountants, or accounting services but fall under the responsibility of the departments, specialized units within the organizational structure of the enterprise. See details here…

X. Risks In Investment, Taxation, And Accounting In Enterprises

Tax and accounting risks are inherent risks for any business operating in Vietnam. Every year, businesses still have to allocate a significant budget to address these risks. Controlling the following aspects will ensure safety and convenience in their business operations.

1. Accounting risks: Refer to Decree No. 41/2018/NĐ-CP regulating administrative penalties in the field of Accounting, independent audit.
2. Investment risks: Refer to Decree No. 122/2021/NĐ-CP regulating administrative penalties in the field of planning and investment.
3. Tax and Invoice risks: Refer to Decree No. 125/2020/NĐ-CP regulating administrative penalties for tax and invoices.

XI. Why Choose Vinasc’s Accounting Services in Vietnam

1. Vinasc is a company specializing in accounting services licensed by the Ministry of Finance to provide accounting services in Vietnam.
2. Vinasc is also licensed by the General Department of Taxation to provide tax advisory services and tax agency services.
3. We offer a comprehensive solution chain for businesses from investment research to business operation.
4. Our team consists of professional and experienced personnel serving customers domestically and internationally for many years.
5. We are committed to legal compliance and prioritize maintaining and improving services for our customers.