📌 Table of Contents

1. Why Tax Declarations Matter for Your Business
2. Types of Taxes That Must Be Declared in Vietnam
3. Monthly vs. Quarterly Declarations: What Applies to You?
4. Tax Filing Process: Step-by-Step
5. Key Deadlines for Monthly and Quarterly Tax Declarations
6. Mistakes to Avoid When Declaring Taxes
7. How to Improve Your Tax Reporting Efficiency
8. VAT Refund Opportunities
9. Tax Audit Preparation
10. Support from Green NRJ
11. Final Thoughts

Why Tax Declarations Matter for Your Business

Vietnam’s tax system, governed by the General Department of Taxation (GDT), requires all registered businesses to declare taxes on a monthly or quarterly basis. Staying on top of your tax reporting helps you:

• Prevent late submission fines: Avoid penalties that can impact your cash flow and business operations.
• Ensure smooth cash flow: Accurate tax planning ensures that you maintain liquidity throughout the year.

Strengthen relationships with authorities and partners: Timely tax declarations show professionalism and build credibility with government agencies and business partners.

Types of Taxes That Must Be Declared in Vietnam

Understanding the types of taxes your business must declare is key to ensuring full compliance and avoiding costly mistakes. Below are the main taxes applicable to companies operating in Vietnam:

1. Value-Added Tax (VAT)

VAT is a tax levied on the added value of goods and services at each stage of production and distribution. Businesses are required to calculate the difference between output VAT (collected from customers) and input VAT (paid to suppliers) to determine their VAT obligation.

2. Corporate Income Tax (CIT)

CIT applies to the profits earned by companies. The standard CIT rate in Vietnam is 20%. Enterprises must make quarterly provisional tax declarations and finalize their CIT filings within 90 days of the fiscal year-end.

3. Personal Income Tax (PIT)

PIT is imposed on income earned by individuals, including salaries paid by businesses to their employees. Companies are responsible for withholding, declaring, and paying PIT on behalf of their staff, based on progressive tax rates ranging from 5% to 35%.

4. Foreign Contractor Tax (FCT)

FCT applies to payments made to foreign entities or individuals who conduct business or earn income in Vietnam without a local presence. The tax combines VAT and CIT, depending on the nature of the contract and services provided.

5. Special Consumption Tax (SCT)

SCT is a tax on the production or import of luxury goods and services, such as alcohol, tobacco, automobiles, and certain entertainment services. Only applicable businesses must declare this tax monthly.

Monthly vs. Quarterly Declarations: What Applies to You?

Knowing whether to file monthly or quarterly depends on your business’s size and revenue. Here’s how to determine your tax filing frequency.

Tax Filing Process: Step-by-Step

1. Prepare the Required Documents
   • VAT invoices
   • Payroll records and PIT calculations
   • Revenue and expense reports
   • Import/export records (if applicable)
   • Bank statements
2. Calculate Payable Tax
   • VAT = Output VAT – Input VAT
   • CIT = 20% of estimated quarterly profits
   • PIT = Progressive tax rates (5%–35%) based on monthly income
3. Submit Online via the e-Tax Portal
   • Access the GDT e-tax system
   • Choose the relevant form (e.g., Form 01/GTGT for VAT)
   • Attach digital documents and submit the declaration
4. Pay Taxes to the Correct Authority
   • Make payments through your corporate bank account
   • Include tax codes and references for verification
5. Archive the Submission
   • Save submission receipts for future tax inspections and audits

Key Deadlines for Monthly and Quarterly Tax Declarations

Staying aware of important tax deadlines helps avoid late penalties and ensures smooth operations.

Note: Deadlines are extended to the next working day if they fall on a holiday.

Mistakes to Avoid When Declaring Taxes

Avoiding these common mistakes can save your business from unnecessary penalties and audits.

• Late Filing: Can lead to fines of up to VND 25 million. Set calendar reminders and use accounting software.
• Misreporting Revenue or Deductions: Leads to rejected declarations or additional fines. Double-check financial records.
• Incorrect VAT Rate or PIT Calculation: Verify industry-specific VAT rates and PIT brackets for employees.
• Missing Supporting Documents: Incomplete submissions can result in VAT deductions being denied.

How to Improve Your Tax Reporting Efficiency

Boost your reporting accuracy and save time by following these tax efficiency practices.

• Use reliable accounting/tax software.
• Update records and invoice logs regularly.
• Consult with tax professionals monthly.
• Run internal audits every 6–12 months.

VAT Refund Opportunities

You may be eligible for a VAT refund if:

• Your input VAT exceeds output VAT (especially common for exporters).
• You are investing in infrastructure, machinery, or equipment.
• Your business is in the early stages and incurs large setup costs.

Minimum refundable amount: VND 300 million
Processing time: 20–40 business days

Tax Audit Preparation

Being prepared for a tax audit minimizes disruption and demonstrates compliance to authorities.

• Keep organized accounting/payroll records.
• Track all tax payments and filing confirmations.
• Ensure declarations are supported by valid e-invoices.
• Assign a tax team or advisor to liaise with auditors.

Support from Green NRJ

Green NRJ offers comprehensive tax services to keep your business compliant and efficient.

• Monthly and quarterly tax declaration services
• VAT, CIT, PIT, and FCT filing
• VAT refund handling and audit support
• Long-term tax advisory and compliance planning

Final Thoughts

Filing tax declarations correctly and on time is vital for legal compliance and financial health. With the right tools, expert help, and consistent procedures, your business can confidently meet all reporting obligations.

Need help with your tax filings in Vietnam? Contact Green NRJ today.