Guide to Tax Procedures and Initial Post-Incorporation Procedures for Enterprises in Vietnam

1. Guide to Tax Procedures and Initial Post-Incorporation Procedures for Enterprises in Vietnam

1.1. Initial tax declaration

The enterprise must submit the initial tax declaration within 10 days from the date of issuance of the Business Registration Certificate.
Declared information includes: charter capital, business activities, employee information, etc.

1.2. Required documents include:

• Registration form for accounting system and invoice issuance method;
• Appointment decisions for the chief accountant and legal representative/manager;
• Fixed asset depreciation method (if any);
• Copy of the Business Registration Certificate;
• Power of attorney (if applicable).

1.3. Registration of the electronic tax system

1.4. Registration for electronic invoice usage

To be completed after finishing the initial tax declaration procedures.

II. Types of Taxes and Applicable Payment Standards

2.1. Value Added Tax (VAT – “GTGT”)

• Declaration methods:

  • Credit (deduction) method; or
  • Direct calculation method.
• Declaration cycle:
  • Monthly declaration: Applicable to enterprises with revenue exceeding VND 50 billion in the preceding year.
  • Quarterly declaration: Applicable to enterprises with revenue not exceeding VND 50 billion in the preceding year or newly established enterprises.
• Standard tax rate: Applied in accordance with current applicable laws and regulations.

2.2. Corporate Income Tax (CIT – “TNDN”)

1. Quarterly provisional payment, with annual finalization at the end of the fiscal year.
2. Common tax rate:
   Provisional tax payable = Taxable income × 20%.

2.3. Personal Income Tax (PIT – “TNCN”)

1. Applicable to resident individuals earning taxable income from employment.
2. Declaration on a monthly or quarterly basis, depending on the payroll scale.

2.4. Foreign Contractor Tax

Applicable when the enterprise signs contracts with foreign parties for the provision of services or goods.

III. Types of Accounts Required to Be Opened

3.1. Bank Account

Used for business transactions, salary payments, capital contribution receipt, and tax payments.

3.2. Electronic Tax Transaction Account

1. Registration at: https://dichvucong.gdt.gov.vn/tthc/homelogin
2. Binding with a digital signature for online tax filing and tax payment.

3.3. Direct Investment Capital Account (DICA)

1. Applicable to foreign-invested enterprises.
2. Used to receive investment capital and remit profits abroad.

IV. Tax Declaration Deadlines

V. Initial Steps After Company Establishment

4.1. Conduct initial tax registration.
4.2. Open a corporate bank account.
4.3. Purchase a digital signature and register an electronic tax account.
4.4. Declare applicable taxes based on actual operations.
4.5. Register for and issue electronic invoices.
4.6. Submit tax declarations and pay taxes on time in accordance with regulations.