Vietnam: When does the accounting period start and end in 2025?

Vietnam: When does the accounting period start and end in 2025?

Based on Clause 1, Article 8 of Circular 111/2021/TT-BTC, it is stipulated as follows:

Tax Accounting Period

1. The tax accounting period is determined according to the calendar year, referred to as the accounting year, which includes 4 characters, specifically:

a) The tax accounting period is calculated from the start of January 1 to the end of December 31 of the calendar year.

b) The first-year tax accounting period for a newly established tax accounting unit is determined from the effective date of a new establishment, division, separation, merger, or consolidation decision to the end of December 31 of the calendar year.

c) The final tax accounting period for a tax accounting unit that is divided, separated, merged, consolidated, or dissolved is calculated from the start of January 1 of the calendar year to the end of the day before the effective date of the division, separation, merger, consolidation, or dissolution decision.

d) The duration of the first and final-year tax accounting periods is implemented according to the guidance of the Accounting Law and its guiding documents.

...

Thus, the domestic tax accounting period for the year 2025 is calculated according to the calendar year, commencing on January 1, 2025, and ending on December 31, 2025.

Vietnam: When does the accounting period start and end in 2025? (Image from the Internet)

What is the purpose of the tax accounting report? What are the requirements of the tax accounting report in Vietnam?

Based on Clauses 1 and 2, Article 29 of Circular 111/2021/TT-BTC, the regulations on domestic tax reporting are as follows:

(1) The purpose of the tax accounting report is to summarize the situation and results of tax management operations of tax authorities at all levels during a tax accounting period.

(2) Requirements for the domestic tax accounting report:

- Tax accounting reports must be prepared according to prescribed templates, ensuring consistency, continuity, and authenticity in reflecting objective, reasonable information related to the management of taxes and other revenues under the state budget managed by tax authorities. Aggregated figures in tax accounting reports must ensure consistency with related regulations on the aggregation of the state budget revenue.

- Data in tax accounting reports must accurately, truthfully, and objectively reflect and be compiled from the tax accounting database after checking, reconciling, and closing tax accounting books.

- Tax accounting reports must be prepared correctly regarding content, method, and consistently presented across accounting periods; if tax accounting reports are presented differently between accounting periods, a clear explanation must be provided.

- In addition to the tax accounting reports stipulated in this Circular, the Director-General of the General Department of Taxation may prescribe other reports compiled from the tax accounting database to serve management and operation tasks in accordance with management requirements in each period.

How long do tax accounting units have to approve tax accounting reports in Vietnam?

Based on Clause 5, Article 29 of Circular 111/2021/TT-BTC, the deadline for tax accounting units to approve domestic tax accounting reports is regulated as follows:

Tax Accounting Reports

...

3. Preparing tax accounting reports

a) Before closing the tax accounting period, the tax accounting department must cooperate with tax management departments to reconcile, check the posted figures to ensure they align perfectly with the business records of the management departments.

b) The tax accounting unit must cooperate with the related State Treasury to check, reconcile, and adjust accounting data related to state budget revenues, remittances as prescribed.

c) The tax accounting unit prepares tax accounting reports in electronic data form. Reports are stored electronically and in paper form at the tax accounting unit.

4. The Department of Taxation consolidates tax accounting reports from tax accounting units in the provincial area, and the Large Enterprise Tax Department consolidates tax accounting reports in areas assigned by the Tax Department, while the General Department of Taxation consolidates tax accounting reports from tax accounting units nationwide.

5. The accounting unit which is a Regional Tax Department or Tax Department must approve tax accounting reports no later than 20 days after closing the tax accounting period; the accounting unit which is the Tax Department must approve tax accounting reports no later than 30 days after closing the tax accounting period.

6. The list, templates, and method for preparing tax accounting reports are detailed in Appendix V issued with this Circular.

Thus, tax accounting units must approve domestic tax accounting reports no later than 20 days after closing the tax accounting period for units that are Regional Tax Departments or Tax Departments, and no later than 30 days for units that are Tax Departments.