What are the tax accounting activities in Vietnam under Circular 111/2021?

What are the tax accounting activities in Vietnam under Circular 111/2021?

Based on Article 6 of Circular 111/2021/TT-BTC, it is stipulated that tax accounting work is one of the tax management functions of tax authorities at all levels, conducted continuously and systematically according to tax management procedures on the Tax Management Application System, which includes the Tax Accounting Subsystem.

Tax accounting work includes the following tasks:

(1) Collecting input information for tax accounting, preparing tax accounting documents

- Collecting input information for tax accounting is an automatic task performed by the Tax Accounting Subsystem connected to the Taxpayer Obligation Management Subsystem as stipulated in Articles 12, 13, 14, and 15 of Circular 111/2021/TT-BTC to fully determine the accounting details of each tax accounting account.

- In cases where tax accounting records are not recorded through the input information collection process of the Tax Accounting Subsystem, officials conducting tax accounting work shall prepare tax accounting documents as stipulated in Article 16 of Circular 111/2021/TT-BTC.

(2) Recording tax accounting books is an automatic task performed by the Tax Accounting Subsystem. It records the input information and tax accounting documents mentioned in paragraph 1 of this Article to book tax accounting, reflecting tax management activities arising in the tax accounting period. This includes opening, recording, closing, and correcting tax accounting books according to the regulations in Section 3, Chapter II of Circular 111/2021/TT-BTC.

(3) Preparing tax accounting reports is an automated task conducted by the Tax Accounting Subsystem or by officials performing tax accounting work to summarize tax management activities results of tax authorities at all levels (including taxes due, collected, outstanding, refundable, refunded, remaining refundable, exempted, reduced, set aside, and written off) according to the regulations in Section 4, Chapter II of Circular 111/2021/TT-BTC.

(4) Archiving and providing tax accounting information and documents are tasks of tax accountants conducted according to the provisions of Article 9 of Circular 111/2021/TT-BTC.

What are the tax accounting activities in Vietnam under Circular 111/2021? (Image from Internet)

How to determine the tax accounting period in Vietnam?

Based on Clause 1, Article 8 of Circular 111/2021/TT-BTC, the following is stipulated:

Tax Accounting Period

1. The tax accounting period is defined according to the calendar year, referred to as the accounting year, consisting of 4 characters, specifically:

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

b) The initial tax accounting period for a newly established tax accounting unit is determined from the start of the effective date of the new establishment, division, separation, merger, amalgamation until the end of December 31 of the calendar year.

c) The final tax accounting period for a tax accounting unit when divided, separated, merged, amalgamated, or dissolved is calculated from the beginning of January 1 of the calendar year to the last day before the effective date of the decision to divide, separate, merge, amalgamate, or dissolve the tax accounting unit.

d) The time of the initial, final tax accounting period is implemented according to the guidance of the Accounting Law and subsequent guiding documents.

The tax accounting period is determined by the calendar year, referred to as the accounting year.

Within that, the tax accounting period is calculated from the start of January 1 to the end of December 31 of the calendar year.

- The initial tax accounting period for a newly established tax accounting unit is determined from the effective date of the establishment, division, separation, merger, or amalgamation until the end of December 31 of the calendar year.

- The final tax accounting period of a tax accounting unit when split, separated, merged, amalgamated, or dissolved is calculated from the start of January 1 of the calendar year to the day before the effective date of the decision to split, separate, merge, amalgamate, or dissolve the tax accounting unit.

- The time of the initial, final tax accounting period is implemented according to the guidance of the Accounting Law and subsequent guiding documents.

What are the requirements for tax accounting work in Vietnam?

Based on the provisions of Clause 2, Article 5 of Circular 111/2021/TT-BTC, tax accounting work must ensure the following tasks are executed:

- Collecting input information for tax accounting, preparing tax accounting documents according to the regulations in Section 1, Chapter II of Circular 111/2021/TT-BTC for recording tax accounting books.

- Reconciling and checking accounted figures to ensure they accurately match input information originating from relevant tax management records associated with tax accounting work.

- In case of discovering errors during tax accounting, the cause must be identified and handled according to the provisions of Article 14, Circular 111/2021/TT-BTC, Article 16 of Circular 111/2021/TT-BTC.

- Storing, managing, and providing tax accounting information and documents according to the stipulations of Article 9 of Circular 111/2021/TT-BTC.

- Providing accurate, comprehensive, and prompt tax accounting information and documents according to the legal requirements on accounting and tax management.

- The tasks of tax accounting work are performed automatically by the Tax Accounting Subsystem or by officials conducting tax accounting work according to their function, tasks, and authority on the Tax Accounting Subsystem.

Furthermore, tax management function departments in tax authorities at all levels must ensure the following tasks are fulfilled during tax management activities based on Clause 3, Article 5 of Circular 111/2021/TT-BTC, including:

- Handling tax management dossiers according to the tax management procedures issued by the General Director of the General Department of Tax, ensuring complete, accurate, and prompt information.

- Controlling data processing of tax management dossiers on the Tax Management Application System of the tax sector according to the regulations in the Regulations stipulating the responsibility for data control on the Tax Management Application System of the tax sector issued by the General Director of the General Department of Tax.

- Being responsible for the completeness, accuracy, and promptness of the provided input information for tax accounting under the provisions of Article 12 of Circular 111/2021/TT-BTC.

- Reconciling and reviewing tax management dossier data and tax management information with taxpayers to ensure completeness, accuracy, and promptness.

- In cases of detecting errors or adjustments in tax management dossiers related to tax accounting work that affect tax accounting information, they must be promptly handled and adjusted according to the regulations.