What requirements of the tax accounting reports in Vietnam?

What are requirements of the tax accounting reports in Vietnam?

Based on Article 29 of Circular 111/2022/TT-BTC, which regulates tax accounting reports.

Tax accounting reports are essential for summarizing the status and results of tax management operations of tax agencies at different levels during a tax accounting period.

Tax accounting reports must meet the following requirements:

- Tax accounting reports must be prepared according to the prescribed templates, and the indicators in the tax accounting reports must ensure consistency, continuity, and objectively and reasonably reflect information related to the management of tax revenues and other state budget revenues collected by tax agencies. The aggregated indicators in tax accounting reports must be consistent with relevant regulations on consolidating state budget revenues.

- The data in the tax accounting reports must accurately, truthfully, and objectively reflect and be aggregated from the tax accounting database after verification, comparison, and closure of the tax accounting records.

- Tax accounting reports must be prepared correctly in terms of content, method, and consistently presented across accounting periods; if tax accounting reports are presented differently across accounting periods, the reasons must be clearly explained.

- In addition to the tax accounting reports regulated by Circular 111/2022/TT-BTC, the Director-General of the General Department of Taxation may prescribe additional reports based on the tax accounting data base to serve management and administration needs appropriate to each period.

What requirements of the tax accounting reports in Vietnam? (Image from the Internet)

What must accounting do before preparing tax accounting reports in Vietnam?

Based on Clause 3 of Article 29 of Circular 111/2022/TT-BTC, which regulates tax accounting reports.

Tax Accounting Reports

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3. Preparing Tax Accounting Reports

a) Before closing the tax accounting period, the tax accounting department has the responsibility to cooperate with tax management departments to verify and check the recorded data to ensure it matches exactly with the records of the operating departments.

b) The tax accounting unit cooperates with the relevant State Treasury to verify, reconcile, and adjust accounting data related to state budget revenue and expenditure as per regulations.

c) The tax accounting unit prepares tax accounting reports in electronic data format. The reports are stored in both electronic data and paper format at the tax accounting unit.

4. The Tax Department consolidates the tax accounting reports of tax accounting units within the provincial jurisdiction, the Large Enterprise Tax Department consolidates tax accounting reports within jurisdictions assigned by the Tax Department, and the General Department of Taxation consolidates the tax accounting reports of tax accounting units nationwide.

5. The tax accounting unit, as a Regional Tax Department, must approve the tax accounting report within 20 days after closing the tax accounting period; whereas, as a Tax Department, it must approve the report within 30 days after closing the tax accounting period.

6. The list, templates, and methods for preparing tax accounting reports are detailed in Appendix V attached to this Circular.

Before closing the tax accounting period, the tax accounting department has the responsibility to cooperate with the tax management departments to verify and check the recorded data to ensure it matches exactly with the records of the operating departments.

Subsequently, carry out verification, reconciliation, and adjustment of accounting data related to state budget revenue collection and payment as per regulations.

Finally, the tax accounting unit prepares tax accounting reports in electronic data format. The reports are stored in both electronic data and paper format at the tax accounting unit.

When is the closing time for the tax accounting period in Vietnam?

Based on Clause 3 of Article 8 of Circular 111/2021/TT-BTC, which regulates the opening and closing of tax accounting periods, with the following content:

Tax Accounting Period

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

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

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

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

d) The duration of the first and final tax accounting periods is in accordance with the guidelines of the Accounting Law and its guiding documents.

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3. Opening and Closing Tax Accounting Period

a) Opening a tax accounting period involves setting an open status on the Tax Accounting subsystem from the start of the tax accounting period as mentioned in Clause 1 of this Article for a tax accounting period to update input data for tax accounting, update tax accounting documents, record bookkeeping entries, or modify, delete data on the Tax Accounting subsystem.

b) Closing a tax accounting period involves setting a closed status on the Tax Accounting subsystem for a tax accounting period to not update input data for tax accounting, not update tax accounting documents, not modify, delete data on the Tax Accounting subsystem.

c) The closing time for a tax accounting period is the last day of the third month from the end of the accounting period. If the closing time coincides with a regulated day off, the closing day is the next working day following the day off. In case an objective reason necessitates delaying the closing time of the tax accounting period, it must have the approval of the General Department of Taxation.

From the end of the tax accounting period until the closing time, all adjusted tax accounting data are recorded according to the accounting year information as stipulated in Clauses 1 and 2 of this Article.

From the closing of the accounting period to before the tax accounting report is approved by the competent authority, the tax authority may only adjust the accounting year data upon request from a competent authority or correct data due to detected errors if approved by the General Department of Taxation and recorded according to the accounting year information as stipulated in Clauses 1 and 2 of this Article.

d) Errors in accounting data not adjusted into the tax accounting period under the accounting year information mentioned above should be recorded in the current year's tax accounting period and supplemented with “01” as budget year information to provide an explanation on the current year's tax accounting report.

Closing the tax accounting period involves setting a closed status on the Tax Accounting subsystem for a tax accounting period so as not to update input data for tax accounting, not update tax accounting documents, not modify, or delete data on the Tax Accounting subsystem.

The closing time for a tax accounting period is the last day of the third month from the end of the accounting period.

In which, the tax accounting period is from January 1 to December 31 of the calendar year.