Vietnam: What should a newly established enterprise do?

00:45, 12/07/2024

What should a newly established enterprise do?

In general, newly established enterprises in Vietnam have quite a number of issues to resolve such as: taxes, labor, social insurance, invoices, bank accounts, material norms, and many other issues. To give everyone a more comprehensive view, refer to the table below.

Issue	Content
Declaration of Business License Tax	Declare the business license tax once when the taxpayer (NNT) starts doing business, no later than the last day of the month in which production and business activities begin. If the establishment date is at the end of the month, the enterprise must submit it within 10 working days from the date the Business Registration Certificate is issued. Business license tax is payable based on the registered capital stated in the business registration certificate or investment license.
VAT Declaration	Initially, a newly established enterprise declares VAT quarterly and declares it by the direct method. After the enterprise has been operating for 12 full months, it should determine whether to declare VAT monthly or quarterly based on the revenue level of the preceding calendar year (12 full months). Specifically: If the revenue is more than VND 50 billion, declare it monthly. If the revenue is less than VND 50 billion, declare it quarterly. Declaration form: VAT declaration form No. 04/GTGT and the list of invoices and vouchers of sold goods and services form 04-1/GTGT (Promulgated under Circular 156/2013/TT-BTC).
Corporate Income Tax (CIT) Declaration	Including: CIT provisional declaration quarterly. The deadline for quarterly provisional declaration is the 30th day of the subsequent quarter in which the tax obligation arises. Finalized CIT declaration. The deadline for submission is no later than the 90th day, from the end of the calendar year or financial year. The finalized CIT declaration dossier includes: CIT finalization declaration form No. 03/TNDN and attached appendices; Annual financial report or Financial report as of the decision date on the division, merger, consolidation, conversion of ownership form, dissolution, or termination of activities of the enterprise.
Personal Income Tax (PIT) Declaration	Enterprises paying income subject to PIT are responsible for declaring and finalizing PIT on behalf of individuals who authorize them, regardless of whether tax deduction arises. In case the organization does not arise income payments during the year, it is not required to finalize PIT.
Labor and Social Insurance	When signing labor contracts with a term of more than 3 months with employees, the enterprise must pay compulsory insurance for the employees. It is necessary to prepare a salary scale to submit to the Social Insurance agency.
Other Issues	Depending on the business sector, the enterprise may have to pay additional taxes such as: Resource Tax, Special Consumption Tax, Non-agricultural Land Use Tax, various fees and charges (if any),... Additionally, there are invoices, bank accounts, material norms, and many other issues.

Above are the general issues that newly established enterprises must resolve. However, this is not all as running an enterprise is indeed very challenging.

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- This translation is generated by OpenAI's GPT-4o model;
- The legal regulations in this article are according to Vietnamese Law;
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