Business license fees

Business license fees are paid annually by individuals, businesses, and organisations that produce and trade goods and services. They exact amount is based on the registered capital or the type of business.

What’s due? Declaration and payment

When is it due? January 30

Vietnam Business License Costs

FCWT declarations

Foreign Contractor Tax is a tax applied to foreign contractors and subcontractors doing business in Vietnam. 

See also: Foreign Contractor Tax in Vietnam: A Complete Guide for 2022

Ad-hoc

Deadline: The 10th day from the day on which payment is made and finalized within 45 days from date of contract liquidation.

When a foreign contract is generated, we must register the tax number for FCWT use within 10 working days.

The obligation is incurred once the payment is made.

Monthly

Companies that make multiple and frequent payments to foreign contractors may register to report FCWT once a month.

What’s due? Declaration and payment

When is it due? 20th of each month*

PIT and VAT declaration

Personal income tax (PIT) is a direct tax levied on the net income of individuals in a year, monthly or ad-hoc. 

Expatriate employees who are tax residents must also complete a PIT finalization after completing their assignment in Vietnam.

Value-added tax (VAT) is a tax charged on the added value of goods and services from production, to circulation, to consumption.

See also: Personal Income Tax in Vietnam: Deadlines, Requirements, and Preparation

Monthly

What’s due? Declaration and payment

When is it due? 20th of each month*

Quarterly

What’s due? Declaration and payment

When is it due? The last day of the first month of the next quarter

Notes:

• Companies that earn total revenue of VND 50 billion or less from the sale of goods and/or services in the preceding year may be eligible to ｄｅｃｌａｒｅ VAT quarterly.
• If a company is in its first year of trading it can ｄｅｃｌａｒｅ its VAT quarterly. In the next calendar year VAT declarations will be declared either monthly or quarterly depending on the revenue from the preceding calendar year.
• PIT is generally paid monthly, however, in the circumstances that an enterprise is approved to pay PIT quarterly it will fall due the same day as the VAT.

PIT withholding report (Quarterly)

When is it due? The last day of the first month of the next quarter*

Details: No payment is required, simply submit the PIT withholding report to the Tax Department.

PIT finalization

The amount of PIT paid is reconciled at the year-end to confirm an individual’s total tax liability.

What’s due? Declaration and payment

Due:

• The last day of the 3rd month from the end of the financial year.
• PIT self finalization: the end of the 4th month, following the end of the financial year.
• Departing expatriate employees: Within 45 days upon departure

Corporate Income Tax

Provisional CIT payment

Frequency: Annual

Due: January 30

Notes:

• While the total CIT due will be based on an annual figure, companies can make payments in quarterly installments.
• Total provisional CIT paid in four quarters must not be less than 80 percent of the CIT liabilities payable at the time of CIT finalization.
• The standard CIT rate applicable to enterprises in Vietnam is 20 percent on assessable income.

CIT calculation

1. Assessable income = Total revenue – Deductible expenses + Other income – Carried forward losses – Tax-exempted income.
2. CIT payable = [Assessable income – Deductions for establishing a science and technology fund] x CIT Rate

Arrears

• If the provisional corporate income tax of 4 quarters goes unpaid or is not paid in full, late payment interest shall be charged on the arrears.
• This will be calculated from the first day after the due date to day before the arrears is cleared.
• The late payment fine: Late payment fine of tax payable is 0.03% per day on the overdue amount from the over due date. This does not apply if the fault is on the part of the tax authorities.

CIT finalization

Due: The last day of the 3rd month from the end of the financial year.

Audited reports

Am audit report is a document prepared by an auditor, auditing firm, or branch of a foreign auditing firm in Vietnam. It provides opinions on the financial statements of a company with respect to their quality and accuracy.

See also: Audit and Compliance in Vietnam: A Guide for Foreign Investors

Due: 90 days from the end of each fiscal year.

Notes: Audit reports must be submitted to the following local agencies:

• Tax department (Online submission)
• General Statistics Office
• Finance department
• Department of Planning and Investment department

Transfer pricing declarations

Due:

1. Before annual CIT returns (The last day of the 3rd month from the end of the financial year.)
2. Companies must submit TP documentation to tax authorities within 15 business days of receiving a request during a tax or transfer pricing audit.

Social, Health, and Unemployment Insurance

Unemployment insurance is a regime aimed at compensating a part of an employee’s income when he/she loses a job, supporting them in vocational training, job maintenance, and job search on the basis of contributions to the Unemployment Insurance Fund.

Social insurance is a guarantee to ｒｅｐｌａｃｅ or partially compensate an employee’s income when he/she has a decrease or loss of income due to illness, maternity, work accident, occupational disease, end of working age or death, based on contributions to the social insurance fund.

Health insurance contributions are required for Vietnamese and foreign individuals that are employed under Vietnam labor contracts for at least three months.

New employee SHUI notification

Due: Within a month of an employee joining the company.

Employee exit SHUI notification

Due: The month before the employee leaves the company.

Notes:

• When there is a reduction in employment, the company must notify the SHUI Department the month before. If the company fails to notify the department, it must pay 4.5% in health insurance for that month.
• For example, if an employee leaves the company in January, the company must submit a decrease declaration for that employee in December. If the company submits the declaration in January, it must pay 4.5% for health insurance.

SHUI payment

Due: Last day of the month

Report on employment of foreign employees

Reports on the employment of foreign employees includes information on contractors and data on foreign workers of enterprises and organisations working in Vietnam.

See also: Vietnam’s Visas and Work Permit Procedures

Due:

• Half-yearly report: July 5
• Annual report: January 5

Submit to: The Provincial Department of Labor, Invalids and Social Affairs where the company’s head office is located.

Report on changes to employment

Due:

• Half-yearly report: June 5
• Annual report: December 5

Submit to: The Provincial Department of Labor, Invalids and Social Affairs where the company’s head office is located.

Report on labor accidents

A report on labour accidents is a document prepared by the employer with any details about any accidents that have taken place on a companies premises.

Due:

• Half-yearly report: July 5
• Annual report: January 10

Submit to: The Provincial Department of Labor, Invalids and Social Affairs where the company’s head office is located.

Note: This can be submitted online via the National Public Service Portal.

Report on occupational safety and hygiene

The Report on occupational safety and hygiene is a summary, assessment and synthesis of information on an enterprise’s occupational safety and hygiene.

Due: January 10 of the following year

Submit to: The Provincial Department of Labor, Invalids and Social Affairs where the company’s head office is located.

Yearly unemployment insurance report

A yearly unemployment insurance report is a document prepared to report the outcomes of the unemployment insurance payments of the enterprise.

Due: January 15

Submit to: The SHUI Department where the company’s head office is located.

Report on the execution of investment projects

See also: Import, Export, and Investment Incentives in Vietnam

Due:

• Quarterly: by the 10th day of the month following the reporting quarter.
• Annually: by 31 March of the following reporting year

Submit to: The Department of Planning and Investment where the company’s head office is located.

Report on the supervision and assessment of the implementation of investment projects

This report records the status of a project’s implementation, project management, information processing, and feedback.

Due:

• Half-yearly report: July 5
• Annual report: February 10

Submit to: The Department of Planning and Investment where the company’s head office is located.

Enterprise Survey

Due: March 31

Frequency: Annual

Submit to: General Statistics Office where the company’s head office is located.

Note: This is covered in Form 04/VĐTDN-Q.

Report on borrowing, repayment of short-term/long-term foreign loans

Due: Quarterly on the 5th day of the first month of the following quarter.

Submit to: State Bank of Vietnam branch where the company’s head office is located.

Report on Representative Office

This report records the personnel in the representative office and the operations of the representative office.

See also: How to Set Up a Representative Office in Vietnam – Vietnam Briefing News

Due: January 30 for the year before.

Submit to: Department of Industry and Trade where the company’s head office is located.