Vietnam Audit Compliance 2026: What FOEs Need to Know

Auditing foreign-owned enterprises (FOEs) in Vietnam involves preparing a statutory annual audit report, finalizing corporate income tax (CIT), and managing personal income tax (PIT) for employees. Compliance with local regulations and timely submissions to government authorities are essential to ensuring smooth business operations and the repatriation of profits.

FOE audit in Vietnam can be complex and time-consuming. The successful completion requires the compilation of a statutory annual audit report and the finalization of corporate and personal income taxation.

Following the successful submission of this information to various government bodies, firms can repatriate profits from their operations.

With rules constantly changing, prospective and established investors alike should contact a service provider or relevant government officials to ensure that reports are prepared in accordance with the most up-to-date regulations.

Step 1 – Prepare the statutory annual audit report

All FOEs are required to produce audited financial statements annually. These statements must be prepared in accordance with Vietnamese Accounting Standards (VAS) and follow the most up-to-date guidance available.

Under Vietnamese law, the financial statements of FOEs must be audited externally by an independent auditor. The following audit procedures must be followed, and documentation prepared to ensure compliance:

Statutory audit requirements

• Statement of financial position;
• Income statement;
• Cash flow statement; and
• Notes to financial statements.

Requisite documentation

• General ledger and trial balance;
• Bank statements and reconciliations;
• Fixed asset register and depreciation schedules;
• Accounts receivable and payable aging reports;
• Inventory records (if applicable); and
• Tax declarations and payment slips.

Companies are required to self-assess their tax liability and pay their tax without any intervention by the tax authorities.

Deadline

FOEs need to submit audited reports to the following three government departments on the last day of the third month at the end of the calendar or fiscal year:

• Department of Corporate Finance;
• Provincial-level Departments of Export Processing and Industrial Zone in the case of FOEs based in IZs or EPZs;
• Provincial-level Tax Departments; and
• Provincial-level Statistical offices.

Upon receipt of the documentation, these offices place an incoming stamp on one copy of the submitted reports for confirmation. For electronic submissions, the enterprise will receive an electronic confirmation, or the documentation will be stored directly in the authority’s system without being stamped.

Step 2 – CIT finalization

In addition to quarterly remittances of provisional CIT payments, FOEs in Vietnam must finalize CIT at the end of each tax year. The standard tax year applied in Vietnam is the calendar year.

When preparing finalization paperwork, enterprises should closely monitor revenue streams to ensure all required income is included in the finalization statements. Currently, revenue subject to CIT consists of all income arising from production, trading, and the provision of services, regardless of whether it is generated within Vietnam.

Expenses are tax-deductible if they are related to revenue generation, supported by proper documentation, and not explicitly classified as non-deductible expenses.

Following an assessment of revenue streams, outstanding obligations, and investment incentives, it is possible that taxes may be reduced substantially or avoided. In the event that there is no tax liability, or taxation has been exempted under applicable tax incentives, enterprises must still complete tax filings with tax authorities by established deadlines.

It should be noted, however, that filing is not required for enterprises whose tax-generated activities are terminated or have ceased business operations and no tax liabilities have arisen.

Those finalizing corporate income taxation should prepare CIT reports in accordance with the following requirements and deadlines:

Requisite documentation

• Form 03/TNDN CIT finalization statement;
• Audited Financial Statements and other related documents;
• One or more annexes enclosed with the declaration (depending on the actual arising of the enterprise);
• Transfer pricing forms (as required by law); and
• Global minimum tax form (as required by law).

Deadline

Finalization paperwork must be submitted to the head of the relevant tax agencies by the last day of the third month after the financial year-end. Companies may need to submit the audit report and financial statement to other competent authorities.

For cases of operational termination, contract termination, or corporate ownership transformation, tax offices must be notified within 45 days of the date the changes were made.

Step 3 – PIT finalization

FOEs, as employers, are responsible for finalizing all personal income tax (PIT) for their employees, including salary deductions throughout the year.

Enterprises finalizing PIT for their employees should make sure that the following forms are successfully completed by the deadlines outlined below:

Requisite documentation

• Form No. 05/QTT – PIT finalization statement;
• Form No. 05-1/BK-QTT-TNCN – Detailed list of taxable income and tax deductions from salaries and wages of individuals who are subject to progressive tax rates; and
• Form No. 05-2/BK-QTT-TNCN – Detailed list of taxable income of individuals who are subject to direct tax rates; and
• Form No. 05-3/BK-QTT-TNCN – Detailed list of employees’ registered dependents.

In the event that enterprises are consolidated or merged, they must complete PIT finalization for deducted tax in advance of these changes and provide employees with a voucher for their PIT finalization at the end of the year.

Deadlines

Finalization paperwork must be submitted by the last day of the third month after the financial year-end and sent to the tax office that directly manages the enterprise. In most circumstances, this is the department of taxation in the province or city where the enterprise conducts its operations; however, there may be instances in which local tax offices authorize alternative state bodies to collect taxes.

Step 4 – Profit remittance

Following tax finalization, or the termination of investment projects in Vietnam, profits may be remitted to offshore accounts if the business has completed all financial obligations to the State of Vietnam under Vietnamese law. For enterprises whose investments are still in operation in Vietnam, profits may only be remitted if the FOE in question has not accumulated losses.

Deadlines

In the event that a FOE has completed tax finalization, the relevant tax office must be notified of any plan to remit profits at least seven working days before the scheduled transfer.