Accounting Guidance: Taxes and Receivables from the State

As a foreign-invested enterprise (FDI), particularly a Japanese enterprise, having a thorough understanding of regulations on taxes and receivables from the State is a key factor for ensuring smooth and sustainable operations in the Vietnamese market. However, many managers still face practical challenges, such as: “How can we accurately self-assess the tax payable?”, “Is this fee classified as a tax?”, or “How can financial obligations be optimized while ensuring full legal compliance?”. In this article, KMC experts provide a detailed analysis of Account 333 and guidance on tax finalization for taxes and receivables from the State, enabling enterprises to perform accounting entries accurately and in accordance with regulations.

Basic Taxes Payable by FDI Enterprises in Vietnam

FDI enterprises in Vietnam are subject to the following principal taxes and statutory obligations: Corporate Income Tax (CIT), Value Added Tax (VAT), Personal Income Tax (PIT), business license fee, Foreign Contractor Tax (FCT), and land-related levies, with the standard CIT rate of 20% (excluding applicable tax incentives).

The applicable tax rates and key obligations are as follows:

• Corporate Income Tax (CIT): Standard rate of 20%; preferential rates of 10% for 15 years, or 15% / 17% for 10 years applicable to new investment projects in disadvantaged areas, industrial zones, or high-tech sectors.
• Value Added Tax (VAT): 0% for exported goods; 5% or 10% (standard rate).
• Personal Income Tax (PIT): Withholding obligations applicable to employees’ income.
• Foreign Contractor Tax (FCT): Applicable to payments made to foreign contractors.
• Business License Fee: Based on charter capital (Note: Expected to be abolished from January 1, 2026 under Resolution No. 198/2025/QH15).
• Land-related taxes/fees: Land rental and land use fee exemptions or reductions applicable to specific projects.

Account 333 – Taxes and Other Payables to the State

Account 333 is used to reflect the relationship between the enterprise and the State regarding taxes, charges, fees, and other amounts payable, paid, and outstanding payable to the State Budget within an accounting period/year.

Accounting principles for Account 333:

• Indirect taxes such as Value Added Tax (VAT), Special Consumption Tax (SCT), Environmental Protection Tax, export tax, etc., are collected on behalf of customers. These taxes are not recognized as revenue of the enterprise.
• Enterprises may apply one of the following two methods to recognize such indirect taxes:
  • Separately identify and recognize indirect taxes at the time revenue is recognized. Under this method, recorded revenue excludes indirect taxes payable.
  • Recognize indirect taxes payable to the State Budget by reducing revenue in the accounting records. Under this method, revenue is adjusted periodically, resulting in differences between accounting revenue and revenue presented in the financial statements.
• The line item “Sales Revenue and Service Provision” – Account 511 and “Sales Deductions” – Account 521 in the Income Statement exclude indirect taxes payable to the State.
• For taxes that are reduced or refunded at the purchasing or sales stage, the following principles apply:
  • Taxes paid at the purchasing stage that are refundable (commonly arising in temporary import for re-export transactions, SCT, import duties, environmental protection tax): such amounts are recorded as a reduction of cost of goods sold or a reduction in the cost of purchases. For refundable input VAT, it is recorded asreduction of deductible input VAT.
  • Import duties paid on goods received for processing that are refunded upon re-export: applicable to imported goods not owned by the enterprise. Upon refund, the accountant records a reduction in other receivables.
  •  Taxes payable arising from trading activities that are subsequently reduced or refunded: such amounts are recognized as other income – Account 711.

Contents Reflected in Account 333

Account 333 Structure

Debit side:

• Input VAT deducted during the period;
• Taxes, fees, charges and other amounts payable that have been paid to the State Budget;
• Taxes offset against the tax payable;
• VAT of returned goods and sales price reductions;
• Credit side: Output VAT and import VAT payable;
• Taxes, fees, charges and other amounts payable to the State Budget.

Credit balance:

• Taxes, charges, fees, and other amounts still payable to the State Budget.

Debit balance (if any):

• Taxes and other amounts paid exceeding the amounts payable to the State, or reflecting tax amounts paid that are eligible for exemption, reduction, or refund but have not yet been refunded.
• Account 333 – Taxes and Other Payables to the State consists of 9 Level-2 sub-accounts.

Sub-accounts of Account 333 – Taxes and Other Payables to the State Budget

• Account 3331 – Value Added Tax (VAT) payable to the State Budget
• This account reflects output VAT of the enterprise, VAT payable on imported goods, deductible input VAT during the period, as well as VAT amounts paid and unpaid to the State Budget. Account 3331 includes two Level-3 sub-accounts:
• Account 33311 – Output VAT: This account reflects output VAT and deductible input VAT, as well as VAT payable, paid, and outstanding arising from the sale of goods and services during the period;
• Account 33312 – VAT on imported goods: This account reflects VAT payable on imported goods, including amounts paid, paid and outstanding VAT obligations.
• Account 3332 – Special Consumption Tax (SCT);
• Account 3333 – Import and Export Duties;
• Account 3334 – Corporate Income Tax (CIT);
• Account 3335 – Personal Income Tax (PIT);
• Account 3336 – Natural Resource Tax;
• Account 3337 – Land Tax and Land Lease Fees;
• Account 3338 – Environmental Protection Tax and other taxes;
• Account 3339 – Fees, charges, and other payables.

Accounting Guidelines for Account 333 – Taxes and Other Payables to the State Budget

To provide detailed accounting entries for taxes and receivables payable, you may refer to the following guidance:

Account 33311 – Output VAT

Accounting under the credit method:

Debit 111 – 112: Total payment value of goods and services;

Credit 511 – 515 – 711: Price excluding VAT;

Credit 33311: VAT payable to the State Budget.

Accounting under the direct method:

Enterprises may choose one of the following two options:

• Option 1: Separately determine VAT payable at the time of invoice issuance;
• Option 2: Periodically determine VAT payable and reduce revenue Debit 511 – 515 – 711 / Credit 33311: VAT payable during the period.

When the enterprise pays tax into the State budget, record Debit Account 3331 / Credit Account 111 – 112.

Account 3332: Special Consumption Tax (SCT)

• The enterprise separately recognizes SCT payable at the time of occurrence:

Debit 111 – 112 – 131: Total payment value of goods and services;

Credit 511: Revenue from sale of goods and services;

Credit 3332: SCT.

• Periodically determining SCT payable and reducing revenue:

Debit 511 / Credit 3332: SCT;

•  For imported goods subject to SCT, accounting is based on purchase documents to determine SCT payable during the period:

Debit 152 – 156 – 211;

Credit 3332.

• For temporary import–re-export goods not under the enterprise’s ownership, when paying SCT:

Debit 138 / Credit 3332.

• When paying SCT to the State Budget:

Debit 3332 / Credit 111 – 112.

• For SCT on imported goods that are refunded upon re-export:

Debit 3332;

Credit 632: If goods are sold, or Credit 152 – 153 – 156: If goods are returned to inventory.

• For SCT paid at import stage refunded after re-export of fixed assets:

Debit 3332 – SCT;

Credit 211 – If returned fixed assets, or Credit 811 – If fixed assets are sold.

• For SCT paid on imported goods not under enterprise ownership and later refunded upon re-export:

Debit 3332 / Credit 138.

• When SCT previously paid at sales stage is refunded for goods, fixed assets, or services:

Debit 3331 / Credit 711.

• For internal use, gifts, or promotional goods/services subject to SCT:

Debit 641 – 642;

Credit 154 – 155 – 156;

Credit 3332.

• For entrusted import–export (applicable to entrusting party):

The entrusting party records SCT payable upon receipt of tax notification:
Debit 152 – 156 – 211 / Credit 3332;

After receiving proof of tax payment to the State Budget, the entrusting party records:

Debit 3332: SCT payable;

Credit 111 – 112: If paid immediately;

Credit 3388: If not yet paid;

Credit 138: If advance payment has been made to the entrusted party.

The entrusted party records tax paid on behalf of the entrusting party:
Debit 138: If receivable reimbursement; or Debit 3388: Offset against amounts received;
Credit 111 – 112.

Account 3333: Import and Export Tax (Import–Export Duties)

The enterprise separately recognizes export tax payable at the time of occurrence:

Debit 111 – 112 – 131: Total payment value of goods and services;

Credit 511: Revenue from sale of goods and provision of services excluding export tax;

Credit 3333: Export tax.

The enterprise periodically determines export tax payable and records a reduction in revenue:

Debit 511;

Credit 3333: Export tax;

Export tax refunded or reduced is recorded as:

Debit 111 – 112 – 3333 / Credit 711.

For imported goods, materials, tools and instruments, and fixed assets during the period:
Debit 152 – 156 – 211: Value including import tax;

Credit 3333: Import tax;

Credit 111 – 112 – 331.

For entrusted export transactions:

At the entrusting party:

After receiving proof of tax payment to the State Budget from the entrusted party, record

reduction of export tax obligation:

Debit 3333;

Credit 111 – 112: If payment is made immediately to the entrusted party;

Credit 3388: If not yet paid;

Credit 138: If advance payment has been made to the entrusted party.

At the entrusted party:

Record tax paid on behalf of the entrusting party:

Debit 138: If receivable reimbursement or Debit 3388: Offset against amounts received / Credit 111 – 112.

Account 3334: Corporate Income Tax (CIT)

Quarterly provisional CIT is recorded as:

Debit 821 / Credit 3334;

Payment of CIT to the State Budget is recorded as:

Debit 3334 / Credit 111 – 112;

At the end of the financial year, when final CIT is determined:

If actual CIT payable is lower than provisional tax paid:

Debit 3334 / Credit 8211;

If actual CIT payable is higher than provisional tax paid:

Debit 8211 / Credit 3334, and additional payment is recorded as:

Debit 3334 / Credit 111 – 112.

Account 3335: Personal Income Tax (PIT)

• When withholding PIT at source from employees’ taxable income:

Debit 334 / Credit 3335

• When paying external individuals for services:

Debit 331: Total payable amount for outsourced services;

Credit 3335: Withheld PIT;

Credit 111 – 112: Net payment.

• When paying PIT to the State Budget:

Debit 3335 / Credit 111 – 112;

• When paying remuneration or service fees to individuals with irregular income:

Debit 623 – 627 – 641 – 642 – 635 or Debit 161 or Debit 353;

Credit 3335;

Credit 111 – 112.

Account 3336: Natural Resource Tax

• Periodically recognize natural resource tax expense:

Debit 627 / Credit 3336;

• When paying tax:

Debit 3336 / Credit 111 – 112.

Account 3337: Land Tax and Land Lease Fees

• Periodically recognize land tax/lease expense:

Debit 642 / Credit 3337;

• When paying tax:

Debit 3337 / Credit 111 – 112.

Account 3338: Environmental Protection Tax (EPT) and other taxes

• When selling goods or providing services subject to Environmental Protection Tax (EPT) and Value Added Tax (VAT), record:

Debit 111 – 112: Total payment amount;

Credit 511: Revenue excluding EPT and VAT;

Credit 3331: VAT;

Credit 33381: Environmental Protection Tax.

• In cases where the enterprise cannot determine the EPT payable at the time of transaction:

Periodically determine the tax payable and reduce revenue:

Debit 511;

Credit 3331: VAT payable;

Credit 33381: Environmental Protection Tax.

• When EPT is reduced or refunded upon notification from competent authorities, record:

Debit 33381 / Credit 711 – Other income

•  When importing goods subject to EPT, based on purchase documents to determine EPT payable, record:

Debit 152 – 156 – 211 – 611;

Credit 33381.

• When using goods or services subject to EPT for internal consumption, gifts, advertising, etc.:

Debit 641 – 642;

Credit 152 – 156 – 154 – 155;

Credit 33381.

• For entrusted import activities, when determining EPT paid on behalf of the entrusting party:

Debit 138 / Credit 33381.

• When paying EPT to the State Budget:

Debit 33381 / Credit 111 – 112.

• Refund of EPT paid at import stage:

Debit 33381;

Credit 632: If goods are sold;

Credit 152 – 153 – 156: If goods are returned to supplier;

Credit 211: If fixed assets are returned;

Credit 811: If fixed assets are sold or liquidated.

• For goods not under enterprise ownership, when EPT paid at import stage is refunded:

Debit 33381 / Credit 138.

•  When EPT is refunded upon official notification from competent authority:

Debit 33381 / Credit 711.

Account 3339: Fees, Charges, and Other Amounts Payable to the State Budget

• During the period, determine registration fee payable based on asset value purchased:

Debit 211 / Credit 3339;

• During the period, determine license fee and other charges:

Debit 642 / Credit 3339;

• When paying taxes, fees, and charges (including registration fee and license fee) to the State Budget:

Debit 3339 / Credit 111 – 112.

Professional Tax Management Solutions for FDI Enterprises

Based on the detailed guidance above, it can be seen that accounting for taxes and other receivables payable to the State Budget is a highly complex settlement process, especially for FDI enterprises. Language barriers, differences in legal and regulatory culture, and continuously changing policies are major challenges for management in ensuring accurate tax rights and obligations compliance.

Understanding these difficulties and barriers, KMC has been providing professional tax and accounting solutions specifically designed for FDI enterprises, particularly Japanese-invested companies in Vietnam. With a team of highly qualified professionals who possess in-depth expertise in Vietnamese regulations as well as Japanese business culture, we deliver detailed, accurate, and comprehensive solutions tailored to each enterprise.

• Guidance on tax and accounting policies and regulations in Vietnam
• Provision of specialized tax services for enterprises
• Full support for legal matters and tax-accounting obligations for FDI enterprises

This not only helps FDI enterprises ensure accurate compliance but also optimizes financial obligations, turning challenges into competitive advantages.

For in-depth consultation to ensure accuracy and full legal compliance, please contact KMC experts via hotline: 081 489 4789.