In today’s volatile multinational business environment, clear and accurate accounting records are not only a legal obligation but also a true reflection of an enterprise’s management capacity. As the owner of an FDI enterprise, are you confident that your accounting system is always ready for a tax inspection at any time? If not, you should consider using Review of tax diagnostic and compliance. With nearly 25 years of experience, KMC will help you handle these issues.
Why Do FDI Enterprises Need a Bookkeeping Clean-up Service?
Compliance with complex regulations
FDI enterprises must comply with Vietnam’s accounting and tax regulations, which are frequently amended and may differ from international standards. A bookkeeping clean-up service ensures financial statements are prepared in accordance with regulations, minimizing risks of violations and penalties during tax inspections.
Fixing incomplete accounting systems
Many newly established FDI enterprises in Vietnam lack an experienced accounting team or a structured accounting system. A professional service will review, organize, and complete the books, ensuring accurate and transparent data.
Preparation for tax finalization
During tax finalization, FDI enterprises need clear and error-free accounting records to avoid legal risks. The bookkeeping clean-up service helps check and correct errors such as missing documents, incorrect or incomplete postings, ensuring readiness for inspections.
Supporting effective financial management
As the name suggests, the service thoroughly “cleans up” your accounting books. This means we organize and provide detailed, reliable information about your company’s financial situation. It enables FDI enterprises to make strategic decisions, optimize costs, and plan cash flow more effectively.
Saving time and resources
With a team of experienced experts, the bookkeeping clean-up service helps FDI enterprises save time and effort, allowing you to focus on core business activities instead of worrying about complex accounting issues.
Why should you choose KMC’s FDI corporate tax audit service?
A team of experts well-versed in Vietnamese regulations and international terminology
KMC has successfully advised and conducted tax audits for numerous foreign enterprises, particularly Japanese FDI companies. This is because KMC not only has a thorough understanding of Vietnamese tax regulations but is also familiar with IFRS and the parent company’s GAAP standards. As a result, we fully understand your issues and can provide the most suitable and effective solutions.
A commitment to transparency and long-term support, acting as an extension of your in-house team
Instead of merely delivering reports, KMC continuously partners with you by training your in-house accounting team and keeping you updated on the latest domestic tax regulations. This helps your business build trust with partners and investors, whereas other services typically stop at a “one-time review.”
Absolute confidentiality of information
We understand that all financial and tax information of a business is sensitive and requires careful protection. Therefore, KMC is committed to ensuring absolute confidentiality for all data you share.
For example, we store all your data on advanced encrypted systems to prevent unauthorized access. In addition, KMC complies with international information security standards and signs Non-Disclosure Agreements (NDAs) with clients, giving you complete peace of mind.
Workflow of KMC’s Accounting Book Clean-Up Service
Consultation and Scope Definition
After receiving your inquiry, our team of experts will meet with you directly. The purpose of this discussion is to identify your concerns and issues so that we can propose specific solutions and plan the areas that need to be reviewed. KMC ensures that everything is “tailor-made” to suit each business.
Document Collection
We require your accounting department to cooperate with the KMC team by providing complete tax files, financial statements, and related documents for the audit. With our extensive experience, this process is carried out quickly without disrupting your daily operations.
Initial Document Review
KMC’s experts will carefully examine your financial statements and tax declarations to ensure all documents are complete and the information is accurate. This is only the first “health check” step, which helps detect any irregularities early.
Tax Compliance Assessment
We stay up-to-date with the latest domestic tax regulations to evaluate whether your business is fully compliant. If improvements are needed, we immediately highlight all areas to reduce the risk of penalties and disputes.
Specific Transaction Review
This step focuses on confirming whether your business transactions qualify for tax-deductible expenses or tax refunds. Additionally, KMC cross-checks tax data with accounting records to catch even minor discrepancies, helping you save significantly.
Sample Transaction Audit
In the sample transaction audit, KMC randomly selects specific transactions from your tax and accounting records. These could be a purchase invoice, a payment transaction, or a major expense. We then thoroughly review related documents such as invoices, contracts, receipts, or bank statements.
The goal is to ensure that the transactions recorded in your accounting books and tax reports fully match actual business activities.
Error Identification and Reporting
If any errors are found in the tax records, we clearly list them and propose simple, effective adjustments in the report. KMC ensures the report is detailed and easy to understand, with specific explanations included. We also provide a recommendation letter on improving your tax information system and internal processes, giving you greater confidence for the future.
Frequently Asked Questions (FAQ) About KMC’s FDI Corporate Tax Audit Service
What is an FDI corporate tax audit service?
It is the process of reviewing and assessing the tax reports submitted by an FDI enterprise to ensure accuracy and legality. The goal is to ensure full compliance with Vietnamese tax regulations, minimize legal risks, and optimize tax reporting.
What does the FDI corporate tax audit service include?
Typically, it covers Corporate Income Tax (CIT), Value Added Tax (VAT), Personal Income Tax (PIT), and Foreign Contractor Tax (FCT).
Is it mandatory for FDI enterprises to use this audit service?
No, it is not mandatory, but it is highly recommended. This service helps FDI businesses minimize legal risks, especially in the context of frequently changing tax regulations in Vietnam.
Don’t let failure to keep up with domestic tax regulations result in significant penalties. KMC’s FDI corporate tax audit service can help you avoid such issues and enhance your credibility with partners. If you need our assistance, please contact KMC at info@kmc.vn for immediate consultation.
