A tax report is an indispensable part of business operations, ensuring compliance with legal provisions regarding tax obligations. Properly preparing tax reports not only helps businesses avoid legal risks but also supports efficient financial management. So, what does a tax report include? Let’s explore the types of taxes that need to be filed and the process for submitting tax returns in accordance with KMC !

What Does a Tax Report Include?

A tax report is a compilation of the tax obligations that a business must comply with under the law. The report typically includes key taxes such as Value Added Tax (VAT), Personal Income Tax (PIT), Corporate Income Tax (CIT), environmental tax, special consumption tax, and other taxes depending on the industry sector. To avoid legal risks and penalties, businesses must file their tax returns fully, accurately, and on time, in accordance with the regulations of the tax authorities.

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Tax Report Submission Deadlines

According to Article 44 of the Law on Tax Administration No. 38/2019/QH14, businesses and individuals engaged in business activities must comply with the following tax filing deadlines:

For monthly/quarterly tax declarations:

  • If filing monthly, the deadline for submitting the tax declaration is the 20th of the following month.
  • If filing quarterly, the report must be submitted before the 30th of the first month of the subsequent quarter.

For annual tax filings:

  • The final tax settlement must be submitted no later than the last day of the third month after the end of the fiscal year or calendar year.
  • The annual tax declaration must be filed before the last day of the first month of the fiscal year or calendar year.
  • For personal income tax settlement by self-employed individuals, the deadline for submission is the last day of the fourth month after the fiscal year.

For lump-sum tax declarations by household businesses or self-employed individuals:

  • The tax declaration must be submitted before December 15 of the preceding year.
  • In the case of newly established businesses, the tax declaration must be submitted within 10 days from the commencement of operations.

For taxes arising from specific transactions: The filing deadline is the 10th day from the date the tax obligation arises.

In the event of business closure, contract termination, or organizational restructuring: The tax report must be completed within 45 days from the occurrence of the event.

Types of Tax Reports to Be Filed Monthly/Quarterly

Value Added Tax (VAT)

When preparing a tax report, businesses must determine the appropriate VAT declaration method based on their business operations. There are two VAT declaration methods: periodic filing (monthly/quarterly) and tax calculation method (credit method/direct method).

VAT Declaration by Month/Quarter:

  • Newly established businesses must file VAT quarterly.
  • Existing businesses are classified based on their revenue from the previous year:
    • If revenue is below VND 50 billion: file VAT quarterly.
    • If revenue exceeds VND 50 billion: file VAT monthly.

VAT Declaration by Credit or Direct Method:

  • Credit Method: Applied to businesses with revenue over VND 1 billion or those voluntarily opting for it.
  • Direct Method: Applied to businesses with revenue under VND 1 billion.

Choosing the correct VAT declaration method ensures that businesses comply with legal provisions and optimize their tax obligations.

Personal Income Tax (PIT)

Personal Income Tax (PIT) filing within businesses follows the same declaration frequency as VAT. If a business files VAT quarterly, PIT will also be filed quarterly.

However, if the total PIT payable by a business exceeds VND 50 million per month, the PIT must be filed monthly. Conversely, if the PIT payable is below VND 50 million per month, the business will file PIT quarterly according to tax authority regulations.

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Corporate Income Tax (CIT)

When preparing the Corporate Income Tax (CIT) report, businesses need to gather all relevant documents for the year to ensure accuracy and legal compliance. CIT filing is typically done quarterly. If CIT is payable, the business is responsible for settling the tax obligation by the 30th of the following quarter.

Invoice Usage Report

Compiling and declaring the usage of invoices is an important part of a business’s tax reporting. According to current regulations, most businesses are required to submit an invoice usage report on a quarterly basis.

Key points to note when preparing this report:

  • Entities required to file the report: All operating businesses, including newly established ones, are required to submit the invoice usage report.
  • In case invoices are issued: If the business has issued invoices during the reporting period, it must declare the relevant information in the report to ensure compliance with regulations.
  • Businesses that have not issued invoices: New businesses that have not yet notified the issuance of invoices are not required to submit an invoice usage report during this period.

Important Considerations When Preparing Tax Reports

To ensure that tax reports are prepared in compliance with regulations and to avoid errors, accountants should pay attention to the following important points:

  • Proper document retention: Invoices, receipts, and documents related to revenue and expenses must be collected and securely stored to ensure transparency and completeness in the tax reports.
  • Organizing documents systematically: Output invoices should be arranged in a clear sequence to facilitate easy verification and reconciliation when necessary.
  • Accurate classification: When inputting data into accounting software, it is essential to correctly distinguish between categories such as raw materials, goods, tools and equipment, and fixed assets.
  • Backup of invoices: To mitigate the risk of losing invoices, accountants should keep backup copies to ensure they can be cross-checked if needed.
  • Carefully verify the data: Before finalizing the tax report, all data should be thoroughly reviewed to avoid errors that could impact tax settlement.
  • Timely resolution of arising issues: Issues related to the balance sheet should be reviewed and adjusted promptly to ensure accuracy.
  • Compare corporate income tax data: When filing the tax return, the actual corporate income tax paid should be compared with the amount already remitted to detect discrepancies and make necessary adjustments.

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Following these points will not only help businesses comply with tax regulations but also reduce risks during the tax settlement process.

With the information provided above, we hope you now have a clear understanding of what tax reports include and the types of taxes that must be filed according to current regulations. Preparing accurate tax reports not only ensures legal compliance but also minimizes financial risks. If you need in-depth assistance with tax filing and reporting, KMC’s tax consultancy services can help you optimize the process and ensure full compliance with current regulations. Contact us now for detailed advice!

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