20 Sep KEEPING BUSINESS RECORDS IN VIETNAM
Keeping your good standing and benefits your business
Every business must keep the business records for as long as required by local laws. It is important to do so as the local competent state agencies may request to see past records if there is any issue regarding your tax, compulsory insurances. In Vietnam, the minimum period for which you must keep records is six years for VAT, CIT or five years from the latest date for submitting final tax settlement reports.
WHY YOU SHOULD KEEP GOOD BUSINESS RECORDS?
- Helps to maximise all the expenses you claim and reduce your tax obligations.
- Will help out, should you be investigated by local competent state agencies.
- Makes it quicker to prepare your accounts at year-end.
- Gives you the information you need to run your business and help it grow.
- Helps you plan for tax payments.
- Helps identify the strengths and weaknesses in your business.
- Helps manage changes and improvements in your business.
- Will help you plan to meet financial commitments such paying creditors or employees.
- Makes it easier to get a loan or sell your business.
- Avoids over/under tax payments.
- Helps identify if your business is liable for paying vat to the tax department.
- Makes it easier to distribute profits to shareholders as dividends or for partnerships where both profits and losses have to be shared.
Business records can be maintained manually, computerised on a spreadsheet or kept online. Make sure the system you use is easy to operate, and complements your business. Alternatively keep hold of your receipts, bank statements and invoices and outsource the work.
Keeping business records can be daunting at first. The key is to break things down into a series of straightforward, manageable tasks. Then you can access and update them on a regular basis, rather than letting the paperwork pile up.
Every business must keep records for as long as required by the law. It is important to do so as the local competent state agencies may request to see past records if there is any issue regarding your tax, compulsory insurances. In Vietnam, the minimum period for which you must keep records is six years for VAT, CIT or five years from the latest date for submitting final tax settlement reports.
Make sure you keep all documents that contain details of payments, receipts, credit purchases and sales, assets and liabilities. If you’re not able to obtain a receipt for an expense make a note then record the details before transferring to your local accountant who may help to record as lawful expenses.
HOW VIVA CAN HELP?
- VIVA creates a business records system in form of standard folders.
- VIVA knows how to transfer and guides you to collect and store the daily documents.
- Based on these documents, the parties coordinate to prepare and submit compliance reports to tax authorities, insurance agencies, banks and partners…
- You collect and store the compliance reports submitted to government agencies.
- VIVA coordinates in reviewing – evaluating – perfecting each type of document, and scans into e-files on the monthly, quarterly and yearly basis to save on computers.