04 Sep Representative in Vietnam: Cashbook and Petty cash for tax inspection
According to the Laws on VAT invoices: the seller should issue a lawful invoice for any service or goods sold and the buyer’s responsibility to collect and keep the invoices. Since 2012, together with the Anti money laundering regulations, the tax inspectors have been conducting more and more inspection on foreign representative offices.
Base on every 3 to 5 years of office operating, the Tax Department will require your office to provide cashbooks – petty cash, bank statements, all related vouches – lawful invoices as well as employees profile, payrolls for the Tax inspection:
- How much the fund from headquarters over the years of operation.
- How much the paid expenditures.
- How much the paid salary and insurances
- Are the paid expenditures in line with allowed activities of the office? Are the paid expenditures proved by the lawful invoices? If not, there will be tax arrears and fines
- Is the paid salary has lawful labor records? If not, there will be tax arrears and fines.
Actually, many representative offices have been paying for disaster lessons during the inspections.
TO AVOID SERIOULY TAX ARREARS AND FINES WHICH MAY ALSO IMPACT TO YOUR GOOD STANDING IN VIETNAM, YOU SHOULD:
- #01 Review the requied business records and compliance reports in advance.
- #02 Verify for any of existing risks.
- #03 Complete the required records and reports to manage the final payable amount in the optimal – reasonable – lawful manner.
VIVA create exclusive service packages in a comprehensive tailor-made method, ensuring each client always fully and optimally comply with local laws and regulations, READY FOR ANY INSPECTION OR REQUIREMENT in Vietnam. Please find our services: “Manage the cashbook of Representative Office” for your Office in Vietnam:
Business records management, listing the required business records in form of standard folders
Compliance reports and tax management
- Prepare standard cashbook.
- Review office’s activities transaction in line with local laws and regulations, manage the relations between the transactions legally and optimally.
- Calculate optimal tax payable amounts, remove the existing risks and prevention of further risks may happen, Complete required documents for every transaction.
- Prepare Personal Income Tax reports, Tax settlement, Tax obligation certificate, Complete dossiers for the Tax exemption and reduction, Prepare internal reports for the Chief and the Head office.
Payroll and labor relations management
- Calculate salaries, allowances, bonuses, incentive and other payments.
- Calculate salary for new and resigned employees.
- Implement changes/adjustments (if any).
- Make salary payment to employees, distribute online pay slips and paper slip for employees.
- Respond to employees’ questions regarding their salaries via email/phone/directly.
- Manage the: Relations between employees with company in signing and implementation of labor contracts, Relations between company with Insurances and Labor agencies in reporting and payments, Relations between company with Tax Department in reporting, payments and annual settlement.
- Apply, renew, amendment, supplement, dissolution office.
- Visas, work permits and temporary residence cards for expats.
- Change the chief of representative office.
- Annual operation reports.
- And everything about representative office:
- Establishment of representative office.
- Annually standard cost of maintaining a representative office in Vietnam
- Basic rights and obligations of representative offices in Vietnam
- Compliance procedures during the operation period
- Rights and obligations of the chief of representative office
- Managing compliance procedures for expats who are working in Vietnam
- Closuring representative office risks management
- Differences between a representative office and foreign invested company
- How to transform from a representative office to a subsidiary.
- Draft and review every business document, contract, memorandum, agreement, decision… in English and Vietnamese.
- Legalize papers from oversea. Notarization – duly copy documents.
- Translate into English, French, Japanese, and Korean…
- Business form.
- Business laws and regulations in bilingual languages English – Vietnamese and apply in practice local cases.
Thank you for your time, we hope you can find something useful and would like to take care your business in Vietnam as benefit as our other thousand of clients since 2006
VIVA has been an in-depth consultant on business compliance procedures in Vietnam since 2006, based on our professional - integrated background in Business laws - Accounting and corporate finance - Tax management - Labor relation and payroll – Business administration procedures. VIVA offers exclusive services in an integrated tailor-made, consist of 5 specialized-expertise platforms and the inheritance experience up to hundreds of years for every job. Our extensive expertise and management system that facilitates us to connect local resources and be ready to deliver exclusive solutions that exceed all standard limits and satisfy all expectations of our clients.
VIVA has been an in-depth consultant on business compliance procedures in Vietnam since 2006, based on our professional - integrated background in Business laws - Accounting and corporate finance - Tax management - Labor relation and payroll – Business administration procedures. VIVA offers exclusive services in an integrated tailor-made, consist of 5 specialized-expertise platforms and the inheritance experience up to hundreds of years for every job.
Our extensive expertise and management system that facilitates us to connect local resources and be ready to deliver exclusive solutions that exceed all standard limits and satisfy all expectations of our clients.
Last Updated on March 19, 2021