Vietnam-based representative office of a foreign investor means a dependent unit, a lawful office in Vietnam, allowed to recruit staff to manage and promote sale contracts with local business partners, research and develop products, seeking opportunities for the purchase or sale of goods and provision of services. A foreign representative office is a simple form of investment in Vietnam to enhance business from overseas, with multiple advantages while fewer risks regarding the required business compliance procedures such as investment capital, tax, accounting, and auditing. And it is easy to be extended or terminated or dissolved. The expatriate employees who work for representative office can obtain work permit and two years multiple visa (temporary residence card) for themselves and their family in Vietnam.
Many foreign representative offices in Vietnam have been paying for serious penalties, being delayed for office license extension, and special inspection from the tax department… due to violations or improper annual operation reports.
THE ANNUAL OPERATION REPORT 2021 | LEGAL REQUIREMENTS:
- The report shall be completed and submitted by January 30th of 2022
- Labor use and employment relations
- Operations of the representative office
- Notes on special activities and situations.
WHAT ARE THE MAIN CONTENTS OF THE ANNUAL OPERATION REPORT?
1. Labor use and employment relations:
- Reports on local employees.
- Reports on foreign employees.
- Total incomes.
- Personal incomes tax.
- Newly join and terminate labor relations.
2. Operations of the representative office:
- Commercial activities
- Manage and promote local business contracts,
- Market research
- Develop products,
- Seeking opportunities for the purchase or sale of goods and provision of services…
- Other activities
YOU SHALL AVOID AND PREVENT THE RISKS THAT MAY HAPPEN
- Failure to submit the operation reports on time may lead to a penalty amount of up to 40 million VND.
- In case of violation information, there will be a special inspection on many other required compliance procedures from local competent state agencies such as Tax Department, Labor Department, Licensing Department…
- Last but not least, the contents in the report may conflict with the allowed activities, especially may show violations on foreign employees, labor declaration, personal income tax declaration and settlement.. and also impact to your good standing, your office license renewal and other procedures in following years.
HOW DOES VIVA SUPPORT YOU IN MANAGING THE REPORTS?
- Review the general activities.
- Review business records and required compliance reports on labor use and employment relations.
- Review business records and required compliance reports on personal income tax.
- Review business records and required compliance reports for the chief and expats.
- Identify the risks and solutions.
- Prepare proper and optimal reports, prevent any violation in advance, keep your good standing, enhance more incentives for licensing renewal and other required compliances during office operation.
- Representative on behalf to explain and settle for any query or requirement from the related competent state agencies.
VIVA has been advising and supporting thousands of foreign representative offices, keeping our clients be fully complied with local laws and regulations, in proper and optimal manners, creating business advantages and keeping their good standing in Vietnam.
ABOUT VIVA BUSINESS CONSULTING
VIVA is the local expertise for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… for the required business compliance procedures by local laws and regulations since 2006.
Thanks for consistent of practice expertise in Business laws - Employment relations – Tax and accounting – Corporate finance – Corporate services, VIVA has been successfully providing service for thousands of leading companies in such industries: Garment, energy, pharma, advertising, agricultural…
VIVA keeps its signature by offering one-stop business platform with regard to market entry and the mandatory business compliances. We ensure for our client’s good standing, in lawful and optimal manners whenever they are working and doing business in Vietnam.
- Annual operation reports for foreign representative offices
- How to manage the annual operation reports
- Manage the annual operation reports 2022
- Representative office in Vietnam: Business records management
- Representative office in Vietnam: Manage tax declaration and settlement
- Representative office in Vietnam: How to manage the annual operation reports
- Representative office in Vietnam: Risk management on operation
- Representative office in Vietnam: Cashbook and lawful invoices for tax inspection
- Representative office in Vietnam: Annual budget and running cost
- Representative office in Vietnam: Business compliance advisory services