Tax management for Representative offices in Vietnam

Representative offices in Vietnam: Manage tax declaration & settlement

25 Sep
TAX MANAGEMENT
FOREIGN REPRESENTATIVE OFFICES IN VIETNAM

Posted at 01:48h in Representative Office by Trâm

(Last Updated On: December 22, 2021)

Tax management for representative offices

According to the laws and regulations on tax management, anti-money laundering, foreign currency… since 2012, a representative office shall provide the cashbook, petty cash, bank statements of accounts, along with lawful invoices, employment records… to prove for its paid expenditures.

There will be tax final settlement or inspection on a representative office after every 3 – 5 years of its operation or in case of dissolution…

THE COMMON RISKS THAT YOU SHALL KEEP IN MINDS:

Paid expenditures without lawful invoices.
Paid for the not allowed activities of an office.
Paid for salary and allowances without lawful employee records.
Receive incomes from resources other than the parent company.
Using personal account for receiving / paying for the activities of the office.
Improper cashbook and petty cash.
Un-reasonable taxable incomes for the chief, expats and management position.
Violation in calculation of personal income tax, compulsory insurances…
Violation in preparing and summiting quarterly, annually tax reports.
Violation and conflict data in the annual operation reports.

SOLUTIONS THAT YOU CAN AVOID AND PREVENT THE RISKS IN ADVANCE:

Manage the required compliance tasks in form of a checklist.
Manage required business records that prove for the done compliance tasks.
Annual internal audit for the required business records and compliance procedures.
Do tax planning for your office and management positions.
Manage any tax settlement or inspection in professional manner.

WHO WE ARE

VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006.
The insights and consistent backgrounds in Business Laws - Accounting and Corporate Finance - Tax Management – Labor Relations and Payroll - Secretarial services help us build trust and confidence in the entrepreneurs’ community.
We have been successfully providing service for thousands of leading companies from Hong Kong, Japan, US, EU, Singapore, India, China, Korea…. in forms of FDI companies, Foreign representative offices, Foreigner working in Vietnam, Vietnamese SMEs, Chief Operation Officers.
VIVA's logo is our Brand name, our signature, it states our faith - independence - transparence - and loyalty for client's interest. The signature is commitment and honor on our outstanding expertise and professionalism. It is the symbol of good standing for our clients whenever they are doing business with customers, partners, the local competent state agencies...

Risk management on representative office operation in Vietnam

Important notes on foreign representative office operation in Vietnam

New provisions on bank accounts of foreign representative office in Vietnam

Cashbook and petty cash for tax inspection of representative office in Vietnam

Representative office vs subsidiary vs branch? How to transform business models in Vietnam

Table of content Show