25 Sep TAX MANAGEMENT FOREIGN REPRESENTATIVE OFFICES IN VIETNAM
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
Read more:
Annual operation reports for foreign representative offices
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