Foreign Direct Investment (FDI) companies in Vietnam face a complex tax landscape, balancing local regulations with global operations. Our Tax Compliance Service is tailored to help FDI companies meet Vietnam’s tax requirements, avoid penalties, and optimize their tax obligations in this dynamic market.
Vietnam’s Tax Compliance Deadline Calendar
| Tax Type | Obligation / Filing Type | General Deadline(s) | Frequency / Key Notes |
|---|---|---|---|
| Value Added Tax (VAT) | Monthly Declaration & Payment | By the 20th of the following month. | Monthly (typically for businesses with annual revenue > VND 50 billion). |
| Quarterly Declaration & Payment | By the last day of the first month of the following quarter (e.g., Apr 30 for Q1). | Quarterly (typically for businesses with annual revenue ≤ VND 50 billion). | |
| Note: A new VAT Law is expected to be effective from July 1, 2025. Potential 2025 payment extensions were issued under Decree 82/2025/ND-CP for eligible businesses – verify applicability. | |||
| Corporate Income Tax (CIT) | Quarterly Provisional Payments | Last day of the first month following the end of the quarter (e.g., Apr 30 for Q1, Jul 31 for Q2). | Quarterly. Provisional payments must be at least 80% of the final annual liability to avoid interest. |
| Annual CIT Finalization (Return & Payment) | Last day of the 3rd month after the end of the calendar or fiscal year (e.g., March 31 for Dec 31 year-end). | Annually. | |
| Personal Income Tax (PIT) | Monthly/Quarterly Declaration & Payment (by Employer) | Aligns with the employer’s VAT declaration deadline (monthly by 20th or quarterly by last day of 1st month of next qtr). | Monthly or Quarterly (by Employer). |
| Annual PIT Finalization (by Employer for authorized employees) | Last day of the 3rd month after the end of the calendar year (e.g., March 31). | Annually (by Employer). | |
| Annual PIT Finalization (by Individuals, if self-finalizing) | Last day of the 4th month after the end of the calendar year (e.g., April 30). | Annually (by Individual, if applicable). Deadline may shift to next working day if it falls on a holiday/weekend. | |
| Business License Tax (BLT) | Annual Payment | By January 30th. | Annually. |
| Initial Declaration (for new businesses) | By January 30th of the year following the year of business commencement. | One-off upon establishment. | |
| Supplementary Declaration (if capital changes affect fee) | By January 30th of the year following the year the change occurred. | As needed. Fee amount depends on registered capital. Pro-rata for the first year based on establishment date. | |
| Foreign Contractor Tax (FCT) | Declaration & Payment (by Vietnamese Party withholding tax) | Per Occurrence: Typically no later than the 10th day from the date of payment to the foreign contractor. | Per payment/occurrence. The Vietnamese party making the payment to the foreign contractor is generally responsible for withholding, declaring, and paying FCT. |
| Monthly (if chosen for multiple payments in a month) | No later than the 20th of the following month. | Monthly option available if multiple payments are made to the same foreign contractor within a month. | |
| FCT declaration (if foreign contractor declares directly – Deduction/Hybrid Method) | Aligns with VAT/CIT declaration deadlines (Monthly by 20th or Quarterly by last day of 1st month of next qtr). | Monthly/Quarterly. This applies if the foreign contractor adopts the Vietnamese Accounting System (VAS) or uses the hybrid method and directly registers/declares certain FCT components. | |
Common Tax Compliance Pitfalls for FDI Companies
FDI companies often encounter errors that jeopardize compliance
- Transfer Pricing Errors: Failing to submit annual documentation or misapplying the arm’s length principle can lead to adjustments and penalties.
- Profit Repatriation Issues: Not using a DICA or missing documentation (e.g., audited financial statements) can delay repatriation.
- VAT Missteps: Errors in VAT filings, like missing export exemptions, can result in overpayments or fines.
- FCT Oversights: Incorrectly withholding FCT on payments to foreign contractors can lead to unexpected liabilities.
- Currency Violations: Transactions must be in Vietnamese Dong (VND), and failing to use a DICA for foreign currency flows can result in fines.
Our Tax Compliance Solution
Our Tax Compliance Service ensures FDI companies in Vietnam stay compliant while minimizing risks. Here’s how we help
Routine Corporate Income Tax (“CIT”) service
Quarterly & Year-End Corporate Income Tax (CIT) Computations
Our Process Includes:
- Providing a clear checklist for all documents needed for your CIT computations.
- Discussing with your team to understand your business operations, accounting methods, and past tax information.
- Reviewing your financial statements and accounting data with your accountant to identify necessary adjustments for Vietnamese Accounting Standards (VAS) compliance.
- Conducting a risk-based review of your accounting documents (invoices, contracts, etc.) to identify significant tax exposures impacting your CIT.
- Proposing and quantifying necessary CIT adjustments for your consideration and decision-making.
- Answering any questions you have about the CIT computations.
Deliverable(s):
- You will receive a set of working papers that include:
- A summary of your quantified CIT payable (formatted like a CIT return for easy reference).
- Detailed explanations of the computations.
- A list of any tax adjustments made.
- Suggestions for mitigating tax risks and improving CIT compliance.
CIT Return Preparation, Submission & Settlement Advisory
(Following approval of CIT computations)
- Prepare annual CIT returns for your review and approval.
- Submit approved CIT returns to tax authorities using your tax token.
- Provide CIT return submission acknowledgements for your records.
- Issue detailed CIT payment advice (including due dates, tax office accounts, descriptions) for timely settlement.
- Assist in organizing CIT payment confirmations for your records and future reconciliation.
- Clarify any questions on CIT computations, returns, or settlements.
- Liaise with tax authorities on your behalf regarding any CIT inquiries.
- Deliver email updates on CIT return submission and settlement status
Routine Value Added Tax ("VAT”) services
Quarterly Value Added Tax (VAT) Assessment & Computations
Our Process Includes:
- Providing a clear checklist for all documents needed for your VAT computations.
- Discussing with your team to understand your business operations, accounting methods, and past VAT information.
- Conducting a risk-based review of your accounting and supporting documents (invoices, contracts, etc.) to identify significant VAT exposures.
- Proposing and quantifying any necessary VAT adjustments for your consideration and decision-making.
- Answering any questions you have about the VAT computations.
Deliverable(s): You will receive a set of working papers that include:
- A summary of your quantified VAT payable (formatted like a VAT return for easy reference).
Detailed explanations of the computations.
A list of any VAT adjustments made.
Suggestions for mitigating VAT risks and enhancing VAT compliance.
Quarterly VAT Return Submission & Settlement Advisory
(Following your approval of final VAT computations)
Our Process Includes:
- Preparing your quarterly VAT return(s) for your review and final approval.
- Submitting the approved quarterly VAT return(s) to the tax authority using your company’s tax token.
- Sending you the official acknowledgement of VAT return submission for your records.
- Providing detailed VAT payment advice (including due dates, tax office accounts, payment descriptions) to ensure timely settlement.
- Assisting you in organizing VAT payment vouchers or online confirmations for your records and future reconciliation with tax authorities.
- Answering any questions you may have regarding VAT computations, returns, or the settlement process.
- Liaising with the tax authorities on your behalf if they have questions about your VAT matters.
Deliverable(s):
- You will receive email(s) confirming the completion of VAT return submissions and when VAT settlement advice has been issued.