What is an annual tax report? Annual tax settlement report file

Regulations on annual tax reporting: What does the year-end tax settlement report include? Deadline for submitting tax reports? Penalty for late submission of tax declarations?

What is an annual tax report?

Annual tax reporting is a regular and mandatory activity of businesses every year. This work focuses mainly on recording and summarizing information on input and output value-added tax (VAT) invoices, to ensure accuracy and transparency in calculating the amount of tax payable to the tax authority. 

What does the year-end tax report include?

The annual tax reporting dossier includes 2 types:

• Tax settlement documents: corporate income tax settlement declaration, personal income tax settlement declaration, production activity results…;
• Financial reporting documents: balance sheet, financial statement notes, income statement, cash flow statement…

Below are details of the documents required in the year-end tax reporting file:

1. Tax settlement records

Includes the following profile items:

➨ Legal documents: 

• Company charter; 
• Business registration certificate; 
• Investment certificate (if any); 
• ID card/passport of the company’s legal representative;
• Company’s financial regulations on salary and bonus.

➨ Tax declaration documents:

• Financial statements; 
• Corporate income tax settlement; 
• Personal income tax settlement;
• Value added tax declaration;
• Temporary tax declaration, contractor tax;
• Personal income tax (PIT) deduction declaration.

➨ Salary, bonus, annual leave records: 

• Employee profile; 
• Labor contract; 
• Decisions on appointment and salary increase; 
• Timesheet; 
• Payroll; 
• Register for family deduction; 
• Commitment 02/CK-TNCN (if any); 
• Authorization letter for personal income tax settlement; 
• Personal tax code registration form for employees; 
• Insurance payment receipt.

➨ Debt profile: 

• Output and input economic contracts; 
• Economic contract appendix; 
• Debt reconciliation record.

➨ Loan application: 

• Loan Agreement;
• Accommodation bill;
• Documents for payment of principal and interest.

➨ Accounting documents: 

• Receipt and payment voucher; 
• Bank statement;
• Warehouse receipt, warehouse delivery note; 
• All purchase and sales invoices; 
• Purchase list without invoice 01/TNDN;
• Customs declaration, payment paper to the state budget.

➨ Accounting records: 

• Fixed asset depreciation table;
• Allocation table of tools, equipment and prepaid expenses;
• Bill of materials;
• Project settlement estimate table;
• Detailed table of import – export – inventory of goods;
• Loan detail book;
• General ledger and details of receivables and payables;
• General journal, cash book, bank deposit book, purchase journal, sales journal, general ledger of arising accounts, detailed account book.

2. Financial reporting documents

Details include:

• Tax settlement declarations: corporate income tax settlement declaration, personal income tax settlement declaration;
• Financial statements: balance sheet, income statement, cash flow statement, notes to financial statements.

Regulations on tax reporting deadline

Pursuant to the current Law on Tax Administration and related documents, the deadline for submitting tax reports is prescribed as follows:

(*): In case the company splits, merges, consolidates, changes ownership form, dissolves or ceases operations, the deadline for submitting the report is the 45th day from the date of the decision.

Penalty for late submission of tax return

The penalty for late submission of tax declaration is prescribed as follows:

Penalty level	Late submission of tax return
Warning penalty	Late submission of tax declaration from 1 to 5 days, with mitigating circumstances
From 2,000,000 – 5,000,000 VND	Late tax filing from 1 to 30 days
From 5,000,000 – 8,000,000 VND	Late tax filing from 31 to 60 days
From 8,000,000 – 15,000,000 VND	Late tax filing from 61 to 90 days Late submission or failure to submit tax declaration for 91 days or more but no tax payable arises
From 15,000,000 – 25,000,000 VND	Late tax filing over 90 days

To overcome the consequences of the above behavior, businesses are forced to:

• Submit tax return and appendices attached to tax return;
• Pay the full amount of late payment to the state budget.

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• Internal accounting service – Total fee from 1,000,000 VND/service;
• Full accounting service – From 500,000 VND/month;
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Frequently asked questions about annual tax settlement reports

1. Does a business that does not generate revenue have to submit a VAT declaration?

Enterprises that do not generate revenue must still submit VAT declarations within the prescribed time limit.

2. If a business does not pay income to employees in a month/quarter, does it have to submit a personal income tax deduction declaration?

During the month/quarter, if the enterprise does not pay income or if it pays income but does not incur personal income tax deduction, it does not have to submit a personal income tax deduction declaration.