Legal regulations on preparing tax reporting dossiers for enterprises

Preparing tax reporting dossiers is an essential obligation of every enterprise in fulfilling its financial responsibilities to the State. These dossiers ensure transparency and accuracy in tax administration. Below, NPLaw invites readers to explore the legal aspects related to the preparation of tax reporting dossiers for enterprises.

Preparing tax reporting dossiers is an essential obligation of every enterprise in fulfilling its financial responsibilities to the State. These dossiers ensure transparency and accuracy in tax administration. Below, NPLaw invites readers to explore the legal aspects related to the preparation of tax reporting dossiers for enterprises.

I. Understanding the preparation of tax reporting dossiers for enterprises

Preparing tax reporting dossiers is a crucial legal obligation to ensure enterprises properly fulfill their tax duties to the State. Enterprises must declare taxes accurately, honestly, and fully, and submit their dossiers within the prescribed deadlines set by tax authorities. The preparation of these dossiers enables government agencies to effectively monitor, control, and collect taxes while facilitating enterprises in performing their tax rights and obligations.

If an enterprise fails to prepare or improperly prepares tax reporting dossiers, it may be subject to administrative sanctions, adversely affecting its business operations and reputation. Therefore, mastering the legal regulations and strictly following the procedures for preparing tax reporting dossiers is indispensable for every enterprise.

II. Legal regulations on preparing tax reporting dossiers for enterprises

1. Enterprises’ obligations in preparing tax reporting dossiers

Pursuant to Article 42 of the Law on Tax Administration 2019, the obligations of enterprises in preparing tax reporting dossiers are as follows:

Declare taxes accurately, truthfully, and fully according to forms prescribed by the Ministry of Finance, and submit all relevant supporting documents;
Self-calculate the payable tax amount, except where tax authorities calculate it on behalf of the taxpayer;
Declare taxes with the tax authority where the enterprise’s head office is located; if it has dependent units in other provinces, it must allocate taxes according to local jurisdictions;
Foreign suppliers without a permanent establishment in Vietnam but conducting business activities in Vietnam must register, declare, and pay taxes in accordance with the law;
For related-party transactions, enterprises must declare and determine prices based on market principles and avoid tax evasion;
The advance pricing agreement (APA) mechanism may be applied if approved by the Ministry of Finance.

2. Time limits for preparing tax reporting dossiers

According to Article 44 of the Law on Tax Administration 2019, the deadlines for preparing and submitting tax reporting dossiers are as follows:

Monthly tax declaration: No later than the 20th day of the following month.
Quarterly tax declaration: No later than the last day of the first month of the following quarter.
Annual tax declaration:
+ Annual return: No later than the last day of the first month of the fiscal/calendar year.
+ Annual finalization: No later than the last day of the third month after the end of the fiscal/calendar year.
Personal income tax self-finalization: No later than the last day of the fourth month after the end of the year.
Presumptive tax (household business): No later than December 15 of the preceding year or within 10 days from the start of business operations for newly established entities.
Tax per occurrence: No later than 10 days from the date the tax obligation arises.
Business termination, contract termination, or reorganization: No later than 45 days from the date of the event.
Import and export goods: As prescribed by the Law on Customs.
In case of electronic system failure: Submission may be delayed by one day after the system resumes operation.

2. Procedures for preparing tax reporting dossiers

Pursuant to Articles 43–45 of the Law on Tax Administration 2019, the process for preparing tax reporting dossiers consists of the following steps:

Step 1: Preparing the tax declaration dossier

Depending on the type of tax and the circumstances, enterprises must prepare appropriate dossiers:

Monthly declaration: Monthly tax return.
Quarterly declaration: Quarterly tax return.
Annual declaration: Annual tax return, relevant documents determining payable tax, annual tax finalization return, annual financial statements, transfer pricing declaration (if any), and related supporting documents.
Per occurrence: Tax return, invoices, contracts, and supporting documents.
Import/export goods: Customs dossier as prescribed under the Law on Customs.
In cases of termination, restructuring, or conversion: Finalization tax return, financial statements as of the date of termination/conversion, and related documents.
Country-by-country profit report: For ultimate parent companies in Vietnam or those with a foreign parent company required to submit such reports under international regulations.

Step 2: Determining the filing deadlines

The applicable deadlines correspond to those outlined in Section 2 above.

Step 3: Submitting the tax declaration dossier

Place of submission: To the tax authority directly managing the enterprise.
If submitted through a one-stop mechanism: In accordance with the rules of such a mechanism.
Import/export goods: As prescribed by the Law on Customs.
Special cases: The Government provides specific guidance for enterprises with multiple business activities, multi-location operations, revenues from land or natural resources, personal income tax finalization, and those filing electronically.

III. Questions on preparing tax reporting dossiers for enterprises

1. What should enterprises note when preparing tax reporting dossiers?

Key considerations to ensure compliance include:

Accuracy and honesty: All information in tax declarations must be accurate, truthful, and complete per the forms prescribed by the Ministry of Finance. Any false or omitted information may lead to sanctions or tax audits.
Adequate supporting documentation: Tax dossiers must include relevant invoices, contracts, financial statements, and other required evidence to substantiate the accuracy and legality of reported data.
Correct type and period of declaration: Depending on the type of tax (monthly, quarterly, annual, or per occurrence), enterprises must file correctly and on time to avoid penalties for late or incorrect filing.
Proper submission authority: Enterprises must submit their tax dossiers to the competent tax authority managing their head office or via the prescribed one-stop mechanism to ensure proper receipt and processing.

2. What are the legal consequences for failure to prepare tax reporting dossiers?

Failure to prepare or properly submit tax reporting dossiers may result in:

Administrative penalties: As provided under Articles 12 and 13 of Decree No. 125/2020/NĐ-CP on administrative penalties for tax-related violations.
Payment of additional taxes and late-payment interest: Enterprises must pay any underpaid taxes along with late-payment interest.
Tax inspection or audit: Failure to file or inaccurate filing may trigger tax inspections or audits, potentially harming the enterprise’s credibility and business operations.

3. How are enterprises sanctioned for incorrect tax reporting?

Under Article 142 of the Law on Tax Administration 2019:

If incorrect declarations lead to underpayment of taxes or improper tax exemptions, reductions, or refunds, the enterprise must file amended returns and pay the full shortfall plus late-payment interest.
Violations discovered by tax authorities will result in administrative sanctions based on the timing and corrective actions taken:
+ Enterprises self-correcting after notification of inspection will be fined;
+ Enterprises voluntarily correcting errors before detection by tax authorities will not be fined.
For import/export goods, if supplementary declarations are made within the statutory period, only the tax shortfall and late-payment interest must be paid, without additional penalties.

IV. Legal consultancy services on preparing tax reporting dossiers for enterprises

The foregoing article by NPLaw provides an overview of the legal framework governing the preparation of tax reporting dossiers for enterprises. With an experienced team of lawyers and legal experts, NPLaw is always ready to advise and assist clients in matters related to tax reporting obligations. Should you require further legal assistance, please contact NPLaw for timely support.