The following article focuses on analyzing the current legal framework governing tax advisory services, clarifying the rights and obligations of the parties involved, as well as addressing common concerns arising during implementation.

I. Current situation regarding tax advisory services

Increasing demand for tax advisory services

  • Vietnamese enterprises, especially small and medium-sized enterprises, often have difficulties in understanding and applying complex and frequently amended tax regulations.
  • Common taxes such as Value-Added Tax (VAT), Corporate Income Tax (CIT), and Personal Income Tax (PIT), along with specific taxes (special consumption tax, foreign contractor tax, import and export duties, etc.), make tax declaration and finalization complicated.
  • It has led to a rising demand for tax advisory services to ensure accuracy, mitigate risks, and optimize tax obligations.

The increasingly significant role of tax advisory services

  • Assisting enterprises in reviewing dossiers, preparing declarations, finalizing, and adjusting taxes in compliance with the law.
  • Updating and clarifying new tax policies, thereby reducing administrative violations.
  • Supporting enterprises in developing transparent financial–tax plans, building credibility with partners and investors.

The reality of tax advisory practice in Vietnam

  • The number of organizations providing tax procedure services (tax agencies, legal–accounting consulting firms) is increasing, contributing to the professionalization of the market.
  • However, there still exist unlicensed organizations and individuals offering tax advisory services, posing risks to taxpayers.
  • Professional capacity among practitioners remains uneven; there is a shortage of experts with in-depth knowledge of international taxation, transfer pricing, and related-party transactions.

II. Legal provisions governing tax advisory services

Vietnamese law has set forth specific provisions regulating tax advisory services, helping enterprises and individuals clearly understand their rights, obligations, and the scope of services.

1. What are tax advisory services?

According to Article 104 of the Law on Tax Administration 2019, tax services (including tax advisory services) refer to activities performed by qualified organizations and individuals to support taxpayers in implementing tax declaration, payment, and other tasks related to tax obligations as prescribed by law.

In other words, tax advisory services are legal–financial services provided by licensed tax agents or consulting organizations, enabling enterprises and individuals to comply with tax regulations.

2. What is the scope of tax advisory services?

Tax advisory services include a wide range of tasks to support enterprises and individuals in complying with tax laws, including:

  • Assistance in tax declaration and payment: Preparing and submitting periodic tax declarations; and making supplementary and adjustment as requested.
  • Advisory on tax policy application: Explaining and guiding taxpayers on applicable laws for different types of taxes (VAT, CIT, PIT, import–export duties, natural resource tax, special consumption tax, etc.).
  • Representation before tax authorities: Explaining, providing documents, and participating in discussions as authorized.
  • Advisory on tax risk management: Assessing compliance and reviewing dossiers to minimize potential sanctions.
  • Advisory on tax refunds and incentives: Guiding procedures for VAT refunds, exemptions, reductions, and investment incentives.
  • Support in tax finalization: Preparing annual settlement files and optimizing tax obligations.

3. What are the benefits of using tax advisory services compared to self-declaration?

Compared to self-declaration, using tax advisory services offers several advantages:

  • Ensuring compliance: Tax dossiers are prepared in accordance with the law, minimizing risks of administrative sanctions or back taxes.
  • Saving time and costs: Enterprises can focus on core business operations instead of administrative procedures.
  • Timely updating new policies: Advisors keep track of regulatory changes, ensuring accurate application.
  • Optimizating tax obligations: Advising on legitimate tax incentives, deductions, and allowable expenses to reduce costs.
  • Mitigating legal risks: Providing support and protection during inspections or disputes with tax authorities.

III. Questions on tax advisory services

1. Do tax advisory services assist in resolving tax disputes with authorities?

Tax agents and advisory firms may represent taxpayers in explaining and providing documents to tax authorities during audits or inspections.

However, if disputes lead to administrative complaints or lawsuits, enterprises must seek assistance from licensed lawyers or law firms, as tax agents are not authorized to engage in litigation.

2. Which types of taxes are most commonly requested for advisory services?

Clients often seek tax advisory services in relation to taxes that directly affect business operations, profitability, and financial obligations, particularly:

  • Value-Added Tax (VAT): Implementing declaration, deduction, and refund.
  • Corporate income tax (CIT): Determining deductible expenses, applying tax incentives, and handling accumulated losses.
  • Personal income tax (PIT): Conducting finalization for individuals with multiple income sources or expatriates working in Vietnam.
  • Import–export duties and foreign contractor tax: Especially for foreign-invested and international trade enterprises.

3. How much does tax advisory service typically cost?

Service fees vary depending on factors such as:

  • Scale of the enterprise (number of vouchers, revenue, business type).
  • Scope of services (periodic declaration only, or including finalization, comprehensive advisory, and representation).

In practice, monthly fees for periodic declaration services range from 2–10 million VND for small enterprises; finalization or complex filings may cost 15–50 million VND per engagement, or higher for large enterprises with cross-border transactions.

4. When should enterprises engage tax advisory services?

Enterprises may not always require regular advisory services, but in certain circumstances, professional support helps minimize risks and optimize obligations. Typical cases include:

  • Newly established enterprises without a dedicated accounting department.
  • Enterprises in specialized sectors with complex tax policies (construction, real estate, import–export, international trade).
  • Enterprises requiring support in tax refunds, incentives, or complex amendments.
  • Enterprises undergoing tax inspections or audits.

5. What main clauses should be noted when entering into a tax advisory service contract?

When enterprises sign a tax advisory service contract, they need to pay special attention to the terms to both ensure their rights and limit risks during the implementation process. Accordingly, enterprises should pay attention to:

  • Scope of services: Clearly specifying the tasks (periodic declarations, finalization, refunds, specialized advisory, etc.).
  • Responsibilities of the provider: Compliance with the law and accountability for accuracy.
  • Service fees and payment terms: Transparent and agreed upon in advance.
  • Confidentiality obligations: Ensuring the security of financial and accounting data.
  • Dispute resolution mechanisms: Specifying negotiation, arbitration, or court jurisdiction. 

IV. Legal advisory services related to tax advisory

Legal advisory services supplement tax advisory by providing:

  • Advice on conditions for practice and tax service contracts.
  • Drafting and reviewing tax advisory contracts to safeguard enterprise rights.
  • Resolving disputes between enterprises and tax service providers.
  • Advising and representing enterprises in administrative complaints and lawsuits against tax-related decisions.

If you have any further inquiries regarding tax advisory services or other legal matters, please contact NPLaw for direct consultation and guidance.