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Accounting Services

What is accounting?

Accounting is the process of analyzing financial data. Without accounting, it would be impossible for a business to grow. Accounting involves sorting, retrieving, summarizing and presenting the company’s financial data through internal and external reports to the business’ owners, shareholders or even the public.

Accounting services:

Monitoring the company’s revenues and expenses;
Bookkeeping;
Preparing the financial statements (e.g. balance sheet, profit and loss, cash flow);
Issuing accounting vouchers and VAT invoices, and tracking them in an online system;
Bank reconciliation;
Preparation and submission of statutory reports.

How to proceed?

We collect all necessary documents and information to record the transactions in our accounting software. All data remain available at all time for our Clients.

Our team will monitor the company’s transactions on a daily basis to ensure compliance with the Vietnamese Accounting Standards and regulations to provide you with comprehensive and accurate financial information.

FAQs

1. What is the meaning of ‘Personal Income Tax’ in Vietnam and which exemptions and reductions are available?

Personal Income Tax (“PIT”) is the tax which applies to the residents earning taxable income within and outside Vietnam’s territory and to non-residents who earn taxable income within Vietnam’s territory.

Exemptions:

Tax regulations provide for many kinds of tax-exempt income, for example:

Income from transfer of real estate between relatives in family (depending on each specific relationship);
Income from the value of land use rights of individuals to whom land is allocated by the State;
Income from receipt of inheritances or gifts that fall under the spectrum of real estate between relatives in family (depending on each specific relationship);
Income from foreign exchange remittances.

Reductions: Taxpayers who face difficulties caused by natural disasters, fire, accidents or severe diseases which affect their tax paying ability may be considered for tax reduction corresponding to the extent of damage they suffer from but not exceeding payable tax amounts.

2. What are the personal income tax rates?

There are several personal income tax rates which depend on the kinds of personal income such as:

monthly wages with progressive rates ranging from 5% to 35%;
income from capital investment with a fixed rate of 5%;
income from real estate transfer with rates of 2% or 25% depending on the case.

3. Which investment sectors benefit from tax incentives?

The following investment sectors benefit from tax incentives:

Investment projects in preferential investment industries and trades such as: high-tech activities, production of new materials, new energy, clean energy, pre-school education, general education;
Investment projects located in preferential investment geographical areas;
Projects with a scale of capital being 6,000 billion Dong or more of which at least 6,000 billion Dong is disbursed within a period of three years from the date of issuance of the IRC;
Investment projects located in rural areas and employing 500 employees or more.

4. Are there process export zones in Vietnam with tax reductions?

There are process export zones with tax reductions such as:

Import duty is not applied to the goods imported from abroad to the process export zone and used within such process export zone; and goods transported from one process export zone to another; or
Export duty is not applied to the goods exported from the process export zone to outside Vietnam’s territory.

5. What is the VAT and what is the general rate?

VAT stands for “Value-Added Tax” and is imposed on the added value of goods or services arising in the process of production, circulation and consumption.

The general VAT rate is 10%. Other rates such as 0% or 5% can be applied depending on each specific product or service.

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We would be delighted to schedule a meeting to provide you with an effective solution.