BUSINESS ARTICLES

Reports Which Must Be Submitted By Operating FDI Enterprises

Reports Which Must Be Submitted By Operating FDI Enterprises
PLF_Reports Which Must Be Submitted By Operating FDI Enterprises

Setting up a company in Vietnam has become more simple because of the government’s investment promotion and support policies. However, businesses must comply with many regulations during their operation. This includes submitting regular reports to state agencies.

In this article, PLF explains a number of reports commonly encountered in the operational process of the company and the corresponding fines for violations for helping companies avoid legal consequences.

I. Common reports to be submitted by FDI enterprises

1. Employment usage report

  • For Vietnamese employees, the company must submit:
  • A report once every 6 months before June 5th
  • Annual report before December 5th

The reports must be sent to the ‘Division of Labor, Invalids and Social Affairs’ at the district level.

  • For foreign employees, companies must submit:
  • A report for the first 6 months of the year to be submitted before July 5th. The data for the first 6 months should be from December 15th of the year preceding the reporting period to June 14th of the year of reporting period.
  • Year-end report must be submitted before January 5th of the following year. The time to close annual report data is from December 15th of the year preceding the reporting period to December 14th of the year of reporting period.

The report must be sent to the ‘Department of Labor, Invalids and Social Affairs’.

Penalty: A fine ranging from VND 1,000,000 to VND 3,000,000 shall be imposed on the employer in the event of:

(i) Failure to report the use of labor according to regulations to the Division of Labor – Invalids and Social Affairs (for employers in non-industrial zones) or the Department of Labor – Invalids and Social Affairs where the head office, branch, or representative office is located (for employers in industrial zones); or

(ii) Failure to report changes in labor to the Division of Labor – Invalids and Social Affairs (for employers in non-industrial zones) or the Department of Labor – Invalids and Social Affairs (for employers in industrial zones) where the head office, or branch, or representative office is located.

2. Employment accident report

  • Report for the first 6 months of the year must be submitted before July 5th
  • Annual report must be submitted before January 10th of the following year

The report shall be sent in one of the following forms: in person, fax, post, or email to the Department of Labor, War Invalids, and Social Affairs.

Penalty: A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed on employers who fail to make statistics, periodical reports on occupational accidents, technical incidents causing serious occupational risk and sanitation, and occupational diseases according to the provisions of law.

3. Investment project report

  • Quarterly report must be submitted before the 10th of the first month of the quarter following the reporting quarter, including the following contents: realized investment capital, net revenue, export, import, labor, tax, other payments to the state budget, status land, and water use patterns.
  • Annual report must be submitted before March 31st of the following year of the reporting year, including reports on targets of the quarterly report and the targets of profit, income of employees, expenditures and investments for scientific research and technology development, environmental treatment and protection, and the origin of used technology.

The report must be sent to the investment registration agency through the account provided on the national investment information system.

Penalty: Failure to submit reports on investment activities, and monitoring and evaluation of investment projects may be fined from VND 5,000,000 to VND 10,000,000.

II. Reports in other business areas

1. Report from enterprises operating in the field of employment services

  • A report must be submitted every 6 months before June 20th
  • Annual report must be submitted before December 20th

The report must be sent to the Department of Labor – Invalids and Social Affairs where the enterprise’s head office is located.

2. Report from enterprises operating in the field of labor outsourcing

  • A Report must be submitted every 6 months before June 20th
  • Annual report must be submitted before December 20th

The report shall be sent to the Chairman of the provincial People’s Committee, and the Department of Labor, War Invalids and Social Affairs where the enterprise’s head office is located.

Penalty: A fine ranging from VND 1,000,000 to VND 3,000,000 shall be imposed on the outsourcing enterprise that fails to submit reports on the labor outsourcing situation as prescribed by law.

3. Reports from enterprises trading in products and services related to network information security

Annual report must be submitted before December 31th

The report must be sent to the Ministry of Information and Communications.

Penalty: A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for failing to report to Ministry of Information and Communications on the business situation, & export and import of products and services related to cyber information security according to regulations.

4. Annual reports for e-commerce service providers

Annual report must be submitted before January 15th every year. E-commerce service providers must submit report containing statistical data on the operation of the previous year to the Ministry of Industry and Trade.

The report must be sent to the Ministry of Industry and Trade through the enterprise’s account at the e-commerce management portal or in the form of a document by post.

Penalty: Failing to fulfill the reporting obligations as prescribed shall be fined from VND 10,000,000 to VND 20,000,000.

5. Report on purchase and sale of goods, and activities directly related to the purchase and sale of goods such as business licenses, retail licenses (trading license)

Annual report must be submitted before January 31st. The enterprise is responsible for submitting reports on goods trading and activities directly related to the purchase and sale of goods to the licensing agency.

III. Reporting from representative offices/branches of foreign traders in Vietnam

Representative offices and branches of foreign traders are subsidiaries established in accordance with the provisions of Vietnamese law. Therefore, during their operation, these units must carry out reporting activities.

Annual report must be submitted before January 30th of each year. The representative office and branch are responsible for sending the report to the licensing agency.

Penalty: A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for failure to submit periodical reports or submission of dishonest reports about the operation of the representative office to the competent state agency from where the license was obtained. For branches, this fine ranges from 20,000,000 VND to 30,000,000 VND.

Another important report is the corporate tax report which will be explained in the following articles.

The article is based on applicable law at the time noted as above and may no longer be appropriate at the time the reader approaches this article as the applicable law has changed and the specific case that the reader wishes to apply. Therefore, the article is only for reference.

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