Newly established businesses declare tax monthly or quarterly in Vietnam?

by Quang Minh

Nowadays, setting up a business is becoming more and more popular. Individuals and organizations that want to expand the scale of their business activities will carry out procedures for registration of business establishment. After completing the business establishment procedures, businesses also need to pay attention to tax declaration. In this article, LSX legal firm will provide you with the answer for: “Newly established businesses declare tax monthly or quarterly in Vietnam?”

  • Law on Enterprise 2020

Newly established businesses declare tax monthly or quarterly?

Newly established businesses can choose to declare personal income tax quarterly. This tax declaration is determined once from the first quarter of which the tax liability arises and is applied consistently throughout the calendar year. In case enterprises are eligible for quarterly tax declaration, they may choose to declare tax quarterly.

Determination of tax declaration period is specified at point b, clause 1, article 8 of Decree 126/2020/ND-CP of the Government detailing a number of articles of the Law on Tax administration.

According to Article 2 – Law on corporate income tax, a corporate income taxpayer is an organization engaged in the production and trading of goods and services with taxable income.

  • Enterprises established under the law of Vietnam.
  • Enterprises established under foreign regulations with permanent residence in Vietnam or not.
  • Organizations established under the Law on Co-operatives.
  • Non-business units established under Vietnamese law.
  • Other organizations have production and business operations with income.

Establishing a business

Understanding from an economic perspective: Establishing an enterprise means setting up a business organization when satisfying all necessary and sufficient conditions, such as individuals and organizations must fully prepare in terms of infrastructure: headquarters, human resources, material resources, production lines, factories, capital.
On the other hand, from a legal perspective: Establishing an enterprise or company means a legal procedure that individuals and organizations must perform at a competent state agency.

What do you need to establish a company?

At present, along with the development of business conditions, the need to establish new businesses is also increasing. However, in reality, not everyone knows what to do to set up a new company.

To open a company smoothly, businesses can follow this process:

Step 1: Prepare the name and address of the company

  • The company address must not be located in a restricted area, apartment, or collective building.
  • The company name must be unique and not cause confusion or duplication.

Step 2: Select the appropriate business lines to register. Then apply the detailed business line code.

Step 3: Prepare the minimum capital as well as the charter capital to register for the company.

Step 4: Select the type of company. Besides, businesses shall consider a suitable legal representative for the business.

Step 5: Prepare dossiers for the application for business registration.

The detailed application includes the following dossiers:

  • Members or shareholders of a company that contributes capital.
  • Company charter.
  • For individuals: Prepare a copy of the identity card or passport.
  • For organizations: In addition to documents proving the identity of the legal representative, businesses have to submit the business registration certificate, establishment decision, etc.
  • An application for the Department of Planning and Investment to issue a business registration certificate.

Step 6: Submit the application to the Business Registration Office to apply for a certificate.

  • Enterprises submit the application to the Business Registration Office of the Department of Planning and Investment to be granted a company business registration license.
  • The time to issue a business registration certificate usually takes from 3 to 5 days.

Step 7: Publish the company information on the national portal.

When establishing a company, people must carry out the procedure following the law at the competent business registration authority (under the Law on Enterprise 2020). The process of establishing a business includes many different steps and phases. If you are not familiar with the law, this process may take a lot of time.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself. We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application; submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.

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What is the content of a Business Registration Certificate?

The business code is the first important content on the Business Registration Certificate. Each enterprise has a different code on the enterprise’s electronic portal system. This code helps distinguish businesses from each other, as well as makes it easier for authorities to manage.
The business name will include the full name in Vietnamese, in English, and initials if any.
Also, it is necessary to specify information about the address of the head office of the enterprise, phone number, and email.
Equally important, Information about the charter capital that the enterprise has registered with the competent authority the currency value is VND.
lastly, Information about the representative of the business, or the business owner (depending on the type of business).

What language is used in the business registration application?

Papers and documents in the enterprise registration dossier are made in Vietnamese.
In case the enterprise registration dossier contains documents in a foreign language, the dossier must have a notarized Vietnamese translation enclosed with the foreign language documents.
In case the papers and documents in the enterprise registration dossier are made in Vietnamese and foreign languages, the Vietnamese version shall be used to carry out the business registration procedures.

Contact LSX

Finally, hope this article is useful for you to answer the question about “Newly established businesses declare tax monthly or quarterly in Vietnam?”. If you need any further information, please contact  LSX Law firm+84846175333 or Email: hoangson@lsx.vn

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