Business planning is a common job for people in the industry, especially today’s businesses. When a business is born, it is important to have an accounting department to keep track of finances and survive. Through this article, we will provide you with detailed information about our tax planning services if you have any questions. If you need assistance, please contact us for help.

1. What is tax?

Taxation is a compulsory payment that businesses and individuals are obliged to pay to the government, arising on the basis of legal documents issued by the government, rather than as a countervailing or directly refunded expense.

The tax is applied for the following purposes: It is the necessary source of expenses to maintain, operate and perform the functions and operations of the government, to help stabilizing and developing the economy and society; help to collect budget and regulate social income. The tax is continued to be mobilized to finance a variety of development projects, including restoration of irrigation systems, regulation of local water sources, and more.

2. Corporate taxes payable to the government

2.1. License fee

According to the provisions of Clause 2, Article 17 of Circular 156/2013/TT-BTC: License tax declaration is an annual tax return: When Taxpayers start their business, everything have to be ready no later than the last day of the month (i.e., starting production and business activities).

In case taxpayers have just established business establishments but have not yet started production and business activities, they must declare license tax within 30 days.

The level of payment of license fees is regulated based on the amount of investment capital or charter capital of the enterprise.

2.2. Personal income tax (PIT)

Personal income tax (PIT) is a tax levied on the income of people who earn money. These taxes are calculated and declared monthly, but they’re usually settled annually.

2.3. Value Added Tax (VAT)

Value added tax (VAT), also known as sales tax, is the difference between what you have paid for VAT and what you have sold. This is a tax that is reported on a monthly basis.

2.4. Corporate income tax (CIT)

Corporate income tax (CIT) is a direct tax levied on profits earned by businesses. Businesses must pay provisional income taxes each quarter and finalize their taxes for the year in accordance with applicable laws.

3. Risks when the business does not have a tax plan

Every year-end is the time when businesses need to figure out how much money they will need to pay in taxes each year, yet there will be cases where they don’t know the situation of the business and how much to pay accordingly. So, they want to make arrangements to save as much money as possible. The best way to do this is by minimizing the amount of tax that the business pays. 

– In some cases, the year-end revenue suddenly increased, leading to a sudden increase in the amount of tax payable.

– Despite their efforts, most won’t change that much. Since the major errors are already on the accounting books, it is very difficult to bypass the official tax inspectors.

– It is not possible to determine how much arrears will be imposed upon tax settlement.

– They leave it to the luck and bargaining power of the accountant.

– The lack of a tax plan means that it is difficult to understand the true costs of the business, which causes problems and potentially major failures when trying to account for them at year’s end. The accountant will review the finances by the end of the year and may find that they are not accurate enough, then make adjustments that might be too little too late. And in most case, the risk lies in the legalization factors.  

– They often miss the actual costs of the business.

4. What is the initial tax return filing process?

After obtaining a business license and complying with the requirements. The important thing to do is to submit your application to the right place.

Step 1: The enterprise appoints a legal representative to bring the file to the local District Tax Department, where the HQ is located.

Step 2: Next, the business representative needs to conduct a face-to-face meeting with the tax manager of the business.

Step 3: After fully submitting the initial tax return and completing the required procedures. Then the business needs to wait for the tax officer to come into to the company in person to verify.

5. Tax optimization planning process for businesses

– After receiving customer information that needs consulting, the company analyzes and evaluates the key points to decide what solution may be best for them. They also look at the company’s operational qualities to see if they offer any advantages or disadvantages when considering a potential solution.

– Propose a plan to consult and organize tax accounting work, as well as handle backlog issues or problems. 

– Provide tax accounting consulting services in order to help our customers come up with the most effective method of accounting for their business. 

– A consulting contract will be set up between the client and the consultant, specifying the benefits and expected results of the client’s tax accounting work after consulting.

– The company offers a service that will take people to surveys, together with tax accounting consultants, to carry out the planned work for customers. This will allow customers to visualize the work as easily as possible.

– Recommend and warn of certain policies, mistakes and appropriate remedies to customers.

– The company accepts tax accounting services and is committed to providing clear explanations of the results of tax inspection. 

– Support to keep policies stay up to date and solve problems during operation.

– Provide forms to serve for tax declaration, tax accounting, tax finalization report and any tax accounting explanation.

– Answer any inquiries directly via phone, email the problems of customers (if any).

In 2022, the government had tighter control over tax payments than in previous years. In addition to strictly managing the issue and using invoices, tax departments regularly cooperate with ward police to check business activities. They also continually review and checkup businesses with tax inventories. Therefore, if a business wants to pay taxes, it should have a sharp and professional accountant who can help it do so in the most effective way possible.

If you would like a quote for advertising, legal, or another business expense, please contact us today. We’ll work to find the best possible price while still meeting your needs.