What is tax reporting? Instructions for preparing standard tax reports

Tax reporting is a document that businesses must submit to tax authorities to declare information related to their tax obligations. Preparing accurate and timely tax reports is mandatory for all businesses, to ensure legal compliance and avoid financial risks. In this article, we will learn about tax reports, current types of tax reports, content, preparation, and submission deadline according to regulations.

What is tax reporting? Current types of tax reports

Tax reports are a collection of forms issued by the Ministry of Finance, used by businesses to declare information about production and business activities, thereby determining tax obligations. Tax reporting plays an important role in the State’s tax management and is the basis for tax authorities to check and monitor businesses’ compliance with tax laws.

Currently, there are many different types of tax reports, depending on the type of tax, business form and size of the business. Some common types of tax reports include:

• Value added tax (VAT) report: Form 01/GTGT ​​(VAT declaration by deduction method), form 02/GTGT ​​(VAT declaration by direct method). Enterprises choose a reporting form that is appropriate to the VAT calculation method they are applying.
• Corporate income tax (CIT) report: Form 03/TNDN (for businesses), form 04/TNDN (for organizations). This report reflects the business results of the enterprise during the tax period.
• Personal income tax (PIT) report: Form 05/TNCN (for resident individuals), form 06/TNCN (for non-resident individuals). Enterprises are responsible for declaring and submitting personal income tax reports on behalf of employees.
• License tax report: Form 08/MB. All businesses and economic organizations must pay license tax and make annual license tax reports.
• Report on invoice usage: Form No. 01/TTHSD. This report helps tax authorities track the use of business invoices.

In addition, depending on the business line, businesses may have to carry out other types of tax reports such as special consumption tax reports, resource tax reports, real estate tax reports,…

Main content of tax report

Each type of tax report will have different content and structure, however, in general, a tax report usually includes the following main contents:

• Information about the business: Business name, tax code, address, business line, etc. This information helps tax authorities accurately determine tax payers.
• Financial targets: Revenue, costs, profit, input VAT, output VAT,… to determine tax obligations.
• Tax amount payable: Results of calculating the tax liability of the enterprise in the reporting period.
• Signature of legal representative and chief accountant: Confirm the accuracy and truthfulness of information in tax reports.

Instructions on the steps to prepare tax reports

To prepare tax reports accurately and in accordance with regulations, customers need to follow these steps:

• Step 1: Determine the type of tax report payable based on tax type, business form, and business size.
• Step 2: Collect all legal and valid accounting documents as a basis for preparing tax reports.
• Step 3: Choose the form of tax reporting: manually by filling out the tax report form or online through the website of the General Department of Taxation or tax declaration support software.
• Step 4: Fill in the tax report form completely and accurately according to the instructions.
• Step 5: Carefully check your tax report before submitting.
• Step 6: Submit tax reports to tax authorities directly or submit them online.

Currently, preparing and submitting online tax reports is being encouraged due to its convenience, speed and accuracy. Customers can use tax declaration support software or online tax declaration services from reputable service providers. Below are instructions on how to prepare some common types of tax reports in businesses:

Prepare VAT report:

VAT is the most common tax that most businesses must declare. When preparing a VAT report, special attention should be paid to the following points:

• Determine the method of calculating VAT: Deduction or direct.
• Classification of inputs and outputs: Accurately determine tax-deductible and non-tax-deductible revenues and expenses.
• Balancing data: Data on the VAT report must match data on accounting books.

For VAT declared using the deduction method:

• Prepare VAT declaration according to form 01/GTGT.
• List of output VAT invoices according to form 01-1/GTGT.
• List of input VAT invoices according to form 01-2/GTGT.
• Other types of appendices, if any (not required).

For VAT declared by the direct method:

• Directly according to VAT: Prepare VAT declaration according to form 03/GTGT.
• Directly by revenue: Prepare VAT declaration according to form 04/GTGT.
• List of output VAT invoices according to form 04-1/GTGT.

Prepare corporate income tax reports

Corporate income tax reporting is done in the following 5 steps:

Step 1: Collect data on revenue and costs incurred during the period.

Step 2: Determine taxable revenue and deductible expenses.

Step 3: Calculate pre-tax profit and corporate income tax payable.

Step 4: Fill in the information in the corporate income tax report form (03/TNDN or 04/TNDN).

Step 5: Check and submit tax reports.

Prepare a report on the use of invoices of the enterprise

Reporting on the business’s use of invoices is also a very important part of annual tax reporting activities. Here are the steps:

Step 1: Summarize data on invoices used in the period.

Step 2: Classify invoices by type (electronic invoice, paper invoice), usage status (used, remaining, damaged, lost,…).

Step 3: Fill in information in Form No. 01/TTHSD.

Step 4: Check and submit a report.

Prepare personal income tax reports for employees

The personal income tax declaration dossier for the enterprise’s employees will include:

• Personal income tax declaration according to form 02/KK-TNCN for businesses paying salaries.
• Personal income tax declaration according to form 03/KK-TNCN for businesses paying for capital investment or transferring shares.

For enterprises declaring quarterly: Enterprises declare VAT monthly and have personal income tax arising under 50 million VND/month.

For businesses declaring monthly: Enterprises declare VAT monthly and have personal income tax arising over 50 million VND/month.

The steps to create a report are as follows:

Step 1: Collect information about employees (tax code, income, deductions,…). Prepare a table to calculate total personal income tax each quarter through the monthly personal income tax table and the accountant will do it.

Step 2: Calculate personal income tax that must be deducted for each employee.

Step 3: Prepare a monthly or quarterly personal income tax declaration.

Step 4: Submit a personal income tax report to the tax authority.

Deadline for submitting tax reports and fines for violations

The deadline for submitting tax reports is specified for each type of tax. For example, VAT reports are usually filed monthly or quarterly, CIT reports are filed quarterly or annually.

Submitting tax reports late compared to regulations will be penalized according to Decree 125/2020/ND-CP. The fine can range from a few hundred thousand dong to tens of millions of dong, depending on the severity of the violation and the number of days of late payment.

Consulting services for preparing standard tax reports in Long Phan Consulting Company

With a team of experienced experts in the tax field, Long Phan Consulting Company provides professional tax reporting consulting services, helping customers complete tax obligations accurately, on time and effectively.

Our services include:

• Consulting on determining the type of tax report to be submitted.
• Support collecting and processing documents and accounting data.
• Prepare tax reports online or manually according to regulations.
• Representative submits tax reports for customers.
• Consulting on issues related to VAT, corporate income tax, personal income tax,…
• Answer questions and support during the tax inspection and audit process.

Long Phan Consulting Company is committed to providing customers with high quality tax consulting services at reasonable costs.

Frequently asked questions about tax reporting

Below are some frequently asked questions about tax reporting, please refer to them.

How are e-commerce activities taxed in Vietnam?

E-commerce businesses are subject to VAT and CIT, and must comply with regulations on online sales, including invoice issuance and tax declaration.

What is the procedure for requesting a tax refund?

Businesses can request a tax refund by submitting a refund application with supporting documents to the tax authority, which will review and process the request.

What tax incentives are available for businesses in specific industries?

Certain industries, such as high-tech and renewable energy, may be eligible for tax incentives, including reduced CIT rates and tax holidays, subject to specific conditions.

How should businesses handle tax audits and disputes?

Businesses should maintain accurate records, cooperate with tax authorities during audits, and seek legal counsel if disputes arise.

What are the tax obligations for foreign contractors operating in Vietnam?

Foreign contractors are subject to withholding tax on income derived from contracts performed in Vietnam, and may be required to register for tax purposes.

Tax reporting is an important obligation of every business. Preparing and submitting tax reports in accordance with regulations helps businesses comply with the law, avoid financial risks and improve reputation in the market. For advice and support on issues related to tax reporting, please contact the hotline 0906735386.