Accounting books of the enterprise operating in Vietnam are required to be made in Vietnamese. In case a foreign language must be used in accounting documents, accounting books and financial statements in Vietnam, Vietnamese and foreign language must be used simultaneously.

Enterprises operating in Vietnam must fulfill their obligations to pay licensing fees; Value-added Tax corresponding to the enterprise’s business sector, the VAT rate is different between business sectors; Corporate Income Tax on enterprise’s revenue after deducting reasonable expenses; Personal Income Tax, whereby the enterprise will deduct the tax liability that the employee is responsible for paying before paying income and the enterprise will pay on behalf of the employee.

In addition, depending on the business sectors, fields as well as specific service transactions, enterprises will be responsible for declaring and paying other taxes such as: Contractor tax, Special Consumption tax, Environmental Protection Tax, Export Tax, Import Tax, etc.

Foreign investors with investment projects in Vietnam (new investment projects) operating in the field of software production will receive preferential corporate income tax rates of 10% for a period of 15 years from the date that project has revenue.

In addition, enterprises are also exempted from tax for 4 years from the first year the enterprise has taxable income from the investment project and a 50% reduction in tax payable (applying a tax rate of 10%) with a maximum of 9 following years. The tax exemption and tax reduction period is calculated continuously from the first year the enterprise has taxable income from a new investment project receiving tax incentives. In case an enterprise has no taxable income in the first three years from the first year of having revenue from a new investment project, the tax exemption and tax reduction period is calculated from the fourth year that the new investment project has revenue.

For example: In 2014, enterprise A has a new investment project to produce software products. If enterprise A has taxable income from the project to produce software products in 2014, the tax exemption period is continuously calculated since 2014. In case enterprise A’s new investment project to produce software products has generated revenue since 2014, by 2016 enterprise A’s new investment project still has no taxable income, the tax exemption period is calculated continuously since 2017.

The tax exemption and tax reduction period for high-tech enterprises and agricultural enterprises applying high technology in accordance with the above regulations is calculated from the year of issuance of the Certificate of recognition as high-tech enterprises and agricultural enterprises applying high technology. Corporate income tax incentives are only applied to enterprises implementing accounting, invoices, and documents and paying corporate income tax as declared.

Foreign enterprises established in accordance with Vietnamese law are subject to the Law on Accounting. Therefore, foreign enterprises must arrange a chief accountant. In case the unit cannot immediately appoint a chief accountant, it arranges a person in charge of accounting or hires a chief accountant in accordance with regulations. However, except for micro-enterprises in accordance with regulations and support for small and medium enterprises, they are allowed to arrange the person in charge of accounting and are not required to arrange a chief accountant.

The deadline for submitting monthly or quarterly tax declaration dossiers is specified as follows:

• No later than the 20^th day of the month following the month in which tax obligations arise in case of monthly declaration and payment;
• No later than the last day of the first month of the quarter in which tax obligations arise in case of quarterly declaration and payment.

The deadline for submitting annual tax declaration dossiers is specified as follows:

• No later than the last day of the 3^rd month from the end of the calendar year or fiscal year for annual tax finalization dossiers; no later than the last day of the first month of the calendar year or fiscal year for annual tax declaration dossiers;
• No later than the last day of the 4^th month from the end of the calendar year for personal income tax finalization dossiers of individuals directly finalizing taxes;
• No later than December 15 of the preceding year for presumptive tax declaration dossiers of business households and individuals paying tax in the method of presumptive tax; in case of new business households or individuals, the deadline for submitting presumptive tax declaration dossiers is no later than 10 days from the date of business commencement.

The deadline for submitting tax declaration dossiers for taxes declared and paid each time that a tax obligation arises is the 10^th day from the date of arising tax obligations.

The deadline for submitting tax declaration dossiers in case of termination of operation or contract or business reorganization is no later than the 45^th day from the date of the event.