What are the tax procedures for newly established companies? Every entrepreneur asks himself this question after founding a company. The legal process on this issue is so complicated that not everyone understands it clearly. To answer questions and support individuals and organizations, Viet My would like to advise on the following tax procedures for newly established businesses.

1. 1. What does the new company need to do?

a. Register for electronic tax declaration

Registering and declaring taxes electronically is an important task because currently tax authorities mainly receive electronic tax declarations. Electronic tax filing allows businesses to reduce travel costs and complete the tax process faster.

Enterprises access the National Information System and perform the following registration steps:

Enter your company tax ID information and click Next to enter your company information.

Note that when registering for electronic tax declaration, businesses must register the correct phone number and email address to be able to contact and exchange information with tax authorities.

b. Declare and pay license fees

Enterprises are exempt from license tax fees in the first year of establishment or production or business (January 1 – December 31) and must submit license fee notification documents within 30 days, at the latest. January of the year following the year of establishment. or start production and business.

c. Register for electronic tax payment

After opening a bank account, businesses must register to pay taxes electronically. Electronic tax payment helps businesses pay taxes quickly and conveniently without having to go to cashiers, banks or budget collection points.

d. Notice of issuance of electronic invoices

Companies that sell goods, services, giveaways, promotions, etc. are required to issue invoices. Simplifying management, businesses only need to notify and send electronic invoices after 2 days to be able to use them when allowed by financial authorities.

e. Failure to register fixed asset depreciation method

According to Clause 3, Clause 4, Clause 13 of Circular 45/2013/TT-BTC regulating the method of calculating depreciation of fixed assets:

According to this document, businesses decide for themselves the depreciation method and time of depreciation of fixed assets and notify directly to the tax authority before depreciating.

Choose an accounting method and pay taxes monthly, quarterly and annually.

Enterprises choose an accounting system suitable for their size and declare and pay taxes in full. Enterprises must pay attention to the declaration of the first quarter tax even without receipts, vouchers and income.

2. What taxes must newly established companies pay?

Newly established companies must pay taxes such as royalties, income taxes, value-added taxes and corporate taxes.

3. Tax registration procedures for newly established businesses

a. Report and pay license fees

The new company – (company changing name) must notify and pay the license fee no later than the last day of the month (calculated from the date of commencement of production and business).

If the new enterprise has not yet started production and operation, it must pay the license fee within 30 days from the date of issuance of the Business Registration Certificate or Investment Registration Certificate. taxpayers. .

Enterprises established in the first 6 months of the year must pay natural resources tax for the whole year, while enterprises established in the last 6 months of the year (after July 1) only have to pay a 50% increase. annual tax rate. The document contains a royalty payment notice according to Decree 139/2016/ND-CP on natural resources tax.

Current license fee collection rates comply with the instructions in Circular No. 302/2016/TT-BTC.

Enterprises with registered capital or investment capital of over 10 billion VND: 3,000,000 (three million) VND/year;

Companies with registered capital or investment capital of 10 billion VND or less: 2,000,000 (two million) VND/year;

Branches, representative offices, organizations, public service units, other economic organizations: 1,000,000 (million) VND/year.

If the Company does not have share capital, it must correspond to the share capital level specified in the Investment Registration Certificate or investment policy decision.

b. Notice about printing invoices and order forms

For new companies, this procedure is only required if you need to use invoices.

Instructions for creating contact invoices and printing requirements:

Send Notice of application of value added tax calculation method (TB06, according to the format specified in Circular 156/2013/TT-BTC). Request to print invoice. (Form 3.14, exactly as prescribed in Circular 39/2014/TT-BTC). The tax authority will investigate the headquarters. Order printed invoices or payment consultation.

According to regulations in Circular No. 93/2017/TT-BTC dated November 5, 2017. Enterprises do not have to prepare Form 06/value-added opinion to register the value-added tax refund method or convert the value-added tax calculation and invoicing method. Instead, the decision on how to calculate value-added tax is based on the tax return the company submits to the tax authorities. Specifically: Value added tax declaration number 01/value added, 02/value added.

c. Declare other taxes

If you have just established a business, you will have to go through some procedures to declare taxes other than license tax. For example: value added tax, corporate income tax, income tax;

Startups file quarterly sales tax returns. After 12 months of production and sales, the following calendar year is calculated based on the quantity of goods sold. Benefit from the calendar year immediately preceding the filing of the tax return. Wholesale goods and services worth less than 50 billion VND must be declared quarterly. More than 50 billion VND declared monthly. Business tax:

Based on performance. The company temporarily pays the quarterly corporate income tax no later than the 3rd day of the quarter following the quarter in which tax obligations arise. Businesses do not have to declare quarterly corporate income tax. At the end of the financial year, the company submits and completes its corporate tax return.

The company explains personal income tax. Personal income tax has two registration deadlines. That’s monthly and quarterly. A tax return is not required if the business is not required to pay income tax for a particular month or quarter.

Quarterly declaration applies to businesses declaring value-added tax quarterly or monthly with personal income tax less than 50 million VND.

Monthly declaration applies to: Enterprises declare monthly value-added tax and personal income tax deductions of 50 million or more.

4. Guidance on tax procedures for newly established companies

Newly established companies need to pay attention to the following tax procedures for newly established companies:

4.1 When must tax procedures for newly established companies be filed?

The deadline for submitting tax declaration documents is prescribed in Article 44 of the Law on Tax Administration 2019 as follows:

For monthly declarations, no later than the 20th of the month following the month in which the tax liability arises.
In the case of quarterly declaration and payment, no later than the end of the first month of the quarter following the quarter in which tax obligations arise.

Special:

If the taxpayer must declare Value Added Tax, Special Consumption Tax and Personal Income Tax monthly (payroll declaration and tax withheld from payroll), the deadline for submitting the March tax declaration is from the date April 3, 2023 to 2023. Maximum 20 days a year.

For taxpayers who request to declare value-added tax and corporate income tax quarterly (tax deduction for salaries and wages), the deadline for submitting tax declarations for the first quarter of 2023 is April 4 at the latest. April 2023.

4.2 Where are tax procedures for newly established companies performed?

The tax payment location is specified in Article 56 of the Law on Tax Administration 2019 No. 38/2014/QH14 issued on June 13, 2019.

The place to pay taxes is the State Treasury, direct tax management agencies, organizations with tax collection authority, commercial banks, credit institutions, and service units authorized by the State.

5. Frequently asked questions about startups

5.1 Which records are most important after a new company is established?

Because the resource tax declaration is the most important, the company should prioritize implementation, the remaining documents will be processed later by the tax department. The deadline for submitting declarations and royalties is January 30 of the year following the year of establishment. Failure to do so will subject companies to late payment penalties and certain statutory royalties.

5.2 Does a newly established company need to hang a sign right away?

When starting a business, you are required to install a sign at the business registration location. From a scale perspective, companies can do this at will, or on a corporate basis.

According to the provisions of Article 34 of the Advertising Law, sign content includes company name, address, and business code. This information must match what the owner has previously registered.

5.3 Is it necessary to open a bank account for the company as soon as the company is established?

One of the first things you must do after starting a company is open a bank account. When a company has an account, it must report the account to the company’s planning and investment department. Procedures for notification of opening a business account must be completed within 10 days from the date of confirmation of completion of account opening.

5.4 Can a newly established company increase its charter capital?

During business operations, there may be a lack of initial capital. In this case, the company must go through procedures to increase capital. In particular, because the law does not stipulate the time to start increasing capital, newly established or operating companies can carry out procedures to increase registered capital to support operations.

5.5 Do newly established businesses that have not yet generated revenue have to report taxes?

Even if you decide to start a new business without receiving or paying any bills, you still need to file a tax return.

Below are the tax procedures for newly established companies you should know when establishing a business. If you have any tax compliance issues, please contact LUAT VA KE TOAN VIET MY. You can also read this article about what to do for your startup business.