Tax registration procedures for newly established companies are something that businesses must pay attention to and must carry out early. Initial tax registration or initial tax declaration is an important procedure that a company must complete immediately after its establishment. This is considered a step to lay the foundation for establishing standards and principles of the company’s accounting system during its operation.

1. Instructions on tax procedures for newly established companies in 2024

Tax is an obligation that all Vietnamese citizens must fulfill according to regulations to ensure the state budget revenue. Individuals, organizations, companies and enterprises must fulfill this obligation. The amount of tax paid will depend on income, revenue and many other factors.

Initial tax declaration procedures and documents for newly established enterprises in 2023 and tax registration procedures for newly established companies in this article, Viet My will provide readers with useful information.

1.1 Business license fee

Declaration of business license fee

Applying to Point a, Clause 3, Article 8 and Point a, Clause 1, Article 10 of Decree 126/2022/ND-CP, newly established companies must declare business license fees as follows:

Newly established enterprises must submit business license fee declaration dossiers no later than January 30 of the year of establishment.

Business license fees are reported annually.

Business license fee declaration dossiers include business license fee declaration form (according to Form No. 01/LPMB prescribed in Appendix II issued with Circular No. 80/2021/TT-BTC).

Business license fee payment level

According to Clause 1, Article 4 of Circular 302/2016/TT-BTC and Point c, Clause 1, Article 1 of Decree 22/2020/ND-CP, the royalty payment level is stipulated as follows:

Business license fee exemption in the first year of establishment (January 1 to December 31). After the first year, the company will pay royalties at the following rates:

• Companies with registered capital or investment capital of over VND 10 billion will pay a fee of VND 3,000,000/year;
• Companies with registered capital or investment capital of VND 10 billion or less will pay a fee of VND 2,000,000/year;
• Branch, Representative Office, Business Location will pay a fee of VND 1,000,000/year.

During the period of exemption from business license fees, if the business establishes a branch, representative office, or business location, the branch or business location may be exempted from business license fees during the period of exemption from business license fees.

1.2 Value Added Tax

The method for determining value added tax is as follows:

Applying the provisions of Clause 2, Article 13 of Circular 219/2013/TT-BTC, the method for calculating value added tax is prescribed as follows:

Newly established companies will apply the direct income method.

Newly established enterprises are eligible for the deduction regime if they fall into one of the following cases and voluntarily register to apply the deduction method:

Enterprises currently operating with revenue from selling goods and providing services subject to VAT of less than VND 1 billion/year have fully implemented the accounting regime, accounting books, invoices, vouchers with supporting vouchers according to the provisions of the law on accounting, invoices and supporting vouchers.
Newly established enterprises from investment projects that are operating commercial establishments must pay value added tax in the form of deduction.

Newly established enterprises invest, purchase, receive capital contributions in the form of fixed assets, machinery, equipment, tools, instruments or have a contract to lease business premises.

Note: Determining the method of calculating VAT no longer requires submitting form 06/GTGT ​​​​to register the method of calculating VAT as before, but will be based on the VAT declaration dossier sent by the enterprise to the tax authority, including:

In case the company registers to apply VAT according to the deduction method, it must send the VAT declaration made according to Form No. 01/GTGT, Form No. 02/GTGT ​​​​or Form No. 05/GTGT ​​to the tax authority.

If the company registers to apply the direct method, it must send the VAT declaration form No. 03/GTGT, 04/GTGT ​​​​to the tax authority.

VAT declaration period

Newly established enterprises can choose to declare VAT quarterly in the first 12 months of operation, specifically, they must submit tax declaration documents no later than the last day of the first month of the quarter following the time of tax activity.

1.3 Corporate income tax

Declaration and settlement of corporate income tax

According to Point b, Clause 6, Article 8 of Decree 126/2020/ND-CP, the company must declare and settle annual tax on the last day of the third month from the end of the calendar year or fiscal year, except for the following cases:

Corporate tax arising from capital transfers from foreign entrepreneurs must be reported whenever it arises;

Corporate tax that does not arise regularly for enterprises applying the method of calculating corporate tax based on revenue must be declared, declared each time it arises or by month (if it arises many times in a month).

Provisional payment of corporate income tax

Enterprises provisionally pay tax quarterly (the deadline for payment is the last day of the first month of the quarter following the time of paying corporate tax) and do not need to submit a provisional quarterly tax declaration.

The provisional tax amount will be deducted from the tax payable according to the annual tax settlement.

1.4 Personal income tax

Personal income tax declaration

Apply point c, clause 2, Article 8, Decree 126/2020/ND-CP and point b, clause 1, Article 44, Law on Tax Administration 2019 as follows:

Newly established companies that choose to declare VAT quarterly must declare for their employees quarterly. Therefore, the deadline for submitting personal income tax declaration is the last day of the first month of the quarter following the time of tax payment (similar to quarterly VAT declaration).

Personal income tax declaration

• Personal income tax declaration form 05/KK-TNCN;
• In the appendix, determine the amount of personal income tax payable on income from salaries and wages according to form No. 05-1/PBT-KK-TNCN.

2. Tax registration procedures for newly established companies

Registering for electronic tax declaration

Registering and declaring taxes electronically is important because currently the tax authority mainly receives electronic tax declarations. Electronic tax declaration helps businesses reduce travel costs and complete declaration procedures quickly.

Businesses access the system and complete the registration procedure as follows:

Businesses fill in the tax code information, click continue and fill in business information.

Note that when registering for electronic tax payment, businesses must ensure that they enter the correct phone number and email information so that the tax authority can contact and exchange information.

Declaration and payment of business license fees

Enterprises are exempted from business license fees in the first year of establishment or commencement of production and trading activities (from January 1 to December 31) and must submit business license fee declarations no later than 30 days after production and trading activities or no later than January 30 of the following year.

Register for electronic tax payment

After opening a bank account, enterprises must register for electronic tax payment. Electronic tax payment helps enterprises pay taxes quickly and easily without having to go to the treasury, bank or budget collection points.

Notification of issuance of electronic invoices

Companies must issue invoices when selling goods, services, gifts, promotions, etc. To simplify administrative procedures, enterprises now only have to notify the issuance of electronic invoices after 2 days of use after being approved by the tax authority.

Submitting fixed asset depreciation method dossiers

Applying Clause 3, Clause 4, Article 13 of Circular No. 45/2013/TT-BTC regulating fixed asset depreciation methods: Enterprises shall decide on their own depreciation methods and fixed asset depreciation times according to the provisions of this Circular and notify the direct tax authority before implementation.

Choose the accounting regime and declare taxes monthly, quarterly, and annually

Enterprises shall choose the accounting regime appropriate to their scale and declare and pay taxes in full. Enterprises shall pay attention to declaring taxes from the first quarter of establishment, even during the period when there are no invoices, documents, or income.

3. Initial tax declaration dossier for newly established companies

The initial tax dossier of the enterprise includes:

• Decision on appointment of Director;
• Decision on appointment of Chief Accountant;
• Fixed asset depreciation method registration form;
• Application form for registration of accounting form and use of invoices;
• Business registration certificate (copy);
• Citizen identification card/ID card/Passport of the legal representative of the company (copy);
• Company information exchange registration form;
• Authorization letter

4. Things to do before filing a tax declaration dossier for a newly established company

Before submitting the first tax declaration to the district-level tax office, the enterprise must complete the following 3 procedures:

Signboards hung at company headquarters

The signboard must have full information such as the company name, the company’s tax code, and the registered headquarters address. Tax officers will come to the agency to check the business’s working conditions and whether the signboard has been fully hung or not.

Buy a digital signature

Enterprises must register to use digital signatures to submit business license fee declarations and tax declarations on the Tax Department’s website, to report information, and electronically authenticate on business software such as social insurance, customs, and electronic invoices.

Open a corporate bank account and deposit money into the account

After obtaining a digital signature, the company will use that digital signature to withdraw money from the account to pay the license fee to the Treasury.

Companies can refer to the list of 6 things to do immediately after establishing a company or enterprise to avoid violating prohibitions that lead to fines.

5. What to do after completing the tax declaration for a newly established company

Submit the declaration of business license fee

According to the provisions of Decree 126/2020/ND-CP, newly established enterprises (including small and medium enterprises converted from individual business households) and newly established affiliated units must submit a declaration. The license fee is due no later than January 30 of each year after the year of establishment or commencement of production and business activities.

However, in some districts, tax authorities may still require enterprises to submit a declaration of business license fee immediately upon establishment, so enterprises need to be careful.

The deadline for submitting the 2024 resource tax declaration is as follows:

• For enterprises, branches, representative offices, and business locations established in 2023 (from January 1, 2023 to December 31, 2023), the deadline for submitting the business license tax declaration is January 30, 2024;
• For enterprises, branches, representative offices, and business locations established in 2024 (from January 1, 2024 to December 31, 2024), the deadline for submitting the resource tax declaration is January 30, 2025.

Register to use electronic invoices

Currently, 100% of domestic enterprises must use electronic invoices (instead of paper invoices as before) to issue to customers. And most tax officials remind enterprises to buy and issue electronic invoices for use. Therefore, businesses should complete this procedure immediately after filing their first tax return.

Register for electronic tax payment

Registering for electronic tax payment with the tax authority is not mandatory but is necessary for businesses. This not only helps businesses save a lot of time and effort because they do not have to go to the treasury or bank to pay taxes, but also helps tax authorities easily control the tax payment activities of businesses.

Above is detailed information about the tax registration procedure for newly established companies. If the company needs further legal advice or services from VIET MY LAW AND ACCOUNTING, please call us for support.