You may have noticed that filing for corporate income tax in Vietnam can be challenging, which is
particularly true for foreign-owned companies. Although the tax framework is straightforward on paper,
a lot of businesses still run into avoidable errors resulting in penalties, delays, or lost opportunities.
Fortunately, you can avoid them by going through the Corporate income tax in Vietnam: Tax rates,
incentives & deductions page that covers key aspects like tax rates, tax incentives, and deductible
expenses. It is important to investigate this because mistakes can cost your business both time and
money, from overlooking deductible expenses to misinterpreting deadlines.
Common Mistakes When Filing Corporate Income Tax
1. Missing the Deadlines – You will miss the deadline if you forget the quarterly tax payments or
the 90-day annual return deadline.
2. Improper Documentation – This is possible when you lack valid invoices, contracts, or receipts to
support your expenses.
3. Claiming Non-Deductible Expenses – These may include costs such as personal expenses,
undocumented entertainment, or unapproved donations.
4. Incorrect Expense Allocation – Being unable to classify capital expenditure as operational costs
will lead you to provide incorrect expense allocation.
5. Overlooking Tax Incentives – This lapse could happen when you are unable to apply available
exemptions or reduced rates for industries that are eligible.
6. Transfer Pricing Missteps – When you are unable to prepare or submit required transfer pricing
documentation for related-party transactions.
Other avoidable mistakes when filing for corporate income tax.
● Poor Record-Keeping – This may happen if you have inconsistent accounting books in
comparison to tax filings.
● Late Payment of Tax – You should watch out if you pay after the due date because it can lead to
interest charges, even if already filed.
● Ignoring Regulatory Updates – The tax rules in Vietnam often get updated, so missing these
changes can cause non-compliance.
● Underestimating Taxable Income – When companies wrongly exclude income streams, it can
lead to audits and penalties.
Solving Common Mistakes when Filing Corporate Income Tax
1. Understand Deadlines Clearly
Corporate income tax declarations are usually due 90 days after the end of the fiscal year. You can avoid
this from happening by marking your tax calendars and setting reminders.
2. Maintain Accurate Bookkeeping
You need to organise your invoices, receipts and records properly. This will make sure that you can
comply with the proper supporting documents required by Vietnam to proceed with deductions.
3. Know Deductible vs Non-Deductible Expenses
You can only get certain staff benefits, entertainment, or donations to qualify if you document them
properly.
4. Reconcile Accounting and Tax Records
You need to reconcile the differences between financial reports and tax calculations because they often
trigger audits.
5. Leverage Tax Incentives Correctly
There are reduced rates for industries like high-tech, education, or renewable energy. However, they
can also cause penalties when misapplied.
6. Work with a Professional
You can stay compliant when you engage in the services of a tax consultant or local corporate service
provider to ensure compliance with updated laws.
You can gain more insights from Corporate income tax in Vietnam: Tax rates, incentives & deductions
page of this website. At Acclime Vietnam, there is no room for costly errors because we can make your
tax filing process seamless. Contact us and get professional guidance today.
