What Is a Tax Report? What Needs to Be Done? How to File Income Tax Online

Vũ Khôi

Author at Wotech Electronics Blog

Tax reporting is a task every business must perform periodically as required by law. So what does a tax report include? What do you need to file one? Join SimERP to explore the basic concepts, the content items, deadlines, and a guide to filing corporate taxes in person and online in the article below.

Tax report

Overview of Tax Reporting

What Is a Tax Report?

Throughout a company's operations, tax reporting is one of the most important accounting procedures. By definition, it is the activity of declaring input tax invoices (arising from purchases or use of services) and output tax invoices (arising from sales or service provision invoices issued by the business itself). This is the bridging basis for the authorities to grasp the operating, production, and business status of the company. Therefore, tax reporting requires the business to regularly update the latest Tax Law regulations accurately, especially the forms and declarations that must be submitted and the deadlines for declaring and paying taxes to the tax authority.

What is a tax report?

What Does Tax Reporting Include?

Corporate value-added tax reports

Value-added tax is an indirect tax determined on the increased value of goods or services from production and circulation through to distribution to consumers. When filing a VAT report, the business needs to clearly determine its filing cycle (monthly or quarterly) and deduction method (direct or indirect) in order to use the correct declaration form.

Invoice usage reports

Most businesses must submit invoice usage reports quarterly. Typically, only businesses in high-risk production and trading sectors need to file invoice usage reports monthly.

Note that businesses that do not use invoices must still file this report, except in cases where the business has just been established and has not yet declared and issued invoices.

Invoice usage report

Personal income tax reports

Similar to VAT reports, businesses file personal income tax on a monthly or quarterly basis accordingly. In addition, under the regulations, a business with personal income tax payable of over 50,000,000 VND must file monthly, and under 50,000,000 VND files quarterly.

Note that if the business withholds no personal income tax from any employee, it does not have to file this declaration.

Provisional corporate income tax reports

Based on documents, records, and invoices each quarter, accountants will provisionally calculate the amount of corporate income tax payable. Under the regulations, if corporate income tax arises in a quarter, the business must pay it no later than the 30th day of the following quarter; if none arises, the business does not have to pay.

What Needs to Be Done for Tax Reporting?

What needs to be done for tax reporting?

To complete tax reporting fully and accurately, accountants should pay special attention to the following tasks:

Sorting and classifying invoices in date order and in transaction order.
Clearly distinguishing asset types, goods, materials, tools, and instruments when recording them in accounting software.
Archiving supporting documents and invoices as a basis for reconciliation when needed.
Declaring and reconciling in detail when entering information into the accounting information system and handling tax differences and adjusting figures appropriately before submitting the declaration.
Ensuring the tax reporting process runs on schedule and periodically, to make preparing the financial statements easier.

Guide to Corporate Tax Reporting

Tax Reporting Deadlines

Under the 2019 Law on Tax Administration, Circular 156/2013/TT-BTC, Circular 39/2014/TT-BTC, Circular 151/2014-TT-BTC, Circular 302/2016/TT-BTC, and Decree 139/2016/NĐ-CP, the quarterly and monthly tax reporting deadlines for filing directly at the tax office are as follows:

If the deadline falls on a day off (Saturday, Sunday, or holidays as regulated), the final day will be the next working day.

Under Article 9 of Circular 166/2013/TT-BTC, in cases of late tax reporting of 1 to 5 days with mitigating circumstances, the business will only receive a warning. If the deadline passes and the business has not completed its declaration and tax reporting obligations, it will be penalized at the following levels:

Filing the tax report 1 to 10 days late: the business will be fined 700,000 VND, or from 400,000 VND (with mitigating circumstances) to 1,000,000 VND (with aggravating circumstances).
10 to 20 days past the deadline: the penalty will be 1,400,000 VND, or from 800,000 VND (with mitigating circumstances) to 2,000,000 VND (with aggravating circumstances).
20 to 30 days past the deadline: the penalty will be 2,100,000 VND, or from 1,200,000 VND (with mitigating circumstances) to 3,000,000 VND (with aggravating circumstances).
30 to 40 days past the deadline: the penalty will be 2,800,000 VND, or from 1,600,000 VND (with mitigating circumstances) to 4,000,000 VND (with aggravating circumstances).
More than 40 days past the deadline: the penalty will be 3,500,000 VND, or from 2,000,000 VND (with mitigating circumstances) to 5,000,000 VND (with aggravating circumstances).