This is the recurring engagement that sits at the centre of an FDI company’s compliance. Rather than building an in-house team strong enough to handle both Vietnamese standards and group reporting, you hand the whole function to a team that does only this.
Background
Foreign-invested enterprises in Vietnam must keep accounting records under Vietnamese Accounting Standards (VAS), in Vietnamese and in Vietnamese dong unless another functional currency has been approved. Annual financial statements are subject to mandatory independent audit.
VAS is not IFRS. Presentation, chart of accounts and certain recognition rules differ, so a set of books that satisfies your Vietnamese obligations will not, without conversion, satisfy your group consolidation. Most FDI subsidiaries therefore have to serve two reporting systems at once, usually on different deadlines.
On the tax side, value added tax and personal income tax are filed monthly or quarterly depending on revenue, corporate income tax and personal income tax are finalised annually, and separate obligations such as foreign contractor tax arise on payments abroad.
Common challenges
- In-house accountants without FDI experience. Related party transactions, foreign contractor tax, exchange differences and parent company cost allocations are routine for an FDI subsidiary and unfamiliar to a general accountant.
- Books and tax returns that do not reconcile. Differences between the ledger and what was filed is one of the most frequently raised points in a tax inspection, and very hard to explain once several periods have passed.
- Dependence on one person. When your sole accountant leaves, the understanding of your own records leaves with them. Rebuilding it typically takes months.
- Costs that fail the deductibility test. A missing contract, a missing non-cash payment record or a defective invoice will have the expense disallowed at finalisation, by which point it is too late to fix.
- Missed filing deadlines. Deadlines are spread through the year. One missed date creates a penalty plus late payment interest accruing daily.
How TrustlineAX helps
- Books that stand up to inspection. Complete bookkeeping under VAS, with source document review at the point of entry rather than at year end.
- Every filing made on time. VAT, personal income tax and invoice usage reporting prepared and filed on the cycle that applies to your company, tracked centrally rather than left to memory.
- Statutory financial statements, audit ready. Annual VAS financial statements prepared and handed to your independent auditor, with us handling their questions directly.
- Group reporting in your format. The numbers your parent company needs, in the layout and on the calendar the group works to, in English and Vietnamese as required.
- Problems raised while they can still be fixed. If a document is missing or a transaction looks exposed, you hear about it that month, not eleven months later at finalisation.
- A named bilingual team. You deal with people who know your business, not a rotating queue.
How a typical month runs
Each month follows the same rhythm, so your team always knows what we need and when you will receive your reports.
The year at a glance
Deadlines depend on your filing cycle. Most new companies file VAT quarterly; larger ones file monthly. We map your exact calendar in the first month. Our annual compliance calendar shows the full list.
Scope of service
Every engagement is built from the items below and confirmed in a written proposal. Items marked optional are quoted separately and can be added or removed at any time.
A · Accounting
Accounting set-up and registration
One-off
- Review your reporting requirements, templates and accounting software.
- Build a chart of accounts that satisfies VAS and your group reporting needs.
- Register accounting policies, the first financial year and the depreciation method with the tax authority where required.
Bookkeeping and reporting under VAS
Monthly
- Collect and review contracts, invoices, receipts and payment vouchers.
- Post entries under VAS, in Vietnamese and English.
- Deliver a monthly pack: balance sheet, profit and loss, trial balance, cash flow statement and general ledger.
New companies — bookkeeping before the company earns revenue is priced at a lower stage than after.
Annual statutory audit support
Annual
- Prepare and hand over the records the independent auditor requires.
- Work alongside the audit team through fieldwork.
- Review the draft audit report and file the audited financial statements.
This is support for the audit, not the audit itself. TrustlineAX is not an audit firm and issues no audit opinion.
Chief Accountant signatory service
Monthly
- Sign as Chief Accountant on the accounting books and the audited financial statements.
- A named individual meeting the criteria of the Law on Accounting, appointed by your company.
Management reporting in your own format
Optional
- Reports built to your or your parent company template: P&L by cost centre, budget against actual, cash position, ageing.
- Delivered bilingually on an agreed calendar, reconciled back to the statutory records.
B · Tax compliance
VAT returns
Quarterly / Monthly
- Prepare the VAT declaration and send it for your approval.
- File it and confirm the amount payable and the deadline.
Quarterly filing applies where prior-year revenue is VND 50 billion or less; above that, filing is monthly.
Foreign contractor tax (FCT)
Per payment
- Prepare a withholding declaration for each payment made overseas.
- File after your approval and confirm the amount payable.
Corporate income tax finalisation
Annual
- Prepare the annual CIT return and review taxable revenue and deductible expenses.
- Issue a letter setting out the issues found, the risk attached to each and the options open to you.
- File the approved return and advise on quarterly provisional payments.
Related-party transaction disclosure
Annual
- Identify related-party transactions and complete the disclosure filed with the CIT return.
- Respond to tax authority queries on the disclosures.
Not included — the transfer pricing documentation file and defence of your pricing policy, available under a separate scope.
How fees work
- Every engagement starts with a written proposal: scope agreed item by item, fees fixed per item, valid for 30 days.
- For newly established companies, bookkeeping before the first revenue is priced lower than after.
- Nothing outside the agreed scope is charged without your prior written agreement.
- Fees exclude VAT and out-of-pocket costs such as notarisation, legalisation and certified translation.
Who we work with
- Subsidiaries of foreign groups that need VAS statutory books and group reporting from one team.
- Newly licensed FDI companies that want their accounting set up correctly from the first period.
- Export manufacturers and export processing enterprises dealing with VAT refunds and customs reconciliation.
- Branches and representative offices with lighter but strict reporting obligations.
How we work
- Assessment and takeover. We review your existing records and filings and identify anything outstanding before we take responsibility.
- Process setup. We agree document flow, contacts, report formats and the monthly timetable.
- Monthly operation. Bookkeeping, filings and payments on time, with a short reporting pack after each close.
- Year end. Financial statements, corporate and personal income tax finalisation, and support through the audit.
- Annual review. We revisit the process each year to reduce manual handling and residual risk.
In-house team or outsourced?
| Factor | Building an in-house team | Outsourcing to TrustlineAX |
|---|---|---|
| Continuity | ● Depends on one or two people | ✓ A team that knows your file |
| VAS and IFRS expertise | ● Hard to hire both | ✓ Both, plus English reporting |
| Review before filing | ✗ Often no second check | ✓ Senior review every month |
| Cost predictability | ● Salary, insurance, turnover, software | ✓ Agreed scope and fee |
| Scaling up or down | ✗ Hiring or redundancy needed | ✓ Scope adjusts with your business |
Switching from another provider?
Switching is easier than most companies expect. We plan the hand-over so no filing is missed.
Frequently asked questions
Is an audit mandatory for our Vietnamese subsidiary?
Yes. Annual financial statements of foreign-invested enterprises are subject to independent audit under Vietnamese law.
Monthly or quarterly VAT filing?
The filing cycle is determined by prior year revenue under current rules, with specific guidance for newly established companies. We confirm which applies to you when we take on the engagement.
Do we need to appoint a chief accountant?
Vietnamese accounting law requires companies to have a chief accountant or a person in charge of accounting meeting prescribed criteria. This role can be outsourced rather than filled by a full-time hire, depending on your size and needs.
How difficult is it to switch providers?
It needs planning, particularly around the cut-off period and data handover. We review the current position before taking over, so responsibility for any pre-existing issues is clear from the outset rather than disputed later.
Related services
TrustlineAX is a private advisory firm and is not affiliated with any government agency. Official fees are paid directly to the competent authorities. This page is general information, not tax or legal advice for your specific case.