At the end of each fiscal year, tax settlement is one of the most important legal obligations that every business must perform. This is not only about declaring data, but also the process of checking all financial activities and accounting books throughout the year. Errors in this step, whether intentional or unintentional, lead to the risk of being fined by the tax authority, having to pay back taxes, or even being investigated. Therefore, finding a tax settlement services Professionalism is not only a compliance solution but also a strategic investment, helping businesses have complete legal peace of mind, cost optimization, save time and focus resources on business development.
Overview of tax settlement services: Definition and scope of application
What is tax settlement service? Definition and scope of application
Tax settlement service is the process by which a tax consultancy or professional accounting firm performs all the work related to determining the final tax liability of a business during the tax period (usually one year).
Core Definition: Tax settlement services include reviewing and synthesizing accounting data, accurately determining end-of-period tax obligations, preparing and submitting tax settlement dossiers (including Corporate Income Tax Settlement - Corporate Income Tax and Personal Income Tax Finalization – TNCN) to the Tax Authority in accordance with current regulations.
Classify: Settlement services are mainly classified into:
- Corporate Income Tax Finalization: Recalculate profits and corporate income tax obligations based on reasonable and legal expenses.
- Personal Income Tax Finalization: Summarize employee's income and deductions to calculate tax liability or refund amount.
Difference: Year-end settlement is completely different from monthly/quarterly tax declaration. Periodic declaration is just a temporary payment, while tax settlement is an action. legal closing final tax liability of the enterprise to the state in that year.
When is a business required or should it hire a tax settlement service?
Every enterprise, except for special cases exempted by regulations, is obliged to make tax settlement. However, the hiring professional tax settlement services is a smart choice in many situations:
Required timelines: Enterprises are required to submit financial statements no later than 90 days from the end of the fiscal year. The choice tax settlement services As soon as the fiscal year ends, businesses have enough time to review and correct errors.
High Risk Cases (Should Hire):
- Internal accounting records are incomplete, disorganized, or have mismatched data between reports and input/output invoices.
- Enterprises with complex transactions such as related transactions, import-export activities, or foreign investment.
- Enterprises are in the process of changing their legal structure such as dissolution, merger, separation, or conversion of ownership form.
- Enterprises want to refund value added tax (VAT) or corporate income tax and need strict and accurate documents and procedures.
Practical experience and expertise in tax settlement
A process tax settlement services Professional audits are always carried out by experienced professionals, ensuring that the books are “clean” before being sent to the tax authorities. This process is not just a declaration but a mini internal audit.
5-step process for cleaning settlement data according to expert standards
Supplier tax settlement services We will take the following steps to ensure your records are as accurate and compliant as possible, minimizing the risk of collection:
Step 1: Collect and check general ledger:
- Receive all accounting data, original documents, invoices, and interim financial reports.
- Check the completeness and consistency of the accounting system.
Step 2: In-depth review (Focus):
- Corporate Income Tax Finalization: Check the reasonableness, validity, and legality of each Deductible Expense (e.g., salary expenses, fixed asset depreciation, interest expenses) to avoid being excluded during inspection.
- Personal Income Tax Settlement: Review employee records, register tax codes (MST), family deduction procedures, and determine authorized settlement subjects.
- Detection and Warning: Provides detailed list of errors and warnings about tax risk potential (e.g. unclear input invoices, costs exceeding consumption norms).
Step 3: Optimization and adjustment consultation:
- Support businesses to adjust books and supplement missing documents before the application submission deadline.
- Propose legal tax optimization solutions (e.g., adjust advertising cost allocation, rebuild raw material consumption norms).
Step 4: Prepare and complete tax settlement report:
- Officially prepare financial statements and tax settlement reports according to the latest form of the General Department of Taxation.
- Submit application online and be responsible for the accuracy of the application.
Step 5: Representative explanation:
- Unit tax settlement services Commit to accompany and represent the business to explain to the tax authorities when there is any request for inspection or examination related to settled data.
Risk Analysis: 3 Most Common Mistakes That Lead to Tax Collection
Tax settlement requires meticulousness and a deep understanding of tax laws. Here are 3 common mistakes in tax settlement, leading to decisions on collection or serious administrative fines:
- Costs do not have full invoices/input documents (loss of rationality). Many businesses account for costs but lack documents proving their necessity for production and business activities, or lack accompanying internal decisions. This is the leading reason why costs are excluded when finalizing. Corporate Income Tax.
- Errors in payroll accounting and labor records (affecting personal income tax). Missing labor contracts, no salary payment documents, or incorrect calculation of family deductions leading to incorrect tax declarations. TNCN must pay, causing penalties for both businesses and employees.
- Continuous losses for many years without satisfactory explanation. Prolonged losses without reasonable explanation of business strategy, market, or operating costs can make tax authorities doubt the integrity of the books and easily lead to in-depth audit.
3 Tips for Self-Checking Your Books Before Settlement (Preliminary Checklist)
To minimize time and service costs, you can do a preliminary review of the books yourself before transferring them to the unit. tax settlement services:
- Consistency Check: Ensure that the figures on the Balance Sheet, Accounts Receivable Ledger, and VAT Return are completely consistent.
- Review Large Expenses: For high-value expenses (over 20 million), re-check the validity of the invoice (legal) and the accompanying contract/documents (reasonable).
- Labor Profile: Ensure that 100% employees have registered for Tax Code and have full Contract/Salary Decision.
Benefits and criteria for choosing a settlement service partner
Use tax settlement services It's not just about outsourcing a job, it's about transferring the risk to experts.
Outstanding benefits when using professional tax settlement services
- Legal safety: Ensure that the records comply with current regulations, avoiding unnecessary administrative fines. Professional units always update the latest tax laws, minimizing tax risk.
- Legal tax optimization: Experts will help businesses fully exploit tax exemptions, reductions, refunds, and deductible expenses according to the law, thereby minimizing the actual tax costs that must be paid in a completely legal manner. This helps tax settlement services provide superior value compared to doing it yourself.
- Save time and manpower: Internal accountants are freed from year-end pressures, especially complex review and reconciliation tasks, allowing them to focus on core business.
- Advanced expertise: Businesses work directly with a team of certified professionals with practical experience in handling complex situations and explaining tax settlements.
Criteria for choosing a reputable tax settlement company
Choosing the right supplier tax settlement services is the key factor determining the success and safety of your business:
- Licenses and certifications: Ensure that the unit has a valid accounting/auditing service license issued by the Ministry of Finance.
- Commitment to explain: The service unit must commit to support and be responsible for explaining all data it has prepared to the tax authorities.
- Industry experience: Priority is given to units with experience in settling accounts for businesses in the same industry or with a similar business model to yours (e.g. E-commerce, Manufacturing, Construction).
- Workflow and security: Work processes must be clear, transparent, and have a written customer data confidentiality agreement.
- Suggested partners in Ho Chi Minh City: Recommend reputable units, including MAN – Master Accountant Network, known for its in-depth service, complex accounting experience and high accountability.
Tax settlement service cost structure
Purpose: To help businesses easily visualize and compare packages tax settlement servicesBelow is a table of reference costs for each service level, built on basic factors such as size and complexity of the books:
| Service Package | Main Scope of Work | Suitable For | Reference Cost Level |
|---|---|---|---|
| Basic | Prepare Financial Reports, Corporate Income Tax and Personal Income Tax Finalization. Submit documents on time. | Small business (under 200 documents/year), relatively clean books. | Short |
| Standard | Implement Basic Package + General cost review, consult on outstanding points. | Medium enterprises (200 - 500 documents/year), with slightly complex transactions. | Medium |
| Full-Service | Implement Standard Package + In-depth review, bookkeeping adjustment, tax optimization, commitment to fully explain during inspection. | Large businesses, affiliated transactions, need tax refunds, or have many problems with their books that need to be "cleaned up". | High |
Factors affecting the price of tax settlement services:
- Business size (Revenue, number of documents, number of employees).
- The complexity of the transaction (internal, foreign, related party transactions).
- Request to review previous years' books (if necessary).
Note after table: This tax settlement service price is for reference only. The actual fee will be adjusted depending on the size and complexity of each business's books after the expert conducts a preliminary assessment.
Conclude
Tax settlement service is not just an administrative expense but a strategic investment, helping businesses transform tax risk potentially translates into compliance and cost-effectiveness advantages. Entrusting this work to professionals ensures that you not only comply with the law but also maximize your financial benefits.
Contact us now for more information. Free Bookkeeping Review. Ensure Legal Peace of Mind and Cost Optimization Year-end with experts accompanying the sustainable development of your business.
Don't let accounting risks hinder your growth. Contact now today to receive the session FREE Tax Risk Assessment and a preliminary strategic consultation, helping your business get on the right track from the start.
Contact information MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- E-mail: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
