1. Master tax knowledge

Mastering tax knowledge helps you:

• Comply with the law: Complying with tax laws helps you avoid legal risks, save costs, and enhance your personal/business reputation.
• Effectively use tax incentives: Mastering tax knowledge helps you understand which incentives you can enjoy and how to apply them.
• Make effective tax plans: Tax planning helps you forecast the amount of tax you need to pay and prepare appropriate financial arrangements.
• Resolve tax issues: Mastering tax knowledge helps you confidently resolve tax issues efficiently, saving time and money.

You can refer to the following resources:

• Tax laws and related guiding documents: You can find these documents on the website of the Ministry of Finance of Vietnam (https://www.mof.gov.vn/) or reputable legal information websites.
• Tax textbooks and reference materials: There are many tax textbooks and reference materials available on the market. You can consult tax experts for advice on choosing the right materials.
• Tax courses: Taking tax courses is an effective way to stay up-to-date on the latest tax knowledge and learn from experts.

2. Seek professional help

Some common cases for seeking professional tax help:

• Difficulty understanding tax laws: Tax laws can be complex and change frequently. If you have difficulty understanding tax laws or how to apply them to your situation, you should seek help from a tax professional.
• Need help with tax filing: Tax filing can be a time-consuming and complex process. If you are unsure about how to file your taxes or are worried about making mistakes, you should seek help from a tax professional.
• Tax audit: If you are under tax audit, it is important to have tax professional representation. Tax professionals can help you understand your rights, protect your interests, and negotiate with the tax authority on your behalf.
• Have a complex business: If you have a complex business with multiple sources of income and deductions, you should seek help from a tax professional. Tax professionals can help you ensure that you are complying with all tax laws and are taking advantage of all the tax incentives you are entitled to.
• Have major tax plans: If you have major tax plans, such as selling real estate or starting a new business, you should seek help from a tax professional. Tax professionals can help you create an effective tax plan to save money and avoid tax risks.

There are many ways to find professional tax help. You can:

• Ask family, friends, or colleagues: They may be able to refer you to a tax professional they trust.
• Search online: There are many websites and online directories that list tax professionals in your area.
• Contact the Vietnam Association of Accountants and Auditors (VACPA): VACPA can provide you with a list of tax professionals in your area.
• Contact your local tax authority: Your local tax authority can provide you with information about tax professionals in your area.

3. Stay up-to-date on tax information

Here are some important tax changes in 2024 that you need to be aware of:

• Global Minimum Tax: In 2024, Vietnam introduced a supplementary tax to comply with the OECD’s Global Minimum Tax (GMT) initiative. This new regulation ensures that companies, especially multinational corporations with revenues exceeding EUR 750 million, pay a minimum tax rate of 15%. If they pay less than this amount in Vietnam, they will be required to pay the difference.
• Extension of VAT Reduction: The VAT rate, which is normally 10%, was reduced to 8% for the second half of 2023. This tax reduction has now been extended until December 2024. However, this tax reduction does not apply to certain sectors such as telecommunications, banking, insurance, and real estate…
• Standardization of Individual Tax Codes: The Ho Chi Minh City Tax Department has issued updated guidelines for standardizing individual tax codes to use personal identification codes. This requires taxpayers to update their information online through the Tax Electronic Portal or through their income-paying organizations.

4. Store complete tax records

Here is a detailed guide on how to store tax records:

Types of tax records to be stored: Tax declaration records, tax payment records, records of deductions and tax exemptions, and records of decisions and notifications from tax authorities.

Tax record retention period: According to Vietnamese tax laws, individuals and businesses are required to retain tax records for a minimum of 5 years. In some cases, you may need to retain tax records for longer than 5 years, such as records related to significant deductions and tax exemptions, tax disputes, and outstanding tax debts.

Methods of storing tax records: You can store tax records in paper form by organizing records by type and year and storing them in a safe, dry place. Alternatively, you can store tax records electronically using record-keeping software and store them on electronic devices such as computers or external hard drives.

5. Complying with Tax Laws

Benefits of complying with tax laws:

For individuals:

• Avoid legal violations and legal risks, save on penalty costs, and enhance personal reputation.
• Effectively utilize tax incentives, save on tax costs, and increase income.
• Protect personal rights and contribute to building a civilized and developed community.

For businesses:

• Establish a reputable and transparent business image, attract investors and partners.
• Optimize tax costs, improve business efficiency.
• Avoid tax disputes, save time and money.
• Contribute to building a healthy business environment and promoting overall economic development.

Important tax laws that individuals and businesses need to comply with:

• Declare and pay taxes on time: Individuals and businesses are obliged to declare and pay taxes fully and on time in accordance with the law.
• Maintain and preserve tax records: Individuals and businesses are obliged to retain tax records for a minimum of 5 years in accordance with the law.
• Provide tax information as required by tax authorities: Individuals and businesses are obliged to provide complete and accurate tax information as required by tax authorities.
• Fulfill tax cooperation obligations: Individuals and businesses are obliged to cooperate with tax authorities during tax audits and inspections.