What Taxes Do Newly Established Businesses Need to Declare According to Regulations? Detailed Guide 2025

1. What taxes do newly established businesses need to declare?

According to current regulations, newly established businesses are required to declare the following taxes:

1.1. License Tax (Business Registration Tax)

• Applicable to: All newly established businesses.
• Tax amount depends on the charter capital on the business registration certificate:

   

  • Charter capital over 10 billion VND: 3 million VND/year.
  • Charter capital 10 billion VND or less: 2 million VND/year.
  • Branches, representative offices, business locations: 1 million VND/year.
• Deadline: Within 30 days from the date of business license issuance.
• Businesses established between July 1 and December 31 only pay 50% of the license tax for that year.

1.2. Value Added Tax (VAT)

• Declaration methods:

   

  • Deduction method: For businesses voluntarily registering or with annual revenue over 1 billion VND.
  • Direct method: For businesses with annual revenue under 1 billion VND or operating in specific sectors.

     

• Declaration frequency:

   

  • Monthly if last year’s revenue exceeded 50 billion VND.
  • Quarterly if last year’s revenue was below 50 billion VND.

1.3. Corporate Income Tax (CIT)

• Declaration form:

   

  • Quarterly provisional payments based on estimated profits.
  • Final settlement within 90 days after the fiscal year ends.
• Tax rate: 20% on taxable profits.

1.4. Personal Income Tax (PIT)

• When to declare: When the business pays salaries or taxable income to employees.
• Declaration method:

   

  • Withholding tax at source before salary payment.
  • Declare monthly or quarterly depending on total tax withheld.

1.5. Other taxes (if applicable)

• Environmental protection tax: For businesses producing or importing taxable goods.
• Natural resource tax: For businesses exploiting natural resources.
• Special consumption tax: For businesses dealing with special goods such as alcohol, beer, tobacco, etc.

2. Tax declaration process for newly established businesses

To comply with regulations and avoid risks, businesses should follow these steps:

Step 1: Register Tax Code
The tax code is issued simultaneously with the business registration number and is used throughout the business’s operation for tax declaration and payment.

Step 2: Open a bank account and register for e-tax payment
Open a bank account in the name of the business entity. Register for electronic tax payment service and notify the tax authority of the account.

Step 3: Register VAT declaration method
Choose deduction or direct method depending on revenue and business sector. Submit VAT method registration form if required.

Step 4: Declare and pay license tax
Declare and pay within 30 days of receiving the business license via the electronic tax payment system.

Step 5: Choose tax declaration software
Use HTKK software provided by the General Department of Taxation or integrated accounting software like MISA, FAST. Keep the software updated.

Step 6: Conduct periodic tax declarations

• VAT: Monthly or quarterly depending on revenue.
• CIT: Quarterly provisional payments and year-end final settlement.
• PIT: Declare when income payments occur.

Step 7: Year-end tax finalization
Within 90 days after the fiscal year-end, submit final CIT and PIT declarations and reconcile provisional payments.

Step 8: Register and manage electronic invoices
Electronic invoicing is mandatory. Notify the tax authority about the issuance of electronic invoices.

Step 9: Monitor and update tax policies
Regularly follow updates on tax policies and use professional tax consulting services if needed.

3. Important notes when declaring taxes for new businesses

• Comply with declaration and payment deadlines to avoid fines and interest.
• Choose appropriate declaration methods matching business size.
• Use reliable and regularly updated tax declaration software.
• Ensure accuracy of declaration data to avoid legal risks.
• Keep full tax documents and records for at least 10 years.
• Stay informed about the latest tax policy changes.
• Use electronic tax payment and invoicing properly.
• Consider hiring professional accounting and tax advisory services if needed.
• Regularly reconcile declared data with accounting books and tax authority notices.
• Avoid false declarations or tax fraud to protect business reputation.

Conclusion

Understanding what taxes newly established businesses need to declare and properly following the tax declaration process not only helps avoid legal risks but also builds a solid financial foundation for sustainable development. If you have questions or need support with tax declaration, contact tax experts for detailed guidance.