Tax settlement documents are a collection of accounting records, declarations, and vouchers that businesses must submit to the tax authorities to accurately determine the amount of tax payable for a tax period. Tax Administration Law No. 38/2019/QH14, Incorrect or delayed filing of documents can result in administrative fines ranging from 2 to 25 million VND, and even tax assessment in serious cases.
With tax authorities intensifying risk-based audits using electronic invoice data, preparing complete tax return documentation is crucial. This not only helps businesses comply with the law but also provides a basis for optimizing tax costs and protecting their legal rights during audits. Let's explore the detailed steps to achieve the highest credibility score with MAN – Master Accountant Network.
The current legal framework governing tax return filing
Before starting the preparation process, accountants need to have a thorough understanding of the currently effective legal regulations. Incorrect application of regulations can lead to the rejection of tax settlement documents or the refusal to accept reasonable expenses.
Currently, the key documents include:
- Tax Administration Law No. 38/2019/QH14General regulations on tax administration and taxpayer obligations.
- Decree 126/2020/ND-CP: Regulations detailing certain provisions of the Law on Tax Administration.
- Circular 80/2021/TT-BTCGuidelines for implementing the Law on Tax Administration and sample forms and documents.
- Circulars 78/2014/TT-BTC & 96/2015/TT-BTCRegulations on corporate income tax (CIT).
- Circulars 111/2013/TT-BTC & 92/2015/TT-BTCRegulations on personal income tax (PIT).
Understanding the relationship between these documents helps businesses build a solid tax return. This is an important basis for accountability when authorities request a comparison of actual figures.
Components of the Corporate Income Tax (CIT) settlement dossier
The Corporate Income Tax (CIT) settlement dossier is a crucial document that fully reflects the financial situation and tax obligations of a business during the fiscal year. Properly preparing the dossier, including the tax return form and related appendices, helps businesses accurately declare the amount of tax payable and minimize risks during tax audits. Below are the common forms and appendices required in the settlement dossier. corporate income tax.
Required forms and appendices
File corporate income tax settlement This is the focus of the annual tax settlement period. Businesses need to prepare a set of documents including form 03/TNDN and accompanying appendices depending on the specific production and business activities of the unit.
Typically, this application package will include:
- Corporate income tax return form 03/TNDN issued together with Circular 80/2021/TT-BTC.
- Annual financial statements or financial statements up to the time of the dissolution or merger decision.
- Appendix to the results of production and business activities (form 03-1A/TNDN, 03-1B/TNDN or 03-1C/TNDN).
- The loss carryforward appendix (form 03-2/TNDN) is required if the enterprise has losses carried forward from previous years.
Summary of commonly used appendices in corporate income tax return documents
To help readers easily manage the document list, MAN has compiled the important appendices in the table below:
| STT | Appendix name | Code | Applicable objects |
| 1 | Appendix to the business performance results | 03-1A/TNDN | Businesses in the manufacturing, trade, and service sectors. |
| 2 | Appendix to transfer losses | 03-2/TNDN | The business is profitable this year and has incurred losses in previous years within the last 5 years. |
| 3 | Appendix on corporate income tax incentives | 03-3A/TNDN | Businesses that benefit from preferential tax rates or tax exemptions and reductions. |
| 4 | Associated Transactions Appendix | Decree 132 | The business has transactions with related parties. |
Incorrectly declaring appendices in tax return documents often leads to errors in tax calculation figures. This directly affects recorded business results and the reputation of the enterprise.
Personal Income Tax (PIT) settlement documents for employees and businesses.
Personal Income Tax (PIT) final settlement documents are a crucial part of the annual tax settlement process for both businesses and employees. Identifying the correct subjects for tax settlement, the deadline for submission, and preparing all necessary documents facilitates a smooth declaration process and minimizes errors during tax audits. Below are the basic regulations regarding the subjects required to file and the list of documents needed. personal income tax settlement.
Eligible applicants and responsibilities for submitting applications.
Settlement documents personal income tax This applies to both individuals with income from salaries and organizations paying income. According to regulations, organizations are responsible for settling tax returns on behalf of authorized individuals, regardless of whether tax deductions are made or not.
Businesses should note that the deadline for submitting personal income tax returns for organizations is the last day of the third month from the end of the year. For individuals filing their own returns, the deadline is extended by one month to the end of April.
List of documents to prepare
To complete this section of the tax return, the accountant needs to review the following:
- Personal Income Tax Final Settlement Declaration Form 05/QTT-TNCN.
- Appendix to the detailed personal information sheet (forms 05-1/BK-QTT-TNCN and 05-2/BK-QTT-TNCN).
- Appendix: List of dependents eligible for tax deduction (Form 05-3/BK-QTT-TNCN).
Tax deduction certificates for personal income tax must also be carefully stored for reference when needed. Without these certificates, individuals will face difficulties in claiming tax refunds or offsetting taxes in subsequent periods.
The actual process of reviewing and preparing tax settlement documents at the enterprise.
Reviewing and preparing tax settlement documents is a crucial process that helps businesses ensure accurate accounting data and compliance with legal regulations. If the verification steps are not fully completed, discrepancies may arise in the documents, leading to risks during tax audits or inspections. Therefore, businesses need to follow a standard process from document verification and book reconciliation to tax return preparation to ensure the transparency and validity of their tax settlement documents.
Step 1: Verify the validity of invoices and documents.
Before filing tax returns, businesses must review their entire system of input and output invoices. The use of electronic invoices requires absolute consistency between the data from the General Department of Taxation and accounting records.
Accountants need to eliminate invoices from businesses that have absconded or invoices that are not related to business operations. This is a crucial step to ensure that tax settlement documents do not contain potential risks that could cause financial losses.
Step 2: Compare the detailed ledger and the general ledger.
Matching the figures between the detailed account ledger and the general ledger is a mandatory requirement in accounting. Any discrepancies that have not been addressed will compromise the integrity and objectivity of tax settlement documents before the auditing authorities.
In particular, payroll and insurance accounts must be reconciled with the insurance contribution notification from the Social Insurance agency. Discrepancies between payroll expenses in tax settlement records and insurance data are a high-risk indicator that can easily lead to audits.
Step 3: Prepare the declaration form and check the adjustment criteria.
When preparing the tax return on the HTKK software, accountants need to pay special attention to items [B] on form 03/TNDN. This is where adjustments are made to the difference between accounting profit and taxable income according to the law.
Expenses without invoices or administrative fines must be excluded under item B4. A standard tax return must clearly and logically account for these income adjustments (increases and decreases).
Common mistakes that lead to tax return rejection or penalties
During the consulting process, MAN observed that many businesses frequently make basic mistakes that have serious consequences. A lack of information leads to the tax authorities rejecting the validity of entire dossiers.
Deadline errorThe tax return was filed late due to a lack of understanding of holiday regulations. According to the law, if the last day of the holiday coincides with a public holiday, the deadline is calculated based on the next working day of the tax authority.
Content error:
- Failure to declare or under-declaration of related-party transactions as per Decree 132.
- The preferential tax rate was applied incorrectly due to the failure to meet the actual conditions.
- Even without registering dependents, tax deductions are still claimed in personal income tax returns.
Below is a table summarizing common penalties related to tax filings:
| Violation | Average fine amount | Legal Reference |
| Submitting applications 1 to 30 days late. | 2,000,000 – 5,000,000 VND | Decree 125/2020/ND-CP |
| Applications submitted 31 to 60 days after the deadline. | 5,000,000 – 8,000,000 VND | Decree 125/2020/ND-CP |
| Incorrect declarations resulted in an underpayment of taxes. | 20% Amount of underdeclared tax | Decree 125/2020/ND-CP |
| Tax evasion | Penalties range from 1 to 3 times the amount of tax evaded. | Tax Administration Law 2019 |
Clearly, the cost of correcting errors in tax return records is often much higher than hiring professionals. Investing in a proper accounting system from the start helps businesses avoid unnecessary penalties.
Optimizing tax return filing solutions for SMEs
For SMEs, preparing accurate and complete tax return documents is crucial to minimizing risks during tax audits. However, limitations in personnel and management systems often lead to errors in this process. Therefore, businesses need to implement optimal solutions such as using technology-based document management and employing professional accounting and tax consulting services to ensure that tax return documents are prepared correctly and at the most reasonable cost.
Application of technology in document management
Using modern accounting software capable of automatically synchronizing invoices from the tax authorities is an inevitable trend. This helps minimize data entry errors and ensures that tax settlement records are always updated with accurate and factual figures.
Hire professional tax and accounting consultants.
For SMEs, maintaining a dedicated accounting department often presents challenges in terms of cost and personnel. Utilizing services from MAN – Master Accountant Network helps businesses have peace of mind regarding the legal validity of their tax return documents.
We not only assist with tax return preparation but also provide support in explaining data and optimizing costs in accordance with the law. An expert knowledgeable in tax settlement documentation will protect businesses from the risks of expense discrepancies.
Special notes regarding tax settlement documents when dissolving or changing the type of business.
When a business ceases operations, the tax settlement filing must be completed within 45 days of the decision. This is a mandatory deadline to fulfill all financial obligations to the state budget.
In this case, the tax settlement period is calculated from the beginning of the year until the date the dissolution decision takes effect. The business needs to fulfill its tax obligations before closing its registration number. If the tax settlement documents are not complete, the legal representative will still be held personally responsible.
Conclude
Tax return documents are not simply numbers, but evidence demonstrating a business's compliance with the law. A well-prepared tax return allows business owners to confidently focus on their business and eliminate worries about back taxes. In the digital age, tax management demands absolute accuracy and a deep understanding of the latest regulations.
If you're having trouble reviewing data or need a reputable agency to handle your tax return, MAN is always ready to help. We offer a comprehensive ecosystem of services: auditing services, tax accounting, tax consulting services, tax settlement and tax reporting. With our team of experienced professionals, MAN is committed to providing cost-effective and sustainable solutions. Contact us today to receive the most professional support!
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: 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.
Frequently Asked Questions about Tax Return Documents
Yes. According to regulations, even if no revenue is generated, businesses are still required to submit annual tax returns. Failure to submit tax returns is still subject to administrative penalties as stipulated in Government Decree 125.
Yes. Taxpayers can submit supplementary tax returns if they discover errors before the tax authorities announce an audit decision. Proactively correcting tax return documents helps businesses reduce penalties or only pay late payment fees.
According to the Accounting Law and the Tax Administration Law, documents related to tax obligations must be stored for a minimum of 10 years. This is an integral part of the tax settlement file, serving for subsequent audits. Do newly established businesses that have not generated any revenue need to file tax returns?
Is it permissible to supplement tax return documents after they have already been submitted?
How long should tax return documents be stored?
