Annual tax settlement season – Unspoken truths
Equitix and the team are feeling the tax trend is purifying the market, causing challenges to Founders. Since 2025, the tax authority has issued a circular determining the impact and encouraging companies to become single-bookkeeping companies.
To make this transition, we founders need to take our time and plan carefully.
This information and unspoken truths are the working information of companies that Equitix has discussed with many companies over the years and is sharing with Founders.
Fortunately, Equitix Investing, with strong relationship with many tax authorities across the country can support you with this.
Current situations:
- When tax authorities enforce tax collection, businesses that have not maintained proper accounting records and lack a strategy for direct engagement with the tax office may face significant tax charges that could be significantly higher than their revenue.
- Self-assessing taxes can offer businesses flexibility and control over their tax affairs. However, it is crucial to exercise caution, ensure accuracy, and seek professional guidance when necessary to avoid the risk of overpayments or tax assessments that could impact the company’s financial well-being.
- Outsourcing all tax matters to service providers without proper oversight can lead to personal liability for the legal representative.
- Taxation can be considered as a risk management area and a proactive tax strategy is needed.
- Founders estimate that late tax filings can incur penalties ranging from 250 to 300 million VND.
- Funds transferred through accounts without verifiable transaction origins.
- The risks of outsourcing tax services due to our lack of accounting expertise, incomplete tax reporting, and improper accounting practices fall solely on us.
…
Equitix’s experience:
1. Tax authorities employ risk assessment tools to classify financial statements based on their tax risk.
One-glance scan:
a) Red flag: Founders should prepare for prioritized tax audits.
b) Yellow flag: Founders should be prepared for increased scrutiny from tax authorities.
c) Green flag: While tax authorities may not actively seek out businesses with green flags, it doesn’t mean they will never scrutinize them.
2. Tax authorities organize their work thematically, so founders who haven’t been audited yet shouldn’t think they’re off the hook. It just means their turn hasn’t come yet, but it will eventually.
3. Once placed on the tax blacklist, the tax authorities will use citizen ID verification and individual credit history (CIC) from banks to determine tax obligations.
4. Many bank accounts have transactions that are on the blacklist, but individuals are unaware of this until they attempt to borrow from a bank and are denied due to being under observation.
5. When a company issues an invoice to another company with a registered address and business owner name, tax authorities will investigate the tax practices and relationship between the two companies.
6. Tax authorities are cracking down on companies exhibiting transfer pricing practices, where invoices are issued to one company and then transferred to another to manipulate cost structures, deviating from the cost structures of similar companies in the industry.
7. If you continuously report losses on your tax returns for multiple years, the tax authorities will inquire about the source of your funds to sustain your business.
Equitix Investing can help founders to:
1. Proactively develop a tax strategy and optimize legal tax payment plans and align tax planning with business plans to determine the exact tax liabilities.
2. Implement proactive measures and contingency plans for monthly, quarterly, and annual tax management, and delve into the specifics of tax and legal procedures.
The study of law and the practice of law in Vietnam are two very different things. If legal practitioners focus too heavily on theoretical knowledge without considering the perspective of business owners, we will always find ourselves needing more than what lawyers or accountants can advise us on. But I’m unsure whether or not to share our deeper concerns from the perspective of a founder.
3. Maintain accurate bookkeeping, submit reports on time, and proactively develop detailed accounting adjustments before tax settlement.
4. Effectively explain tax data to tax authorities when issues arise and designate a coordinator to facilitate internal communication and reconcile detailed expense items with the general accountant. (This individual should be well-versed in tax matters, manage tax-related documents and records, and possess the authority to settle tax payments.)
5. Align company structure and legal compliance with tax reporting requirements: Input and output VAT; CIT, PIT.
Currently, Equitix offers intensive founder-focused courses on management, governance, and in-depth business understanding from a financial perspective, as follows:
a) Course 01: Finance & Accounting for non-finance founders: learn to speak the same language as your finance and accounting team for business operations and asset management, and understand the language of shareholders and professional financial investors.
- 4-6 sessions
- Tuition fee: VND7.5mn /person
- Early bird registration: VND6.9mn/person
- Group registration: VND6.5mn/person
b) Course 05: Business Operations, Organization & Management According to Financial Plan (Revenue, Expenses, Profit)
- 4 – 5 sessions Tuition fee: VND6.5mn/person
- Early bird registration: VND5.9mn/person
- Group registration: VND5.5mn/person
c) Course 02: In-depth BSC Course – KPIs, From Strategy to Implementation in the Process of Receiving Capital from Investors 12 sessions
- Tuition fee: 35,000,000 VND/person
- Early bird registration fee: 32,500,000 VND/person
- Group registration fee:
- Group of 2: 32,000,000 VND/person
- Group of 3-4: 31,000,000 VND/person
- Group of 5 or more: 29,000,000 VND/person
d) Special Discount Course: 39,000,000 vnd (Original Price: 49,000,000 vnd). Students will have access to all of Equitix’s online and offline courses for 1 year.
e) 1:1 Finance Mentorship Program
- Evening sessions (6-10 sessions)
- Tuition fee will be quoted based on individual needs (after a 1:1 interview) and will vary depending on the business model, existing accounting data, the specific challenges faced by the founders, and the need for privacy and data security.
f) F1 Mentoring Program – Asset Management
- Tuition fee will be quoted based on individual needs (after a 1:1 interview) and will vary depending on the business model and your level of commitment.
Instructor Information: Lucas Phung.
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