Annual Compliance Checklist for Foreign-Owned Companies in Vietnam
So, you’ve successfully registered your business in Vietnam—congratulations! Now comes the next crucial phase: running your company while staying on top of the country’s regulatory responsibilities. Whether you’re an SME, startup, or expanding foreign business in Vietnam, meeting your annual legal and financial obligations is essential. It’s not just about avoiding penalties—it’s about keeping operations smooth, protecting your legal status, ensuring profit repatriation, and building trust, there are important requirements every foreign-owned company must follow.
In this guide, we’ll walk you through an updated compliance checklist from taxes and labor to reporting and bookkeeping in Vietnam, which will keep your business running efficiently.
1. Annual Financial Audit and Reporting in Vietnam
One of the most critical responsibilities for and FIEs is annual financial reporting and statutory audit. Under Vietnamese law, all foreign-invested companies must submit audited financial statements every year.
All reports must adhere to Vietnam Accounting Standards (VAS). Unlike international standards (IFRS), VAS has distinct regulations and classification principles. It’s essential that Vietnam accountants or local auditing firms review your reports to ensure full compliance.
Submission deadline is 90 days after fiscal year-end, which is typically March 31 if your fiscal year ends on December 31. If your business is located in export processing zones or high-tech parks, you may face additional submission requirements to authorities such as zone management boards.
Financial Statements Required when reporting in Vietnam:
- Statement of Income – Summary of revenues, expenses, and profits/losses
- Statement of Financial Position (Balance Sheet) – Snapshot of assets, liabilities, and equity
- Statement of Changes in Equity – (If applicable) Changes in ownership interest
- Statement of Cash Flows – Movement of cash during the fiscal year
- Notes to the Financial Statements – Detailed breakdowns and accounting assumptions
Who Must You Submit to?
- Department of Planning and Investment (DPI)
- Provincial Tax Department
- Provincial Statistical Office
- Other relevant agencies (e.g., Ministry of Planning and Investment)
Need a Chief Accountant? Do you even need a Chief Accountant? Read our guide for more information about the critical role of Chief Accountants in Vietnam
2. Corporate and Personal Income Tax Finalization
Tax compliance is the next core element of running a foreign business in Vietnam. Every year, companies must finalize their Corporate Income Tax (CIT) and Personal Income Tax (PIT) obligations for the prior year.
The deadline for Corporate and Personal Income Tax Finalization is within 90 days after the fiscal year ends—usually March 31.
Corporate Income Tax (CIT):
- Current CIT rate is generally 20% on profit
- Companies must reconcile provisional quarterly CIT payments with the actual annual figures
- Late submissions can result in interest penalties or audits
Personal Income Tax (PIT):
- Companies are responsible for withholding and declaring taxes on behalf of their employees
- Annual PIT finalization must be conducted for all staff, including both local and foreign employees
Value-added Tax (VAT):
While Vietnam does not apply a Goods and Services Tax (GST), it enforces a Value-Added Tax (VAT) system that businesses must self-assess and declare either monthly or quarterly, depending on annual revenue. Current key VAT rates include:
- Standard Rate: 10% (currently 8% effective from July 1, 2025, until December 31, 2026 according to the latest regulations)
- Reduced Rate: 5% (applies to essential goods and services such as agricultural products or medical equipment)
- Zero Rate: 0% (for exported goods and services that meet eligibility criteria)
Accurate VAT reporting—covering input and output tax—is essential for compliance and eligibility for refunds. To avoid penalties and ensure proper filing under Vietnam accounting standards, many foreign businesses in Vietnam work with local Vietnam accountants or a bookkeeping service in Vietnam familiar with cross-border and domestic VAT obligations.
Need a quick guide on other Taxes for Foreign Entrepreneurs in Vietnam? We discuss this extensively in our post about Taxation and Accounting.
3. Business License Tax (BLT)
The Business License Tax, which is also known as "thuế môn bài" in Vietnamese, is a fixed annual fee all businesses must pay to the local tax authority. The amount is based on your company’s charter capital and registered office location.
Simplified Tax Details:
- Companies with capital under 10 billion VND: typically 2 million VND/year
- Capital above 10 billion VND: typically 3 million VND/year
- Payment Deadline: January 30 each year
If you’ve just completed your business setup in Vietnam, you're exempt from BLT for the first calendar year of registration. However, payment resumes from the second year.
4. Labor and Social Insurance Compliance in Vietnam
Proper labor compliance is essential for both legal protection and maintaining a positive workforce reputation. This applies to both local and foreign employees under work permits. The key requirements of Labor and Social Insurance Compliance in Vietnam are:
- All employees must be registered with the local labor department
- Labor contracts must follow Vietnamese labor law templates
- Changes in staff must be reported promptly
As of July 01, 2025, local employees working in Vietnam under fixed-term Employment Contract lasting from 1 month (except for Probationary Contract) are required to participate in compulsory social insurance, including Social Insurance, Health Insurance, and Unemployment Insurance (for local workers only).
The contribution rates for local employees and foreign employees are slightly different. Employee contributions are deducted from salary as per the law.
Accurate calculation and submission are the responsibility of your chief accountants or payroll provider. Mistakes in labor registration can lead to fines, or worse—invalid work permits for foreign employees.
Deadline for labor Reporting:
- Biannual Reports: Due every June 5 and December 5
- Quarterly Foreign Labor Reports: Required if you employ foreigners
Have more question about Social Insurance in Vietnam?
5. Foreign Direct Investment (FDI) Reporting
All foreign-owned companies must submit FDI reports to track the flow of foreign capital and business performance. Types of reports are:
- Quarterly FDI Report: By the 10th of the month following each quarter
- Semi-Annual Report: Before July 10
- Annual FDI Report: Before February 10 of the following year
Common Mistakes:
- Failing to update changes in charter capital
- Omitting information about overseas shareholders
- Missing deadlines due to lack of calendar tracking
These filings are critical for maintaining your FDI certificate and avoiding issues with profit repatriation or new investment rounds.
6. Bookkeeping and Record Keeping in Vietnam
Proper bookkeeping in Vietnam is also another legal obligation—not just an accounting best practice. Businesses are expected to maintain detailed records and be audit-ready at any time.
What You Need to Maintain:
- Cashbooks
- Invoices and Vouchers
- Payroll and Salary Slips
- Bank Reconciliation Reports
- Fixed Asset Registers
- Inventory and Stock Reports
Records must be stored physically or electronically for at least 10 years. Regular internal reviews and periodic assistance from a Vietnam business advisory firm can help reduce risk of discrepancies.
Compliance Tip:
If your business uses international accounting systems (e.g., SAP, Xero, QuickBooks), ensure they are localized to meet Vietnam accounting standards or work with a provider that offers dual reporting in VAS and IFRS formats.
Why Compliance Is Crucial for Foreign Businesses
Failing to comply with Vietnam’s annual requirements can result in serious consequences:
- Administrative fines
- Suspension of business activities
- Inability to remit profits or increase capital
- Legal trouble for company directors or chief accountants
But there are also many benefits to proactive compliance:
- Improved operational transparency
- Faster tax refunds and approvals
- Greater investor and partner confidence
- Eligibility for incentives (e.g., in special economic zones)
Final Words: Plan Ahead and Stay Proactive
Running a successful business in Vietnam takes more than just knowing the market—it also means staying on top of your compliance duties all year round, not just when tax deadlines roll around.
If you’re feeling unsure about where to start or just want the peace of mind that everything’s in order, it’s worth working with a trusted Vietnam business advisory firm that understands the local landscape and supports foreign investors and SMEs every step of the way.
✅ Need help managing your compliance calendar? Book a free consultation with our experts today and get tailored guidance for your company’s compliance obligations in Vietnam.
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Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or investment advice. While every effort has been made to ensure accuracy at the time of publication, laws and regulations may change. Readers are encouraged to consult with qualified legal or financial advisors before making decisions related to foreign investment or share transfers in Vietnam. United Consulting is not liable for any actions taken based on this content.
Annual Compliance Checklist for Foreign-Owned Companies in Vietnam