1. Check and review accounting records and documents

This is the first and important step to ensure that all of the company’s financial information has been recorded completely and accurately.

• Check income and expense documents: Ensure that documents related to revenue and expenses have sufficient invoices, legal documents, and are error-free.

• Check tax deductions: Make sure the company has fully implemented deductions (family deductions, reasonable expenses).

• Check reserves: If the company has reserves for doubtful receivables, payables, or asset losses, it needs to be carefully reviewed to ensure they are reasonable and complete.

2. Check VAT status

• Input and output VAT: Check and compare monthly/quarterly VAT declarations with input and output invoices to ensure there are no omissions or errors.

• Deductible VAT: Ensure that the company has used the correct documents and valid invoices to declare input VAT, avoiding omission of deductible taxes.

4. Check personal income tax status

• Payroll reconciliation and tax deductions: Ensure that the company has properly deducted personal income tax from employees. Pay special attention to tax settlement for employees with income from multiple sources.

• Tax deductions for employees: Check cases of family deductions and tax incentives for employees based on actual income.

3. Check corporate income tax status

• Corporate Income Tax Calculation: Ensure that the company has accurately calculated the corporate income tax payable based on the profit for the year. It is important to note the adjustments for deductible and non-deductible expenses when calculating corporate income tax.

• Tax deductions: Ensure that the company has made the correct tax deductions for the amounts payable.

5. Prepare year-end financial statements

• Prepare complete financial statements: It is necessary to prepare year-end financial statements including:
⚬ Balance sheet
⚬ Profit or Loss
⚬ Cash flow statement
⚬ Detailed explanation of items on the financial statements.

• Ensure data consistency: Ensure that the figures on your financial statements and tax returns match.

6. Review incentives and tax exemptions (if any)

If the company is enjoying tax incentives (such as preferential corporate income tax, tax exemptions for small and medium enterprises, etc.), it is necessary to review the conditions to ensure that the company is still eligible for these incentives when finalizing.

7. Prepare tax settlement documents

• Corporate income tax finalization declaration: It is necessary to prepare and submit the corporate income tax finalization declaration (form No. 03/TNDN) according to regulations. This is an important declaration to finalize the amount of tax payable or the amount of tax refunded.

• Personal income tax settlement declaration: If an employee needs to settle personal income tax, it is necessary to prepare declaration form 05/KK-TNCN to submit to the tax authority.

• VAT finalization declaration: Ensure that the company has completed monthly or quarterly VAT declarations and submitted the declarations on time.

8. Update and prepare reports and other documents as required by tax authorities

• Provide tax-related documents: If the tax authority requests additional information, reports, or supporting documents, the company should be prepared to provide them on time.

• Check against reports submitted during the year: Review tax reports submitted during the year and compare with actual figures to ensure accuracy.

9. Calculate and pay taxes (if any)

• Paying unpaid taxes: If during the settlement process, it is discovered that there is a tax arrears, the company needs to pay immediately to avoid penalties for late tax payment.

• Stamp and sign tax declarations: Tax settlement declarations must be signed by the legal representative and stamped with the company seal before being submitted to the tax authority.

10. Keep complete records and documents

Ensure that the company has kept all accounting documents, financial statements, and tax returns as required by the tax authorities (usually for 5 years). This is important if the tax authorities request an audit or inspection.

11. Review and reassess tax obligations

The end of the year is an ideal time for companies to review their tax obligations throughout the year, thereby adjusting tax management strategies for the following year, avoiding unexpected tax liabilities.

IFRS Auditing and Consulting Company Limited
The company provides a wide range of services such as audit of financial statements, tax advice, accounting services and valuation services with leading experts working in large auditing firms, multinational corporations