REPORTING REGIMES IN THE PROCESS OF INVESTMENT ACTIVITIES OF FDI ENTERPRISES

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In order to have policies suitable to the actual investment activities of foreign investors, Vietnamese law contains regulations on reporting regimes during the investment process and requires FDI enterprises strictly comply. However, for many different reasons, many FDI enterprises are administratively fined for reporting violations in investment every year. With the desire to provide necessary legal knowledge in order to minimize risks for clients, OTIS LAWYERS would like to share the following article.

INVESTMENT ACTIVITIES REPORT REGIMES

Reporting content and period of economic organizations implementing investment projects

Quarterly reports are made before the 10th of the first month of the quarter following the reporting quarter, including the contents: Implementation investment capital, net revenue, export, import, labor, tax and budget payments. land and water use situation.
The annual reports are made before March 31 of the following year of the reporting year, including the targets of the quarterly report and the targets of profit, income of employees, expenditures and investments for research. science and technology development, environmental treatment and protection... [ reporting regimes ]

Administrative sanction of violating the report on investment activities

In case FDI enterprises violate regulations on implementation report of investment projects, they shall be administratively sanctioned according to the provisions of Clause 2, Article 15 of Decree No. 122/2021/ND-CP on penalties for violating information and report of investment activities in Vietnam. Specifically, a fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for one of the following acts: Failure to comply with the regime of reporting on investment activities or failing to report on time as prescribed; Reporting dishonestly and inaccurately on investment activities;

TAX DECLARATION REGIME

Enterprises must declare the following basic taxes

VAT tax
Personal income tax
Enterprise income tax
In addition, enterprises can make additional declarations such as special consumption tax, natural resource tax, import and export tax ...

Deadline for tax declaration

The deadline for submitting tax declaration dossiers for taxes declared on a monthly or quarterly as follows:

- No later than the 20th day of the month following the month in which the tax liability arises, for the case of monthly declaration and payment;

- No later than the last day of the first month of the quarter following the quarter in which the tax liability arises, in the case of quarterly declaration and payment.

Time deadline for submitting tax declaration dossiers for annual tax: No later than the last day of the 3rd month from the end of calendar year or fiscal year for annual tax finalization dossiers; no later than the last day of the first month of the calendar year or fiscal year for the annual tax return;

The deadline for submitting tax declaration dossiers for taxes declared and paid for each time a tax obligation arises is the 10th day from the date of arising of the tax obligation. [ reporting regimes ]

Penalties for violations of the deadline for submitting tax returns

A fine ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for submitting tax declaration dossiers beyond the deadline from 01 day to 30 days,
A fine ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for submitting tax declaration dossiers beyond the deadline from 31 days to 60 days.
A fine ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following acts: Submitting tax declaration dossiers within the deadline from 61 days to 90 days; Not filing tax returns but not generating tax payable…
A fine ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for submitting tax returns over 90 days from the deadline for submitting tax returns.

REPORTING REGIMES ON LABOR SITUATION

Deadline for reporting on labor situation

Every 6 months (before June 5) and annually (before December 5), the employer must report the situation of labor change to the Department of Labor, War Invalids and Social Affairs through the Service Portal. National public service and notify the social insurance agency of the district where the head office, branch or representative office is located. [ reporting regimes ]

Administrative sanctions for violations in the field of labor

In the case that FDI enterprises violate labor management regulations, they shall be administratively sanctioned according to the provisions of Clause 2, Article 8, Decree No. 12/2022/ND-CP on penalties for administrative violations in the field of labor management. labor sector, social insurance, Vietnamese laborers working abroad under contracts. Specifically, the act of not reporting the change of labor shall be fined from 5,000,000 VND to 10,000,000 VND.

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