Investment Reporting, Audit, and Tax Obligations for FDI Enterprises in Vietnam

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Investment Reporting, Audit, and Tax Obligations for FDI Enterprises in Vietnam

Date: 2025.12.11

1. Introduction

When foreign enterprises—especially Japanese companies—invest in Vietnam, compliance with legal regulations on investment reporting, auditing, and taxation becomes a critical requirement.
This not only ensures compliance with Vietnamese law but also demonstrates transparency, professionalism, and credibility in the eyes of regulators and Vietnamese business partners.
From capital contribution and daily operations to profit remittance, every FDI enterprise must prepare and follow the correct procedures for reporting, auditing, and fulfilling tax obligations in accordance with current regulations.

2. Periodic Investment Reports – The First Key Compliance Obligation

According to the Law on Investment 2020 and Decree No. 29/2021/ND-CP, all FDI enterprises are required to submit periodic reports on the implementation status of their investment projects.

Specifically:

Report Type	Submission Deadline	Main Contents	Receiving Authority
Quarterly Investment Report	Before the 10th day of the first month of the following quarter	Capital contribution progress, labor, revenue, costs, tax obligations, environmental compliance, R&D, etc.	Department of Finance; Periodic reporting via the National Investment Information System
Annual Investment Report	Before March 31 of the following year	Summary of investment performance results, capital status, profits, and contributions to the state budget, etc.	Department of Finance; Periodic reporting via the National Investment Information System
Investment Monitoring and Evaluation Report	Annual report: before July First 6-month report: before February 10	Comprehensive assessment of the project’s socio-economic effectiveness, legal compliance, and environmental impact.	Department of Finance; Periodic reporting via the National Investment Information System

⚠️ Note: Failure to submit or late submission may result in an administrative fine of VND 20–50 million and classification as “non-compliant with investment obligations,” which directly affects future amendments to the investment license, project expansion, or extension of operating duration.

3. Financial Statement Audit – Mandatory for All FDI Enterprises

According to the Law on Accounting 2015 and the Law on Independent Audit 2011, all foreign-invested enterprises (FDI) are required to conduct an annual audit of their financial statements.

🔹 Implementation process:

– Prepare Financial Statements in accordance with Vietnamese Accounting Standards (VAS).

– Engage an independent audit firm licensed by the Ministry of Finance to conduct the audit.

– Submit the audited Financial Statements to the following authorities within 90 days from the end of the fiscal year:
+ Directly managing Tax Authority
+ Department of Finance
+ Statistics Office

🔹 Purpose of the Audit:

– To ensure the accuracy and legality of financial data.
– To serve as the basis for tax finalization, evaluation of investment performance, and profit remittance abroad.

💡 Recommendation:
Japanese enterprises are advised to select audit firms with Japanese-speaking staff or cooperate with FDI support partners such as HelpAll to ensure accurate interpretation of both content and financial figures throughout the audit process.

4. Tax Obligations of FDI Enterprises in Vietnam

Throughout their operations, FDI companies are required to fully comply with fundamental tax obligations to the Vietnamese State, including:

Tax Type	Key Features	Filing / Payment Frequency
Corporate Income Tax (CIT)	20% of taxable profits, with reductions available if eligible for investment incentives	Quarterly / Annually
Value Added Tax (VAT)	0%, 5%, or 10% depending on the type of goods or services	If the total revenue from the sale of goods and provision of services in the immediately preceding year is VND 50 billion or less, tax shall be declared quarterly; if it exceeds VND 50 billion, tax shall be declared monthly.
Personal Income Tax (PIT)	Withheld from employees’ salary and wage income, including foreign employees	Quarterly / Annually
Foreign Contractor Tax (FCT)	Levied on foreign organizations and individuals generating income in Vietnam through the provision of goods or services	Per occurrence / Monthly
Annual Financial Statements	Mandatory submission together with audited financial statements	No later than 90 days from the end of the fiscal year, submitted to the relevant authorities in accordance with regulations

Notes on profit remittance abroad
FDI enterprises, especially Japanese companies, may only remit profits overseas when the following conditions are met:

Completion of all CIT obligations.
Availability of legally audited financial statements approved by the tax authority.
Written notification to the Tax Department at least 07 working days prior to the remittance.

Failure to comply may result in delays in banking transactions or requests for additional explanations on the source of funds.

5. The Role of back-office services in FDI compliance

Many foreign enterprises face difficulties when they have to:

– Fully understand Vietnam’s accounting system and standards (VAS);

– Keep track of reporting, tax, and audit deadlines;

– Work with multiple authorities in the Vietnamese language.

➡️ Therefore, using professional outsourced Back-Office services (including accounting, tax, legal, and HR services) helps to:

– Reduce the risk of penalties due to late or non-compliant submissions;

– Optimize operating costs;

– Focus on core business development.

With extensive experience supporting foreign enterprises, Help All provides comprehensive legal and accounting compliance solutions for FDI companies in Vietnam.

Conclusion

Full compliance with regulations on investment reporting, auditing, and taxation helps FDI enterprises minimize legal risks while enhancing professionalism and credibility in Vietnam.

In addition, Circular No. 99/2025/TT-BTC, recently issued and applicable to the 2026 fiscal year, introduces new accounting standards that bring significant benefits to FDI enterprises—especially those with Japanese capital. These standards move closer to IFRS, improve the transparency and consistency of financial statements, reduce the risk of audit adjustments, and provide stronger support for financial management and long-term investment decision-making.