09 Dec Compliance Procedures of Representative Office At The End Of 2017 And Early 2018
The last months of year is always busy with all representative offices. In the first quarter of 2018, there will be a lot of compliance reports and procedures must be completed. Each representative office should prepared of the compliance reports and related procedures from early December to avoid missing the deadlines as well penalties from the competence state agencies.
A. Compliance for tax – accounting
1/ Compulsory tasks:
- Settlement of personal income tax for representative office (the income payer).
- Settlement of personal income tax for individuals having multiple incomes or direct incomes from abroad.
- Double check to issue withhold tax receipts and letter of confirmation of incomes for the resigned employees.
2/ Other important tasks
- Petty cash and Cash Book preparation, collect and organize all related documents and invoices for tax inspection in following years.
- Double check for tax declaration – payment with proper reports and receipts.
- Double check of the balance – tax payable amount with the tax agency.
B. Annual operation report
- By January 30th of each year, every representative office shall submit operation status reports using the form stipulated by the Ministry of Industry and Trade to the licensing agency by post.
- Representative offices shall submit reports, documents and explanations for their operation upon the request of competent state regulatory authorities.
- Fail to submit the reports on time, there will be a penalty amount up to 40 million VND and a black record will impact to the extension office license process in future.
C. Representative office compliance labor and payroll
1/ Compulsory tasks
- Amend labor contracts and annex for new salary agreement in 2018 for each employee.
- Prepare letter of appointment, letter of confirmation of incomes in 2017 for foreign employees.
- Update new procedures for insurance declaration and payment.
- Register and amend payroll system, internal labor regulations, labor agreement… To update new regulations and benefits policies that will enforce early 2018.
2/ Other important tasks
- Collect, organize and update employee profile, annual leaves, attendance, overtime, discipline.
- Prepare letter of confirmation of incomes, personal income tax, withholding receipts… for seasonal employees, employees have direct income from abroad.
- Review key performance indicators of each employee and issue letter of confirmation about the allowance, bonus, promotion plan… accordingly.
With more than 10 years of delivering business consultation for thousands of local and multination clients, Viva Business Consulting is capable to consult and implement any query of business regulations and procedures in the most practical way. We identify and prevent the risks in advance so you can manage your business operation in the simplest and cost-effective way.