Year End Statutory Compliance Of The Representative Office Of Foreign Traders In Vietnam

The end of the year is the time when businesses have to race with business operations and the preparation of reports to close a year of operations. The Representative Office of Foreign Traders (“RO”), in particular, will need to plan how they will complete full and timely compliance reports in order to avoid statutory fines for late submission. Let’s take a look at all the information below.

Overview Of Ro

- The RO performs the functions of a liaison office, conducts market research, and promotes the business investment opportunities of the traders they represent.

- A RO is established in Vietnam, operating under an operation license issued by the Department of Industry and Trade with a circular seal and tax identification number, and its legitimate rights and interests are protected during its operation in accordance with Vietnamese law.

- It recruits Vietnamese and foreign workers to work at RO in accordance with Vietnamese law

- The RO is responsible for sending, according to the form of the Ministry of Industry and Trade, information on its activities in the previous year by post to the licensing agency.

Deadline For Submission Of Ro’s Operation Report

- Before January 30 every year, the RO is responsible for sending reports, according to the form of the Ministry of Industry and Trade, on its activities in the previous year by post to the licensing agency.

- The RO is obliged to report and provide documents or explain the issues related to their operations at the request of a competent state authority.

Main Elements Of The Operation Report With Which The Ro Must Comply

Report on the employment situation:

• Domestic workers and foreign workers
• Mandatory insurance and personal income tax compliance
• The situation of labor changes throughout the year.

Report on the activities of the RO:

• Allowed commercial activities.
• Manage and promote contracts.
• Market research
• Product development
• Promoting business opportunities: buying and selling goods
• Other activities

The Risk Of Not Supplying Or Lately Supplying The Ro’s Report

- Failure to submit the annual report or submitting the report late may result in a penalty of up to 40 million VND and affect the consideration of the renewal of the office license and other procedures in the future. Simultaneously, additional reports must be submitted as prescribed. Furthermore, the presentation and content of the operation report are related to the basis for comparison with the labor declaration, returns, and finalization of personal income tax of each individual employee, as well as the office head.

- If signs of a violation are detected, state agencies can conduct an interagency inspection, including the coordination of tax and labor agencies as well as the Department of Industry and Trade, to conduct fieldwork directly.

Therefore, when realizing the difficulties and risks arising from the obligations to perform the reports of the RO, Viet Australia Auditing Ltd., with many years of experience and providing quality services on tax declaration, accounting, auditing, and financial advice, always looks forward to accompanying you to contribute and support our clients through the service of the annual operation report of the RO to minimize the risks of non-compliance by the RO for foreign traders in Vietnam

We will:

 - Assist you in preparing the RO's operation report;

 - Assist you in finalizing the PIT for all RO staff.

-  Other advice is available at your request.

You can use our RO service with complete confidence that you are in compliance.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.