What is tax planning? #
Tax planning is an overarching, strategic work that helps to understand and quantify all tax issues before reporting.
Unlike tax evasion, tax avoidance, tax planning is a job with a broader meaning, with strategic significance, including 3 specific things as follows:
Step 1: Find out the tax policy #
1. To correctly understand the tax policy Vietnam applies to your business or to an investment project you have been implementing or are implementing. include:
- Taxes payable
- Tax rates of each type. Tax calculation method, tax payment period
- Common tax risks of corporate business models
- Tax disputes often occur in business models of enterprises, such as real estate business, schools, information technology, logistics ... are the types that often have tax disputes when making tax finalization. .
2. The system of relevant invoices and documents is necessary, including:
- Document type required.
- The time to issue invoices and receive necessary invoices
- Attached documents to prove the actual transaction occurred
- Safely prepare against the risk of receiving invoices from a fleeing business (invoices escaped)
- Other relevant documents regulations.
Step 2: Optimize the payable tax amount based on the tax policy #
- Optimizing the tax payable in the framework of the law.
- Optimizing the invoice and voucher system to ensure protection when making tax finalization with regulators.
Step 3: Control the periodic tax plan #
Control of tax plans includes 3 specific jobs:
- Periodically evaluate the implementation of that plan. Depending on the risk level calculated in step 1, the periodic assessment is usually quarter, 6 months and year, but for activities that generate a lot of documents and high timing, it is necessary to evaluate monthly.
- Optimizing the tax plan: all plans need to optimize over time to ensure consistent with the real arising.
- Make the necessary adjustments in accordance with actual arising.