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PROCEDURES FOR SUBMITTING FINANCIAL REPORTS OF FDI ENTERPRISES
When a foreign business invests directly in a country, filing financial reports is not only a management task but also an important part of the local legal and financial compliance process. In particular, for businesses in Vietnam with foreign direct investment, the procedure for submitting financial reports also requires special attention to legal regulations and implementation processes to ensure accuracy and efficiency. comply properly. Below, Siglaw would like to introduce to readers the procedures for submitting financial reports of foreign-invested enterprises in Vietnam.
What are financial reports? Characteristics and significance of financial statements
Explain the meaning of financial statements
Financial reports are an important document in the business activities of an organization or enterprise. Financial reports provide information about the organization’s financial situation, business performance and financial situation over a certain period of time
Characteristics of financial reports
Financial reports must be prepared based on actual financial data and must be audited to ensure accuracy and transparency.
Financial reports must comply with international accounting principles and standards to ensure consistency and comparability with other organizations.
Financial reports are often prepared over a certain period of time such as quarterly or annually to provide information about the financial situation during that period.
Financial statements often include balance sheets, income statements, cash flow statements and accompanying notes.
Meaning of financial statements
Financial reports provide detailed information about an organization’s financial situation and business performance, helping observers have a comprehensive and detailed view of business operations.
Based on information from financial reports, stakeholders such as investors and banks can make decisions about investing, lending or managing the organization.
Financial reports provide data to evaluate business performance, thereby helping organizations adjust business and financial strategies.
Publishing financial reports helps increase the organization’s transparency and accountability to the community, employees and other stakeholders.
Procedures for submitting financial reports of FDI enterprises
According to Circular 200/2014/TT-BTC, there are two types of financial reports of FDI enterprises: annual financial reports and mid-year financial reports.
For annual financial statements, foreign-invested enterprises need to prepare documents including the following documents:
- Balance sheet according to form No. B01 – DN issued with Circular 200/2014/TT-BTC;
- Report on business results according to form No. B02 – DN issued with Circular 200/2014/TT-BTC;
- Cash flow report according to form No. B03 – DN issued with Circular 200/2014/TT-BTC;
- Explanation of financial statements according to form No. B04 – DN issued with Circular 200/2014/TT-BTC;
- Personal income tax finalization declaration according to form 05/QTT-TNCN;
- Corporate income tax finalization declaration according to form 03/QTT-TNDN.
For mid-year financial reports, FDI business owners can choose to prepare full financial reports or summary financial reports.
- Full financial statements include: Mid-year accounting balance sheet according to form No. B01a-DN issued with Circular 200/2014/TT-BTC; Report on mid-year business results according to form No. B02a – DN issued with Circular 200/2014/TT-BTC; Mid-year cash flow report according to form No. B03a-DN issued with Circular 200/2014/TT-BTC; Explanation of selected financial statements according to form No. B09a-DN issued with Circular 200/2014/TT-BTC.
- In the form of summary interim financial statements, including: Interim balance sheet according to form No. B01b-DN issued with Circular 200/2014/TT-BTC; Report on mid-year business results according to form No. B02b-DN issued with Circular 200/2014/TT-BTC; Mid-year cash flow report according to form No. B03b-DN issued with Circular 200/2014/TT-BTC; Explanation of selected financial statements according to form No. B09a-DN issued with Circular 200/2014/TT-BTC.
The agency receives financial reports of foreign-invested enterprises
Foreign-invested enterprises that prepare annual financial statements must submit financial reports to the following agencies:
- Financial agencies: FDI enterprises must submit annual financial reports to the Department of Finance of provinces and centrally run cities where the enterprise registered its main business headquarters.
- Tax authority: the tax authority to which FDI enterprises must submit annual financial reports is the local Tax Department that directly manages taxes.
- Statistics agency;
- Superior enterprise (if any);
- Business registration agency where the FDI enterprise is headquartered.
Deadline for submitting financial reports of FDI enterprises
For enterprises with foreign investment, the deadline for submitting annual financial reports is 90 days from the end of the fiscal year.
In implementing procedures for submitting financial reports of FDI enterprises in Vietnam, complying with regulations and meeting legal requirements is not only an important task but also an enterprise’s commitment to transparency and accountability to the business community. Through the process of submitting financial reports, FDI enterprises not only meet information needs from management agencies but also build trust, opening the door for opportunities for cooperation, investment and sustainable development in Vietnam. Male. Implementing procedures for submitting financial reports is not only a legal requirement but also builds a trustworthy image and creates a foundation for the stable development of businesses in such a competitive business environment.
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