Evaluate factors which effect to the operational efficiency of CIT finalization consulting process at branch of deloitte vietnam tax advisory co , ltd

Hồ Chí Minh, tháng 07/2019 EVALUATE FACTORS WHICH EFFECT TO THE OPERATIONAL EFFICIENCY OF CIT FINALIZATION CONSULTING PROCESS AT BRANCH OF DELOITTE VIETNAM TAX ADVISORY CO., LTD ĐỒ ÁN T

THÀNH PHỐ HỒ CHÍ MINH

GVHD:NGUYEN THI LAN ANH SVTH: LE PHUONG THAO MSSV: 15125037

S K L 0 0 5 8 8 6

Tp Hồ Chí Minh, tháng 07/2019

EVALUATE FACTORS WHICH EFFECT TO THE OPERATIONAL EFFICIENCY OF CIT FINALIZATION CONSULTING PROCESS AT BRANCH OF DELOITTE

VIETNAM TAX ADVISORY CO., LTD

ĐỒ ÁN TỐT NGHIỆP NGÀNH KẾ TOÁN

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION

FACULTY OF HIGH QUALITY TRAINING

GRADUATION THESIS

Topic:

EVALUATE FACTORS WHICH EFFECT TO THE OPERATIONAL EFFICIENCY OF CIT FINALIZATION CONSULTING PROCESS AT BRANCH OF DELOITTE

VIETNAM TAX ADVISORY CO., LTD

Ho Chi Minh City, August 2019

(dòng 25) Tp Hồ Chí Minh, tháng - năm 2014 (chữ thường, cỡ 13; ghi tháng năm bảo vệ)

NGUYEN THI LAN ANH

Student’s name : LE PHUONG THAO

15125037 Student ID :

Course : 2015 Major : ACCOUNTING Instructor : Msc

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION

FACULTY OF HIGH QUALITY TRAINING

GRADUATION THESIS

Topic:

EVALUATE FACTORS WHICH EFFECT TO THE OPERATIONAL EFFICIENCY OF CIT FINALIZATION CONSULTING PROCESS AT BRANCH OF DELOITTE

VIETNAM TAX ADVISORY CO., LTD Student’s name : LE PHUONG THAO Student ID : 15125037

Course : 2015 Major : ACCOUNTING Instructor : Msc NGUYEN THI LAN ANH

Ho Chi Minh City, August 2019

(dòng 25) Tp Hồ Chí Minh, tháng - năm 2014 (chữ thường, cỡ 13; ghi tháng năm bảo vệ)

Tp Hồ Chí Minh, ngày 02 tháng 07 năm 2019

NHIỆM VỤ KHÓA LUẬN TỐT NGHIỆP

Họ và tên sinh viên: LÊ PHƯƠNG THẢO MSSV: 15125037

Giảng viên hướng dẫn: Thạc sĩ NGUYỄN THỊ LAN ANH ĐT:

Ngày nhận đề tài: 17/05/2019 Ngày nộp đề tài: 02/07/2019

2 Các số liệu, tài liệu ban đầu: Sơ đồ tổ chức công ty, Báo cáo

tài chính minh bạch, Kết quả phát triển khách hàng qua các năm

3 Nội dung thực hiện đề tài: Đánh giá sự ảnh hưởng của các

nhân tố tác động đến hiệu quả hoạt động của quy trình tư vấn

quyết toán thuế TNDN

4 Sản phẩm: 01 bản báo cáo đóng bì cứng mạ vàng và 01 đĩa

CD có ghi file khoá luận tốt nghiệp

TRƯỞNG NGÀNH GIẢNG VIÊN HƯỚNG DẪN

CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM

Độc lập – Tự do – Hạnh phúc ***

1 Tên đề tài: Đánh giá các nhân tố ảnh hưởng đến hiệu quả hoạt

động của quy trình tư vấn Quyết toán thuế TNDN tại Chi nhánh

công ty TNHH Tư vấn Thuế Deloitte Việt Nam

CỘNG HOÀ XÃ HỘI CHỦ NGHĨA VIỆT NAM

Độc lập – Tự do – Hạnh Phúc

*******

PHIẾU NHẬN XÉT CỦA GIÁO VIÊN HƯỚNG DẪN

Họ và tên Sinh viên: LÊ PHƯƠNG THẢO MSSV: 15125037

Ngành: Kế Toán

Tên đề tài: Đánh giá các nhân tố ảnh hưởng đến hiệu quả hoạt động của quy trình tư vấn quyết toán thuế TNDN tại Chi nhánh Công ty TNHH Tư vấn Thuế Deloitte Việt Nam

Họ và tên Giáo viên hướng dẫn: Thạc sĩ NGUYỄN THỊ LAN ANH

NHẬN XÉT 1 Về nội dung đề tài & khối lượng thực hiện:

2 Ưu điểm:

3 Khuyết điểm:

4 Đề nghị cho bảo vệ hay không?

5 Đánh giá loại:

6 Điểm: ……… (Bằng chữ: )

Tp Hồ Chí Minh, ngày tháng năm 20…

Giáo viên hướng dẫn

(Ký & ghi rõ họ tên)

CỘNG HOÀ XÃ HỘI CHỦ NGHĨA VIỆT NAM

Độc lập – Tự do – Hạnh Phúc

*******

PHIẾU NHẬN XÉT CỦA GIÁO VIÊN PHẢN BIỆN

Họ và tên Sinh viên: LÊ PHƯƠNG THẢO MSSV: 15125037

Ngành: Kế Toán

Tên đề tài: Đánh giá các nhân tố ảnh hưởng đến hiệu quả hoạt động của quy trình tư vấn quyết toán thuế TNDN tại Chi nhánh Công ty TNHH Tư vấn Thuế Deloitte Việt Nam

Họ và tên Giáo viên phản biện:

NHẬN XÉT 1 Về nội dung đề tài & khối lượng thực hiện:

2 Ưu điểm:

3 Khuyết điểm:

4 Đề nghị cho bảo vệ hay không?

5 Đánh giá loại:

6 Điểm: ……… (Bằng chữ: )

Tp Hồ Chí Minh, ngày tháng năm 20…

Giáo viên phản biện

(Ký & ghi rõ họ tên)

my future career path

Second, I am expressing my heartfelt gratitude Faculty of High Quality Training from Ho Chi Minh City University of Technology and Education for the kindness to give

me the opportunity to complete the internship successfully and prepare the final graduation thesis

Third, I would like to thank my beloved family Thank you, my parents and my brother because they were always on the side of the encouragement and the rear was solid during the time I completed this graduation thesis

Finally, I would like to thank deeply to all of the colleagues from Branch of Deloitte Tax Advisory Company Limited in general and management team, seniors and consultants of business tax team in particular for your kind support in ech engagement which we go through together in the peak season as well as motivating me to make something new everyday during my internship program

Sincerely thanks!

LE PHUONG THAO ii

TÓM TẮT KHÓA LUẬN TỐT NGHIỆP

Trong bất kỳ một quy trình nào luôn tồn tại những điểm tốt và chưa tốt ảnh hưởng đến hiệu quả hoạt động để nhà quản lý tìm cách hoàn thiện hơn nhằm nâng cao chất lượng sản phẩm cung cấp đến khách hàng, không chỉ trong lĩnh vực sản xuất mà còn cả trong ngành dịch vụ Khóa luận tốt nghiệp này nhằm đánh giá các nhân tố ảnh hưởng đến hiệu quả hoạt động của quy trình tư vấn quyết toán thuế TNDN; từ đó đề xuất giải pháp khắc phục các nhược điểm còn tồn tại ở Bộ phận Thuế của Deloitte Việt Nam

Trước hết, bài viết giới thiệu khái quát về tình hình hoạt động toàn công ty nói chung và tư vấn thuế nói riêng tại công ty TNHH Tư vấn thuế Deloitte Việt Nam Tiếp theo, tác giả hệ thống hoá cơ sở lý luận các đặc điểm và chức năng của thuế, hoạt động

tư vấn thuế và các yếu tố ảnh hưởng đến hiệu quả hoạt động của một quy trình Nội dung chương này là nền tảng, là cơ sở để có thể theo dõi và làm căn cứ lý luận cho các chương tiếp theo Kế đến, bài báo cáo mô tả quy trình tư vấn quyết toán thuế TNDN một cách

cụ thể Tác giả tập trung mô tả từng bước của quy trình từ khi bắt đầu đến khi kết thúc

Ở mỗi bước sẽ có những vấn đề, nhân tố nào phát sinh Chương này chỉ tập trung mô tả

và nêu ra các nhân tố ảnh hưởng đến hiệu quả hoạt động của quy trình Chương tiếp theo là chương quan trọng của khóa luận Tác giả đi sâu vào đánh giá ảnh hưởng của các nhân

tố đến hiệu quả của quy trình Tác giả đánh giá dựa trên mức độ ảnh hưởng (rất cao/cao/bình thường/thấp/không ảnh hưởng), kết quả của việc ảnh hưởng (tốt hay chưa tốt) và mức độ nhà quản lý có thể kiểm soát được hay không Cơ sở của việc đánh giá được trình bày cụ thể ở đầu chương Qua đó tác giả có cái nhìn tổng quan hơn về quy trình có hiệu quả hay không và từ đó đề xuất giải pháp khắc phục Và phần cuối cùng của bài báo cáo, tác giả đưa ra giải pháp dựa trên các nhân tố tác động chưa tốt đến hiệu quả của quy trình

Những phát hiện của bài nghiên cứu này đã bổ sung tài liệu về quy trình tư vấn quyết toán thuế TNDN, đồng thời cung cấp ý nghĩa lý luận và thực tiễn

Từ khoá: Quy trình Tư vấn thuế; Quyết toán TNDN; hiệu quả

LE PHUONG THAO iii

BRIEF OF GRADUATION THESIS

In any process, there are always good and not good factors affecting the operational efficiency so that management team can find more perfect ways to improve the quality of products provided to clients, not only in the field of production but also in the service industry This graduation thesis aims to evaluate the factors affecting the operational efficiency of the CIT finalization consulting process; thereby proposing solutions to overcome the shortcomings that exist at Tax function of Deloitte Vietnam

First of all, the article gives an overview of the overall company performance and tax consulting process in particular at Deloitte Vietnam Tax Consulting Co., Ltd Next, the author systematized the rationale for the characteristics and functions of taxes, tax consulting activities and factors affecting the operational efficiency of a process The content of this chapter is the foundation, which is the basis for being able to follow and make the theoretical basis for the next chapter Next, the report describes the consulting process for CIT finalization The author focuses on describing each step of the process from start to finish At each step there will be problems and factors that arise This chapter only focuses on describing and outlining factors affecting the operational efficiency of the process The next chapter is an important chapter of the thesis The author delves into assessing the effect of factors on the efficiency of the process The author assesses based on the level of influence, the results of the influence and the level

of managers can control or not The basis of the assessment is presented in detail at the beginning of the chapter Thereby, the author has a better overview of whether the process is effective and therefore suggests solutions to overcome And the final part of the report, the author offers solutions based on factors that have not impacted the efficiency of the process

The findings of this study have supplemented the document on the process of advising CIT finalization and providing theoretical and practical significance

Keywords: tax consulting process; CIT Finalization; efficiency

LE PHUONG THAO iv

CATEGORY

ACKNOWLEDGE i

TÓM TẮT KHÓA LUẬN TỐT NGHIỆP ii

BRIEF OF GRADUATION THESIS iii

CATEGORY iv

SUMMARY OF ACRONYMS vii

SUMMARY OF TABLES ix

SUMMARY OF DIAGRAMS x

SUMMARY OF CHARTS x

ABSTRACT xi

CHAPTER 1 OVERVIEW ABOUT TAX CONSULTING SERVICE AT BRANCH OF DELOITTE VIETNAM TAX ADVISORY CO., LTD 1

1.1 OVERVIEW ABOUT BRANCH OF DELOITTE VIETNAM TAX ADVISORY 1

1.1.1 The general information 1

1.1.2 History of establishment and development 1

1.1.3 Business strategy 3

1.1.4 Business area 3

1.1.5 General information of business outcome 4

1.1.6 Company structure 5

1.2 OVERVIEW ABOUT TAX CONSULTING SERVICE 8

1.2.1 Overview about clients 8

1.2.2 Types of provided services 9

1.3 TYPES OF SERVICE PROVIDED BY CIT TEAM 10

1.3.1 Support investors to involved in the market 10

1.3.2 Tax strategy 11

1.3.3 Review nature of compliance with tax laws of enterprises 12

1.3.4 Calculate and prepare tax returns 12

1.3.5 Tax consulting service for merger and acquisition transactions 13

1.3.6 Consultation to support the transfer pricing documents 13

LE PHUONG THAO v

SUMMARY OF CHAPTER 1 14

CHAPTER 2 THEORETICAL BASIS OF TAX CONSULTING SERVICE 15

2.1 DEFINITION AND CHARACTERISTICS OF TAX 15

2.1.1 Definition of tax 15

2.1.2 Characteristics of tax 16

2.1.3 Functions of taxes 16

2.2 TAX ADMINISTRATION UNDER THE MECHANISM OF SELF ASSESSMENT 18

2.2.1 Introduce about modes of self assessment 18

2.3 TAX CONSULTING SERVICE 21

2.3.1 Definition of tax consultancy 21

2.3.2 Role of tax consulting service in economic market 23

2.3.3 Factors that affect to the operational effectiveness of tax consulting process 27

SUMMARY OF CHAPTER 2 32

CHAPTER 3 THE REALITY TAX CONSULTING PROCESS OF CIT FINALIZATION ENGAGEMENT AT BRANCH OF DELOITTE VIETNAM TAX ADVISORY CO., LTD 33

3.1 THE REALITY ABOUT ENGAGEMENT CIT FINALIZATION OF TAX FUNCTION 33

3.2 DESCRIBE TAX CONSULTING SERVICE – CIT FINALIZATION ENGAGEMENT 35

SUMMARY OF CHAPTER 3 40

CHAPTER 4 EVALUATE THE OPERATIONAL EFFICIENCY OF TAX CONSULTING PROCESS AT DELOITTE – CIT FINALIZATION 41

3.1 OUTSIDE FACTORS 43

3.1.1 Characteristics and business areas of clients 43

3.1.2 Information provided by clients 44

3.1.3 Storage way of supporting documents 46

3.1.4 Corporation of clients during team fieldwork 47

3.1.5 Feedback of clients 50

3.1.6 Authorities and regulations 50

3.2 INSIDE FACTORS 51

LE PHUONG THAO vi

3.2.1 Accepting clients process 51

3.2.2 Number of available personnel 53

3.2.3 Quality of tax consultants 56

3.2.4 Budget for fieldwork 58

3.2.5 Pressures from assignments 60

3.2.6 Feedbacks from management team 62

SUMMARY OF CHAPTER 4 64

CHAPTER 5 SOLUTIONS TO IMPROVE TAX CONSULTING PROCESS – 65 CIT FINALIZATION ENGAGEMENT AT BRANCH OF DELOITTE VIETNAM TAX ADVISORY CO., LTD 65

5.1 IMPROVE THE LEVEL OF UNDERSTANDING ABOUT BUSINESS PROFESSIONS FOR TAX CONSULTANTS 65

5.2 IMPROVE PERFORMANCE IN LOOKING FOR SUPPORTING DOCUMENTS IN CLIENT DOCUMENT WAREHOUSES 66

5.3 ENHANCE COOPERATION OF CLIENTS WHEN CONDUCTING FILEDWORK 67

5.4 INCREASE THE NUMBER OF TAX CONSULTANTS TO MEET THE NEED FOR TAX CONSULTING WHILE STILL ENSURING QUALITY 68

5.5 REDUCE PRESSURE ASSIGNMENTS FOR TAX CONSULTANTS 69

SUMMARY OF CHAPTER 5 72

CONCLUSION 73

REFERENCES

SUMMARY OF APPENDIXES

LE PHUONG THAO vii

SUMMARY OF ACRONYMS

Acronyms Description

ACCA Association of Chartered Certified Accountants

DESC Deloitte Entity Search and Compliance system

LE PHUONG THAO viii

Acronyms Description

LE PHUONG THAO ix

SUMMARY OF TABLES

Table 1.1: Some financial indicators, period from 2015 – 2018 4

Table 1.2: Analysis of some financial indicators, period from 2015-2018 4

Table 1.3: Summary of revenue in 2012 by service line for fiscal year from 01 July, 2017 to 30 June, 2018 5

Table 4.1: Level and interpretation of affection 41

Table 4.2: Result affection and their explaination 42

Table 4.3: Level and interpretation of control 43

Table 4.4: Level of available of information need to be provided by clients 45

Table 4.5: Sample some information need to collect when interview clients 48

Table 4.6: Summary of Tax function’s employment of Branch of Deloitte Vietnam Tax Advisory Co., Ltd 54

Table 4.7: Factors which impact the effectiveness performance of Tax function 64

LE PHUONG THAO x

SUMMARY OF DIAGRAMS

Diagram 1.1: Structure of Deloitte Tax Advisory Co., Ltd 5 Diagram 1.2: Tax function’s structure 8 Diagram 3.1: General CIT finalizaiton engagement process 34

SUMMARY OF CHARTS

Chart 4.1: Employment structure of Tax function in 2018 54 Chart 4.2: Proportion of employees divided by level (Corporate Income Tax team) 55 Chart 4.3: Summary of jobs which tax consultants have involed in 2018 61 Chart 4.4: Breakdown of employees may be effected due to many assignments 62

LE PHUONG THAO xi

ABSTRACT

i THE SIGNIFICANCE OF TOPIC

Tax consulting services have been formed and developed for a long time in developed countries in the world, including Vietnam Since 2007, our country has become an official member of the WTO And after many years with many new trade agreements, according to the commitment, we have to open the market for trade and service activities with other member countries This means that competition for businesses will become bigger, enterprises need to take advantage of all advantages to

be able to get the best competitive advantage with other competitors, with a focus on obligations taxation to make a difference will also be necessary when other factors have been considered

With the continuous development of enterprises in terms of quantity, form and scale of operations, in addition, it requires the transparency and healthy financial status

of enterprises in the market economy and economic integration Hence, the assistance of tax consulting services for enterprises in compliance with tax laws is essential Businesses want to ensure that they comply with the prescribed standards, so checking the tax performance is an inevitable need whereby businesses understand their tax payment and find themselves a business advantages from tax savings on the basis of compliance with regulations

In the Vietnam tax consulting market, Deloitte has nearly 10 years of experience

in consulting and proposing solutions to improve the efficiency of tax savings for businesses Highlights must include the process of consulting CIT finalization that the company provides to clients has created a great value for society every time the CIT finalization season comes Therefore, luckily, I had the opportunity to have involve in as

an internshipprogram at the Branch of Deloitte Vietnam Tax Advisory Co., Ltd, I was exposed to the standard and professional tax consulting process In order to build an

LE PHUONG THAO xii

overview of the management executives on the tax consulting process, I selected the

topic of graduation thesis: "Evaluate factors effect to the operational efficiency of CIT

Finalization consulting process at Branch of Deloitte Vietnam Tax Advisory Co., Ltd."

ii THE TARGET OF GRADUATION THESIS

On the basis of analyzing the collected information and data, the graduation thesis will clarify the issues:

 Briefly describe of the process of establishment and development; organizational structure at Branch of Deloitte Vietnam Tax Advisory Co., Ltd.;

 Introduce the tax consulting services that Deloitte provides to clients;

 Describe the standard tax consulting process– CIT Finalization at Deloitte;

 Evaluate factors affecting the operational efficiency of the tax consulting process – CIT finalization service;

 Proposing solutions to improve factors that have not impacted well on the operational efficiency of the process

iii RESEARCH METHODS

a Research through theretical basis method: Seeking for related

regulations + Law: No 78/2006/QH11 dated November 29th, 2006 on tax administration; + Law: No 21/2012/QH13 dated November 20th, 2012 on amending and supplementing a number of articles of the law on tax administration;

+ Circular: No 78/2014/TT-BTC dated June 18th, 2014 on guiding the implementation of the government’s decree no 218/2013/ND-CP of December 26, 2013, detailing and guiding the implementation of the law on CIT;

+ Circular: No 96/2015/TT-BTC dated June 22nd, 2015 on guidelines for corporate income tax in the government's decree no 12/2015/ND-CP dated February

LE PHUONG THAO xiii

12th, 2015 on guidelines for the law on amendments to laws on taxation and amendments

to degrees on taxation; amendments to some articles of circular no 78/2014/TT-BTC dated June 18th, 2014, circular no 119/2014/TT-BTC dated August 25th, 2014, and circular no 151/2014/TT-BTC dated October 10th, 2014 of the ministry of finance

b Research and obtain information through practical events: there are

small steps in this method, including:

 Interview with tax consultants

 Observe and record during the filedwork

 Use the company's training materials

c Descriptive method: After obtaining information and acknowledge, the

author implement to the description and presentation step, including:

 Summarize and evaluate based on reports and data

 Present information by tables, diagrams and chart

 Review based on survey result

iv OBJECTS AND RANGES OF RESEARCH

Object: The object of research isthe operational effectiveness of tax consulting

process – CIT Finalization engagement at Branch of Deloitte Vietnam Tax Advisory

Ltd., Co

Ranges: Ranges of graduation thesis are factors which may have affected to

operational effectiveness of tax consulting process – CIT Finalization engagement at Branch of Deloitte Vietnam Tax Advisory Ltd., Co

5 NEW POINTS OF THE GRADUATION THESIS

 Describe a detail of the tax consulting process, applied to CIT Finalization engagement at one of the four largest companies providing audit and advisory services in the world;

LE PHUONG THAO xiv

 Evaluate factors that affect the performance of this process;

 Proposing solutions to overcome the factors that are not good

v THE STRUCTURE OF GRADUATION THESIS

Besides the abstract, conclusion, list of tables, diagrams and charts, summary of

references and appendixes, the thesis consists of 5 chapters:

Chapter 1: Overview about tax consulting service at Branch of Deloitte

Vietnam Tax Advisory Co., Ltd

Chapter 2: Theoretical basis of tax consulting service

Chapter 3: The reality tax consulting process of CIT Finalization engagement at

Branch of Deloitte Vietnam Tax Advisory Co., Ltd

Chapter 4: Evaluate factors affect to the operational efficiency of tax consulting

process at Deloitte – CIT Finalization Engagement

Chapter 5: Solutions to improve tax consulting process – CIT Finalization

Engagaement at Branch of Deloitte Vietnam Tax Advisory Co., Ltd

Due to time and knowledge limitations, I cannot avoid mistakes in the finalizing this thesis I hope to receive comments from lecturers and readers so that I can improve my graduation thesis Any feedback please send to the mailbox: lpthao09@gmail.com (Phuong Thao Le), cellphone number: 090 3582 954

Sincerely thanks

Author – Student’s Name

Le Phuong Thao

1.1.1 The general information

Full name of intern entity: Branch of Deloitte Vietnam Tax Company Limited Tax Code: 0103921690-001

Head office: 15th Floor, Vinaconex Tower, 34 Lang ha Street, Lang Ha Ward,

Dong Da District, Hanoi, Vietnam

Location of branch: 18th Floor, Times Square Building, 57-69F, Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Tel: 028 3910 0751

Logo:

Owner: Madam Ha Thi Thu Thanh – Chairwoman – Legal representative of Head office

Fiscal year: 01 July to 30 June

Date of business license: 24/11/2009

Date of operating: 24/11/2009

1.1.2 History of establishment and development

About Deloitte global

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities DTTL is a multinational professional services network Deloitte is one of the "Big Four" auditting organizations and the largest professional services network in the world by revenue and number of professionals In 1845, William Welch Deloitte established

an office in London In 1989, Deloitte, Haskins & Sells merged with Touche Ross to

About Deloitte Vietnam

Deloitte Vietnam - one of the leading auditing and consulting firms in Vietnam was built, developed and inherited the success of 28 years of operation of the former company, Vietnam Auditing Company (VACO)

VACO was established on May 13, 1991 under the Decision No 165 TC / QD-TCCB of May 13, 1991 of the Minister of Finance and transferred to a one-member limited liability company under Decision No 1927 / QD-BTC dated June

30, 2003 of the Minister of Finance It is one of two first independent auditing company to be present in Vietnam (with AASC) In 1992, VACO combined with Deloitte Touche Tomatsu Limited to expand professionally in Vietnam Then these two companies merged to form VACO Deloitte in 1995 In May 2007, an important event for the Vietnam economy when VACO was the first company to successfully convert ownership and from then on VACO Deloitte officially operates under the name Deloitte Vietnam up to now

With over 28 years of experience in the Vietnam market, the clients are served

by over 900 staff located in Hanoi and Ho Chi Minh city offices but also enjoy access

to the full strength of our Deloitte Southeast Asia member firm Through the extensive network, Deloitte Vietnam delivers value-added services in Audit and Assurance, Tax, Financial Advisory, Risk Advisory, and Professional Training Services to the private and public sectors across a wide range of industries

About Deloitte Vietnam Tax Advisory (Tax function)

Tax solutions are always a compulsory matter of primary concern for all enterprises, especially in a developing market in Vietnam where tax regulations and policies are constantly being perfected As member firm of Deloitte Vietnam, Deloitte Vietnam Tax was established in 2009 with local tax consultants who are deeply knowledgeable about the Vietnamese tax regulations, have a close relationship with

2017 is 10.2%), this is quite understandable in recent years, Deloitte and Big Four companies focus on investing and developing the consulting field Auditing and assurance services grew by 7.7% compared to 2017, financial advisory services increased by 8%, risk consulting services increased by 12%, tax and legal services increased by 8.7%

In order to create an environment for accelerating strategy, Deloitte Vietnam is also actively involved in many activities to contribute to healthy business environment for vocational training The company actively takes part in contributing

to the development of legal documents related to auditing and consulting activities such as: Vietnamese Accounting Standards, Independent Auditing Law, Tax policies, etc Through activities to provide services to the market, Deloitte Vietnam also actively participates in the process of disseminating legal documents that directly affect the operation of enterprises, thereby helping businesses improve management capacity, corporate governance, transparency in operating according to international standards to increase competitive advantage

1.1.4 Business area

In Vietnam, Deloitte Tax mainly provides services to joint stock companies and state – owned enterprise but nowadays, Deloitte Vietnam is expanding into the FDI

manufaturing sectors The business area provided to client include:

 Identify and minimize tax risks in Vietnam and around the world;

 Understand and meet corporate tax compliance obligations;

LE PHUONG THAO 4

 Implement tax strategies to support the business and business goals of the enterprise;

 Settle arising disputes with tax authorities;

 Manage accounting and tax reporting issues

1.1.5 General information of business outcome

Some financial indicators in the period from 2016 – 2018 as follows:

Table 1.1: Some financial indicators, period from 2015 – 2018

Payable to state budget 115,629 114,512 114,811

Earnings after tax 20,739 12,998 16,590

(Source: Transparency report of Deloitte Vietnam Ltd., Co)

The number of payable to the state budget has also increased constantly Deloitte has paid a large source for the budget and gradually increased according to the business results obtained from the years, contributing to enriching the budget

Table 1.2: Analysis of some financial indicators, period from 2015-2018

Items (million VND)

Fiscal year from 01 July, 2017 to 30 June,

2018 compared with Fiscal year from 01 July, 2016 to 30 June,

2017

Fiscal year from 01 July,

2016 to 30 June, 2017 compared with Fiscal year from 01 July, 2015 to 30

June, 2016

Total revenue 159,507 24.00 -7,427 -1.105

Payable to state budget 1,117 0.975 -299,000 0.260

Earnings after tax 7,741 59.555 -3,592 -21.652

(Sourcce: Author combined based on Transparency report Deloitte Vietnam)

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According to Table 1.2, further to the revenue items, Deloitte Vietnam is decreasingly asserting its market with a decrease of nearly 7,5 billion VND compared

to 2017, corresponding to the rate of about 1.1 % In 2018, the increase compared to

2017 has reached an impressive figure of more than VND 155 billion, corresponding

to a speed of nearly 24% The fluctuation of revenue targets partly reflects the growth rate of the tax payable to the state budget Hence, earnings after tax in 2018 increased significantly about 7,8 billion VND, corresponding to an increase of about 60% Through the below table 1.3, based on transparency report 2019 of Deloitte, it is clearly informed that audit service is not the basic service of Deloitte Vietnam anymore (only about 10.5%) Advisory services such as tax consulting, financial and risk advisory are increasingly contributing a large proportion in total revenue (significantly 83%) Evidently, Deloitte Vietnam is developing strongly in the field

of tax consulting and risk management consulting for businesses

Table 1.3: Summary of revenue in 2012 by service line for fiscal year from 01

July, 2017 to 30 June, 2018 Service items Revenue %

Audit financial statements from the public company 86,507 10.495

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and signing tax contracts, accounting services with clients This position is required

to have a professional certificate in accordance with current regulations

Foreign experts: perform professional support for departments and auditing contracts of the company

The management team: is responsible for establishing general orientations such as business strategy, recruitment and training policies, etc The partner is the sole representative of the company, responsible to Deloitte Touche Tohmatsu for all activities of the company, has the power to regulate and decide all activities of the company and representative offices The manager is in charge of the technical review and scientific research in tax function, assisting the partner in executing a number of fields and being responsible to the partner for the tasks authorized by the partner and assignment of implementation

Department of domestic operations perform tax consulting servicesof owned enterprises and domestic companies

state-International professional department: perform tax consulting services of foreign-invested enterprises and international projects

IT and risk management: handle issues related technology systems and ensure the network to operating efficiently

Tax Function: Providing tax and accounting services to clients This is the department deliver important values to the company

The Finance department carries out the accounting and finance work of the company in accordance with the current regulations, performing accounting work at the request of the Board of Directors

Admin department: is responsible for welcoming client when they come to visit or work at the company, synthesizing and processing information from outside, resolving related issues according to their duties and managing general administrative expenses such as: taxi expense, allowance for team fieldwork to claim to accounting department for calculating salaries and benefits Furthermore, they are also responsible to prepare fully the meal vouchers as well as stationeries for team fieldwork in the peak season

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Human Resource department: responsible for managing effectively personnel relations issues including local labor issues, recruiting, insurance, event of firm, etc

Diagram 1.1: Structure of Deloitte Tax Advisory Co., Ltd

(Source: Admin Department of Deloitte Vietnam Ltd., Co)

1.1.6.2 Detailed tax function’s structure

 Partner: Quality control, assign, monitor ganerally of implementing tax engagement

 Senior manager / manager (in charge): Assigned by tax partner (is any rely on specific engagement), responsible for managing and directly providing tax services

 Senior: Assigned by management level, responsible for monitoring team members and directly communicate client to collect data, supporting documents and tax audit minutes Furthermore, one of the main responsibilities of seniors is to figure out the tax issues as well as review the working paper completed by tax consultant through team fieldwork before submitting report to management level

Professional

departments

Tax function Other departments Branchs

: HCMC

Chairwoman: Ha Thi Thu Thanh

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 Consultant 2 (if any rely on the specific engagement): Review the assignment completed by tax consultant 1 and conducting some complicated tax issues to ensure to make report timely

 Consultant 1: Handle tax issues work for client and input to working paper under the direct assignment of manager in charge or seniors

Diagram 1.2: Tax function’s structure

(Source: Tax Function of Deloitte Vietnam)

1.2 OVERVIEW ABOUT TAX CONSULTING SERVICE

1.2.1 Overview about clients

1.2.1.1 The group of clients who are organizations operating in Vietnam

This group includes enterprises of Vietnamese or foreign business organizations that have established legal entities and conduct production and business

Tax Consultant

Partner

Senior Manager

Manager Director

Tax Consultant

Tax Consultant

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activities or provide services in the Vietnamese territory so they are also responsible duty to fulfill tax obligations Using tax consulting services will support them to file taxes professionally, quickly and accurately This group of clients often needs advice

on the responsibility of complying with tax laws such as the services of reviewing and evaluating the effectiveness, the structure of tax organizations, making declarations and tax finalization for common taxes such as corporate income tax, personal income tax, VAT, special consumption tax, etc Clients who are newly established businesses will be supported with tax declaration and registration services for enterprises

1.2.1.2 The group of clients is foreign investors

These are foreign organizations or individuals who plan to invest in Vietnam They will have a need to learn about Vietnam's tax environment and laws, thereby making investment decisions Investors can conduct business activities by establishing new legal entities or conducting business acquisitions In addition, foreign investors can open representative offices in Vietnam or conduct business activities but do not establish a new legal entity In such cases, clients will be assisted

in collecting information about tax laws, as well as the necessary procedures to begin operations in Vietnam Clients are also guaranteed to fulfill their duties in accordance with Vietnamese law and relevant foreign regulations

1.2.2 Types of provided services

Deloitte Tax analyzes the business environment to help client effectively manage potential tax risks related to business operations and maximize the effective tax

structure, build value for entities, via 5 main service lines as below:

 Business Tax service (including CIT team, and global trade advisory service): preparing or review compliance filings to provide companies with confidence on the completeness and robustness of tax reporting (corporate income tax returns, transfer pricing annual returns, double tax treaty claims etc.) In addition, assist to undertake a risk assessment of historic tax liabilities and risks and advise on opportunities to be captured and methods

 Global Employer service: As companies grow and become more global in scope, employment issues become more complex Among the most serious challenges businesses face today is compliance with multifaceted tax laws and labor regulations Deloitte offers well-rounded plans and program development strategies that can help transform global employment programs in a tax- and cost-efficient manner

 Transfer Pricing service: assist companies manage risks by aligning practical transfer pricing services with their overall global business operations and objectives, assist with strategic documentation to support their transfer pricing practices, and resolve disputes efficiently Deloitte has a well-earned reputation for quality and delivering results

 Business Process Solutions service: assist companies identify that unique approach by assessing operational effectiveness, identifying opportunities

to enhance strategic insight and operational efficiencies, and developing an incremental path to improvement by leveraging alternative resource models

1.3 TYPES OF SERVICE PROVIDED BY CIT TEAM

1.3.1 Support investors to involved in the market

This is a service that provides foreign investors with a detailed information system about the investment environment, tax laws and legal conditions when starting business activities in the Vietnamese market

The most general information provided to investors includes:

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 Investment environment: information on the organization of the state management apparatus of Vietnam, the domestic socio-economic situation and foreign trade activities, etc

 The legal system in business operations: regulations and procedures for business registration, market price systems, intellectual property rights, information on enterprise operations

 Types of business organizations: types of businesses with the participation of foreign investors are allowed, legal provisions for each type, regulations on opening branches and representative offices

 Tax system: general provisions on Vietnamese tax laws, details of each tax, tax rates and tax incentives, regulations on transfer pricing, tax declaration, payment and tax administration

 Information on the labor market: labor market situation, regulations on hiring labor, wages, hours of labor, insurance for workers, regulations on hiring foreign workers, etc

1.3.2 Tax strategy

Tax planning is the process of analyzing tax situations, options, and possibilities so that when, when, and when to conduct a business transaction or an individual's transaction to avoid taxes or minimize the amount of tax to be paid in the maximum way For an individual or a business organization, there is usually more than one option to make a taxable transaction and one of the ways to reduce costs is

to choose a plan so that the tax liability is paid By law is the lowest

There are many different tax reduction plans, but whether it is a simple or complex plan, it is all designed to achieve the following main goals:

 Minimizing taxable income: building tax plans to generate the lowest taxable income by paying attention to reasonable expenses for exemption and reduction

 Minimize the tax rate: with each type of transaction will have different applicable tax rates, low tax rates will minimize the tax payable

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1.3.3 Review nature of compliance with tax laws of enterprises

The purpose of reviewing the tax status of an enterprise is to check the compliance of the tax system of the enterprise to the tax law as well as the situation

of tax declaration and payment for prescribed taxes This process helps enterprises to firmly grasp the status of fulfilling their tax obligations, if there are problems and errors, they can promptly repair and avoid the occurrence of tax penalties

Main provided engagement: CIT Review, Tax health check

1.3.4 Calculate and prepare tax returns

With self-declaration and self-payment mechanism, all taxpayers must calculate the tax payable by themselves and fill in the tax return properly and completely Services of calculating and making tax declarations to assist enterprises

in the process of calculating and declaring payable tax amounts, making reports on finalization of enterprise income tax and personal income tax as well as other related taxes

Some service calculated and prepared by CIT team such as: corporate income tax, value-added tax, etc When conducting corporate income finalization service, Deloitte usually provides value-added tax calculation and preparation tax returns monthly Below is the standard questionnaire for clients before conducting value-added tax calculation service

Main provided engagement: CIT Finalization, CIT/VAT/FCWT

Compliance

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1.3.5 Tax consulting service for merger and acquisition transactions

Business transactions have started to develop in Vietnam and along with it is

the expansion of tax consulting services for business transactions An important

requirement in a business transaction is the business situation of the purchased

enterprise, including the status of tax obligations Tax consulting services for business

transactions will help clients review the tax system, the implementation of tax

obligations of enterprises to buy, thereby helping investors make decisions should

implement Business acquisition or not, and also provide advice to help clients realize

and fulfill the tax obligations arising in merger and acquisition transactions

Main provided engagement: Tax due dilligence

1.3.6 Consultation to support the transfer pricing documents

Transfer pricing has always been an issue of interest to multinational

companies in the process of operating in countries around the world This is a fairly

sensitive issue and is highly focused by tax law makers In many countries around the

world, there are mandatory regulations for multinational companies in conducting

transactions with foreign partners, in order to limit the transfer of prices causing tax

losses Knowing the rules of tax laws related to international transfer issues will help

businesses avoid unnecessary violations

This is a special service be in charge by the transfer pricing team (TP team)

CIT team will assist to declare the client's transaction values with the affiliated party

in the CIT finalization documents after the TP team releases the final report and gets

the customer's consent Consulting on preparing transfer pricing documents is always

included in CIT finalization, especially for clients who are managing large-scale

corporates, many subsidiaries and affiliates, etc

Main provided engagement: Transfer pricing, Related party transactions

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SUMMARY OF CHAPTER 1

Chapter 1 introduced an overview of Deloitte Vietnam Tax Consulting Company Limited Some related information: information about Deloitte Global, Deloitte Vietnam, Tax function as well as Deloitte Tax's main business to get a clear view of the direction of operation over the years In addition, the author also introduces tax consulting services that Deloitte Ho Chi Minh branch provides to clients, key client markets as well as management leaders for each individual market

It can be seen that Deloitte Tax Vietnam, which has been operating for nearly 10 years, has become one of the largest auditing and consulting groups in Vietnam and the tax consulting service is proud to be one of Deloitte's core areas brings more added value to society

Due to confidential reasons and company policies, the author does not have ability to obtain the revenue of tax consulting services as well as the revenue of each service line of Tax function (only the level of manager or above have the right to know), therefore author only presented general revenue published on the company's transparency report released on April 9th, 2019

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Chapter 2

THEORETICAL BASIS OF TAX CONSULTING SERVICE

2.1 DEFINITION AND CHARACTERISTICS OF TAX

2.1.1 Definition of tax

In the world economic newsletter, there is no absolute understanding of tax concept On different angles according to the views of different economists, there are different tax definitions

From the perspective of income distribution: "Tax is a form of distribution and redistribution of total social products and national income in order to form centralized monetary funds of the state to meet the spending needs for jobs perform the functions and duties of the state.”

From the perspective of taxpayers: "Taxes are compulsory contributions that every organization and individual must be obliged to contribute to the state according

to law to meet the spending needs for the performance of functions and duties of the house country."

From an economic perspective: "Taxes are a special measure whereby the state uses its power to transfer a portion of resources from the private sector to publice sector to carry out economic and social functions of the state.”

From the above definitions, we can draw some common characteristics of tax:

 First, the economic content of taxation is characterized by each monetary relationship that arises under the state and legal entities, individuals in society

 Secondly, each relationship in this form of currency arises objectively and has

a special social meaning - the transfer of income is mandatory according to the order of the state

 Thirdly, in terms of law, tax is a payment to the state prescribed by law according to a certain amount and time limit

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 From the above characteristics of the tax, we can raise the general concept of tax: Tax is a compulsory contribution from legal persons and entities to the state according to the extent and duration prescribed by law intended for public use

2.1.2 Characteristics of tax

Taxes have relatively stable attributes through each stage of development and expression into its own characteristics, thereby helping us to distinguish taxes from other tools These characteristics are:

Mandatory is the inherent basic attribute of tax to distinguish between taxes and other forms of financial incentives of the state budget This feature makes it clear that the economic content of taxation is an objective monetary perspective that is objectively formed and has a special social meaning - the mandatory mobilization of the state Mandatory nature in the form of tax is a method of distribution of the state, whereby a set of taxpayers' incomes are transferred to the state without a grant or other benefit to taxpayers

2.1.2.2 Direct non-refundable

The direct non-refundable nature of taxes is reflected in the fact that: Taxes are repaid indirectly to taxpayers through the provision of public services by the state Direct non-imperfections are presented both before and after tax Before collecting taxes, the state did not provide a public service directly to taxpayers After paying taxes, there is no direct reimbursement for taxpayers

Tax is a highly legal financial instrument, determined by the political power

of the state and that power is expressed by law

2.1.3 Functions of taxes

2.1.3.1 Mobilizing financial resources for the state

From the moment it arises, taxes are always used as a means of financial resources for the state, the basic function of taxes Thanks to the function of

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mobilizing financial resources, the centralized monetary fund of the state is formed, thereby ensuring the material basis for the existence and operation of the state This function has created the premise for the state to distribute and redistribute total products of society and national income in society Tax is a source of the largest proportion for the state budget

2.1.3.2 Economic regulation function

The economic regulation function of taxes is made through the provision of different forms of tax collection, proper identification of taxable objects and taxpayers, and the correct construction of payable tax rates taking into account ability

of taxpayers, flexible use of incentives and tax breaks

On that basis, the state stimulates economic activities to enter a common orbit,

in accordance with the interests of society Thus, by regulating and stimulating, the economic regulatory function of taxation has been implemented

Between the function of mobilizing financial resources and economic regulation functions, each relationship is intimately close to each other The function

of mobilizing financial resources regulates the impact and development of regulatory functions On the contrary, thanks to the correct application of economic regulation function, it is necessary to develop the function of mobilizing financial resources of tax The increasing function of mobilizing financial resources to ensure the income source for the state has created conditions for the state to influence deeply on economic and social processes This creates a premise to increase income for businesses and strata, thus expanding the base to perform the function of mobilizing financial resources

Along with that unity, there are no contradictions between these two functions The enhancement of the function of mobilizing financial concentration makes the income of the state increase That means expanding the state's ability to implement socio-economic programs On the other hand, enhancing the mobilization function excessively will increase the tax burden and its consequence is to reduce the dynamics

of economic development and undermine the role of economic regulation

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Therefore, in the process of tax administration, planning tax policies at each stage of different economic development needs to pay attention to each relationship between economic regulation function and financial mobilization function of tax

2.2 TAX ADMINISTRATION UNDER THE MECHANISM OF SELF ASSESSMENT

2.2.1 Introduce about modes of self assessment

2.2.1.1 Definition

Self assessment is the self-determination (amount) based on taxfoundation for the tax purposes In a narrow sense, it is understood that the tax payers determine by themselves tax payable amount and paid by himself / herself/ themselves according

to the prescribed time limit.On other hand, self assessment is understood in a broad sense which is used widely nowadays: This is a tax administration method built on the foundation of taxpayers' compliance with the fact that taxpayers themselves perform the obligations prescribed by the Law, the tax authorities are organized and implement tax administration measures in line with that principle (Ha Tiep Nam - Document compiled as required of Fullbright Economics Training Program, page 1)

2.2.1.2 Responsibilities of tax payers

Under this mechanism, organizations and individuals paying taxes based on production and business results in their assessment tax period and based on the provisions of the law on tax will determine tax payable to state budget by themselves, thereby self-filling and self-performing the obligation to pay the declared tax payments into the state budget according to the law-prescribed deadlines

The mechanism of self-assessment requires that organizations and individuals paying taxes must improve their responsibilities because the declarations are due to organizations and individuals paying taxes independently based on their production and business results and tax regime books without the confirmation of the tax authorities The tax payers are responsible for the results of their tax calculation and declaration before law