Salary expenses
- Incomplete documents: Labor contract, Timesheet, signature of payment.
- Accounting for salary expenses of the previous year but till the due date of filing corporate income tax return did not spend completely or improperly accruing salary provision expenses (up to 6 months) (It must ensure that after setting up salary accruals, the enterprise does not suffer losses, otherwise it is not allowed to fully deduct 17%).
- Incorrectly accounted into the salary expenses according to the labor contract, employee's bonus, and allowances are not in accordance with regulations.
- Payment of bonuses on the occasion of holidays to employees exceeds the amount specified in the labor contract or collective labor agreement.
- Setting up fictitious labor contracts to claim deductible expense, but not actually spending.
Fixed asset depreciation expense
- Depreciation expense of fixed assets is not fully documented as prescribed, assets are not of the enterprise but still depreciate, depreciate in excess of regulations.
- Expenses for acquisition of fixed assets is recorded one-time as expenses without increasing the fixed assets and calculating depreciation according to regulations; Accounting fixed asset upgrades into expenses.
- Incorrectly accounting for depreciation of fixed assets, the depreciation of fixed assets not serving the production and business activities, the depreciation of machinery and equipment during the period of not participating in production and business activities. (Except for the case of a 9-month seasonal pause and a 12-month move).
- Registering the depreciation method but not consistently implemented.
- Depreciation of fixed assets with historical cost exceeds the limit. (cars exceeded 1.6 billion, planes, yachts)
- No depreciation of fixed assets that serve for employees' welfare.
Cost of sales
- Transferring all production costs to cost of sales in the period, not corresponding to actual revenue generated, not amortizing production and related costs for work in progress at the end of the period.
- Accounting of the amount of raw materials into the cost of the project is higher than the settlement of the works.
- Not keep a detailed record of the cost of construction in progress for each project, cost determination has no basis.
- Make a fictitious purchase of goods list (agricultural, fish, seafood) to account for an increase in cost of sales or expenses.
- Determining the cost of raw materials, fuels and materials in excess of the reasonable consumption norm according to the State's regulations.
- Using illegal invoices of goods and services purchased.
- Accrued expenses payable in advance (Account 335) and account into cost of sales in contravention of regulations; Enterprises do not refund the accruals but have not actually spent.
- The cost of setting up provision for devaluation of inventory, provision for bad debts is recorded in cost of sales in contravention of regulations.
Raw Materials
- Incomplete documents and procedures
- Unreasonable consumption norm: (compared to State regulations)
- Unsuitable input inventory price calculation
- Unsuitable, inconsistent of output inventory price calculation
- Not open detailed books (accounts 152, 154, 155, 156) according to regulations
Interest expenses
- Accounting interest expenses not serving production and business into expenses.
- Personal loan with an interest rate higher than 150% of the basic interest rate regulated by the State Bank.
- Not allocating financial expenses to other activities (other than business) using loan capital.
- Accounting directly to the interest expenses during the basic construction period without capitalization on the assets.
Actual expenses
- Accounting the expenses that do not match the revenue in the period.
- Accounting the accrued expenses that have not been actually spent.
- Accounting the expenses for capital construction investment activities (in the investment process, not yet in operation).
- Accounting expenses for unreasonable expenses, expenses for not serving production and business, expenses without legal invoices and vouchers.
- Bonuses for initiatives and innovations but enterprises do not have specific regulations on bonuses for initiatives and innovations, and there is no council to accept ideas and improvements.
- Accounting into the tax expense of administrative violation fines resulting from tax audit/ inspection in the previous year.
- Enterprises buy agricultural, forestry and aquatic products, buy land, rocks, sand, gravel not directly from the fishermen but make a list (form No. 01 / TNDN) to include in their costs .
- Expenses in excess of 1 month's salary (on average) for expenses for vocational training and benefits directly paid to employees such as: expenses for accident insurance, health insurance, other voluntary insurance for workers.
- Payments for voluntary pension fund, social security fund, voluntary pension insurance, life insurance for employees not included in labor contract, labor agreement.
- Expenditures in excess of VND 5 million for outfits for employees by cash. (Expenses in kind are not controlled).
- Expenses without invoices or documents.
- Recording into expenses payments on behalf of the parent company, related contractors.
- Account expenses for expenses covered by other sources.
- Expenses for education funding not in accordance with the prescribed subjects or there is no document to identify the prescribed funding.
- Expenses for health financing not in accordance with the prescribed subjects or there is no document to identify the prescribed funding.
- Spending on funding for disaster recovery is not in accordance with the prescribed subjects or there is no document to determine the required amount of funding.
- Spending on sponsorship to build houses of gratitude for the poor not in accordance with the prescribed subjects or having no documents to identify the required funding.
- The enterprise expires the CIT incentive period, but still counts.
- Incorrect identification of the industries eligible for incentives; preferential conditions, preferential tax rates, tax exemption or reduction periods.
- Registered the location of operation but later relocated, ineligible for CIT incentives and exemption under the provisions of the investment law and corporate income tax law.
- Not separately account income from business activities entitled to incentives but determine CIT exemption or reduction on the total incentive income not according to the prescribed method.
- Incorrect allocation of expenses between activities with different CIT incentives leads to an increase in the amount of tax exemption or reduction for enterprises in the period of tax exemption or reduction.
- Accounting for cost increase and reduction between business and business activities with tax incentives and non-tax incentives in order to reduce the payable CIT amount in the most profitable direction.
- Apply CIT incentives to other incomes such as financial income, provision reversal, liquidation ...
- Transfer losses in contravention of regulations.
- At the end of the fiscal year, when doing the CIT finalization, review all revenues, compare the suitability of tables and documents, check all reasonable and valid expenses, compare control norms, time consistency between the documents (attached) and the accounting date.
- Make a detailed table of the difference to be adjusted between the accounting books and the tax regime => make declarations to increase or decrease the revenues and expenses according to the tax obligations on the tax declaration.