Q&A, Advice

Answer 1: It refers to the practice of entrusting your organization’s financial statements, tax reports, and other calculations to a contracted, certified, and professional service provider.

Answer 2: Magic Consulting Audit LLC provides the following types of services. Before signing a contract, clients can discuss and agree on additional services to include.

1. Certified Tax Advisor (CTA) Services

2. Auxiliary report preparation

3. Tax report preparation

4. Communication with government financial and tax authorities

5. Document organization

6. Monitoring and reporting

7. Magic Monitoring Service (MMS)

8. Accountability

Answer 3: The contract fee varies depending on the organization’s operations. For detailed information about the fee, please contact the Head of the Certified Tax Advisor (CTA) Services Department. /Phone: 7288-7288, 8811-0975/

Answer 4: Accounting starts with primary documents. Since our country’s tax authorities focus heavily on document inspection during audits, it is crucial to ensure that documents are complete, well-organized, and valid to protect against tax risks.

Some accountants, however, organize documents only in a way they understand, making it difficult for the next person to process, requiring re-organization.

We follow a principle that documents should be clear to anyone, complying with tax and other legal requirements. In other words, financial documents must be standardized like a book. Documents should:

1. Have content, headings, and explanations

2. Be fully numbered

3. Be arranged chronologically

4. Contain signatures of authorized personnel and financial stamps in accordance with the Accounting Law; all supporting primary documents must be valid

5. Be easy to find when searching

6. Be neatly bound and visually presentable

Properly organized documents positively impact the work of future financial personnel.

Answer 5: After two years of contract, clients can voluntarily undergo a tax audit. Our firm assumes responsibility for tax risks in the following cases:

• Risks arising from duplicate documents

• Risks due to incomplete document entry

• Incorrect recording of transactions in the journal

• Failure to submit reports on time

However, we do not assume responsibility in the following cases:

• Risks due to incomplete submission of documents and transactions

• Risks due to late tax payment

• Risks caused by intentionally falsified documents (e.g., fake purchase/sale)

• Risks due to failure to submit report materials on time

Answer 6:

Risk Reduction

• Reduces the risk of errors or shortages in asset recording

• Eliminates major accounting risks caused by accountant turnover

• Reduces the risk of penalties, fines, or assessments from tax audits

Operational Cost Savings

• No need to maintain an in-house accountant for reporting

• Saves on social insurance, meal, transportation, office supplies, and welfare costs associated with accountants

• Reduces training expenses

• VAT refund can be claimed on service fees

• Reduces the likelihood of penalties or fines during tax audits

Employee-related Cost Savings

• Saves on various incentives aimed at employee retention

• Reduces costs for celebrations or bonuses

• Saves potential costs from sudden employee resignation

Capital Expenditure Savings

• No need to purchase high-speed computers, printers, or financial software

• Saves on office furniture and other equipment

Answer 7: The number 7288-7288 can receive multiple calls simultaneously during working hours. Also, 8811-0975 is available during working hours to provide you with the necessary information.

According to Article 16.1 of the Law on Social Insurance:
“An employer shall deduct the social insurance contributions due from an employee’s salary or equivalent income in accordance with the rates prescribed in Article 15.1 of this law and transfer the contributions to the social insurance fund account within the same month.”

Furthermore, Article 20.2 states that underpaid or late contributions must be compensated, and a penalty of 0.3% per overdue day will be imposed.

Therefore, it is recommended to pay your social insurance by the end of each month.

According to Article 21.4 of the Law on Corporate Income Tax (CIT):
“A taxpayer shall prepay corporate income tax by the 25th of each month according to the schedule provided under Article 21.3 of this law.”

Additionally, Article 74.2 of the General Tax Law states:
“If the tax is not paid on time, a penalty equal to 0.1% per overdue day will be imposed on the unpaid tax.”

Therefore, it is recommended to pay CIT by the 25th of each month.

According to Article 26.3 of the Law on Personal Income Tax (PIT):
“The withholding agent must transfer the tax withheld from the taxpayer’s income, except as provided in Article 26.1.6 of this law, to the relevant budget by the 10th day of the following month.”

Also, Article 26.1.6 states:
“Banks and financial institutions shall withhold the tax on interest accrued to the taxpayer’s deposit according to Article 23.1 of this law and transfer it to the relevant budget each time.”

Article 74.2 of the General Tax Law provides:
“If the tax is not paid on time, a penalty equal to 0.1% per overdue day will be imposed on the unpaid tax.”

Therefore, it is recommended to pay PIT by the 10th of the following month.

According to Article 16.1 of the Law on Value Added Tax (VAT):
“A taxpayer shall transfer the value-added tax on goods, works, and services to the state treasury’s consolidated account by the 10th day of the following month in accordance with the prescribed procedure, and submit the report in the approved form to the relevant tax authority.”

Article 74.2 of the General Tax Law provides:
“If the tax is not paid on time, a penalty equal to 0.1% per overdue day will be imposed on the unpaid tax.”

Therefore, it is recommended to pay VAT by the 10th of the following month.

According to Article 14.6 of the Law on Value Added Tax (VAT):

“VAT paid on the import or purchase of the following goods, works, and services shall not be deducted from the total VAT payable by the taxpayer.”

These include:
14.6.1. Passenger cars and their parts and components;
14.6.2. Goods, works, or services purchased for personal or employee use;
14.6.3. Goods, works, or services imported or purchased for production/services specified in Article 13 of this law;
14.6.4. Goods, works, or services imported or purchased not related to taxable goods or services of the reporting period;
14.6.5. Goods, works, or services imported or purchased for exploration or pre-operational activities.

Therefore, VAT credit cannot be claimed on personal items.