Tax settlement services
Introduction to tax settlement services
Tax settlement is the step of summarizing tax obligations of enterprises and individuals in a fiscal year, including corporate income tax (CIT) and personal income tax (PIT). This is the basis for tax authorities to assess compliance with regulations and determine the amount of tax payable or refunded.
For businesses, tax settlement helps detect errors in books and documents, promptly adjusting to avoid the risk of being charged back, fined for late payment or being regularly inspected. For individuals, personal income tax settlement ensures that employees pay enough tax corresponding to their actual income and receive tax refunds when there is a difference.
Professional settlement services (tax settlement services) help businesses save time, reduce compliance risks and optimize legitimate tax benefits.
When does a business need to make tax settlement?
- Every year, at the end of the fiscal year, enterprises must make tax settlement according to regulations (depending on the type of tax, there is a specific declaration form and deadline according to regulations of the tax authority).
- When a business undergoes structural changes such as dissolution, separation, merger or capital transfer — it is necessary to finalize tax obligations before completing legal procedures.
- When the tax authority requests a review, audit or inspection, the enterprise must provide settlement records, explain the income, expenses and taxes paid.
- When related party transactions, tax incentives or complex situations related to income arise — settlement is required to ensure rights and comply with income tax laws.
axes that need to be settled
Corporate Income Tax (CIT)
Corporate income tax settlement includes determining taxable income, classifying and checking valid expenses, adjusting carryforward losses/gains and applying tax incentives (if any). Enterprises need to pay attention to non-deductible amounts according to the law to avoid being charged back when the tax authority inspects.
Personal Income Tax (PIT)
Personal income tax settlement applies to employees and individuals who earn taxable income during the year. The content includes summarizing taxable income, withholding tax at source, deductions, and making declarations, paying or refunding taxes according to regulations. For businesses, personal income tax settlement is directly related to payroll, labor contracts and income payment documents.
Other taxes (if any)
Depending on business activities, businesses may have to settle additional contractor tax, resource tax, special consumption tax, or taxes related to cross-border transactions. These taxes need to be reviewed in relation to each specific business to ensure full compliance with regulations.
Quick comparison of TNDN and TNCN (an illustrative example):
Criteria | Corporate Income Tax | Personal Income Tax |
Object | Business | Individuals, workers |
Settlement content section | Taxable income of enterprises, deductible expenses, carried forward losses/profits, incentives | Total personal income, deductions, allowances, tax refunds/deductions |
Required documents | Accounting books, invoices, contracts, financial reports | Payroll, labor contract, deduction documents, personal income tax declaration |
Perform when | End of fiscal year; when corporate structure changes | End of year; when employees request tax refunds |
Note on applying incentives:
Some enterprises are entitled to corporate income tax incentives according to regulations (e.g. preferential industries, regions). When applying incentives, it is necessary to have full supporting documents according to regulations and must make detailed settlements for the tax authority to accept this incentive.
Job content in tax settlement service
- Comprehensive review of tax declarations, documents, and accounting books: check the completeness and legality of invoices and documents, compare data with financial reports to ensure that settlement records accurately reflect the business's income and expenses.
- Classify and check deductible/non-deductible expenses: review each expense item, determine valid expenses according to income tax regulations, note expenses that are not deductible by the state to avoid the risk of being charged back and fined.
- Reconcile taxable income, handle carried forward losses/profits: correctly determine the basis for calculating the taxable income of the enterprise in the year, adjust losses/profits according to regulations to calculate the amount of tax payable or refunded.
- Determine the amount of tax payable/refundable: synthesize the review results to accurately determine the amount of tax payable for each type of tax (corporate income tax, personal income tax and other taxes, if any), and at the same time, develop a plan to request a tax refund if there is an excess tax payment.
- Prepare and submit final settlement declaration form, submit electronic final settlement dossier: prepare declaration form, attached appendices and support in submitting final settlement dossier via the tax authority's electronic portal, and guide customers on the dossier submission process and deadlines to be complied with.
- Support in explaining and working with tax authorities: if the tax authority requests an explanation, provides additional documents or conducts an inspection, the team of experts will draft an explanation document and work directly with the tax authority to protect the settlement results for the business.
Detailed implementation steps
Receiving documents & preliminary checking
Collecting books, financial reports, payroll, contracts and voucher lists; preparing initial risk reports.
Detailed review
Compare each document, check the validity of invoices, identify invalid expenses, and record necessary adjustments.
Prepare declaration & calculate tax
Complete income tax finalization declaration, calculate tax payable or refund amount, with explanatory appendix if necessary.
Send customer confirmation & submit electronic documents
Customer reviews, signs confirmation; PMH submits settlement documents via electronic portal according to tax authority procedures.
Follow-up & post-audit
Monitor feedback from tax authorities, support adjustments and explanations in case of tax authority requests within the following days.
Documents to prepare (summary checklist)
PMH performed | Customer provided profile | Estimated time |
Reception & preliminary inspection | Financial reports, accounting books, invoices, contracts | 1–3 days |
Detailed review & cost analysis | List of expenses, original documents, labor contracts, payroll | 3–7 days (depending on scale) |
Prepare and submit electronic settlement declaration | Minutes of reconciliation, signed declaration, authorization (if necessary) | 1–2 days |
Support explanation | Additional documents and materials as required by tax authorities | On request |
Note:
Completion time may vary depending on the size of the business, the number of documents and the complexity of the transaction. If the business chooses to use the full settlement service, PMH will provide a clear service contract on the scope, cost and time commitment.
The role of internal accounting in enterprises
- Prepare complete and correct documents, invoices and books: internal accountants are the ones who collect, store and compare invoices and documents related to revenue and expenses to ensure that the settlement records accurately reflect business activities during the year.
- Providing human resource data and payroll for personal income tax settlement: internal accountants need to synthesize labor contracts, payrolls, allowances, social insurance, and health insurance to determine taxable income of employees and accurately deduct tax at source.
- Provide records, contracts and documents related to large transactions or related transactions (if any): this is very important when using settlement services to demonstrate reasonable costs and tax incentives (if applicable).
- Coordinate with service providers: when there is a request to adjust records, explain or supplement documents, internal accountants need to coordinate quickly so that PMH (or settlement unit) can complete the settlement dossier submission procedure on time.
Real life example – data employees need to provide
- Labor contract (scanned copy), timesheet, monthly/quarterly/yearly salary sheet.
- Allowances, bonuses, reimbursement costs and deduction documents for social insurance, health insurance and unemployment insurance.
- Payment receipts, vouchers, invoices related to personal income or taxable expenses..
Risks of not settling taxes on time or accurately
- Administrative penalties: late submission of final settlement documents or false declaration may result in penalties according to regulations, along with collection of tax arrears and late payment interest.
- Enterprises are assessed as high risk: when records are inaccurate, tax authorities may classify the unit as subject to regular inspection, affecting normal operations.
- Damage to reputation with customers and banks: tax errors affect the ability to borrow money, raise capital, or negotiate M&A contracts.
Common administrative penalties (summary)
- Late submission of settlement documents: Administrative fines according to the rate, late payment interest; Deadline for submission as prescribed by tax authorities
- False declaration, under-declaration: Fines and tax arrears collection; Need to submit adjustment and explanation documents
- Failure to retain/fail to produce records: Administrative fines, possibly additional fines; Storage requirements according to accounting regulations
Checklist of actions to take when detecting errors:
(1) Prepare internal records;
(2) Review related documents;
(3) Contact the settlement service provider for advice on submitting adjustment documents;
(4) Prepare an explanation document for the tax authority.
Fast and transparent implementation will minimize the risk of fines and collection.
PMH's commitment when providing tax settlement services
Our team of tax and accounting experts are highly qualified, knowledgeable about tax laws and have many years of experience in handling settlements for businesses in many industries.
Timely update regulations, circulars and decrees related to taxes to apply accurately when preparing settlement records and take advantage of legal tax incentives for businesses.
Absolute information security: all documents, accounting data, contracts and customer information are stored and processed according to PMH's strict security policy.
Accompanying explanation: PMH supports customers throughout the process of working with tax authorities — from submitting settlement documents, receiving notifications to explaining and exchanging when requested by tax authorities.
Tax settlement service fee
The cost of using the settlement service at PMH depends on many factors: business size, number and type of documents, complexity of transactions (related transactions, tax incentives, cross-border transactions…), as well as the customer’s desired completion time.
- Transparent pricing policy: PMH applies a package pricing model (basic package, standard package, comprehensive package) or hourly/task pricing depending on business needs.
- Compare costs and risks: the cost of hiring a settlement service is often much lower than the damage caused by being charged back, fined and losing reputation if the business makes mistakes or submits inaccurate settlement documents.
- Suggestion: When contacting, customers should provide basic information (business, settlement year, number of documents, related transactions) so that PMH can give an accurate and quick quote.
Reference price list (model)
Service packages | Scope | Reference fee |
Basic package | Preliminary review, prepare simple corporate income tax/personal income tax declaration, submit electronically | Contact us for a quote |
Standard Package | Detailed review, cost check, appendix preparation, basic explanation support | Contact us for a quote |
Comprehensive package | Full package from A–Z: review, prepare documents, support explanation, accompany during inspection | Contact us for a quote |
Note:
The above price list is for reference only; a detailed quote will be provided after PMH receives the application and conducts a preliminary analysis. The service contract will clearly state the completion time, scope of work, confidentiality clauses and legal responsibilities of both parties.
Contact PMH now
We support both corporate income tax settlement and personal income tax settlement for employees.
Frequently Asked Questions (FAQ)
Periodic tax declaration is the submission of reports and declarations periodically (monthly, quarterly) to temporarily calculate tax obligations. Tax finalization is the year-end summary step to determine the actual obligations of the whole year, adjust the difference between the amount paid and the amount payable, and at the same time serve as a basis for the tax authority to assess compliance. If a difference is detected, the enterprise will have to pay additional tax or receive a tax refund.
Most businesses, even small businesses, still have to make final settlements according to the regulations of the tax authorities. Some special cases (for example, those who declare VAT under the lump-sum method or are very small businesses) have their own regulations – please provide business information so that PMH can advise accurately and guide you through the appropriate procedures.
When detecting errors, the enterprise needs to: (1) Make an internal record of the error; (2) Review and collect supporting documents; (3) Submit adjustment/additional declaration documents according to the tax authority’s instructions; (4) Draft an explanatory document if necessary. PMH supports in preparing adjustment documents and represents the customer in working with the tax authority when the customer uses the service.
While not mandatory, many businesses choose to use a settlement service to ensure regulatory compliance, optimize legal tax, and reduce the risk of being overcharged. If the business has a solid internal accounting, it can do it itself; in complex cases (related transactions, tax incentives, multiple documents), professional services save time and costs in the long run.
Enterprises compile payroll, labor contracts, deduction documents and prepare personal income tax finalization declarations according to the form. The documents are then submitted via the tax authority’s electronic portal or submitted directly if required by regulations. PMH supports the compilation, checking and submission of personal income tax finalization documents when customers need them.
Yes. PMH commits to accompany customers in the process of explaining to the tax authorities: from strategic consulting, preparing documents, to participating in working directly with the tax authorities within the scope agreed upon in the settlement service provision contract.
If you have any specific questions about tax settlement records, tax settlement filing or related procedures
please contact PMH for free consultation and to receive a tax settlement record checklist suitable for your case.
Rest assured about confidentiality:
All information and documents provided by customers for PMH to review and provide services will be kept confidential according to the terms of the contract and internal confidentiality policy.
Benefits of using PMH’s settlement service:
minimize the risk of being overcharged, save time, receive support in explaining to tax authorities and ensure proper filing procedures, saving long-term costs for businesses.
Quick contact:
Please call hotline or fill out contact form — PMH will respond within 1 working day to guide procedures and provide detailed quotes.