As you may know, financial reporting is an annual task for every business. So, what documents are required for financial reporting, and what is the deadline? Let’s delve into more details in the following article.
Overview of financial statement
What is a financial statement?
A financial statement is a type of document that compiles economic information presented in tables and charts, aiming to provide and summarize figures related to the business situation of an organization, enterprise, or individual. Financial statements typically display figures such as revenue, costs, profit, and the amounts of debts and capital in a business.
Understanding financial statements
Users of financial statements
Financial statements are prepared for the following users:
For the internal organization or business:
- Business owners and business managers
- Managers of relevant departments such as the Finance and Accounting department, etc.
For external parties of the business:
- Tax authorities: To inspect and monitor the business’s obligations to the law, thereby determining the amount of payable taxes, deductions, and exemptions, and other tax-related issues for the business.
- Investors: These individuals also require the financial statements of the business, which help them understand the business operation and cash flow of the organization and enterprise they plan to invest in or are investing in.
- Economic statistical agencies: By the financial statements provided by businesses, these agencies can compile data and the growth rate of the Nation, GDP indices, etc. These indices will be summarized for the Government, thus forming appropriate policies to promote the economy and attract foreign direct investment (FDI).
Required documents for financial reporting
According to Article 16 of Circular 151/2014/TT-BTC, the tax finalization declaration dossier for corporate income tax includes:
Annual financial statements:
Depending on the scale of the business to choose the accounting regime, medium and small enterprises apply Circular 133, large enterprises apply Circular 200 -> including:
- For enterprises following the accounting regime according to Circular 133, dossier includes: Financial statements; Income statement; Cash flow statement; Balance sheet; Financial statement notes.
- For enterprises following the accounting regime according to Circular 200, dossier includes: Balance sheet; Income statement; Cash flow statement; Financial statement notes.
Annual financial statement is an indispensable document in businesses
Personal income tax finalization declaration form 05/QTT-TNCN
- Submission is not required for case of no salary payment
Corporate income tax finalization declaration form 03/TNDN
The Corporate income tax finalization declaration form include annexes (depending on the actual occurrences at the enterprise) for instant:
- Annex of income statement according to forms 03-1A/TNDN, 03-1B/TNDN, 03-1C/TNDN.
- Annex of loss carryover according to form 03-2/TNDN
- Annexes on corporate income tax incentives:
- Annex on corporate income tax for real estate transfer activities.
- Annex on related transaction information (if any) according to form 03-7/TNDN.
Deadline for financial reporting
According to Article 109 of Circular 200/2014/TT-BTC, the deadline for financial reporting is as follows:
For state-owned enterprises:
a) Deadline for quarterly financial reporting:
- Accounting units shall conduct the quarterly financial reporting no later than 20 days from the end of the accounting quarter; For parent companies, State-owned corporations no later than 45 days;
- Accounting units subordinate to state-owned enterprises and corporations conduct the quarterly financial reporting to the parent companies, State-owned corporations according to the deadline set by the parent companies, State-owned corporations
Deadline for financial reporting according to Circular 200/2014/TT-BTC
b) Deadline for annual financial reporting:
- Accounting units shall conduct the annual financial reporting no later than 30 days from the end of the fiscal year; For parent companies, State-owned corporations no later than 90 days;
- Accounting units subordinate to State-owned corporations conduct the annual financial reporting to the parent companies, State-owned corporations according to the deadline set by the parent companies, State-owned corporations.
For other types of enterprises:
a) Accounting units who are private enterprises and partnerships shall conduct the annual financial reporting no later than 30 days from the end of the fiscal year;
For other accounting units, the deadline for annual financial reporting is no later than 90 days;
b) Subordinate accounting units shall conduct the annual financial reporting to the superior accounting units according to the deadline set by the superior accounting units.
Above are the documents and deadlines for financial reporting for your note. In the next article, we will introduce the 2020 tax declaration schedule by month and quarter. We hope this article is helpful to you!
