In the context of a constantly evolving tax legal framework, many enterprises choose tax declaration services to ensure compliance and minimize errors. However, not all enterprises fully understand the legal nature, scope of work, and liabilities of service providers, thereby leading to potential risks relating to tax sanctions and financial obligations.
I. Current situation regarding tax declaration services for enterprises
At present, many enterprises, particularly small- and medium-sized enterprises, tend to outsource tax declaration services in order to reduce personnel costs and ensure compliance with legal regulations. Nevertheless, in practice, numerous cases involve errors in tax filings, late submission of returns, inaccurate declarations, or failure to maintain adequate records, resulting in administrative fines.
In addition, certain service providers operate without fully satisfying statutory practice conditions, lacking professional certificates, or entering into service contracts that inadequately define legal responsibilities. It places enterprises in a vulnerable position when tax reassessments or disputes over liability arise.
II. Concept of tax declaration services for enterprises
1. What are tax declaration services for enterprises?
Tax declaration services for enterprises refer to professional activities performed by qualified organizations or individuals, acting on behalf of enterprises to prepare, sign (under authorization), and submit tax returns and periodic tax reports in accordance with legal regulations.
Such services include determining tax liabilities, preparing value-added tax (VAT), corporate income tax (CIT), and personal income tax (PIT) returns, preparing reports on invoice usage, and conducting electronic transactions with tax authorities, based on a service contract and a valid power of attorney from the enterprise.
2. What is the legal nature of tax declaration services?
Legally, tax declaration services constitute a service contract relationship under the Civil Code, whereby the service provider performs tax-related professional work at the request and under the authorization of the enterprise, and the enterprise is obliged to pay service fees.
From a tax law perspective, it is a conditional business activity requiring practitioners to meet statutory professional qualifications. Notwithstanding the engagement of such services, the enterprise remains the ultimate party responsible before the tax authority for the accuracy and truthfulness of tax filings.
3. How do tax declaration services differ from tax accounting services?
Tax declaration services primarily focus on the preparation and submission of periodic tax returns, tax reports, and handling procedures with tax authorities under authorization. Their scope is generally limited to tax declaration, payment, and finalization obligations.
In contrast, tax accounting services have a broader scope, encompassing recording, accounting, preparation of financial statements, document management, and tax declarations. In other words, tax declaration constitutes only a component of the broader tax accounting function.
III. Legal provisions governing tax declaration services for enterprises
1. Legal instruments governing tax declaration services
The provision of tax declaration services is primarily regulated by the following:
- Law on Tax Administration 2025: Clause 5, Article 40 provides for tax-related services rendered by tax agents, including tax registration, declaration, payment, finalization, preparation of applications for tax exemption, reduction, and refund, tax consultancy, and accounting services. It serves as the legal basis for defining the scope of such services.
- Circular No. 10/2021/TT-BTC:
- Clause 1, Article 3 defines tax agents and conditions for providing tax procedure services;
- Article 24 stipulates the responsibilities of tax agents (operating within permitted scope, maintaining practice conditions, etc.).
Depending on specific cases, other implementing regulations and relevant sectoral laws may also apply.
2. Are professional certificates required for individuals providing tax declaration services?
Pursuant to Clause 1, Article 22 of Circular No. 10/2021/TT-BTC, conditions for obtaining a certificate of eligibility to provide tax procedure services include:
- Being a legally established enterprise;
- Having at least two employees holding tax procedure service practicing certificates and working full-time;
- In cases where accounting services for micro-enterprises are also provided, having at least one full-time certified accountant.
Accordingly, individuals directly performing tax declaration services must possess the required professional practicing certificate and work for a qualified tax agent. Independent practice without meeting statutory conditions is not permitted.
3. Regulations on tax record storage
Pursuant to Clauses 1, 3, and 5 of Article 41 of the Law on Accounting 2015, enterprises are obliged to:
- Preserve and store accounting documents fully and safely within statutory storage periods;
- Organize storage in accordance with legal requirements;
- Ensure that the legal representative takes responsibility for document storage.
As tax records derive from accounting documents, books, and financial statements, the obligation to store tax records is connected to accounting record storage.
Additionally, Point m, Clause 2, Article 38 of the Law on Tax Administration 2025 requires taxpayers to store documents related to determining tax liabilities.
Therefore, even when outsourcing tax declaration services, enterprises remain primarily responsible for proper record storage.
4. Handover of records upon change of service provider
In cases where an enterprise changes its tax service provider, the law does not explicitly mandate a formal handover procedure. However, responsibility for managing and storing tax records remains with the enterprise.
Pursuant to Clause 5, Article 40 of the Law on Tax Administration 2025, tax agents must perform services in accordance with contractual agreements and comply with legal obligations, including accountability for services rendered.
Accordingly, upon termination or change of service provider, the tax agent is required to hand over all relevant tax records and documents to the enterprise in accordance with the service contract, ensuring continuity in tax compliance.
IV. Questions on tax declaration services for enterprises
1. Is a written contract mandatory?
Under Clause 5, Article 40 of the Law on Tax Administration 2025, tax services must be performed under a contract between the tax agent and the taxpayer. In practice, such contracts must be in writing to establish the scope of work, rights, and obligations, and to serve as evidence for tax inspections.
2. Must enterprises continue using tax services during business suspension?
Pursuant to Clause 2, Article 4 of Decree No. 126/2020/NĐ-CP, taxpayers are not required to submit tax returns during suspension periods, except where suspension does not cover a full tax period.
Accordingly, if suspension is valid and covers a full tax period, enterprises are generally not required to maintain tax declaration services. However, if obligations still arise (e.g., annual finalization), services may still be necessary.
3. Does the enterprise take ultimate responsibility for tax data?
Pursuant to Clause 1, Article 1 of the Law on Tax Administration 2025, taxpayers are obligated as follows: Taxpayers must declare accurately, truthfully, and fully all contents in tax returns and other payable items corresponding to each type of tax or other payable amount, and shall self-assess the tax and other amounts payable, except where the calculation or notification of tax and other payable amounts is implemented by the tax administration authority in accordance with Government regulations.
Accordingly, even where an enterprise engages tax declaration services or authorizes a tax agent to perform such tasks on its behalf, the enterprise remains the party taking ultimate legal responsibility for the accuracy of the data and the content of the tax dossier. The engagement of such services merely constitutes professional support and does not transfer liability before the tax authority.
4. Main considerations when selecting a tax service provider
Enterprises should pay close attention to:
- Practice eligibility: Verifying legal status and professional qualifications;
- Scope of work and liability: Clearly defining responsibilities, deadlines, and compensation mechanisms in the contract;
- Control and confidentiality: Requiring review of draft filings and ensuring data protection;
- Experience and advisory capability: Preferring providers capable of identifying risks and providing proactive guidance.
Selection should prioritize legal compliance, professional competence, and accountability over cost considerations.
5. Can enterprises claim compensation for damages caused by tax service providers?
Where damages arise due to the fault of a tax agent, the enterprise may claim compensation in accordance with the service contract.
Pursuant to Clause 5, Article 24 of Circular No. 10/2021/TT-BTC, where a tax agent assists in tax evasion or improper declarations, the taxpayer remains liable before the law, but the tax agent takes joint liability and must compensate the taxpayer under the contract.
Accordingly, enterprises should clearly stipulate liability, compensation, and breach-handling mechanisms in service contracts to protect their interests.
V. Why engage legal counsel at NPLaw for issues relating to tax declaration services
Where risks arise in relation to tax declaration services, such as filing errors, tax reassessments, administrative penalties, or disputes with service providers, legal counsel plays a critical role in safeguarding lawful interests.
At NPLaw, experienced lawyers specializing in tax and corporate law provide support in reviewing documentation, identifying legal grounds, liaising with tax authorities, and formulating appropriate solutions to minimize financial and reputational risks. In addition to dispute resolution, NPLaw assists enterprises in reviewing service contracts, preventing risks, and establishing robust internal control mechanisms from the outset.
The above information is provided for reference purposes only. For detailed advice tailored to specific cases, please contact NPLaw for prompt assistance.
