Bank Account Opening
Heading to non-cash etiquette in business environment, opening bank account for banking transaction is a must-do task prior commencing operation. E-banking, gradually, plays a key role and is utilized as a functional tool with multiple related services to facilitate all enterprises in doing business. Not aside from this trend, Vietnam-based enterprise is compulsory to open the bank accounts for their daily operation.
WHY SHOULD OPEN BANK ACCOUNT?
Vietnam prevailing tax laws regulate that all transaction from VND 20 million and above must be remitted via bank, cash is unacceptable. Failing to do so result in non-deductible expense when having Corporate Income Tax calculation.
Since technology is gradually applied in work to elevate the business moving forward, e-transaction will be utilized to advance such progress. In Vietnam, settlement of tax liability is processed through e-banking, straightforward just by several step. Bank account will be linked directly to tax portal upon completing the registration of e-tax payment. This will save time on processing and keep the enterprise from late tax payment.
In addition, beside the current bank account, the foreign-invested enterprise is required to open Direct Investment Capital Account (hereby refer to DICA) in order for foreign capital injection. If the FDI engages under loan agreement with overseas party, loan disbursement and repayment are also remitted via DICA account.