MINISTRY OF FINANCE ACADEMY OF FINANCE PHAM ANH DUC CLASS: CQ56/02.01 GRADUATION DISSERTATION TOPIC: TAX CONSULTING SERVICES AT VACO AUDITING COMPANY LIMITED Major: Taxation Code: 02 Supervisor Assoc. Le Xuan Truong HA NOI – 2022 i TABLE OF CONTENTS LIST OF ACRONYMS. iv LIST OF TABLE. v LIST OF FIGURE.
The necessity of the dissertation. Objectives of the dissertation. Scope of the dissertation. Structure of the dissertation.
3 CHAPTER 1: THEORETICAL BACKGROUND ON TAX CONSULTING SERVICE. An overview of tax consulting. Concepts, characteristics and objects of tax consulting service. The role of tax consultancies and assistance.
Forms of tax consultancy and assistance. Tax consulting services. Formation and development of tax consulting services. Contents of tax consulting services.
Criteria for assessing the quality of tax consultancy services are enterprises providing consulting services. The factors affecting tax consulting services. Potential development of tax consulting services. The basic process of professional tax advices.
27 ii CHAPTER 2: THE STATUS OF TAX CONSULTING SERVICES AT VACO AUDITING CO. Overview of VACO Auditing Company Limited. Process of formation and development of VACO Auditing Company Limited. The organizational structure of the company.
Services provided by VACO Auditing Company Limited. Overview of business operation of VACO Auditing Company Limited. Tax consulting services of VACO Auditing Company Limited. Form of tax consulting services provided by VACO Auditing Company Limited.
Major customers of VACO. Tax consulting procedures .3 General assessment of Tax advisory services at VACO Auditing Company Limited. The reasons for drawbacks. 61 CHAPTER 3: SOME RECOMMENDATIONS TO IMPROVE TAX CONSULTING SERVICES AT VACO AUDITING COMPANY LIMITED.
Goals and development orientations of the company. Some recommendations for improving tax consulting services at VACO…. Building customers development strategies. Deploying new consulting services.
Improving the quality of each specific part of the consulting process and working with customers. Developing human resource. Promoting marketing activities. Strengthening the coordination and support of the tax authorities in the process of providing tax advisory services to customers.
Combining the development of tax consulting services with other consulting services. Some recommendations to promote tax consultation and support activities of tax consulting companies. Proposing to functional agencies solutions to perfect tax law system. Proposing to the Vietnam Tax Consultants Association to facilitate the development of tax consultancy services in Vietnam.
81 iv LIST OF ACRONYMS CIT Corporate Income Co., Ltd Limited Company FDI Foreign investment FTA Free Tax Agreements HR Human Resources ISD International Service Department IT Information Technology KYC Know your customer TCS Tax Consulting Services VAT Value Added Tax VTCA Vietnam Tax Consultants' Association WTO World Trade Organization v LIST OF TABLE Table 2.1: Profit and loss statement by years .2: Number of customers by the audience .3: Revenue from tax advisory services in total revenue. 53 vi LIST OF FIGURE Figure 2.2: Structure of tax consulting department .3: Revenue from tax advisory service in total revenue.4: Revenue ratio of each tax consulting service in 2021 .5: Revenue proportion of each tax consulting service in 2021. 58 vii DECLARATION I hereby declare that this dissertation is a report of my own research and all data, information was provided in this essay are true and based on reality. Wherever contributions of others are involved, every effort is made to indicate this clearly, with due reference to the literature, and acknowledgement of collaborative research and discussions.
Dissertation author Pham Anh Duc viii GRATITUDE First and foremost, I want to express my gratitude and appreciation to my supervisor, Associate Professor Dr. Le Xuan Truong for everything that he made to contribute to the completion of my dissertation. Without his profound academy knowledge, I could not receive from many constructive comments and valuable suggestions he has given me, which I found very helpful to not complete this dissertation but also to improve my research-related skills and cognition. Secondly, I want to thank all of my friends and all teachers at Academy of Finance, especially teachers of Tax and Customs Faculty for giving me the best four years of my student life.
Without them, my graduation dissertation would not be finished. Thirdly, I want to express my tremendous appreciation to the Tax Service and Financial Consulting as well as the entire staff, VACO Auditing Vietnam Co.,Ltd for creating conditions for me to have the opportunity to practice and approach. With documents and data that are extremely important in my research. It has truly been a wonderful time working with the team that has always facilitated me to finish this graduation dissertation successfully.
Last but not least, from the bottom of my heart, I would like to extend my heartfelt thanks to my entire family and friends. They are always a great source of unceasing encouragement and support during my whole journey. While I tried my hardest during the writing process, due to my limited theoretical and research abilities, the dissertation will undoubtedly have several flaws, so I hope to receive sympathy as well as enthusiastic comments from the teachers to make this dissertation more complete. The necessity of the dissertation After more than three decades of opening up for international integration, Vietnam has been attracting more and more attention from foreign investors, becoming an ideal investment destination in the Southeast Asia and Asia in general.
It is a country with a large, highly skilled workforce and diverse natural resources. In addition, the enthusiastic support from the Government, always creating the best conditions for international businesses and corporations to invest in Vietnam, has helped Vietnam become one of the top choices when foreign investors invest in Vietnam. Foreign enterprises want to enter the Asian market. Moreover, the Vietnamese people and Government's quick, accurate and timely response to the COVID-19 pandemic has created great confidence among international investors.
With those favorable conditions, the number of jobs created each year increases. This has brought Vietnam into the top 10 countries with the lowest unemployment rate in the world (Ministry of Labour, Invalids and Social Affairs, 2021). With the remarkable economic growth in recent times, large enterprises and small businesses tend to seek financial solutions to support them in doing business in Vietnam. In particular, issues related to legal regulations, in which tax issues are of primary concern to domestic and foreign enterprises.
However, the number of businesses with tax consulting services is not many, and their activities are pretty weak compared to accounting and auditing services. If enterprises are knowledgeable and proficient in tax operations, they can save more tax costs and create competitive advantages in their business activities based on compliance with the provisions of the law. Besides, in recent years, tax consulting activities in Vietnam have had many opportunities to develop, especially with the participation of large enterprises such as KPMG, Deloitte, Ey, PwC, etc. And fierce competition in the tax consulting services market is inevitable.
In order to stay ahead of 2 competitors and attract more customers to use their services, businesses, including VACO Vietnam Auditing Co., Ltd, must make constant efforts to develop tax consulting services. Therefore, in increasingly exciting and competitive market conditions, VACO Vietnam Auditing Co. provides customers with the best consulting services, especially paying attention to the quality of tax consulting services for Business. Therefore, through studying at the Academy of Finance and doing an internship at VACO with the guidance of Assoc.
Le Xuan Truong, I decided to choose the topic: " Tax consulting services at VACO Auditing Company Limited ” to have a deeper understanding of the factors affecting tax consulting services, analyze and evaluate the current status of tax consulting services at VACO and then offer solutions to improve the tax consulting services improve the quality of tax consulting services for VACO in the future. Objectives of the dissertation The study’s overall objective is to give an overview of the status of tax consulting services and propose solutions to improve this service. Specific purposes are: - Generalizing theoretical issues on tax advisory services; - Analyzing the status of tax consulting services at VACO Auditing Co., Ltd; - Proposing solutions to improve tax consulting services at VACO Auditing Co. Scope of the dissertation - Scope of content: The research is based on the information published directly by VACO on social networks, because of the specific characteristic, the information should be secure so the data on the client and revenue of services are just numbers overview.
Therefore, research will mostly go on the basis of TCS and the introduction of a general way 3 for TCS in VACO as well as information about customers, revenue, and profits of the company. - Scope of time: The dissertation focuses on research TCS have been and are being provided by VACO Vietnam Auditing Co., Ltd in the period from 2018-2021. The recommendations for solutions are intended to apply to 2025. - Scope of space: Tax consulting services at VACO Auditing Co.
Research methods To implement the project, the author used a combination of traditional and modem methods: - The research process from synthesis, systematizing, generalizing, and commentaries to clarify the theoretical issues about tax consulting services; - Method of graphs and charts, collect to analyze data, compare and evaluate the performance; - Method of statistics, interpretation, synthesis indicates context and objectives, the development direction, and measures to enhance the effectiveness and efficiency of tax consulting services. Structure of the dissertation The dissertation is structured into three main chapters: - Chapter 1: Theoretical background on tax consulting service. - Chapter 2: The status of tax consulting services at VACO Auditing Co. - Chapter 3: Some recommendations to improve tax consulting services at VACO Auditing Co.
4 CHAPTER 1: THEORETICAL BACKGROUND ON TAX CONSULTING SERVICE 1.1 An overview of tax consulting 1.1 Concepts, characteristics and objects of tax consulting service a, Concept of tax consulting According to the Vietnamese dictionary: "Consulting in the usual sense is giving opinions on the issues asked, but not having the right to decide" [5]. According to Article 5.1, Decree 87/2002/ND-CP “Consultancy activities means activities of collecting and processing information, applying professional knowledge, identifying problems, proposing solutions and options, formulating projects, monitoring and evaluation, which are conducted independently and objectively by Vietnam’s specialized organizations or individuals at the requests of consultancy users” [7]. Consulting is a service industry that does not have a fixed definition at all. The market for this service is also very flexible.
Along with the constant changes in acquisitions, mergers as well as business expansion, the demand for consulting services is as unpredictable. The term "consulting" can have a lot of meanings, but the main idea is to give professional advice. The consulting company will "advise" a business in the right way at an urgent time. Seeing things through that prism sees the importance of consulting in business.
However, most people are very faintly aware of the work and the real responsibility of the so-called “counseling”. What is the law of consultation? Often people can understand this is a similar process consultant to help customers and partners understand the problems and difficulties problems when they encounter, give perspectives and opinions that help them have the right views more active in life. At the same time give compelling reasons and apply the most effective measure. They are 5 people with certain abilities and knowledge levels who carry out work to bring about the community’s common interests.
From the aforementioned approaches, the concept of “consulting” can be given as follows: “Consulting is an interactive process to help customers understand their problem and arouse the potential for them to solve it”.