Introduction
During the process of tax declaration, mistakes are sometimes unavoidable. Tax regulations allow businesses to make supplementary and adjusted tax declaration in order to promptly correct errors. However, not every situation requires this procedure. So, when exactly should businesses perform adjustments and how should they proceed?
1. When Is Supplementary and Adjusted Tax Declaration Required?
A business must make a supplementary tax declaration in cases such as:
- Errors in reporting VAT, Corporate Income Tax, or Personal Income Tax.
- Incorrectly declared deductible or refundable tax amounts.
- Wrong information regarding tax code, tax period, or invoices.
- Figures on the return that do not match the financial statements.
If adjustments are not made in time, the company may face administrative fines and lose credibility with tax authorities.
2. Time Limits for Supplementary Tax Declaration
According to regulations, businesses are allowed to make a supplementary tax declaration within 10 years from the date of submitting the original tax return and before the tax authority issues an official inspection or audit decision. This gives enterprises the chance to fix errors in tax declaration without incurring severe penalties.
3. Process of Supplementary and Adjusted Tax Declaration
- Step 1: Identify errors in the tax return.
- Step 2: Prepare a supplementary return using the correct form (e.g., 01/KHBS).
- Step 3: Provide a clear explanation and supporting figures for the adjustment.
- Step 4: Submit the supplementary return via the National Tax Portal.
- Step 5: Pay any additional tax due (if applicable) or request a refund/credit for the next period.
4. Key Notes When Making Adjustments
- Only declare supplementary returns for errors, not the entire dossier.
- Keep all supporting documents that justify the adjustment.
- If errors affect multiple tax periods, supplementary tax declaration must be filed for each period.
- Distinguish between cases where adjustments increase payable tax and those that adjust deductible tax.
Conclusion
Tax declaration is a legal obligation of every enterprise. Supplementary and adjusted tax declaration is a useful tool to correct errors and stay compliant. Businesses must clearly understand the deadlines, procedures, and important notes to avoid financial risks. Timely adjustments not only help ensure compliance but also improve transparency and reliability in tax management.
