Tax Technology

KPMG in Vietnam Tax Technology helps automate tax processes and improve consistency, accuracy and speed using specialized tax tools and software.

Tax Technology is a game changer in today’s rapidly digitalizing tax landscape

The Vietnamese tax environment is undergoing rapid transformation, and tax authorities are increasingly embracing automation for tax management and administration. This includes the implementation of online tax filing, e-invoicing and application of technology for taxpayer risk assessment, etc.

KPMG in Vietnam Tax Technology team offers customized solutions that empower your tax function to swiftly adapt to regulatory changes, reduce costs, streamline processes, gain commercial insights from data for your effective business decision making and tax risk governance. Our suite of digital tools, backed by our industry-leading tax expertise, will enable high-performing tax functions well equipped at present and for the future.

Tax Classification:

In the Vietnamese rigid tax environment, many organizations allocate significant resources to manually review transactional data, serving as the foundation for their tax compliance workpapers. The rapidly increasing volume of data limits the ability to thoroughly review and ensure the accuracy and integrity of transaction data due to time and resource constraints.

How we can help:
KPMG in Vietnam addresses this struggle by automating the meticulous task of reviewing General Ledger (GL) transactions, purchase orders, and invoice text. Deployed analytical tools can create tax-sensitive GL accounts for accurate tax calculations, automate classification of data into categories such as Deductible vs. Non-Deductible expenses, Accruals vs. Invoiced/Paid, VAT Refundable vs. Non-VAT Refundable, and etc.

Tax Data Analytics:

Organizations now can leverage existing data analytics tools to transform tax data into valuable insights. Tax Data Analytics delivers quantitative insights and enhances visibility into the state of tax obligations across corporate tax, customs, personal income tax, and indirect tax. Imagine being able to interpret the vast volumes of transactional data captured in your business systems, identifying overpaid and under-claimed taxes, tax trajectory or forecast based on past tax performance, VAT aging or uncovering hidden business opportunities. By accessing relevant tax data in a user-friendly manner, you can maintain control over your tax processes, identify risks, and capitalize on opportunities.

How we can help:
KPMG in Vietnam supports organizations in exploring their tax data, uncovering both overlooked opportunities and concealed risks. Early identification of these factors can result in financial benefits and elevate the tax function’s significance in business decision-making.

We provide a comprehensive suite of Tax Data Analytics tools spanning corporate tax, customs, personal income tax, and indirect tax.

Tax Audit Readiness:

How many hours a company spends periodically on reconciliation between underlying ERP and tax deliverables, like CIT, VAT or customs declarations? With data volume increase the task becomes unmanageable with Excel or hiring new people. This becomes vital during tight audit deadlines.

How we can help:
KPMG in Vietnam offers an effective and cost-efficient suite of tools to simplify, standardize and automate the reconciliation process. Our successful stories include:
– automated reconciliation of output/input VAT across multiple factories and distribution centers;
– automated conversion of management GAAP to Vietnamese Accounting Standards with preset GL Description reparation (i.e., filling-in missing or incorrect description of individual journal entry) and simultaneous Mandatory Translations into Vietnamese;
– input VAT refund support. Businesses often face challenges in complying with the stringent requirements for input VAT refund requests, which can result in the loss of legitimate input VAT. KPMG has developed an internal E-invoice Verification and Extraction Tool (EVE Tool). The EVE Tool transforms e-invoice XML data into a human-readable format, validating tax office electronic signatures, checking if input VAT is from a high-risk enterprise list, ensuring input VAT claimed is not related to CIT non-deductible expenses, etc.

By leveraging these tools, KPMG in Vietnam helps businesses efficiently manage tax compliance and be tax audit-ready.

Data and digitalization are transforming the current tax landscape. As tax authorities increasingly utilize advanced technologies, taxpayers must be prepared for rapid transformations. When the foundational elements are properly set, not only does tax compliance and reporting significantly improve, but tax risks are also minimized, and compliance processes are automated, enhancing the value of the tax function to the business.

To fully leverage data and digitalization, it is essential that tax requirements are accurately integrated into your ERP systems and other tax technology components, as these systems are central to all business operations with tax implications.

How we can help:

– Support the Tax Function: Assist with the end-to-end process of implementing or upgrading an ERP system or other third-party tax technology;
– Configuration of Tax Classifications: Define, prepare, and set up Tax Code determination, Tax Fixed Asset Registrar, Master Data impacting tax, intercompany pricing and costing, build CIT PL either via tax sensitizing certain GL fields or constructing a separate Tax Ledger;
– Tax Reporting Automation: Develop Tax Reporting under Group Management GAAP and VAS by automating current and deferred tax computations, including automatic journal entry posting;
– ERP due diligence: Assess the current state of tax configurations, identify gaps between ERP output and tax compliance input data and propose the ERP re-design roadmap;
– Automated Tax ERP Controls: Assist in execution of the Risk and Control Framework by automating certain controls within ERP;
– Select Third-Party Tax Technology: Choose third-party tax technology applications that integrate into your existing ERP system or assist with the selection of a new ERP system.

By addressing these challenges, KPMG in Vietnam helps transform tax functions, ensuring compliance and efficiency in an increasingly digitalized tax environment.

Automating Vietnamese tax returns can address challenges such as handling large volumes of data, inconsistent ERP output, manual processes, prone to human error, inefficient use of tax personnel, and the need for cost reduction. KPMG offers tailored solutions to streamline and enhance your tax processes.

How we can help:
KPMG’ suit of tools can help businesses develop a tailored and unique solution which would:
– automate Data Extraction from ERP systems;
– automate the Cleaning, Sorting, Grouping and Mapping of the data to ensure accuracy and consistency;
– automate identification of CIT-non-deductible or VAT-non-refundable items;
– map tax computations to xml-coded tax return for easier submission;
– embed audit trail into the tax computational solution;
– design robust file management platform with the transparent review/approval workflows.

By leveraging these tools, KPMG in Vietnam can help transform your tax function, ensuring efficiency, compliance, and accuracy in an increasingly digital tax environment.

Connect with us

KPMG in Vietnam can guide companies by building a tax technology roadmap, leverage on available tools, develop bespoke or tailored to one’s needs digital solutions, provide continuous support and maintenance. KPMG Vietnam is committed to help companies optimize costs, improve process efficiency and data accuracy.

If you would like to know more about KPMG Vietnam Tax Technology skills, expertise, demo and credentials, please contact us.