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Vietnam accounting for German companies

Specialist accounting, tax, payroll, transfer pricing, and audit support for German-headquartered companies operating in Vietnam. HGB-to-VAS reconciliation, EUR reporting, and treaty-rate withholding.

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Overview

German companies entering Vietnam typically establish a 100%-foreign-owned subsidiary with a sales, manufacturing, or regional service centre footprint. We deliver monthly bookkeeping in VAS, German-style management accounts (HGB-equivalent), EUR reporting, transfer-pricing documentation aligned with both the German Federal Central Tax Office (BZSt) and Vietnamese GDT, and EUR-functional statutory financials. Our team prepares monthly VAS bookkeeping, HGB-aligned management accounts, EUR reporting, transfer pricing under Decree 132/2020, and treaty-rate withholding claims under the Germany-Vietnam DTA.

Who needs this service

  • German Mittelstand companies establishing a Vietnam subsidiary
  • DAX-40 multinationals with regional APAC headquarters in Vietnam
  • German automotive, engineering, and chemicals companies with Vietnam operations
  • German companies with manufacturing presence requiring HGB reconciliation
  • German holding structures with Vietnamese portfolio companies

Legal requirements

IRC + ERC licensing

Foreign company setup requires an Investment Registration Certificate and an Enterprise Registration Certificate from the DPI. German parent documents must be apostilled and translated.

VAS accounting

All entities must maintain books under VAS, with annual financial statements in Vietnamese and an English translation for group reporting.

Statutory audit

All FDI companies must be audited by a Vietnamese-licensed audit firm. The audit is coordinated with the German parent's Konzernabschluss.

HGB reconciliation

German parents require a reconciliation from VAS to HGB (Handelsgesetzbuch) for the Konzernabschluss. Differences in revenue recognition, leases, and provisions are reconciled quarterly.

Transfer pricing documentation

Local File, Master File, and CbCR under Decree 132/2020, aligned with BZSt expectations and German GAAP.

Pricing

Indicative fees

ItemFee
German company monthly retainer (full compliance)from EUR 1,500 / month
Foreign company setup (IRC + ERC)from EUR 8,000
HGB reconciliation (per period)from EUR 2,000
Transfer pricing Local File (EUR-aligned)EUR 5,000 – 12,000
AStG documentation supportfrom EUR 6,000 per year

Fees are indicative and depend on transaction volume, complexity, and reporting requirements. Request a tailored proposal.

Timeline

Typical engagement timeline

Phase 1 · Week 1–2

Pre-engagement

Initial scoping with German parent, entity structuring advice, IRC pre-engagement.

Phase 2 · Week 3–8

Setup

IRC + ERC issuance, post-licence registrations, tax agent appointment.

Phase 3 · Month 3–6

First compliance cycle

First month close, first VAT filing, German parent reporting integration.

Phase 4 · From month 7

Steady state

Monthly close within 10 working days, HGB reconciliation, quarterly review.

Watch out

Common mistakes we help you avoid

  • 01Failing to coordinate the Konzernabschluss timeline with the Vietnam year-end close
  • 02Missing AStG documentation requirements for German-controlled foreign entities
  • 03Treating German parent overhead allocations as fully deductible without benefit-test
  • 04Failing to claim Germany-Vietnam DTA treaty rates on dividends and royalties
  • 05Ignoring the German permanent establishment implications for German staff on Vietnam assignment
Why us

What you get

HGB-to-VAS reconciliation

Quarterly reconciliation package prepared in EUR, aligned with the German parent's Konzernabschluss calendar.

EUR-functional reporting

EUR-functional ledger for management reporting, with FX gain/loss reconciled to the parent's reporting framework.

DTA treaty relief

German-Vietnam DTA reduces withholding on dividends to 5% (or 0% for qualifying holdings), on interest to 10%, on royalties to 7.5% (or 10%). We claim the reliefs on your behalf.

AStG documentation

Support for AStG (Außensteuergesetz) documentation requirements, including the German Stundungskonzept (deferral concept) for passive income.

Big-4 + Mittelstand expertise

We have supported both DAX-40 multinationals and German Mittelstand companies with their Vietnam entities.

German-speaking team

German-speaking senior advisors available for board, parent, and BZSt liaison as required.

FAQ

Frequently asked questions

What is the typical Vietnam setup for a US company?
US companies typically set up a sales subsidiary or a regional engineering centre. The subsidiary is 100%-foreign-owned. US companies often have a regional CFO overseeing multiple Asian entities, and the Vietnam entity reports into that structure.
How is the US-Vietnam tax treaty applied?
Vietnam and the US do not have a comprehensive tax treaty. The standard Vietnamese rates apply: 0% withholding on dividends to a US corporate parent (under Vietnamese domestic law), 5% FCT on royalties, 10% on interest. The absence of a treaty makes structure and substance critical.
How is FCPA and anti-bribery compliance handled in Vietnam?
Vietnam has anti-bribery laws and accounting-record-keeping requirements that align broadly with FCPA expectations. We help clients maintain adequate books and records, document third-party engagements, and provide training.
What reporting does a US parent expect for SOX compliance?
US parents subject to SOX expect: documented internal controls, audit-trail evidence, segregation-of-duties review, IT general controls review, and management certifications. We provide the working papers and controls evidence to support the parent's SOX audit.
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Free 30-minute consultation. We'll review your situation and outline a fixed-fee engagement.

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