AUDIT OF LOCALIZATION RATE

1. DESCRIPTION OF THE SERVICE

LEARN WHAT THE LOCALIZATION RATE IS?

Is the ratio of raw materials and spare parts for the manufacturing industry in that country compared to imported international goods. More simply, when talking about the assembly technology and engineering industry, you hear the phrase low localization rate, which means that many components are imported from abroad.

When hearing a high localization rate, it is a sign of joy because the import rate will decrease, domestic labor will increase, and the industry will progress. However, it is not anticipated that the price of the finished product will be low, and the quality is unlikely to be better than foreign products.

In recent times, the domestic localization rate is constantly reforming and experiencing many changes. However, the world economy is still constantly developing, causing many difficulties for Vietnamese manufacturing enterprises. Therefore, it is necessary to have a reasonable strategy:

• Officially announced the Localization Law for Vietnamese companies with the aim of increasing revenue and thriving in the market.
• Enhance staff training, reduce unemployment of workers.
• Improve production process.
• Linking domestic and foreign businesses to work together to develop the localized market.
• Building a spirit of solidarity helps Vietnam quickly innovate, integrate and gain a position in the international market.

THE ESSENTIAL NEED FOR AUDIT OF LOCALIZATION RATE.

Today, with the increasingly developing economy, the diversity of business sectors and the integration of foreign companies investing in Vietnam. The need for an audit to determine the localization rate is an extremely necessary issue for every business because it is not only related to tax obligations but also proves the capacity for businesses to confidently participate in projects. Bidding.

2. SERVICE USERS

- Organizations and businesses have a need for localization rate audits;

- Foreign-invested enterprises with production and assembly activities of finished products in the field of mechanical - electrical - electronics need auditing for bidding purposes.

- Foreign-invested enterprises with production and assembly of spare parts for finished products in the field of mechanical - electrical - electronics need auditing for bidding purposes.

3. WORK CONTENT

- Confirm the quantity of imported goods of the unit;

- Consulting on necessary documents when preparing localization rate audit documents;

- Determine the domestic rate according to the provisions of law;

- Release of localization rate audit report.

4. STEPS TO IMPLEMENT SERVICES

The process of performing audit services Localization rate in charge of CPA HCM will be carried out as follows:

Step 1: Contact customers who need to audit the Localization Rate to advise, answer questions and collect some basic information to complete the customer information survey and have an appropriate fee quote for the service. 

Step 2: After agreeing to sign the contract, the Operations Department staff will discuss the Working Plan for service implementation and request documents to be provided for auditing.

Step 3: Carrying out professional activities such as interviews, checking records, documents and related activities for auditing Localization rate.

Step 4: Communicate with customers about work performance results, advise, answer and warn about risks related to audit results.

Step 5: Issue reports, complete services and pay debts.

5. BENEFITS WHEN USING AFFILIATE TRANSACTION CONSULTATION SERVICES AT CPA HCM

With extensive experience operating in the field of accounting - auditing in the market, CPA HCM is a reputable unit that has been granted a certificate of eligibility to practice by the Ministry of Finance, providing auditing services and other services. Other services with related guarantees. In which, the service "Localization Rate Audit" is provided by CPA HCM with professional standards of quality and reliability for domestic enterprises as well as FDI enterprises that need to determine the localization rate to Help the Company protect production and improve competitiveness. In addition to meeting normal auditing requirements, we also research our customers' activities more deeply, thereby helping businesses quickly update new development trends and detect potential risks in their business. business, finance and related management issues.

CPA HCM with a team of professional consultants with more than 14 years of experience in the field of auditing and consulting. We will clearly understand the customer's business field and provide the service "Reputable Localization Rate Finalization Audit, including:

- Confirm the localization rate in production;

- Register to pay import tax according to the localization rate;

- Consulting on conditions for calculating import tax according to the localization rate;

- Calculate import tax according to the localization rate;

- Final settlement of imported goods;

- Determine the localization rate for the next year.

The Localization Rate Audit and Finalization Service provided by CPA HCM will certainly bring customers absolute satisfaction, safety and peace of mind..