TTP AUDITING COMPANY LIMITED

First of all, we would like to sincerely thank to Vinh Nam Phat Company and New Vinh Nam Phat
Company for creating good conditions for us to have an opportunity to send the Proposal for Accounting,
Tax and Payroll related services to you.

This proposal details our understanding of your needs, scope of our work, our team and our professional
fees. Our proposal is subdivided as follows:

I. Introduction
II. Our Understanding of Your Needs
III. Scope of Our Work
IV. Proposed fees

We hope to have the opportunity to provide the best services to FIND through that, will contribute the
added value to FIND during your operation here in Vietnam.

I. INTRODUCTION

ASC Auditing Company Limited has been established in 2008 under Law on Enterprises of the Socialist
Republic of Vietnam of which head office is located at 12th Floor, West Tower, Hancorp Plaza building,
No. 72 Tran Dang Ninh, Cau Giay District, Hanoi City.

Name TTP Company Limited

Year of establishment 2008
Offices Hanoi
Total employees Over 50 employees
Primary services ■ Auditing service
■ Accounting service
■ Tax service
■ Consultancy service

Main clients Over 300 clients/year

Membership Vietnam Association of Certified Public
Accountants (VACPA)

II. Our Understanding of Your Needs

FIND is an international non-profit organization that enables the development and delivery of much-
needed diagnostic tests for poverty-related diseases, including tuberculosis, malaria, sleeping sickness,
hepatitis C, HIV, leishmaniasis, Buruli ulcer and Chagas disease.

FIND acts as a bridge between experts in technology development, policy and clinical care, reducing
barriers to innovation and effective implementation of diagnostic solutions in low- and middle-income
countries.

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FIND has active collaborations with more than 150 partners, including research institutes, academia,
health ministries and disease control programmes, commercial partners, the World Health Organization,
bilateral and multilateral organizations, and clinical trial sites.

The company’s head office is at Campus Biotech – Building B2, Level 09 Chemin des Mines – 1202
Geneva, Switzerland.

To fully comply with required regulations in Vietnam, your company is planning to outsource its back
office functions to a service provider to provide support for the company’s compliance obligations in
Vietnam. As per our understanding of your company, we have included in this proposal the compliance
services that ASC Company Limited can provide:

(i) Accounting compliance services;

(ii) Tax Compliance services;

(iii) Payroll services;

(iv) Consulting services.

III. SCOPE OF OUR WORK

Based on our understanding of the operations of your company, we envisage that our proposed assistance
would comprise of the following services:

1. Accounting compliance services

1.1. Statutory requirements

Under prevailing regulations, your company is required to comply with regulations on accounting as
follows:

 Adopt accounts as listed in the accounting policies issued by the authorities;

 Maintain the proper vouchers, invoices, contracts and accounting books as prescribed; and
 As a 100% foreign investment company, your company shall be required to have the accounting
reports audited by qualified auditor within 90 days from the end of the fiscal year.

1.2. Our proposed services

(i) Monthly Review of Accounting, Book Keeping and Accountant Services

 Review the source data compiled and provided by your company;

 Review the monthly and quarterly report which includes (a) Journal voucher entries; (b) General
ledger listing; (c) Trial balance; (d) Profit and loss statement; and (e) Balance sheet.
 Act as FIND’s accountant to deal with the auditing company.

(ii) Year-end Financial Reporting and Audit Support

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 Review all annual financial statements and the necessary report for audit purposes and
preparation of financial statements for the financial year end;
 Act as the accountant to deal with the auditors of your company.

2. Tax compliance services

2.1. Statutory requirements

(i) Value Added Tax (“VAT”) filling

 VAT filling must be carried on a monthly/quarterly basis;

 Within 20 days from the end of the month or within 30 days from the end of the quarter, your
company is required to prepare and submit a VAT filling to the tax authorities and pay any taxes
due to the State Budget.

(ii) Corporate Income Tax (“CIT”) filing

 Based on actual revenues and costs, provisional CIT should be paid on a quarterly basis by no
later than the 30th day of the following month.
 Within 90 days from the end of the fiscal year, your company is required to submit a tax
finalization report to the tax authorities and pay any taxes due to the State Budget.

2.2. Our proposed services

(i) Value Added Tax (“VAT”) filling

 Review of VAT invoices and reparation of monthly/quarterly VAT returns;

 Submitting the returns to the tax office; and
 Liaise with the tax office if required, on matters relating to the monthly/quarterly returns.

(ii) CIT compliance services

 Provisional CIT compliance

 Review of relevant accounting information; and
 Calculate provisional CIT and guide tax payment.
 CIT finalization compliance
 Review and assess the reasonableness and legitimacy of each type of income and expense
transactions and advise the appropriate supporting documentation
 Assist in preparing the tax finalization computation and the tax finalization return based on
information provided to us, for your company’s review and approval;
 Advice your company on the basis used in the preparation of the CIT finalization return and
identifying risks and opportunities identified in the course of our work;
 Assist in submitting the CIT finalization return; and
 Respond to any queries raised by the local tax authorities, and/or your company in relation to the
above processes.

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3. Labor compliance services

3.1. Statutory requirements

In addition to the compliance requirement on accounting and tax in Vietnam, your company is obliged to
comply with other statutory requirements as an employer in Vietnam. Such requirements are as follows:

(i) Labor compliance

 The employer is also required to comply with the relevant regulations on labor contracts, salary,
working-time etc. in Vietnam.

(ii) Personal Income Tax (“PIT”) compliance.

 PIT code is required to be registered and obtained for each employee.

 The employer (i.e. your company) is required to withhold relevant PIT liabilities imposed on such
employment income, and declare and pay such withheld taxes to the local tax authorities.
 The employer is required to prepare and lodge provisional PIT returns of its employees to the
local tax authorities on a monthly or quarterly basis.
 Annual PIT returns must be lodged to the local tax authorities on a calendar year basis, and within
ninety (90) days from the end of the calendar year.

(iii) Compulsory statutory insurance

 Contribution to Social Insurance (SI), Health Insurance (HI), and Unemployment Insurance (UI)
is mandatory for Vietnamese employees only.
 The current contribution rate is (i) for the employer: SI (18%), HI (3%), UI (1%) and (ii) for
 the employee: SI (8%), HI (1.5%) and UI (1%).
 Foreign employees with definite term Vietnamese labor contracts for a full three months or more
shall be subject to mandatory HI contributions.

3.2. Our scope of services

(i) Monthly payroll and PIT services

 Obtain relevant information of employees’ income during the month/the quarter;

 Calculate PIT payable, SI, HI, UI and other related expenses, payroll deductions and net take
home of the employees;
 Prepare the Insurance report;
 Prepare the payroll reports and pay slips;
 Prepare PIT returns in accordance with the regulations; and
 Provide your company with payment instruction on the monthly PIT payable of its employees.
 Act as FIND’s accountant to deal with Insurance department.

(ii) Annual PIT and payroll services

 Obtain and compile the relevant information of employees’ income for the entire year;

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 Calculate annual PIT payable and prepare PIT returns;

 Assist in other annual activities such as issuance of annual salary confirmation, income tax
receipts and other statutory requirements; and
 Provide your company with payment instruction on the outstanding PIT payable of its employees.

(iii) Expatriates tax services

 If required, prepare quarterly and annual tax returns for expatriates under their individual tax
codes. The scope includes calculation of the PIT and preparation of tax returns; and
 Upon departure from Vietnam, prepare finalization returns as required under the regulations. The
scope includes calculation of the PIT and preparation of tax returns.

4. Additional services

 Assist in preparing format, contract templates such as: economic contract, debt reconciliation…
 Assit in preparing accounting processes (set-up fee);
 Assit in preparing financial regulation; internal payment policy; labor agreement… (set-up fee).

IV. PROPOSED FEES

In accordance with normal professional practice, our fees take into account the time cost incurred on the
engagement, the skill required, the degree of responsibilities and the urgency that the engagement entails.

Scope of Services Fees (USD)

1. Accounting compliance
services
Monthly accounting services Monthly
Year-end Financial Reporting Annual
and Audit Support
2. Tax compliance services
VAT compliance
- Monthly/quarterly VAT Monthly/Quarterly Package fee.
returns Monthly fee:
CIT compliance USD 1,500.
- Quarterly provisional CIT Quarterly/Annual (to be filled at the end of each
payment and year-end month).
annual finalization return
3. Labor compliance services Annual fee:
Monthly Payroll and PIT Monthly USD 2,000
services (to be filled by 31 December or
(Under 30 employees) upon completion of year end
Annual PIT and payroll Annual returns and processes).
Total fees per year:
finalization services for local

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and expatriate employees. USD 20,000.

(Under 30 employees)
4. Additional services USD 2,000.

The above fees exclude the ten percent (10%) value added tax (“VAT).

Our fees above are based on the assumption that all information and documents required for us to proceed
with our work will be provided in a timely manner.

Please note that the fees above are not inclusive of any additional services other than those spelt out in the
scope of work therein. In the event that your company requires ASC to perform additional work or
provide tax advice or consultancy services not spelt out above, ASC will charge your company for such
work performed on a time cost basis. However, in such circumstances we will seek your confirmation and
agreement in writing before proceeding with additional work or services requested.