How to declare Form 03/TNDN on Corporate income tax finalization? Download Form 03/TNDN?

Where to download Form 03/TNDN Corporate income tax finalization form in Vietnam?

The Corporate income tax finalization form applied to the revenue-expense method is currently stipulated in Form 03/TNDN in Section 6, Annex 2, issued together with Circular No. 80/2021/TT-BTC, as follows:

Download Form 03/TNDN Corporate income tax finalization form applied to the revenue-expense method: Here

How to declare Form 03/TNDN on Corporate income tax finalization? Download Form 03/TNDN? (Image from Internet)

How to declare Form 03/TNDN on Corporate income tax finalization in Vietnam?

Below are the instructions on filling out Form 03/TNDN Corporate income tax finalization declaration:

Indicator [01]: Clearly state the tax calculation period year (according to the calendar year or fiscal year for enterprises applying a fiscal year different from the calendar year), from the first day of the calendar year/fiscal year or the commencement of business activities (for newly established enterprises) or the date the contract becomes effective (for contracts) to the end of the calendar year/fiscal year or the termination of business activities or termination of contract or change in the form of enterprise ownership or reorganization of the enterprise is identified in accordance with the accounting period prescribed by the accounting law.

Indicators [02], [03]: Check "Initial". In case the taxpayer discovers an error or omission in the initial tax return submitted to the tax authority, they should make additional declarations according to the serial number of each additional submission.

If the taxpayer files electronically, from the time the Etax system sends a notification of acceptance of the tax return for the "Initial" tax return, subsequent tax returns for the same tax period will be "Supplementary". The taxpayer must submit the "Supplementary" Return according to the supplementary declaration regulations.

Indicators [04], [05]: The taxpayer writes the name and revenue ratio of the sector with the highest revenue proportion in the tax period.

Indicators [06], [07]: Declare the information "Name of taxpayer and tax code" according to the business registration information or taxpayer registration of the taxpayer.

If the taxpayer files electronically, once the "Tax code" information is fully and accurately filled in, the Etax system automatically displays the "Name of taxpayer" information.

Indicators [08], [09], [10]: The taxpayer writes the name of the tax agent, the tax code of the tax agent, tax agency contract information in case the taxpayer files through a tax agent. The tax agent must have the taxpayer registration status "Active" and the contract must be still in effect at the time of declaration.

If the taxpayer files electronically, the Etax system automatically displays the information about the tax agent, tax agency contract registered with the tax authority for the taxpayer to choose in case the taxpayer has multiple tax agents, contracts.

Indicator [A1]: The taxpayer declares the total pre-tax accounting profit for the tax period according to accounting law. Indicator [A1] is taken from indicator [22] of Annex 03-1A or indicator [19] of Annex 03-1B or indicator [90] of Annex 03-1C.

Indicator [B1]: The taxpayer declares all revenue or expense adjustments recorded according to accounting policies, but not conforming with the Corporate income tax Law, thereby increasing the total pre-tax income of the business establishment. This indicator is determined by summing the indicators from [B2] to [B7]. Specifically:

[B1] = [B2] + [B3] + [B4] + [B5] + [B6] + [B7]

Indicator [B2]: The taxpayer declares all adjustments leading to increased taxable revenue due to differences between accounting and tax laws, including amounts determined as revenue for CIT according to the Corporate income tax Law but not recorded as revenue in the period per accounting standards for revenue. This indicator also reflects revenue deductions accepted per accounting policies but not accepted under tax laws.

Indicator [B3]: The taxpayer declares all expenses related to generating revenue recorded as revenue according to accounting policies but adjusted downward when calculating taxable income for the period according to Corporate income tax Law. Typical of these expenses are costs related to revenue already accounted for in taxable revenue in prior years (these revenues will be adjusted accordingly in indicator [B9] - Revenue deductions accounted for in previous years).

Indicator [B4]: The taxpayer declares all non-deductible expenses when determining taxable CIT income according to the CIT Law.

Indicator [B5]: The taxpayer declares the total CIT (or taxes similar in nature to CIT) paid abroad for the income received from production, business activities, and services provided abroad during the tax period, based on receipts and/or foreign tax payment documents and is taken from the "Total" line at column (4) of Annex 03-4/TNDN.

Indicator [B6]: The taxpayer declares the total adjustment increase in profits due to determining market prices for related party transactions. Where the enterprise must determine significant monetary differences when comparing independent transactions with related-party transactions or due to the tax authority setting the price level used for tax declaration calculation, determining taxable income when the enterprise does not declare or inadequately declares intercompany transactions incurred.

Indicator [B7]: The taxpayer declares the total money of other adjustments (not adjusted in the indicators from [B2] to [B6]) due to differences between accounting policies and CIT Law, leading to an increase in total pre-tax income.

Indicator [B8]: The taxpayer declares all adjustments leading to reduced pre-tax profits reflected in the enterprise's accounting records. This indicator is determined by the formula: [B8] = [B9] + [B10] + [B11] + [B12]

Indicator [B9]: The taxpayer declares all revenue accounted for in the current year's income statement of the business establishment but already included in the taxable CIT revenue of previous years.

In cases where the taxpayer sells goods and has issued invoices in the prior year but delivers goods the following year. According to the revenue accounting standards, the taxpayer only recognizes revenue when the revenue is relatively certain. However, for revenue to determine CIT, once the taxpayer has issued sales invoices, this revenue must be accounted for in taxable income. Thus, the following year when the taxpayer has delivered goods and meets the revenue recognition conditions according to accounting standards, this sales revenue is recorded as revenue in the accounting books. However, since it has already been included in taxable income the previous year, when preparing the CIT finalization return for the current year, the taxpayer must adjust the taxable revenue accordingly. (Expense reduction adjustments are made at indicator [B3]).

Indicator [B10]: The taxpayer declares all direct costs related to generating increased adjusted revenue recorded in indicator [B2]. Costs adjusted here are primarily the cost of goods sold or production cost of products. This indicator also reflects commercial discount costs deducted from revenue per accounting standards, but not deducted from revenue, instead accounted as costs according to the CIT Law.

Indicator [B11]: The taxpayer declares non-deductible loan interest expenses from the prior period carried forward to the current period for businesses with intercompany transactions.

Indicator [B12]: The taxpayer declares other adjustments outside those declared in indicators from [B9] to [B11] leading to reduced taxable profit. These adjustments may include:

i) Expenses previously reserved in costs the prior year according to accounting policies but not included in costs to determine taxable income due to insufficient invoices or documents. The following year when these are incurred, the business establishment is entitled to include them in costs. As these costs have been included in the previous year's income statement, they cannot be included in this year's. Therefore, the business establishment will make cost adjustments to reflect these expenses.

ii) Foreign exchange rate loss difference (realized in the year) already included in the previous year's income statement according to accounting policies but not recognized in costs when determining taxable income in previous years due to non-realization.

iii) Depreciation costs of passenger cars with up to 9 seats (except: passenger cars for transport business, tourism, hotels; cars for automobile business model display and test drive) exceeding 1.6 billion VND already fully depreciated according to fixed asset management, use, and depreciation policies, but according to CIT Law, only the proportion depreciating equivalent to the original price of up to 1.6 billion VND is allowed. Therefore, when preparing the CIT finalization return, the business must exclude the depreciation proportion exceeding the original price from 1.6 billion VND and report it in indicator B11 - Other pre-tax profit adjustment deductions on the CIT finalization return.

iv) Dividend, profit distributed from domestic joint ventures after paying Corporate income tax.

In case the taxpayer purchases stocks on the stock market, income from distributed profits (dividends) obtained from holding these stocks is also excluded from taxable income. However, income from transferring these stocks shall be added to taxable income.

v) Other non-taxable income according to Government of Vietnam regulations, for example, income from Government of Vietnam bonds, treasury bonds...

Indicator [B13]: The taxpayer declares taxable CIT income achieved in the tax period before deducting losses incurred in previous years transferred forward and loss from real estate transfer activities in the tax period.

This indicator is determined by the formula: [B13] = [A1] + [B1] - [B8]

Indicator [B14]: The taxpayer declares the total taxable income from business activities and other activities (excluding income from real estate transfer activities) and not yet deducting carried-forward losses in the tax period.

This indicator is determined by the formula: [B14] = [B13] - [B15]

Indicator [B15]: The taxpayer declares total taxable income from real estate transfer activities (before deducting prior year losses carried forward) in the tax period. The data for this indicator is taken from indicator [12] of Annex 03-5/TNDN.

Indicator [C1]: The taxpayer declares income from production, business activities of goods, services, and other income determined by the data in indicator [B14].

Indicator [C2]: The taxpayer declares all non-taxable income not counted in taxable income for the year according to the Corporate income tax Law.

Indicator [C3]: The taxpayer declares the total loss from production and business activities of prior years carried forward and loss from real estate transfer activities in the period deducted from business income to reduce taxable income for the tax year.

Indicator [C3a]: The taxpayer declares loss from business activities of previous years carried forward to reduce taxable income for the tax year. This indicator is taken from indicator [04] on Annex 03-2/TNDN.

Indicator [C3b]: The taxpayer declares loss from real estate transfer activities in the period after offsetting with income from real estate transfer activities. If not fully offset, it continues to offset with profit from business activities in the period.

Indicator [C4]: The taxpayer declares the taxable CIT income, determined as taxable income minus tax-exempt income and carried losses from previous years according to the regulations.

This indicator is determined as follows: [C4] = [C1] - [C2] - [C3a] - [C3b].

Indicator [C5]: The taxpayer declares the deducted amount for the development fund for science and technology during the period. This indicator is taken from indicator [05] on Annex 03-6/TNDN.

- Enterprises established and operating according to Vietnamese law can deduct up to 10% annual taxable income before determining CIT to establish a science and technology development fund for enterprises. Enterprises determine their fund's deduction level according to regulations before determining CIT. Annually, if enterprises have deducted a science and technology development fund, they must prepare a report on deduction, use of the science and technology development fund and declare the deduction level, deduction amount on Annex 03-6/TNDN and form 03/TNDN.

- The science and technology development fund of enterprises is only used for investment in scientific research and technology development of enterprises in Vietnam. All expenses from the science and technology development fund must have full legal invoices and documents as required by law.

- Enterprises may not account for expenses already used from the enterprise's science and technology development fund into business production expenses when determining taxable income during the tax period. In the event that enterprises have expenses for research and development activities from the science and technology development fund that are insufficient, the remaining difference between actual expenses and the fund's deductions will be counted as business production expenses when determining taxable income.

- Enterprises currently operating but with changes in ownership form, merger, or acquisition, the newly established enterprises from changing ownership, merger, or acquisition inherit and bear responsibility for managing and using the enterprise's science and technology development fund before conversion, merger, or acquisition.

Enterprises with unused science and technology development fund upon division or separation will be inherited and managed by newly established enterprises from the division or separation, responsible for the management and use of the enterprise's science and technology development fund before division or separation. The distribution of the science and technology development fund is decided by the enterprise and registered with the tax authority.

Indicator [C6]: The taxpayer declares taxable income after deducting the science and technology fund apportioned according to regulations and is determined as follows: [C6] = [C4] - [C5] = [C7] + [C8].

Indicator [C7]: The taxpayer declares taxable income applying a 20% tax rate including tax-exempt income.

Indicator [C8]: The taxpayer declares taxable income from petroleum exploration, prospecting, and extraction activities in Vietnam or from other non-preferential business activities applying a tax rate different from 20%.

Indicator [C8a]: The taxpayer declares the tax rate (%) for exploration, prospecting, extraction activities of rare minerals (including platinum, gold, silver, tin, tungsten, antimony, precious stones, rare earth excluding petroleum) is 50%; If rare mineral fields have at least 70% of the area granted in socio-economically extremely difficult areas listed in the preferential CIT area list issued according to Decree No. 218/2013/ND-CP of the Government of Vietnam applies a CIT rate of 40%.

Indicator [C9]: The taxpayer declares the CIT amount incurred from non-preferential business activities, before deducting the CIT exemption or reduction in the period. This indicator is determined: C9 = (C7 x 20%) + (C8 x C8a).

Indicator [C10]: The taxpayer declares CIT exemptions according to the CIT Law including exemptions due to preferential tax rates, tax exemption, and tax reduction. This indicator is determined: C10 = C11 + C12 + C13.

Indicator [C11]: The taxpayer declares CIT waiver due to preferential tax rates enjoyed. This indicator is aggregated from indicator [12] of Annex 03-3A/TNDN, indicator [12] of Annex 03-3B/TNDN.

Indicator [C12]: The taxpayer declares CIT exemption due to tax exemption benefits. This indicator is compiled from indicator [13] of Annex 03-3A/TNDN, indicator [13] of Annex 03-3B/TNDN, indicator [20] of Annex 03-3D/TNDN.Indicator [C13]: Taxpayer declares the reduced Corporate income tax (CIT) due to enjoying tax incentives. This indicator is summarized from indicator [14] Appendix 03-3A/CIT, indicator [14] Appendix 03-3B/CIT, indicator [16] Appendix 03-3C/CIT, indicators [14], [21] Appendix 03-3D/CIT.

Indicator [C14]: Taxpayer declares the CIT exempted or reduced according to the Agreement on Avoidance of Double Taxation with countries that have signed an agreement with Vietnam.

Indicator [C15]: Taxpayer declares the CIT exempted or reduced according to the Resolution or Decision of the Prime Minister of the Government of Vietnam and other cases of exemption or reduction not according to the CIT Law.

Indicator [C16]: Taxpayer declares the CIT paid abroad that is allowed to be deducted from the CIT of business activities during the period. This indicator is summarized from indicator [04] Appendix 03-4/CIT.

Indicator [C17]: Taxpayer declares the CIT of business activities: This indicator is determined as follows: C17=C9-C10-C14-C15-C16.

Indicator [D1]: Taxpayer declares taxable income from real estate transfer activities. This indicator is determined as follows: D1=B15.

Indicator [D2]: Taxpayer declares the loss from real estate transfer activities carried forward in the tax period. This indicator is summarized from indicator [05] Appendix 03-2/CIT.

Indicator [D3]: Taxpayer declares taxable income from real estate transfer activities in the tax period. This indicator is determined as follows: D3=D1-D2.

Indicator [D4]: Taxpayer declares the amount allocated to the scientific and technological development fund during the period. This indicator is taken from indicator [05] in Appendix 03-6/CIT.

Indicator [D5]: Taxpayer declares taxable income from real estate transfer activities in the tax period after allocating to the scientific and technological development fund. This indicator is determined as follows: D5=D3-D4.

Indicator [D6]: Taxpayer declares the CIT generated from real estate transfer activities in the tax period calculated at the non-preferential tax rate, not yet deducting CIT exempted or reduced in the period. This indicator is determined as follows: D6=D5 x 20%.

Indicator [D7]: Taxpayer declares the reduced CIT due to applying preferential tax rates for income from implementing investment projects - social housing business for sale, lease, or lease-purchase. This indicator is summarized from indicator [12] Appendix 03-3A/CIT declaring incentives for income from implementing social housing business investment projects for sale, lease, or lease-purchase.

Indicator [D8]: Taxpayer declares the CIT of real estate transfer activities still to be paid this period. This indicator is determined as follows: D8=D6-D7.

Indicator [E]: Taxpayer declares the CIT to be paid in the tax period, excluding the CIT payable from activities enjoying incentives in another province declared separately. This indicator is determined as follows: E = E1+E2+E5.

Indicator [E1]: Taxpayer declares the CIT of business activities payable this period, excluding CIT payable from activities enjoying incentives in another province declared separately.

Indicator [E2]: Taxpayer declares the CIT of real estate transfer activities payable this period, excluding CIT payable from activities enjoying incentives in another province declared separately. Indicator E2 = E3+E4.

Indicator [E3]: Taxpayer declares the CIT of real estate transfer activities payable this period, excluding CIT payable from activities enjoying incentives in another province declared separately and CIT from infrastructure and house transfer activities with payment according to the progress.

Indicator [E4]: Taxpayer declares the CIT of infrastructure and house transfer activities with payment settled according to progress, to be paid in the tax period, excluding CIT payable from activities enjoying incentives in another province declared separately.

Indicator [E5]: Taxpayer declares other CIT payable in the tax period excluding CIT payable declared in indicators E1, E2 (if any). If the taxpayer has processed reclaiming CIT and interest for reclaimed tax when processing the scientific and technological development fund, the taxpayer declares this in this indicator and details it in indicator E6.

Indicator [E6]: Taxpayer declares CIT and interest payable from processing the scientific and technological development fund. Indicator [E6] is summarized from indicator [06] on Appendix 03-6/CIT.

Indicator [G]: Taxpayer declares the CIT provisionally paid during the year, not including the CIT provisionally paid from activities enjoying incentives in another province declared separately. Indicator G = G1+G2+G3+G4+G5.

Indicator [G1]: Taxpayer declares surplus CIT from business activities in the previous period because the taxpayer made provisional payments by quarter higher than the payable tax according to the year-end settlement, transferred to offset the CIT payable this period.

Indicator [G2]: Taxpayer declares the CIT of business activities provisionally paid by quarter during the year up to the deadline for submitting the year-end settlement declaration. For example, if the taxpayer has a tax period from January 1, 2021, to December 31, 2021, the CIT provisionally paid during the year is the CIT paid up to March 31, 2022.

Indicator [G3]: Taxpayer declares the surplus CIT of real estate transfer activities in the previous period because the taxpayer made provisional payments by quarter higher than the payable tax according to the year-end settlement, transferred to offset the CIT payable this period. This indicator does not include the provisionally paid CIT of previous periods for infrastructure and housing transfer activities with progress-based settlement this period.

Indicator [G4]: Taxpayer declares the CIT of real estate transfer activities provisionally paid by quarter during the year up to the deadline for submitting the year-end settlement declaration. For example, if the taxpayer has a tax period from January 1, 2021, to December 31, 2021, the CIT provisionally paid during the year is the CIT paid up to March 31, 2022. This indicator does not include the provisionally paid CIT during the year for infrastructure and housing transfer activities with progress-based settlement this period.

Indicator [G5]: Taxpayer declares the provisionally paid CIT of real estate transfer activities and during the year up to the deadline for submitting the settlement declaration of infrastructure and housing transfer activities with progress-based settlement this period.

Indicator [H1]: Taxpayer declares the discrepancy between the payable tax and the provisionally paid tax during the year for business activities. Indicator H1=E1+E5-G2.

Indicator [H2]: Taxpayer declares the discrepancy between the payable tax and the provisionally paid tax during the year for real estate transfer activities. Indicator H2=E3-G4.

Indicator [H3]: Taxpayer declares the discrepancy between the payable tax and the provisionally paid tax of infrastructure and housing transfer activities with progress-based payments. Indicator H3=E4-G5.

Indicator [I]: Taxpayer declares the remaining CIT to be paid up to the deadline for submitting the tax settlement dossier. Indicator I=E-G=I1+I2.

Indicator [I1]: Taxpayer declares CIT remaining to be paid from business activities. Indicator I1=E1+E5-G1-G2.

Indicator [I2]: Taxpayer declares CIT remaining to be paid from real estate transfer activities. Indicator I2=E2-G3-G4-G5.

When is the annual Corporate income tax settlement deadline in Vietnam?

According to Article 44 of the Tax Administration Law 2019, the regulations are as follows:

Tax declaration submission deadline

1. The deadline for tax declaration for the type of tax declared monthly or quarterly is as follows:

a) No later than the 20th day of the following month of tax obligation arising in the case of monthly declaration and payment;

b) No later than the last day of the first month of the following quarter of tax obligation arising in the case of quarterly declaration and payment.

2. The deadline for tax declaration for the type of tax with an annual tax period is as follows:

a) No later than the last day of the third month from the end of the calendar year or fiscal year for the annual tax settlement dossier; no later than the last day of the first month of the calendar year or fiscal year for the annual tax declaration dossier;

b) No later than the last day of the fourth month from the end of the calendar year for the annual personal income tax settlement dossier for individuals who directly settle their taxes;

c) No later than December 15 of the previous year for the tax declaration of business households and individuals paying tax by presumptive method; for new business households and individuals, the deadline is no later than 10 days from the start of the business.

Thus, the annual Corporate income tax settlement deadline is no later than the last day of the third month from the end of the calendar year (i.e., March 31) or fiscal year (for enterprises choosing a fiscal year different from the calendar year).