Vietnam: What does the Corporate Income Tax (CIT) finalization dossier include?

Vietnam: What does the Corporate Income Tax (CIT) finalization dossier include?

The CIT finalization dossier is one of the crucial procedures that enterprises need to carry out annually to comply with the tax laws. Timely preparation and submission of the dossier not only help enterprises avoid legal risks but also ensure transparency in financial activities.

Based on Article 43 of the Tax Administration Law 2019 and Circular 80/2021/TT-BTC, the regulations regarding the CIT finalization dossier are as follows:

(1) CIT finalization dossier using the revenue-expense method:

- CIT finalization declaration form (applicable to the revenue-expense method) according to Form No. 03/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC... Download

- Annual financial statements. Depending on each case, enterprises may also provide financial statements up to the time of decision on dissolution, division, merger, consolidation, change of enterprise type, change of ownership form, or termination of business activities.

- Declaration of related-party transactions

- Appendices of production and business activity results of enterprises (select the appropriate appendix based on the enterprise's situation) issued with Appendix 2 of Circular 80/2021/TT-BTC as follows:

+ Appendix of production and business activity results (applies to manufacturing, trade, service industries, excluding security, defense companies) according to Form No. 03-1A/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC;

+ Appendix of production and business activity results (applies to banking, credit industries) according to Form No. 03-1B/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC;

+ Appendix of production and business activity results (applies to securities companies, investment fund management companies) according to Form No. 03-1C/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC;

+ Loss transfer appendix according to Form No. 03-2/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC;

+ Preferential appendix for income from new investment projects, income of enterprises entitled to CIT incentives according to Form No. 03-3A/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC;

+ Preferential appendix for business establishments investing in expansion, increasing capacity, or renewing production technology (expansion investment projects) according to Form No. 03-3B/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC;

+ Preferential appendix for enterprises employing ethnic minority labor or enterprises in manufacturing, construction, transportation using a large number of female workers according to Form No. 03-3C/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC.

+ Preferential appendix for scientific and technological enterprises or enterprises conducting technology transfer in priority areas according to Form No. 03-3D/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC.

+ CIT paid abroad appendix according to Form No. 03-4/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC.

+ CIT on real estate transfer activities appendix according to Form No. 03-5/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC.

+ Report on the appropriation and use of the science and technology fund appendix according to Form No. 03-6/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC.

+ Appendix for the allocation of CIT payable to localities benefiting from revenue sources for production establishments according to Form 03-8/TNDN issued with Appendix 2 Circular 80/2021/TT-BTC.

+ Appendix for the allocation of CIT payable to localities benefiting from revenue sources for real estate transfer activities according to Form 03-8A/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC.

+ Appendix for the allocation of CIT payable to localities benefiting from revenue sources for hydropower production activities according to Form 03-8B/TNDN issued with Appendix II of Circular 80/2021/TT-BTC.

+ Appendix for the allocation of CIT payable to localities benefiting from revenue sources for electronic lottery business activities according to Form 03-8C/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC.

+ Appendix for the list of documents for temporary CIT payment of real estate transfer activities receiving payments in-progress without final delivery during the year according to Form 03-9/TNDN issued with Appendix 2 of Circular 80/2021/TT-BTC.

- In cases where an enterprise has investment projects abroad, in addition to the above-mentioned documents, the enterprise must supplement: A copy of the foreign income tax declaration form certified by the taxpayer; A copy of the foreign tax payment document certified by the taxpayer, or the original certification from the foreign tax authority regarding the amount of tax paid, or a copy of equivalent value documents certified by the taxpayer.

(2) CIT finalization dossier for enterprises engaged in crude oil and natural gas extraction and sales

- CIT finalization declaration according to Form 02/TNDN-DK issued with Appendix 2 of Circular 80/2021/TT-BTC

- Detailed appendix on oil contractor's tax obligations according to Form 01/PL-DK issued with Appendix 2 of Circular 80/2021/TT-BTC

- Annual financial statements or financial statements to the end date of the oil contract.

What does the Corporate Income Tax finalization dossier include? (Image from the Internet)

When is the deadline for submitting the CIT finalization dossier in Vietnam?

According to Point a, Article 44 of the Tax Administration Law 2019, the deadline for submitting the CIT declaration dossier in 2024 is as follows:

Tax Declaration Submission Deadline

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2. The deadline for submitting tax declaration dossiers for taxes calculated annually is stipulated 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 finalization 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 tax finalization dossier for personal income tax of individuals directly finalizing tax;

c) No later than December 15 of the preceding year for the tax estimation declaration dossier for business households and individuals who pay tax using the estimation method; in case of new business activities by business households and individuals, the latest deadline is 10 days from the start of business activities.

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Thus, the deadline for submitting the CIT finalization dossier is the last day of the third month from the end of the calendar year or fiscal year. The latest is the last day of the first month of the calendar year or fiscal year for the annual tax declaration dossier;

For how many years can an enterprise carry forward losses from CIT finalization in Vietnam?

According to Article 9 of Circular 78/2014/TT-BTC, the regulations on loss determination and loss carryforward states:

Determination and Carryforward of Losses

1. A loss incurred during the tax period is the negative difference in taxable income, excluding losses carried forward from previous years.

2. An enterprise, after finalizing taxes, if it incurs a loss, is required to fully and continuously carry forward the loss to taxable income (taxable income minus tax-exempt income) in subsequent years. The continuous loss carryforward period shall not exceed 5 years from the year following the year in which the loss is incurred.

Enterprises temporarily carry forward losses to taxable income in quarters of the following year when preparing provisional declarations and then formally carry forward in the following year when preparing the annual tax finalization declaration.

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Accordingly, enterprises after finalizing taxes and incurring losses may carry forward losses continuously for a period not exceeding 5 years, starting from the year following the year in which the loss arose.