What does the CIT declaration dossier submited by foreign airlines in Vietnam include?

What does the CIT declaration dossier submited by foreign airlines in Vietnam include?

Pursuant to Section 13.4 stipulated in Appendix 1 issued together with Decree 126/2020/ND-CP, the CIT declaration dossier submited by foreign airlines in Vietnam includes:

- CIT declaration for foreign airlines (Form No. 01/HKNN issued together with Circular 80/2021/TT-BTC).

- Copies of the contractor contract, sub-contractor contract certified by the taxpayer (for the first tax declaration of the contractor contract).

- Copy of business license or practicing license certified by the taxpayer.

What does the CIT declaration dossier submited by foreign airlines in Vietnam include? (Image from the Internet)

What does income subject to CIT in Vietnam include?

Under Article 3 of CIT Law 2008, amended by Clause 1, Article 1 of Law on Amendments to Tax Laws 2014, taxable income includes income from production and business activities in goods and services and other income.

Other income includes:

- income from transfer of capital, transfer of the right to capital contribution;

- income from real estate transfer, transfer of construction projects, transfer of the right to participate in construction projects, transfer of the right to mineral exploration, mineral extraction, and mineral processing;

- income from the right to enjoyment of property, right to ownership of property, including income from intellectual property rights defined by law;

- income from transfer, lease, liquidation of assets, including valuable papers; income from deposit interest, loan interest, sale of foreign exchange;

- income from collection of debts that were cancelled;

- income from receipts from debts without creditors; incomes from business operation in previous years that were committed, and other incomes.

Concerning Vietnamese companies making investments in the countries with which Vietnam has a Double Taxation Agreement and transfers incomes exclusive of CIT paid overseas to Vietnam, regulations of such Double Taxation Agreements shall apply.

If investments are made in countries with which Vietnam has not had Double Taxation Agreements, and if CIT incurred in such countries is lower than that imposed by the Law on CIT of Vietnam, the tax difference shall be paid.

What is the applicable CIT rate in Vietnam?

Pursuant to Article 10 of the Law on CIT 2008 as amended and supplemented by Clause 6, Article 1 of the Law on Amendments to the Law on CIT 2013 (with certain phrases replaced by Clause 1, Article 67 of the Law on Petroleum 2022) regarding CIT rates:

Article 10. Tax rate

1. The corporate income tax rate is 22%, except for the cases in Clause 2 and Clause 3 of this Article and beneficiaries of tax incentives defined in Article 13 of this Article.

From January 1st 2016, the tax rate of 20% shall apply to the cases to which the tax rate of 22% in this Clause applies.

2. Any enterprise whose total revenue in the year does not exceed 20 billion VND shall be eligible for applying the tax rate of 20%.

The revenue used as the basis for identifying enterprises eligible for the tax rate of 20% in this Clause is the revenue of the previous year.

3. The corporate income tax rate applicable to petroleum operations ranges from 25% to 50% depending on each petroleum contract; the corporate income tax rate applicable to exploration and extraction of other rare and precious resources in Vietnam ranges from 32% to 50% depending on each project and each business establishment.

The Government shall elaborate and provide guidance on the implementation of this Article.

Thus, the applicable CIT rate is 20%.

The corporate income tax rate applicable to petroleum operations ranges from 25% to 50% depending on each petroleum contract; the corporate income tax rate applicable to exploration and extraction of other rare and precious resources in Vietnam ranges from 32% to 50% depending on each project and each business establishment

Note: Any enterprise whose total revenue in the year does not exceed 20 billion VND shall be eligible for applying the tax rate of 20%.