What is the deadline for corporate income tax finalization upon bankruptcy and shutdown of enterprises in Vietnam?

What is the deadline for corporate income tax finalization upon bankruptcy and shutdown of enterprises in Vietnam?

Based on Clause 4, Article 44 of the Law on Tax Administration 2019, there are specific regulations concerning the deadline for filing tax declarations as follows:

Deadline for Filing Tax Declarations

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3. The deadline for filing tax declarations for taxes declared and paid each time a tax obligation arises is no later than the 10th day from the date the tax obligation arises.

4. The deadline for filing tax declarations in cases of termination of operations, contract termination, or reorganization of the enterprise is no later than the 45th day from the date of the event.

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Thus, according to the above regulations, the deadline for finalizing corporate income tax when an enterprise dissolves, goes bankrupt, or ceases operations is the 45th day from the date of the decision to dissolve, go bankrupt, or cease operations.

What is the deadline for corporate income tax finalization upon bankruptcy and shutdown of enterprises in Vietnam? (Image from the Internet)

Shall the deadline for corporate income tax finalization be postponed if it falls on a public holiday in Vietnam?

According to Clause 1, Article 1 of Decree 91/2022/ND-CP amending Decree 126/2020/ND-CP guiding the Law on Tax Administration, it stipulates as follows:

Supplement Article 6a as follows:

“Article 6a. End of the Deadline

The deadline for submitting tax declarations, tax payment deadlines, the period for tax authorities to process documents, the validity of enforcement decisions regarding tax management are implemented according to the Law on Tax Administration and this Decree. In case the last day of the deadline for submitting tax declarations, tax payment, the period for tax authorities to process documents, or validity of enforcement decisions coincides with a prescribed holiday, the last day of the deadline is the following working day after that holiday.

Thus, according to the above regulations, if the corporate income tax finalization deadline coincides with a public holiday, the last day of the deadline is extended to the next working day following the holiday.

Which income is exempt from corporate income tax in Vietnam?

According to Article 4 of the Corporate Income Tax Law 2008, amended and supplemented by Clause 3, Article 1 of the Amended Corporate Income Tax Law 2013, and by Clause 2, Article 1 of the Law No. 71/2014/QH13 on Tax Amendments 2014, it specifically stipulates the exempt income as follows:

- Income from planting, farming, aquaculture, processing of agricultural products, seafood, and salt production by cooperatives; income of cooperatives operating in agriculture, forestry, fishery, and salt production in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions; income of enterprises from planting, farming, aquaculture, and processing of agricultural products and seafood in areas with particularly difficult socio-economic conditions; income from marine fishing activities.

- Income from the provision of directly technical services serving agriculture.

- Income from implementing scientific research and technological development contracts, products in the trial production period, and products made from new technology first applied in Vietnam.

- Income from production activities and business of goods and services of enterprises with 30% or more of average annual labor being disabled, rehabilitated addicts, or HIV/AIDS-infected individuals and having average annual labor from twenty or more people, excluding enterprises in finance, real estate business fields.

- Income from vocational training activities dedicated to ethnic minorities, disabled individuals, children in especially difficult circumstances, victims of social evils.

- Income distributed from capital contributions, joint ventures, and associations with domestic enterprises, after corporate income tax has been paid according to this Law.

- Sponsorship amounts received for use in education, scientific research, culture, arts, charity, humanitarian, and other social activities in Vietnam.

- Income from the transfer of certified emission reductions (CERs) by enterprises granted emission reduction certificates.

- Income from the State-assigned duties of the Vietnam Development Bank in development investment lending and export credit activities; income from lending to the poor and other policy subjects by the Vietnam Social Policy Bank; income of state financial funds and other state-run funds operating not for profit according to legal regulations; income of organizations wholly owned by the State, established by the Government of Vietnam to handle non-performing loans of Vietnam credit institutions.

- Undivided income of establishments implementing socialization in education and training, health and other socialization fields retained for reinvestment in such establishments according to specialized laws on education and training, health and other socialization fields; undivided income constituting non-divided assets of cooperatives established and operating according to the Law on Cooperatives.

- Income from technology transfer in priority fields transferred to organizations and individuals in areas with particularly difficult socio-economic conditions.