What is the deadline for paying provisional corporate income tax in Vietnam for the third quarter of 2024?

What is Corporate Income Tax?

Currently, there is no specific definition of corporate income tax. However, it can be understood that corporate income tax (CIT) is a direct tax levied directly on the taxable income of enterprises. CIT includes incomes of enterprises from production activities, trading goods, services, and other types of income as prescribed by law.

Based on Article 3 of the 2008 Law on Corporate Income Tax, amended by Clause 1, Article 1 of the 2014 Law Amending Tax Laws, taxable income includes income from production activities, trading goods, services, and other incomes.

Other incomes include:

- Income from capital transfers, transfer of capital contribution rights;

- Income from real estate transfers, transfer of investment projects, transfer of rights to participate in investment projects, transfer of rights to explore, exploit, and process minerals;

- Income from the use of assets, ownership rights of assets, including income from intellectual property rights as prescribed by law;

- Income from the transfer, lease, liquidation of assets, including types of valuable papers;

- Income from interest on deposits, loaning of capital, foreign exchange sales; collected amounts from bad debts previously written off;

- Amounts collected from undetermined payables;

- Income from business activities of previous years omitted and other incomes.

* When Vietnamese enterprises invest abroad and transfer the income after paying corporate income tax abroad back to Vietnam, for countries that Vietnam has signed Double Tax Avoidance Agreements with, it shall be implemented according to the Agreement’s regulations; for countries that Vietnam has not signed Double Tax Avoidance Agreements with, if the corporate income tax rate in those countries is lower, the difference shall be collected compared with the Vietnamese corporate income tax calculated according to the Vietnamese Law on Corporate Income Tax.

What is the deadline for paying provisional corporate income tax in Vietnam for the third quarter of 2024? (Image from the Internet)

What is the deadline for paying provisional corporate income tax in Vietnam for the third quarter of 2024?

Based on Clause 1, Article 55 of the 2019 Law on Tax Administration as follows:

Tax Payment Deadline

1. In cases where taxpayers calculate tax, the latest tax payment deadline is the last day of the tax declaration filing deadline. In cases of supplementary tax declaration filing, the tax payment deadline is the tax declaration filing deadline of the tax period with errors or omissions.

For corporate income tax, provisional tax payment is made quarterly, and the latest tax payment deadline is the 30th day of the first month of the following quarter.

For crude oil, the tax payment deadline for resource tax and corporate income tax is 35 days from the sale date for domestically sold crude oil or from the customs clearance date for exported crude oil according to the customs law.

For natural gas, the tax payment deadline is monthly for resource tax and corporate income tax.

Thus, the deadline for paying provisional corporate income tax for the third quarter of 2024 is October 30, 2024.

Is income from emission reduction certificates transfer taxable for enterprises granted emission reduction certificates in Vietnam?

Based on Article 4 of the 2008 Law on Corporate Income Tax, amended and supplemented by Clause 3, Article 1 of the 2013 Amended Law on Corporate Income Tax, tax-exempt incomes include:

Tax-Exempt Incomes

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5. Income from vocational training activities for ethnic minorities, disabled people, children with special difficult circumstances, and social evils objects.

6. Income distributed from capital contribution, joint ventures, and affiliations with domestic enterprises after paying corporate income tax as per this Law.

7. Donations received for educational and scientific research activities,

8. Income from transferring emission reduction certificates (CERs) of enterprises granted emission reduction certificates,

9. Income from implementing Government-assigned tasks of the Vietnam Development Bank in investment credit activities, export credit; income from credit activities for the poor and other policy subjects of the Social Policy Bank; income of financial funds of the State and other State funds operating not for profit according to the law; income of organizations wholly owned by the Government of Vietnam established to handle bad debts of Vietnamese credit institutions.

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Hence, income from transferring emission reduction certificates of enterprises granted emission reduction certificates is not subject to corporate income tax.