What is the deadline for submitting provisional corporate income tax payments in Vietnam?

What is the deadline for submitting provisional corporate income tax payments in Vietnam?

Based on Article 55 of the Tax Management Law 2019, the deadline for submitting tax payments is specified as follows:

Tax Payment Deadline

1. In cases where the taxpayer calculates the tax, the deadline for tax payment is the last day of the tax declaration submission period. In the case of additional tax declarations, the tax payment deadline is the deadline for submitting the tax declaration of the taxable period containing errors or omissions.

For corporate income tax, provisional payments are made quarterly, with the latest tax payment deadline being the 30th of the first month of the following quarter.

For crude oil, the resource tax and corporate income tax payment deadline for each crude oil sale is 35 days from the sale date for domestically sold crude oil or from the customs clearance date for exported crude oil, as prescribed by customs regulations.

For natural gas, the resource tax and corporate income tax are paid monthly.

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Provisional corporate income tax payments are made quarterly; thus, the deadline for 2024 is the 30th of the first month of the following quarter.

What is the deadline for submitting provisional corporate income tax payments in Vietnam? (Image from the Internet)

What types of income are subject to corporate income tax in Vietnam?

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

- Taxable income includes income from production, business activities of goods, services, and other income.

- Other income includes income from capital transfer, contribution of capital; income from real estate transfer, transfer of investment projects, transfer of rights to participate in investment projects, transfer of exploration, exploitation, and processing of minerals; income from the use of assets, ownership of assets, including income from intellectual property rights under legal regulations; income from transfer, lease, liquidation of assets, including valuable papers; income from interest on deposits, lending capital, foreign currency sales; recovery of written-off bad debts; unidentified payable debts; omitted business incomes from previous years, and other income.

- Vietnamese enterprises investing abroad transferring profits after paying foreign corporate income tax back to Vietnam, for countries with which Vietnam has signed a Double Taxation Avoidance Agreement, implementation will follow the Agreement; for countries without such an Agreement, if the corporate tax rate in the country where the enterprise returns income is lower, the difference will be collected compared to the corporate tax according to the Vietnamese Corporate Income Tax Law.

What incomes are exempt from corporate income tax in Vietnam?

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

- Income from cultivation, husbandry, aquaculture, processing of agricultural products, forestry products, and salt production by cooperatives; income of cooperatives operating in agriculture, forestry, fishery, and salt industries in areas with difficult or extremely difficult socio-economic conditions; income of enterprises from cultivation, husbandry, aquaculture, processing of agricultural products, and aquatic products in areas with extremely difficult socio-economic conditions; income from seafood catching activities.

- Income from performing direct technical services serving agriculture.

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

- Income from production and business activities of enterprises employing an average of 30% or more of their workforce who are disabled, rehabilitated drug addicts, or HIV/AIDS carriers, with an average workforce of twenty or more in a year, excluding enterprises operating in the finance, real estate business sectors.

- Income from vocational training for ethnic minorities, the disabled, children in special difficult circumstances, and social evils subjects.

- Income distributed from capital contributions, joint ventures, and associations with domestic enterprises, after the Corporate Income Tax as regulated by this Law has been paid.

- Sponsored funds used for educational, scientific research, cultural, artistic, charitable, humanitarian, and other social activities in Vietnam.

- Income from transferring emission reduction certificates (CERs) by enterprises granted emission reduction certificates.

- Income from tasks assigned by the State to the Vietnam Development Bank in development investment credit activities, export credit; income from credit activities for the poor and other policy subjects by the Social Policy Bank; income of state financial funds and other state funds operating not for profit according to the law; income of organizations 100% owned by the State established to handle bad debts of Vietnamese credit institutions.

- Undistributed income of socialized establishments in education-training, health care, and other socialized fields left for reinvestment according to specialized law regulations in education-training, health care, and other socialized fields; income forming non-divided assets of cooperatives established and operating according to the Cooperative Law.

- Income from technology transfer in priority transfer areas to organizations or individuals in regions with extremely difficult socio-economic conditions.

How to determine taxable corporate income in Vietnam?

According to Article 7 of the Corporate Income Tax Law 2008, the determination of taxable income is specified as follows:

Determining Taxable Income

1. Taxable income in a taxable period is determined by taxable income minus tax-exempt income and losses carried forward from previous years.

2. Taxable income is total revenue minus deductible expenses from production, business activities plus other income, including income received outside Vietnam.

3. Income from real estate transfers must be separately determined for tax declaration and payment.

The Government of Vietnam provides detailed regulations and guidance for implementing this Article.

Thus, according to these regulations, taxable income for a period is determined by subtracting tax-exempt income and losses carried over from previous years from taxable income.