What percent of corporate income tax payable under the annual tax finalization dossier shall the total amount of provisional corporate income tax paid in 04 quarters be?

What percent of corporate income tax payable under the annual tax finalization dossier shall the total amount of provisional corporate income tax paid in 04 quarters be?

Based on the regulation at point b, clause 6, Article 8 of Decree 126/2020/ND-CP, amended by clause 3, Article 1 of Decree 91/2022/ND-CP as follows:

Taxes declared monthly, quarterly, annually, separately, and tax finalization declaration

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6. Taxes and collections declared for annual finalization and finalization up to the time of dissolution, bankruptcy, cessation of activities, termination of contracts, or organizational restructuring. In the case of conversion of business type (not including equitization of state-owned enterprises) where the converted enterprise inherits all tax obligations of the converting enterprise, there is no need to declare tax finalization until a decision on enterprise conversion is made. The enterprise declares finalization at the end of the year. Specifically as follows:

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b) Corporate Income Tax (excluding Corporate Income Tax from capital transfer of foreign contractors; Corporate Income Tax declared as a percentage of revenue per each arising or monthly as stipulated at point đ, clause 4 of this Article). Taxpayers must self-determine the quarterly prepaid Corporate Income Tax (including provisional allocation of Corporate Income Tax to provincial locations where there are dependent units, business locations, places of real estate transfer different from the principal office) and are allowed to deduct the prepaid tax amount from the payable amount as per annual tax finalization.

Taxpayers obligated to prepare quarterly financial reports according to accounting law regulations shall base on quarterly financial reports and tax regulations to determine the quarterly prepaid Corporate Income Tax.

Taxpayers not required to prepare quarterly financial reports according to accounting law regulations shall base on quarterly production, business results, and tax regulations to determine the quarterly prepaid Corporate Income Tax.

The total Corporate Income Tax prepaid for 4 quarters must not be less than 80% of the Corporate Income Tax payable per annual finalization. If the taxpayer underpays compared to the amount supposed to be prepaid for 4 quarters, they must pay a late payment charge on the underpaid tax from the day following the last day of the deadline for quarterly 4 Corporate Income Tax payment until the day before the date of the underpaid amount is submitted to the state budget.

Taxpayers conducting investment projects in infrastructure, housing for transfer or lease purchase, collecting payments in advance from customers according to legal regulations shall make quarterly Corporate Income Tax payments at the rate of 1% on the collected amount. If infrastructure, housing has not been handed over and has not been included in the corporate income tax revenue for the year, taxpayers shall not consolidate it into the annual Corporate Income Tax finalization dossier but into the Corporate Income Tax finalization dossier when handing over real estate for each or the entire project.

For cases where enterprises pay CIT annually and taxpayers must self-determine the quarterly prepaid Corporate Income Tax, the total CIT prepaid for 4 quarters must not be less than 80% of the Corporate Income Tax payable per annual finalization.

What percent of corporate income tax payable under the annual tax finalization dossier shall the total amount of provisional corporate income tax paid in 04 quarters be? (Image from the Internet)

When is the deadline for paying CIT in Vietnam?

Based on Article 55 of the Law on Tax Administration 2019, the deadline for paying CIT (also known as provisional CIT) is stipulated quarterly as follows:

Tax Payment Deadline

1. In the case where the taxpayer calculates tax, the latest payment deadline is the last day of the deadline for submitting the tax declaration dossier. In the case of supplementary tax declaration, the deadline is the deadline for the tax declaration submission of the tax period with errors or omissions.

For Corporate Income Tax, it is prepaid quarterly, the latest payment deadline is the 30th of the first month of the next quarter.

For crude oil, the resource tax and corporate income tax payable per crude oil sale is due 35 days from the sale date for domestic sales or from the customs clearance date per regulations on export.

For natural gas, the resource tax and corporate income tax is calculated monthly.

2. In the case of tax calculation by the tax authority, the payment deadline is the date stated in the tax authority's notice.

The deadline for paying Corporate Income Tax quarterly is the latest by the 30th of the first month of the following quarter.

Example: The deadline for paying CIT for the third quarter of 2024 is October 30, 2024.

What is the CIT rate in Vietnam for 2024?

Clause 1, Article 11 of the Corporate Income Tax Law 2008 stipulates the tax calculation method as follows:

Tax Calculation Method

The amount of corporate income tax payable during the tax period is calculated by multiplying the taxable income by the tax rate; in cases where the enterprise has paid income tax abroad, they may deduct the amount already paid but not exceeding the corporate income tax payable according to this Law.

The Corporate Income Tax rate is one of the bases used to calculate corporate income tax.

Currently, the Corporate Income Tax rates applied include:

(1) Corporate Income Tax rate of 20% (clause 1, Article 10 of the Corporate Income Tax Law 2008 amended by clause 6, Article 1 of the Amended Corporate Income Tax Law 2013).

This rate applies to all enterprises except for cases where a tax rate between 32% to 50% is applied under Section 2, Section 3 below, or in cases where enterprises qualify for preferential tax rates.

(2) Corporate Income Tax rate from 25% to 50% for oil and gas activities in accordance with each oil contract. (clause 6, Article 1 of the Amended Corporate Income Tax Law 2013 replaced by clause 1, Article 67 of the Petroleum Law 2022).

(3) Corporate Income Tax rate from 32% to 50% for exploration, exploitation of other rare and precious resources in Vietnam, suitable for each project and each business establishment. (clause 6, Article 1 of the Amended Corporate Income Tax Law 2013 replaced by clause 1, Article 67 of the Petroleum Law 2022).