When is the deadline for paying CIT on crude oil in Vietnam?

When is the deadline for paying corporate income tax (CIT) on crude oil in Vietnam?

Based on Article 55 of the 2019 Law on Tax Administration, the regulations are as follows:

Tax payment deadline

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

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

For crude oil, the deadline for paying resource tax and corporate income tax per crude oil sale is 35 days from the date of sale for domestically sold crude oil or from the custom clearance date as per legal regulations regarding customs for exported crude oil.

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

2. In case the tax authority calculates tax, the deadline for tax payment is the date specified in the tax authority’s notice.

3. For other revenues belonging to the state budget from land, water resource exploitation rights, mineral resource exploitation rights, registration fees, license fees, the payment deadlines are regulated by the Government of Vietnam.

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Therefore, the deadline for paying corporate income tax per crude oil sale is 35 days from the date of sale for domestically sold crude oil or from the customs clearance date as per legal regulations regarding customs for exported crude oil.

When is the deadline for paying CIT on crude oil in Vietnam? (Image from the Internet)

Which entities are corporate income taxpayers in Vietnam?

Pursuant to Article 2 of the 2008 Corporate Income Tax Law (amended and supplemented by Clause 1 Article 1 of the 2013 Amended Corporate Income Tax Law), the provisions on CIT taxpayers are as follows:

- CIT taxpayers are organizations engaged in the production and business of goods and services with taxable income under the 2008 Corporate Income Tax Law (hereinafter referred to as enterprises), including:

+ Enterprises established under Vietnamese law;

+ Enterprises established under foreign law (hereinafter referred to as foreign enterprises) with or without permanent establishments in Vietnam;

+ Organizations established under the 2023 Cooperative Law;

+ Public service units established under Vietnamese law;

+ Other organizations engaged in production and business with taxable income.

- Enterprises with taxable income as prescribed in Article 3 of the 2008 Corporate Income Tax Law must pay corporate income tax as follows:

+ Enterprises established under Vietnamese law pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam;

+ Foreign enterprises with permanent establishments in Vietnam pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam related to the activities of that permanent establishment;

+ Foreign enterprises with permanent establishments in Vietnam pay tax on taxable income arising in Vietnam that is not related to the activities of the permanent establishments;

+ Foreign enterprises without permanent establishments in Vietnam pay tax on taxable income arising in Vietnam.

- A permanent establishment of a foreign enterprise is a production or business facility through which the foreign enterprise conducts part or all of its production or business activities in Vietnam, including:

+ Branches, management offices, factories, workshops, means of transport, oil fields, gas fields, mines, or other places of extraction of natural resources in Vietnam;

+ Construction sites, construction works, installation, assembly projects;

+ Service supplies, including consulting services through employees or other organizational or individual entities;

+ Agents for foreign enterprises;

+ Representatives in Vietnam who are authorized to sign contracts on behalf of foreign enterprises or representatives without authority to sign contracts on behalf of foreign enterprises but regularly carry out the delivery of goods or provision of services in Vietnam.

What income is exempt from corporate income tax under current regulations in Vietnam?

Based on Article 4 of the 2008 Corporate Income Tax Law (amended by Clause 2 Article 1 of the 2014 Law on Amending Tax Laws and amended and supplemented by Clause 3 Article 1 of the 2013 Amended Corporate Income Tax Law), the income exempt from corporate income tax includes:

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

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

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

- Income from production and business activities of enterprises with 30% or more of their average annual workforce being disabled persons, those undergoing drug detoxification, and persons infected with the virus that causes acquired immune deficiency syndrome (HIV/AIDS), with an average annual workforce of twenty or more persons, excluding enterprises operating in finance, real estate trading.

- Income from vocational training activities dedicated to ethnic minorities, disabled persons, children with special difficult circumstances, social evils subjects.

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

- Sponsorship amounts received for educational, scientific research, cultural, artistic, charitable, humanitarian, and other social activities in Vietnam.

- Income from transferring emission reduction credits (CERs) of enterprises receiving emission reduction certificates.

- Income from tasks assigned by the State to the Vietnam Development Bank for investment credit and export credit activities; income from credit activities for the poor and other policy subjects of the Vietnam Social Policy Bank; income from state financial funds and other state funds operating not for profit as prescribed by law; income of organizations where the State holds 100% of the charter capital established by the Government of Vietnam to handle bad debts of Vietnamese credit institutions.

- Non-distributed income of establishments undertaking socialization in the fields of education – training, healthcare, and other socialization fields to reinvest in developing the establishment under the specific laws on education – training, healthcare, and other socialization fields; non-distributed income forming inviolable assets of cooperatives established and operating under the Cooperative Law.

- Income from technology transfer in prioritized areas transferred to organizations or individuals in areas with especially difficult socio-economic conditions.