Provisional Corporate Income Tax for Quarter 1 of 2024: Deadlines, Location, and Payment Methods Regulations
When to File Provisional Corporate Income Tax for Q1 2024?
According to Clause 1, Article 55 of the 2019 Tax Administration Law, corporate income tax is provisionally paid on a quarterly basis, with the tax payment deadline being the 30th day of the first month of the following quarter.
Therefore, the deadline for provisional corporate income tax payment for Q1 2024 is April 30, 2024.
However, April 30, 2024, falls on a continuous public holiday along with May 1, 2024 (Southern Liberation Day on April 30 and International Labor Day on May 1).
Moreover, according to Clause 1, Article 1 of Decree 91/2022/ND-CP which states:
The deadline for filing tax returns, tax payment deadlines, the duration for the tax administration authority to process dossiers, the duration for the enforcement of administrative decisions on tax management shall follow the provisions of the Tax Administration Law and this Decree. If the final day of the deadline coincides with a public holiday, then the deadline is extended to the next working day.
Therefore, the deadline for provisional corporate income tax payment for Q1 2024 will be May 2, 2024.
When to File Provisional Corporate Income Tax for Q1 2024? Location and method of tax payment regulations. (Image from the Internet)
Where and How to Pay Taxes?
According to Article 56 of the 2019 Tax Administration Law which stipulates the locations and methods for tax payment:
Locations and Methods of Tax Payment
1. Taxpayers shall pay tax into the state budget as follows:
a) At the State Treasury;
b) At the tax administration authority where the tax return is submitted;
c) Through an organization authorized by the tax administration authority to collect tax;
d) Through commercial banks, other credit institutions and service organizations in accordance with the law.
2. The State Treasury, commercial banks, other credit institutions, and service organizations in accordance with the law shall arrange locations, means, officials, and personnel to collect tax funds to ensure convenience for the taxpayer to promptly pay tax into the state budget.
3. Agencies and organizations receiving tax or deducting tax must issue a tax collection receipt to the taxpayer.
4. Within 8 working hours from the time of tax collection from the taxpayer, the receiving agency or organization must transfer the funds into the state budget. In cases where tax is collected in cash in remote, distant areas, islands, difficult-to-access areas, the time for transferring tax funds into the state budget follows regulations by the Minister of Finance.
Hence, taxpayers must pay taxes into the state budget at the following locations:
- At the State Treasury;- At the tax administration authority where the tax return is submitted;- Through an organization authorized by the tax administration authority to collect tax;- Through commercial banks, other credit institutions, and service organizations in accordance with the law.
The State Treasury, commercial banks, other credit institutions, and service organizations in accordance with the law shall arrange locations, means, officials, and personnel to collect tax funds to ensure convenience for the taxpayer to promptly pay tax into the state budget.
Agencies and organizations receiving tax or deducting tax must issue a tax collection receipt to the taxpayer.
Additionally, within 8 working hours from the time of tax collection from the taxpayer, the receiving agency or organization must transfer the funds into the state budget.
In cases where tax is collected in cash in remote, distant areas, islands, difficult-to-access areas, the time for transferring tax funds into the state budget follows regulations by the Minister of Finance.
What is the Late Payment Interest Rate for Provisional Corporate Income Tax and Are There Cases Where Late Payment Interests are Not Required?
According to Clause 2, Article 59 of the 2019 Tax Administration Law, the interest rate for late payment is 0.03% per day calculated on the overdue amount.
The period for calculating the late payment is continuous from the day after the overdue date according to Clause 1, Article 59 of the 2019 Tax Administration Law until the day before the overdue amount, additional tax, tax assessment, delayed transfer tax is fully paid into the state budget.
Taxpayers determine the overdue amount according to Clause 1 and Clause 2, Article 59 of the 2019 Tax Administration Law and pay it into the state budget accordingly.
If after 30 days from the tax payment deadline, the taxpayer has not paid the tax, late payment interest, penalties, the tax authority will notify the taxpayer about the outstanding tax amount, penalties, and the number of late days.
Currently, exemptions from late payment interest include:
- Taxpayers providing goods and services paid by the state budget, including subcontractors specified in the contract signed with the main contractor and directly paid by the main contractor, but not yet settled, are exempt from late payment interests. The overdue tax amount is not greater than the amount unpaid by the state budget;- Cases specified in point (b), Clause 4 of Article 55 of the 2019 Tax Administration Law are exempt from late payment interest during the time awaiting analysis, assessment results; waiting for official prices; waiting for actual payment determination and customs value adjustments.
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