Vietnam: What documents does the CIT finalization declaration according to the cost revenue method include? What is the current CIT rate?
What documents does the CIT finalization declaration dossier according to the revenue-expense method in Vietnam include?
Pursuant to Subsection a Section 7.2 specified in Appendix I promulgated together with Decree 126/2020/ND-CP stipulating the CIT finalization declaration dossier according to the revenue-cost method, including:
- Corporate income tax finalization declaration (applicable to revenue - expense method) according to form No. 03/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
Download the corporate income tax finalization declaration (applicable to the revenue-expense method) according to form No. 03/CIT here
- Annual financial statements in Vietnam or financial statements up to the time of issuance of the decision on dissolution, bankruptcy, termination of operation or reorganization of the enterprise in accordance with the law on accounting and the law on independent auditing (except for cases where financial statements in Vietnam are not required as prescribed).
- One or several appendices attached to the declaration (depending on the fact incurred by the taxpayer) issued together with Appendix II of Circular 80/2021/TT-BTC:
+ Appendix of production and business results according to form No. 03-1A/CIT or form No. 03-1B/CIT or form No. 03-1C/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix for loss transfer according to form No. 03-2/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix of incentives for income from new investment projects, income of enterprises entitled to corporate income tax incentives according to form No. 03-3A/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix of incentives for business establishments investing in scale expansion, capacity enhancement, production technology innovation (expansion investment projects) according to form No. 03-3B/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix of incentives for enterprises employing ethnic minorities or enterprises engaged in production, construction and transport activities employing many female employees according to form No. 03-3C/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix of incentives for science and technology enterprises or enterprises implementing technology transfer in priority domains according to form No. 03-3D/CIT specified in Appendix II promulgated together with Circular 80/2021/TT-BTC.
+ Appendix of corporate income tax paid abroad according to form No. 03-4/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Corporate income tax appendix for real estate transfer activities according to form No. 03-5/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix of report on appropriation and use of science and technology funds according to form No. 03-6/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix to the table of allocation of enterprise income tax payable to localities where revenue sources are entitled to production establishments according to form 03-8/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix to the table of distribution of corporate income tax payable to localities where revenues are entitled to real estate transfer activities according to form 03-8A/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix to the table of allocation of corporate income tax payable to localities where revenues for hydropower production activities are entitled according to form 03-8B/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix of the table of allocation of corporate income tax payable to localities where revenues are entitled to computer lottery business activities according to form 03-8C/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
+ Appendix of the statement of documents for payment of temporary corporate income tax of real estate transfer activities collected according to the unhanded over progress in the year according to form 03-9/CIT issued together with Appendix II of Circular 80/2021/TT-BTC.
- In case an enterprise has an investment project abroad, in addition to the above dossiers, the enterprise must supplement:
+ A copy of the overseas income tax return certified by the taxpayer.
+ A copy of overseas tax payment documents certified by the taxpayer or the original certification of the foreign tax authority on the amount of tax paid or a copy of documents of equivalent value certified by the taxpayer.
Vietnam: What documents does the CIT finalization declaration according to the cost revenue method include? What is the current CIT rate?
How to fill out Form No. 03/CIT CIT finalization declaration applied to the revenue-expenditure method in Vietnam?
Pursuant to Form No. 03/CIT specified in Appendix II issued together with Circular 80/2021/TT-BTC guiding the filling of Form No. 03/CIT CIT finalization declaration applied to the revenue-expenditure method as follows:
- CIT: Corporate income; Real estate: Real estate;
- Targets G1 and G3: Taxpayers declare the amount of CIT overpaid in the previous period to offset with the amount of CIT payable in this period.
- Targets D11, G2, G4, G5: The taxpayer declares the amount of CIT temporarily paid to the state budget as of the deadline for submitting the finalization declaration. For example, taxpayers have a tax period from January 01, 2021 to December 31, 2021, the amount of CIT temporarily paid during the year is the amount of CIT paid for the 2021 tax period from January 01, 2021 to December 31, 2022.
- In case the taxpayer is a lottery enterprise with production and business activities other than lottery business, the taxpayer shall declare the payable CIT of lottery business activities in target E1, the amount of CIT payable by other production and business activities in target E2, E3.
- Criteria E AND G: TAXPAYERS do not declare the payable and provisionally paid CIT amount of activities entitled to incentives other than those declared separately by the province.
- Targets E4, G5, H3: Taxpayers declare the amount of CIT payable and temporarily paid of infrastructure and house transfer activities handed over in this period and collect advances from customers according to the progress (including the amount collected in previous periods and this period).
What is the current CIT rate in Vietnam?
Pursuant to Article 11 of Circular 78/2014/TT-BTC stipulating the current CIT rate as follows:
The current CIT rate is 20%, except for:
- For oil and gas prospection, exploration and exploitation activities in Vietnam, the applicable CIT rate is from 32% to 50%. Based on the exploitation location, exploitation conditions and mine reserves, enterprises having investment projects on oil and gas prospection, exploration and exploitation shall send investment project dossiers to the Ministry of Finance for submission to the Prime Minister for decision on specific tax rates for each project, each business.
- For the prospection, exploration and exploitation of rare resources (including: platinum, gold, silver, tin, wonfram, antimoan, precious stones, rare earths except oil and gas) CIT rate of 50% shall be applied.
In case rare resource mines with 70% or more of the allocated area are located in areas with extremely difficult socio-economic conditions on the list of CIT preferential areas promulgated by the Government, the CIT rate of 40% shall be applied.
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