What is the CIT finalization declaration for foreign transport companies in Vietnam? How to determine the CIT taxable turnover of a foreign transport company?
- What is the CIT finalization declaration for foreign transport companies in Vietnam?
- What is the CIT finalization dossier for foreign transport companies in Vietnam?
- How to determine the CIT taxable turnover of foreign transport companies in Vietnam?
- Is it correct to declare CIT finalization for foreign transport companies in Vietnam annually?
What is the CIT finalization declaration for foreign transport companies in Vietnam?
The form of CIT finalization declaration for foreign transport companies is Form No. 01/VTNN issued together with Circular 80/2021/TT-BTC. Below is an image of the CIT finalization declaration form for foreign transport companies:
Download the latest CIT finalization form for foreign transport companies: Here.
What is the CIT finalization declaration for foreign transport companies in Vietnam? How to determine the CIT taxable turnover of a foreign transport company? (Image from the Internet)
What is the CIT finalization dossier for foreign transport companies in Vietnam?
Pursuant to Section 13.5 specified in Appendix I issued together with Decree 126/2020/ND-CP stipulating tax finalization declaration dossiers for foreign transport companies, including:
- Declaration for finalization of corporate income tax for foreign transport companies (Form No. 01/VTNN issued together with Circular 80/2021/TT-BTC).
- Appendix to list of income from international transport (applicable to ship operators) (Form No. 01-1/VTNN issued together with Circular 80/2021/TT-BTC).
- Appendix to the list of income from international transport (applicable to the case of seat swap/share) (Form No. 01-2/VTNN issued together with Circular 80/2021/TT-BTC).
- Appendix to list of revenue from storing containers (Form No. 01-3/VTNN issued together with Circular 80/2021/TT-BTC).
How to determine the CIT taxable turnover of foreign transport companies in Vietnam?
Pursuant to Item b.6 Point b Clause 1 Article 13 of Circular 103/2014/TT-BTC stipulates as follows:
Corporate income tax
The basis for tax calculation is the revenue subject to corporate income tax CIT and tax rate (%).
CIT payable = Revenue subject to CIT x CIT rate
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b) Determination of revenue subject to CIT in some cases:
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b.6) Revenue subject to CIT of a foreign marine shipping company is the total charge for transport of passengers, cargo, and other surcharges received by the shipping company from the loading port to the unloading port (including charge for the consignments transit through intermediate ports) and/or charge fro transport of cargo between Vietnam’s ports.
The charge being the basis for calculating CIT does not include the charge on which CIT has been paid at a Vietnam’s port and the charge paid to a Vietnamese courier for transporting goods from a Vietnam’s port to an intermediate port.
Example 21:
Company A acts as an agent of foreign marine shipping company X. According to the agent contract, company A, on behalf of company X, receives goods to be transported abroad, issues bills of lading, collects charges, etc.
Company B of Vietnam hires company X (via company A) to transport goods from Vietnam to America for USD 100,000.
Company A hires ships from Vietnamese or foreign companies to carry goods from Vietnam to Singapore for USD 20,000. From Singapore, goods shall be transported to the USA by ships of company X.
Revenue subject to CIT of company X is calculated as follows:
Revenue subject to CIT = 100,000 – 20,000 = 80,000 USD
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Thus, according to the above regulations, Revenue subject to CIT of a foreign marine shipping company is the total charge for:
- Transport of passengers,
- Transport of cargo,
- Transport of other surcharges received by the shipping company from the loading port to the unloading port (including charge for the consignments transit through intermediate ports) and/or charge fro transport of cargo between Vietnam’s ports.
Is it correct to declare CIT finalization for foreign transport companies in Vietnam annually?
Pursuant to Point g, Clause 6, Article 8 of Decree 126/2020/ND-CP (amended by Clause 5, Article 1 of Decree 91/2022/ND-CP) stipulates as follows:
Taxes declared monthly, quarterly, annually, separately; tax finalization
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6. The following taxes and amounts shall be declared annually and finalized when an enterprise is dissolved, shuts down, terminates a contract or undergoes rearrangement. In case of conversion (except equitized state-owned enterprises) where the enterprise after conversion inherits all tax obligations of the enterprise before conversion, tax shall be finalized at the end of the year instead of the issuance date of the decision on conversion. Tax shall be finalized at the end of the year):
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g) Corporate income tax of foreign transport companies shall be provisionally paid quarterly and finalized annually. The total provisional corporate income tax paid in 04 quarters shall be at least 80% of the corporate income tax payable under the annual tax finalization dossier. If provisional tax of 04 quarters is underpaid, late payment interest shall be charged on the tax arrears over the period from the date succeeding the deadline for paying provisional corporate income tax of the fourth quarter to the date preceding the day on which tax arrears are paid to state budget.
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Thus, according to the above regulations, the corporate income tax of foreign transport companies shall be provisionally paid quarterly and finalized annually
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