Form 04/CIT Corporate Income Tax Declaration applicable to the revenue-based method
Form 04/TNDN Corporate Income Tax Return Applicable to the Percentage Revenue Method?
Based on Form 04/TNDN Appendix 2 issued with Circular 80/2021/TT-BTC stipulating the form of corporate income tax return applicable to the percentage revenue method.
Form 04/TNDN Corporate Income Tax Return Applicable to the Percentage Revenue Method? (Image from the Internet)
What Expenses Are Not Deductible When Determining Taxable Corporate Income?
Based on Article 9 of the Corporate Income Tax Law 2008, as amended and supplemented by Clause 5, Article 1 of the Amended Corporate Income Tax Law 2013, regulating expenses not deductible when determining taxable corporate income as follows:
- Expenses not fully meeting the deductible conditions, except for the value of losses due to natural disasters, epidemics, and other force majeure cases that are not compensated;- Fines for administrative violations;- Expenses offset by other sources of funding;- Excess business management expenses allocated by foreign enterprises to their permanent establishments in Vietnam exceeding the limit calculated according to the allocation method stipulated by Vietnamese law;- Excess expenses according to the provisions of the law on setting up reserves;- Interest expenses on loans for production and business from non-credit or non-economic organizations exceeding 150% of the basic interest rate announced by the State Bank of Vietnam at the time of borrowing;- Depreciation expenses that are not in conformity with the law;- Provisioning expenses that are not in conformity with the law;- Salaries and wages of private business owners; remuneration for enterprise founders who do not directly participate in business management; salaries, wages, and other accounted expenses for employees that are actually not paid or lack proper invoices and vouchers as required by law;- Interest expenses on loans corresponding to the deficient charter capital;- Deductible input value-added tax already credited, value-added tax paid under the deduction method, corporate income tax;- Advertising, marketing, promotion, brokerage commissions, reception, hospitality, conference support, marketing support, directly related operational costs exceeding 15% of the total deductible expenses. The total deductible expenses do not include those specified in this point; for commercial activities, total deductible expenses do not include the purchase cost of goods sold;- Sponsorships, except for those for education, health care, scientific research, natural disaster recovery, building solidarity houses, gratitude houses, and houses for beneficiaries of social policies as regulated by law; sponsorships under State programs for localities in special socio-economic difficulty areas;- Contributions to voluntary pension funds or social security funds, voluntary pension insurance for employees exceeding the legal limits;- Expenses related to specific business activities: banking, insurance, lottery, securities, and certain other specialized business activities as regulated by the Minister of Finance.
Where Do Businesses Pay Corporate Income Tax?
Based on Article 12 of the Corporate Income Tax Law 2008 stipulating the place of tax payment:
Place of Tax Payment
Enterprises pay tax at their headquarters. In cases where enterprises have dependent production establishments operating in a province or centrally-run city different from where their headquarters are located, the tax amount is apportioned based on the ratio of expenses between the place where the production facility operates and the headquarters. Tax revenue management and utilization are performed as stipulated by the State Budget Law.
The Government of Vietnam specifies and guides the implementation of this Article.
According to the above provisions, enterprises pay corporate income tax at their headquarters.
In cases where businesses have dependent production establishments operating in a province or centrally-run city different from where their headquarters are located, the tax amount is apportioned based on the ratio of expenses between the place of the production facility and the headquarters.
