When must I pay provisional CIT for the 4th quarter in Vietnam? What income is subject to CIT in Vietnam?

When must I pay provisional CIT for the 4th quarter in Vietnam?

Article 55 of the Law on Tax Administration 2019 stipulates corporate income tax payment deadlines as follows:

Tax payment deadlines

1. In case tax is calculated by the taxpayer, the tax payment deadline is the deadline for submission of the tax declaration dossier. In case of submission of supplementary tax documents, the tax payment deadline is the deadline for submission of the erroneous tax declaration dossier.

The deadline for paying corporate income tax, which is paid quarterly, is the 30^th of the first month of the next quarter.

The deadline for paying resource royalty and corporate income tax on crude oil is 35 days from the date of selling domestically or the date of customs clearance in case of export.

Resource royalty and corporate income tax on natural gas shall be paid monthly.

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In Article 6a of Decree 126/2020/ND-CP supplemented by Clause 1, Article 1 of Decree 91/2022/ND-CP, regulations on expiration of time limits are as follows:

Expiration of time limits

The time limits for submission of tax declaration dossiers, time limits for payment of tax, time limits for tax authorities to process applications, effective periods of decisions on enforcing the implementation of tax decisions shall comply with regulations of the Law on Tax Administration and this Decree. In case the expiration date of any of these time limits is a statutory day off, the expiration date will be the working day succeeding the day off.

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According to this Article, deadline for paying provisional corporate income tax for the 4th quarter according to regulations is the 30th day of the first month of the following quarte in Vietnamr.

The deadline for paying provisional CIT for the 4th quarter of 2023 is January 30, 2024, the 1st quarter of 2024 in Vietnam.

When must I pay provisional CIT for the 4th quarter in Vietnam? What income is subject to CIT in Vietnam? (Image from the Internet)

What income is subject to CIT in Vietnam?

In Article 3 of the 2008 Corporate Income Tax Law, amended by Clause 1, Article 1 of the Law Amending and Supplementing a Number of Articles of the 2014 Tax Laws, it is stipulated that income subject to corporate income tax is as follows:

- Taxable incomes include income from goods and service production and business activities;

- Other income includes:

+ Income from from transfer of capital, transfer of the right to capital contribution;

+ Income from real estate transfer, transfer of construction projects, transfer of the right to participate in construction projects, transfer of the right to mineral exploration, mineral extraction, and mineral processing;

+ Income from the right to enjoyment of property, right to ownership of property, including income from intellectual property rights defined by law; income from transfer, lease, liquidation of assets, including valuable papers;

+ Income from deposit interest, loan interest, sale of foreign exchange;

+ Collection of debts that were cancelled;

+ Receipts from debts without creditors;

+ Incomes from business operation in previous years that were committed, and other incomes.

What is determination of CIT period in Vietnam?

In Article 5 of the 2008 Corporate Income Tax Law, there is a regulation on the period for calculating corporate income tax as follows:

Tax period

1. An corporate income tax period is the calendar year or fiscal year, except the cases defined in Clause 2 of this Article.

2. Separately incurred corporate income tax shall be declared in accordance with Point c and Point d Clause 2 of this Law.

Thus, the CIT period is determined according to the calendar year or fiscal year in Vietnam, except in the following cases:

Corporate income tax period for each time income is generated applicable to foreign enterprises:

- Have a permanent establishment in Vietnam and pay tax on taxable income arising in Vietnam that is not related to the operations of the permanent establishment;

- Do not have a permanent establishment in Vietnam to pay tax on taxable income arising in Vietnam.

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