In Vietnam, what is distribution methods for corporate income tax?

What is distribution methods for corporate income tax in Vietnam?

Pursuant to Clause 2, Article 17 of the Circular 80/2021/TT-BTC stipulating distribution methods for corporate income tax as follows: 

2. Distribution methods:

a) Distribution of CIT on computerized lottery business:

CIT payable in each province where computerized lottery business takes place equals (=) CIT payable on computerized lottery business multiplied by (x) the ratio (%) of revenue on selling lottery tickets in each province to total revenue from selling lottery tickets of the taxpayer.

Revenue from selling computerized lottery tickets shall be determined in accordance with Point a Clause 2 Article 13 of this Circular.

b) Distribution of CIT on real estate transfer:

Quarterly and finalized CIT payable in each province where real estate transfer takes place equals (=) revenue subject to CIT from real estate transfer in the province multiplied by (x) 1%.

c) Distribution of CIT payable by taxpayers having dependent units, business locations that are factories:

CIT payable in each province where a factory is located equals (=) CIT on business operation multiplied by (x) the ratio (%) of cost of each factory to total cost of the taxpayer (excluding costs of operations eligible for CIT incentives. The costs as the basis for distribution shall be actual costs incurred in the tax period.

CIT on business operation does not include CIT on operations eligible for CIT incentives. CIT on operations eligible for CIT incentives shall be determined according to the performance of these operations and the level of incentives for which they are eligible.

d) Distribution of CIT in case a hydroelectric plant is located in multiple provinces:

CIT on the entire hydroelectric plant equals (=) CIT on business operation multiplied by (x) the ratio (%) of cost of each plant to total cost of the taxpayer (excluding costs of operations eligible for CIT incentives. The costs as the basis for distribution shall be actual costs incurred in the tax period. CIT on business operation does not include CIT on operations eligible for CIT incentives.

After determining CIT on the entire hydroelectric plant, the CIT payable in each province equals (=) CIT on the entire hydroelectric plant multiplied by (x) the ratio (%) of investment in the part of the hydroelectric plant that is located in the province to the total investment in the hydroelectric plant.

What are distribution cases of corporate income tax in Vietnam?

Pursuant to Clause 1, Article 17 of the Circular 80/2021/TT-BTC stipulating distribution distribution cases of corporate income tax as follows: 

1. Distribution cases:

a) Computerized lottery business;

b) Real estate transfer;

c) Dependent units and business locations that are factories;

d) A hydroelectric plant that is located in multiple provinces.

Best regards!