Provisional corporate income tax of four quarters to be at least 80% of annually finalized tax

According to the Decree, the provisional corporate income tax of 04 quarters must be at least 80% of annually finalized tax. 

If the provisional corporate income 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.

(Previously according to the Decree No. 126/2020/NĐ-CP, the total amount of provisional corporate income tax paid in the first 03 quarters of the year shall be at least 75% of annually finalized tax).

Note: Provisional corporate income tax of tax period 2021 will be paid as follows:

- By October 30, 2022, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is not smaller than 75% of the annually finalized tax, regulations of Clauses 3, 4, 5 Article 1 of Decree No. 91/2022/NĐ-CP on the minimum ratio of provisional corporate income tax of 04 quarters (at least 80% of annually finalized tax) shall not apply. 

- By 30/10/2022, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is smaller than 75% of the annually finalized tax, the regulations that provisional corporate income tax of 04 quarters must be at least 80% of annually finalized tax may be applied if it does not lead to an increase in late payment interest.

Decree No. 91/2022/NĐ-CP comes into force from October 30, 2022.

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