CORPORATE INCOME TAX FINALIZATION INSTRUCTION

CORPORATE INCOME TAX FINALIZATION REPORT INSTRUCTION

Legal basis: Circular 156/2013/TT-BTC; Circular 151/2014/TT-BTC

Corporate income tax finalization documents includes:

- A corporate income tax finalization declaration according to form 03/TNDN.

- Annual financial reports.

- Appendices attached to the tax finalization declaration (if any) such as:

   + Production and business results appendix according to form No. 03-1A/TNDN, Form No. 03-1B/TNDN, Form No. 03-1C/TNDN.

   + Loss transfer appendix according to form No. 03-2/TNDN.

   + Corporate income tax incentives appendices (if any) such as 03-3A/TNDN, 03-3B/TNDN, 03-3C/TNDN...

Notes:

1. Enterprises and organizations in case of paying corporate income tax according to the percentage of sales of goods and services, should declare annual corporate income tax finalization according to form No. 04/TNDN (issued together with Circular 151).

+ If enterprises and organizations in case of paying corporate income tax according to the percentage of sales of goods and services, but do not regularly arise goods and services trading activities subjected to corporate income tax, should declare corporate income tax according to each time it is incurred, according to form No. 04/TNDN, and do not have to declare annual finalization.

+ Note: Enterprises that declare VAT by the direct method, does not mean that they also declare corporate income tax as a percentage of revenue (This is for non-business units) -> If you want to calculate corporate income tax as a percentage of revenue, you must send an documentary to the tax office to ask for advice, if they agree, then you can do it.

2. If an enterprise has a production facility (including a processing and assembling facility) that does dependent accounting in a different province from its head office, then:

- Pay corporate income tax centrally at the head office.

a) Procedures for transferring vouchers between the Treasury and tax authorities

- Enterprises self-determine the corporate income tax amount to be calculated and paid at the location of head office and dependent accounting branches, in order to make corporate income tax payment documents for the locality where the head office is located and each locality where the dependent accounting production facilities are located.

- The tax payment voucher must clearly state that payment to the state budget account at the State Treasury is at the same level as the tax authority where the head office registers tax declaration and the locality where the dependent accounting production facilities are located.

- The State Treasury where the head office is located transfers money and state budget vouchers to the relevant State Treasury to account the state budget of the dependent accounting production facilities.

b) Tax finalization

- Enterprises declare and finalize corporate income tax at the place where their head office is located:

Remaining corporate income tax payable = corporate income tax payable according to finalization ( - ) Amount temporarily paid at the place where the head office is located and temporarily paid at the place where dependent production facilities are located.

- The amount of corporate income tax still payable or refunded when finalization are also distributed according to the correct proportions at the place where the head office is located and where the dependent production facilities are located.

Location of submitting annual corporate income finalization declaration:

- Submit to the direct management tax authority

- If the enterprise has a dependent unit that does independent accounting, the dependent unit should submit to the dependent unit’s direct management tax authority.

- If an enterprise has a dependent unit but does dependent accounting, that dependent unit is not required to submit a corporate income tax declaration. Enterprises are responsible for making declaration at the head office, including the arising at a dependent unit.

Deadline for annual tax finalization declaration submission:

- No later than the 90th day (ninety), from the end of the calendar year or the fiscal year according to point d, Clause 3, Article 10 of Circular 156/2013/TT-BTC stipulating.

* In case the enterprise divides, separates, consolidates, merges, transforms the form of ownership, dissolves or terminates its operation:

- No later than the 45^th day (forty-fifth) from the date of a decision on the enterprise's division, separation, consolidation, merger, transformation of ownership form, dissolution, or termination its operation.

* In case of natural disaster, fire or unexpected accident:

- Enterprises must make a written request for extension and submit it to the direct management tax authority (clearly stating the reason for the extension, certified by the People's Committee of the commune, ward, town or the police of commune, ward, town).

- The extension must not exceed 60 (sixty) days from the deadline for submitting tax finalization declaration.

Above is information about taxpayers and corporate income tax rates according to the latest current regulations. If you still have questions about corporate income tax and other taxes (VAT, personal income tax,...), please contact TASCO Tax Agent in the ways below for a free consultation.

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