What is CIT Finalization?

  • Pursuant to the 2008 Corporate Income Tax Law and the 2013 Amended Corporate Income Tax Law
  • Pursuant to the Law on Tax Administration 2019
  • Decree 91/2022/ND-CP amending and supplementing Decree 126/2020/ND-CP guiding the Law on Tax Administration

1. What is corporate tax settlement?

Corporate income tax finalization refers to an enterprise’s activities in declaring the total amount of corporate income tax that needs to be paid to the tax office. CIT finalization declaration includes annual tax finalization declaration, declared in case there is a decision on dissolution, consolidation, division, merger or transformation of the business type of the enterprise. In addition, there is a change of ownership form, termination of operation, at this time the tax authority makes a decision to finalize or inspect – check with the main purpose is to review the implementation of income tax obligations of the enterprise. enterprise.

2. Corporate income tax finalization documents:

2.1. For Vietnamese enterprises:

  • Declaration for finalization of CIT according to form 03/TNDN.
  • Financial statements for the year of settlement or financial statements up to the time of decision on dissolution, merger, consolidation, division, transformation of ownership form, transformation of enterprise type, or termination of business operations.
  • Additional appendices depend on the specific situation of the business.

2.2. For enterprises engaged in extraction, export and sale of natural gas and crude oil:

  • Declaration of CIT finalization for petroleum (form 02/TNDN-DK).
  • Specific annex on tax obligations of oil and gas contractors (form 01/PL-DK).
  • statements up to the end of the oil and gas contract or annual financial statements.

2.3. For foreign contractors:

  • Consular legalized residence certificate of the year of settlement;
  • Confirm the contract signing of the related party;
  • Corporate income tax finalization declaration (form 03-TNDN);
  • Dossier of tax exemption or reduction under the agreement or explanation (form 03/TNDN) if it is not possible to assemble a complete dossier;
  • Audited financial statements.

3. Time limit for CIT finalization

Pursuant to Clause 2, Article 44 of the Law on Tax Administration 2019, the deadline for finalization of annual corporate income tax in a private enterprise is as follows:

“No later than the last day of the 3rd month from the end of the calendar year or fiscal year for the annual tax finalization file..” => It is thought that the deadline for submission of PIT Finalization is on 31/ 03 annually.
The total amount of temporarily paid CIT for four quarters must not be less than 80% of the payable CIT amount according to the annual finalization. If less than 80% of the CIT of the whole year, the enterprise will be arrears the late payment.

4. HAPPY TAX Company

Above are some sharing of HAPPY TAX on corporate tax finalization on dossiers and report submission deadlines. It can be said to be a relatively difficult and complex problem. Therefore, you can contact us at hotline: 097.427.6660 for support. HAPPY TAX is a reputable unit providing legal and tax services. We are committed to your satisfaction. HAPPY TAX

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