Time limit for temporary payment of quarterly corporate income tax of the enterprise

How is the deadline for temporarily paying quarterly corporate income tax for businesses?

1. Corporate income tax payers

According to Article 2 of Circular 78/2014/TT-BTC stipulating specific corporate income tax payers as follows:

1. Corporate income tax payers are organizations that produce and trade goods and services with taxable income (hereinafter referred to as enterprises), including:

a) Enterprises established and operating under the provisions of the Enterprise Law, Investment Law, Credit Institutions Law, Insurance Business Law, Securities Law, Petroleum Law, Commercial Law and other legal documents in the following forms: Joint Stock Company section; Limited liability company; Partnership company; Private enterprise; Law Office, Private Notary Office; The parties in the business cooperation contract; Parties in the petroleum product distribution contract, Petroleum joint venture enterprise, Joint operating company.

b) Public and non-public public service units that produce and trade goods and services with taxable income in all fields.

c) Organizations established and operating under the Cooperative Law.

d) Enterprises are allowed to established under the provisions of foreign law (hereinafter referred to as foreign enterprises) with a permanent establishment in Vietnam.

A permanent establishment of a foreign enterprise is a production and business establishment through which a foreign enterprise conducts part or all of its production and business activities in Vietnam, including:

– Branches, executive offices, factories, workshops, methods transportation facilities, mines, oil and gas fields or other natural resource exploitation locations in Vietnam;

– Construction sites, construction, installation and assembly works;

– Service providers, including consulting services through employees or other organizations and individuals;

– Agents for foreign enterprises;

– Representative in Vietnam in the case of a representative with authority to sign contracts in the name of a foreign enterprise or a representative without authority to sign contracts in the name of a foreign enterprise but who regularly delivers goods or provides services in Vietnam.

In case the Double Taxation Avoidance Agreement signed by the Socialist Republic of Vietnam has different provisions on permanent establishments, it shall comply with provisions of that Agreement.

e) Organizations other than the organizations mentioned in Points a, b, c and d, Clause 1 of this Article that have activities of producing and trading goods or services, and have taxable income.

2. Foreign organizations doing business in Vietnam not under the Investment Law, Enterprise Law or with income arising in Vietnam pay corporate income tax according to separate instructions of the Ministry of Finance. If these organizations have capital transfer activities, they must pay corporate income tax according to the instructions in Article 14 Chapter IV of this Circular.

2. Determining income subject to corporate income tax

Pursuant to the provisions of Article 4 of Circular 78/2014/TT-BTC (Clause 2 of this Article amended by Article 2 of Circular 96/2015/TT-BTC), regulations on determining income subject to tax are specifically as follows:

1. Taxable income in the tax period is determined by taxable income minus tax-exempt income and losses carried forward from previous years according to regulations.

Taxable income is determined according to the following formula:

Taxable income = Taxable income – (Tax-exempt income + Linked losses carried forward according to regulations)

2. Taxable income

Taxable income in the tax period includes income from production and trading of goods, services and other income.

Taxable income in the tax period is determined as follows:

Taxable income = (Revenue – Deductible expenses) + Other income

Income Income from production and business activities of goods and services is equal to the revenue of production and business activities of goods and services minus deductible costs of production and business activities of those goods and services. Enterprises with many production and business activities applying different tax rates must separately calculate the income of each activity multiplied by the corresponding tax rate.

Income from real estate transfer activities, transfer of investment projects, transfer of rights to participate in investment projects, transfer of rights to explore, exploit, and process minerals according to the provisions of law must be separately accounted to declare and pay corporate income tax at a tax rate of 22% (from January 1, 2016, a tax rate of 20%), not entitled to corporate income tax incentives (except for income Income of an enterprise implementing a social housing investment project for sale, lease, or lease purchase is subject to the corporate income tax rate of 10% as prescribed in Point d, Clause 3, Article 19 of Circular No. 78/2014/TT-BTC).

Enterprises in the tax period have activities of transferring real estate, transferring investment projects, transferring the right to participate in implementing investment projects (except for projects). mineral exploration and exploitation) if there is a loss, this loss will be offset against profits from production and business activities (including other income specified in Article 7 of Circular No. 78/2014/TT-BTC). After compensation, if there is still a loss, the loss will continue to be carried forward to the next year within the prescribed loss transfer period.

For losses from real estate transfer activities, investment project transfers, and rights transfers. Participating in the implementation of investment projects (except mineral exploration and exploitation projects) from 2013 and earlier, while within the loss transfer period, the enterprise must transfer the loss to income from real estate transfer activities, investment project transfer, transfer of the right to participate in the implementation of investment projects. If the transfer is not complete, the loss can be transferred to income from production and business activities (including other income) from 2014 onwards. go.

In case an enterprise carries out procedures for dissolution of the enterprise, after the dissolution decision is issued, if there is a transfer of real estate that is a fixed asset of the enterprise, the income (profit) from the transfer of real estate (if any) will be offset against losses from production and business activities (including losses from previous years carried forward according to regulations) in the tax period in which the real estate transfer occurs. product

3. Time limit for temporary payment of quarterly corporate income tax by enterprises

In Article 17, Circular 151/2014/TT-BTC regulates temporary temporary payment of corporate income tax quarterly and annual tax finalization specifically as follows:

“Article 17. Supplementing Article 12a, Circular No. 156/2013/TT-BTC as follows:

Article 12a. Temporarily pay corporate income tax quarterly and finalize annual tax

Based on production and business results, taxpayers shall temporarily pay the corporate income tax amount of the quarter no later than the thirtieth day of the next quarter the quarter in which tax obligations arise; Enterprises do not have to submit quarterly provisional corporate income tax declarations.

For enterprises that must prepare quarterly financial reports in accordance with the law (such as state-owned enterprises, enterprises listed on the stock market and other cases as prescribed), enterprises base on the quarterly financial statements and tax laws to determine the amount of corporate income tax temporarily paid. quarterly.

For businesses that do not have to prepare quarterly financial statements, businesses base on the previous year’s corporate income tax amount and expected production and business results for the year to determine the quarterly corporate income tax amount…”