Can the amount of additional corporate income tax paid be offset when determining corporate income tax payable in Vietnam?

Is the amount of additional corporate income tax paid offset when determining corporate income tax payable in Vietnam?

Compare with the provisions in Clause 8, Article 6 of the Resolution 107/2023/QH15 on tax declaration, payment and tax management:

Accordingly, the amount of additional corporate income tax paid according to the provisions of Resolution 107/2023/QH15 offset when determining corporate income tax payable in Vietnam corresponding to the income received from investment abroad.

Note: For regulations on standard domestic minimum additional corporate income tax, the deadline for submitting the Information Declaration according to the Global Minimum Tax Regulations, the additional corporate income tax declaration accompanied by an explanation of differences due to differences between financial accounting standards and the deadline for paying additional corporate income tax is no later than 12 months after the end of the fiscal year.

How is corporate income tax payable in the tax period determined?

Pursuant to the provisions of Clause 1, Article 3 of Circular 78/2014/TT-BTC amended by Article 1 of Circular 96/2015/TT-BTC

The amount of corporate income tax (CIT) payable in the tax period is equal to the taxable income minus the scientific and technology fund appropriation (if any) multiplied by the corporate income tax rate.

Corporate income tax payable is determined according to the following formula:

Corporate income tax payable = [Taxable income – Science and technology fund appropriation (if any)] x corporate income tax rate

In which:

(1) According to the provisions of Clause 1, Article 4 of Circular 78/2014/TT-BTC, then:

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:

Income subject to corporate income tax = Income subject to corporate income tax – Tax-exempt income + Losses carried forward according to regulations

(2) According to the provisions of Clause 2, Article 4 of Circular 78/2014/TT-BTC amended by Article 2 of Circular 96/2015/TT-BTC then:

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:

Income subject to corporate income tax = Revenue – Deductible expenses + Other income

If there is a difference on the same issue between Resolution 107/2023/QH15 and the Law, how should it be handled?

Pursuant to Article 8 of the Resolution 107/2023/QH15 implementation provisions:

Implementation provisions

1. This Resolution takes effect from January 1, 2024, applicable from fiscal year 2024.

The Government urgently completes the project file on the Law on Corporate Income Tax (amended) according to the provisions of the Law on Promulgation of Legal Documents, submits to the National Assembly Standing Committee and the National Assembly for consideration and addition to the year’s Law and Ordinance Building Program 2024.

2. In case there are different regulations on the same issue between this Resolution and other laws or resolutions of the National Assembly, the provisions of this Resolution shall apply.

3. In case after the effective date of this Resolution, the Joint Cooperation Forum on preventing tax base erosion and global profit transfer guides, amends and supplements the Regulations on global minimum tax, the Government will stipulate specific content for implementation; In case there is content contrary to the provisions of this Resolution, it shall be reported to the National Assembly for consideration and decision; In urgent cases while the National Assembly is not in session, it shall be submitted to the National Assembly Standing Committee for consideration, decision and reported to the National Assembly at the nearest session./.

Thus, in case there are different regulations on the same issue between Resolution 107/2023/QH15 and other laws and resolutions of the National Assembly, the provisions of Resolution 107/2023/QH15 apply.

In addition, according to the provisions of Clause 1, Article 7 of Resolution 107/2023/QH15:

The National Assembly assigns the Government and Ministries, within the scope of their tasks and powers:

+ Responsible for organizing and implementing the contents and policies specified in Resolution 107/2023/QH15;

+ Urgently prepare necessary conditions to ensure the implementation of the Resolution;

+ Focus on organizing and implementing multilateral cooperation activities on automatic information exchange to serve the collection of global minimum tax;

+ Develop an official implementation plan and roadmap, assign responsibilities, organize apparatus and resources to promptly meet the implementation capacity of tax authorities, and take measures to improve voluntary compliance for taxpayers.