VI Preparing an annual corporate income tax return is an important task that accountants must do at the end of the year. Preparing a tax settlement declaration requires accountants not only to have good accounting skills but also to have a good understanding of tax laws, accounting regimes and many other skills.
1. Corporate income tax settlement
Corporate income tax settlement includes the work of declaring and settling the total corporate income tax payable to the tax authority. Enterprises need to declare and settle corporate income tax annually or in the case of dissolution, merger or separation of enterprises. Corporate income tax settlement is meaningful for tax authorities to collect and check corporate income tax.
2. Regulations on the latest corporate income tax finalization declaration form 2022
(i) According to Decree 132/2020/ND-CP of the Government, enterprises need to identify and declare information on related party transactions, declaration subjects, and correctly determine loan interest expenses (control level of 30%) except for cases of calculating corporate income tax to limit violations.
(ii) According to Resolution No. 406/NQ-UBTVQH15 dated October 19, 2021 of the Standing Committee of the National Assembly and Decree No. 92/2021/ND-CP dated October 27, 2021 of the Government, enterprises need to declare the reduction of corporate income tax for the 2022 tax period. 30% reduction of corporate income tax payable in the case of enterprises:
• Revenue in the 2022 tax period does not exceed 200 billion (1)
• Revenue of the enterprise in the 2022 tax period decreases compared to 2021 (2)
Criteria (2) does not apply to newly established, consolidated, split, or merged enterprises in the 2021 and 2022 tax periods.
(iii) According to Decree 92/2021/ND-CP, Enterprises need to declare the reduced corporate income tax amount on the corporate income tax finalization declaration and on the appendix issued CIT.
(iv) According to Decree No. 44/2021/ND-CP dated March 31, 2021 of the Government, Enterprises are allowed to include deductible expenses if they can determine the taxable income of the 2021 CIT period with cash and in-kind donations and sponsorships for COVID-19 prevention and control activities in Vietnam.
• The dossier to determine the expenses for support and sponsorship in the above case includes:
o Minutes of support and sponsorship confirmation according to the issued form
o Paper documents or emails confirming the support and sponsorship expenses (with full signatures and seals of the representative of the enterprise as the supporter, sponsor and representative of the sponsored unit);
o Invoices and legal documents of the support and sponsorship in cash or in-kind.
3. Latest corporate income tax finalization declaration form 2022
Enterprises declare according to the revenue ratio method, the corporate income tax finalization declaration form includes:
• Corporate income tax declaration form 04/TNDN issued with Circular No. 80/2021/TT-BTC
Enterprises declare according to the revenue-expense method, the tax finalization declaration form includes:
• Corporate income tax finalization declaration form 03/TNDN and some Appendices issued with Circular No. 80/2021/TT-BTC;
In addition, the general tax declaration form also includes the following documents:
• Appendix of corporate income tax reduced according to Decree No. 92/2021/ND-CP;
Annual financial statements or financial statements calculated at the time of termination of operations/contracts/change of company type/reorganization of the company;
• Related party transaction declaration form according to Decree 132;
• Other relevant documents.
4. Deadline for submitting the 2022 corporate income tax finalization declaration
For annual tax finalization dossiers: The deadline for submitting the 2022 corporate income tax finalization declaration is the last day of the 3rd month from the end of the calendar year or fiscal year;
For annual tax declaration dossiers: No later than the last day of the first month of the calendar year or fiscal year.
Therefore, the deadline for submitting the 2021 corporate income tax finalization declaration is March 31, 2022 according to Clause 2, Article 44 of the 2019 Law on Tax Administration.
5. Corporate income tax finalization dossier
General tax finalization dossier of Vietnamese enterprises
Vietnamese enterprises need to prepare a complete set of tax finalization dossiers including:
• Corporate income tax finalization declaration: Form 03/TNDN
• Financial statements for the finalization year or up to the time of the decision to dissolve, split, merge, consolidate, convert the type of company, form of ownership, or stop operating;
The following appendices depend on the situation of each enterprise:
• Appendix on production and business performance
+ Manufacturing, trade and service enterprises: Form 03-1A/TNDN
+ Banking and credit enterprises: Form 03-1B/TNDN
+ Securities companies, securities investment fund management: Form 03-1C/TNDN
• Appendix on loss transfer: Form 03-2/TNDN
• Appendix on corporate income tax incentives
+ For newly established businesses from investment projects (DAĐT), businesses changing locations, new DAĐT: Form No. 03-3A/TNDN;
+ For expansion investment: Form No. 03-3B/TNDN;
+ For enterprises with ethnic minority workers, enterprises operating in production, construction, transportation with from 10 to 100 female workers (accounting for over 50% of the total number of regular employees) or over 100 female workers (accounting for over 30% of the total number of regular employees): Form No. 03-3C/TNDN;
• Appendix of corporate income tax paid abroad for enterprises with foreign income deductible in the tax period: Form No. 03-4/TNDN
• Appendix on corporate income tax from real estate transfer: Form No. 03-5/TNDN
• Appendix on report on use of science and technology fund: Form No. 03-6/TNDN
• Appendix on information on related transactions: Form No. 03-7/TNDN
• Appendix on corporate income tax payment of enterprises with dependent accounting production units headquartered in provinces or centrally run cities, different from the locality where the head office is located: Form No. 03-8/TNDN
• Enterprises with foreign investment projects: supplement according to the guidance of the Ministry of Finance
Tax settlement dossier of enterprises with activities of exploiting and selling crude oil and natural gas
• Corporate income tax settlement declaration for oil and natural gas: Form No. 02/TNDN-DK;
• Appendix on detailed tax obligations of contractors: Form No. 01/PL-DK;
• Annual financial statements/financial statements at the time of termination of the petroleum contract.
Tax settlement dossier for foreign contractors
• Consular legalized residence certificate for the settlement year;
• Confirmation of signing in the contract from the relevant parties;
• Corporate income tax settlement declaration: Form 03-TNDN;
• Tax exemption and reduction dossier according to the law: If the dossier is not complete, an explanation must be made according to Form 03/TNDN.
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