WILL THE PROVISIONAL CORPORATE HARVEST TAX FOR THE 3RD QUARTER OF 2023 BE EXTENDED?

Corporate income tax is one of the important sources of revenue for the State budget. However, with the depressed economic situation leading to many difficulties in tax planning activities, will the provisional CIT amount for the third quarter of 2023 be extended? Through today’s article, let’s learn about this issue with Pham Consult!

What is Corporate Income Tax?

Corporate income tax (CIT) is a direct tax, levied directly on taxable corporate income. Corporate income tax includes business income from production and trading of goods, services and other types of income as prescribed by law.

Corporate income tax is calculated on the taxable income of a business after deducting reasonable expenses.

Corporate income tax is an important source of revenue for the state budget, helping the state have capital to invest in important areas such as education, health care, transportation, environmental protection…

Corporate income tax is a tool to regulate the effective allocation of resources in the economy, promoting or preventing the development of certain industries or types of goods. This is also a tool to adjust and redistribute social income, helping to reduce the gap between rich and poor by applying progressive taxes (high income contributes a higher percentage) or exemptions. Tax reduction for taxpayers with low income or difficulties.

 

Corporate income tax calculations?

Pursuant to the provisions of Article 11, Consolidated Document (No. 14/VBHN-VPQH) of the Law on Corporate Income Tax issued on July 15, 2020, stipulates how to calculate corporate income tax as follows:

“The amount of corporate income tax payable in the tax period is calculated by multiplying taxable income by tax rate; In case an enterprise has paid income tax outside Vietnam, the amount of income tax paid may be deducted but must not exceed the amount of income tax the enterprise must pay according to the provisions of this Law.

The way to calculate corporate income tax is: corporate income tax = taxable income for the period x tax rate.

 

Will the provisional corporate income tax for the third quarter of 2023 be extended?

According to the provisions of Article 4 of Decree 12/2023/ND-CP, the content is as follows:

Extending the deadline for paying taxes and land rent

…

2. For corporate income tax
3. a) Extending the tax payment deadline for temporarily paid corporate income tax amounts of the first and second quarters of the 2023 corporate income tax period of enterprises and organizations specified in Article 3 of the Decree This. The extension period is 03 months from the end of the corporate income tax payment deadline according to the provisions of law on tax administration.
4. b) In case an enterprise or organization mentioned in Article 3 of this Decree has branches and affiliated units, declare corporate income tax separately from the tax authority directly managing the branch or affiliated unit. Branches and affiliated units are also eligible for extension of corporate income tax payment. In case a branch or affiliated unit of an enterprise or organization mentioned in Clause 1, Clause 2 and Clause 3, Article 3 of this Decree does not have production and business activities in the economic sector or field covered by the extension, the payment Branches and affiliated units are not eligible for extension of corporate income tax payment.

Thus, the above regulations clearly determine that there will be no extension for payment of provisional corporate income tax for the third quarter of 2023.

 

What is the deadline for paying provisional Corporate Income Tax for the third quarter?

Pursuant to Clause 1, Article 55 of the Law on Tax Administration 2019 stipulates as follows:

Tax payment deadline

1. In case a taxpayer calculates tax, the tax payment deadline is the last day of the tax declaration submission deadline. In case of additional tax declaration dossiers, the tax payment deadline is the tax declaration dossier submission deadline for the tax period containing errors or omissions.

For corporate income tax, temporary payment is made quarterly, and the tax payment deadline is the 30th day of the first month of the following quarter.

For crude oil, the time limit for paying natural resources tax and corporate income tax according to the sale of crude oil is 35 days from the date of sale for domestically sold crude oil or from the date of customs clearance according to the provisions of the Law on Crude Oil. customs laws for exported crude oil.

For natural gas, the deadline for paying natural resources tax and corporate income tax is monthly.

Accordingly, the last date to pay provisional CIT for Quarter 3/2023 is October 30, 2023.

 

How are the locations and forms of tax payment regulated?

Pursuant to Article 56 of the Law on Tax Administration 2019, it is stipulated as follows:

Location and form of tax payment

1. Taxpayers pay taxes into the state budget according to the following regulations:
2. a) At the State Treasury;
3. b) At the tax administration agency that receives tax declaration dossiers;
4. c) Through an organization authorized by the tax administration to collect taxes;
5. d) Through commercial banks, other credit institutions and service organizations according to the provisions of law.
6. The State Treasury, commercial banks, other credit institutions and service organizations according to the provisions of law are responsible for arranging locations, vehicles, civil servants and tax collection staff to ensure convenience. Benefits taxpayers who pay taxes promptly into the state budget.
7. When receiving tax or deducting tax, agencies and organizations must provide taxpayers with tax collection documents.
8. Within 08 working hours from the time of collecting tax money from the taxpayer, the agency or organization receiving the tax money must transfer the money to the state budget. In case of tax collection in cash in remote areas, islands, or areas with difficult access, the time limit for transferring tax money into the state budget shall comply with the regulations of the Minister of Finance.

Accordingly, the location and form of tax payment are as follows:

– Taxpayers pay taxes into the state budget according to the following regulations:

+ At the State Treasury;

+ At the tax administration agency where tax declaration documents are received;

+ Through an organization authorized by the tax administration to collect taxes;

+ Through commercial banks, other credit institutions and service organizations according to the provisions of law.

– The State Treasury, commercial banks, other credit institutions and service organizations according to the provisions of law are responsible for arranging locations, vehicles, civil servants and tax collection staff to ensure convenience. for taxpayers to promptly pay taxes into the state budget.

– When receiving or deducting tax, agencies and organizations must provide taxpayers with tax collection documents.

In addition, within 08 working hours from collecting tax money from taxpayers, agencies and organizations receiving tax money must transfer the money to the state budget. In case of tax collection in cash in remote areas, islands, or areas with difficult access, the time limit for transferring tax money into the state budget shall comply with the regulations of the Minister of Finance.

 

Through the above article, Pham Consult hopes to have provided useful information as well as the problems you are facing. If you have any questions or are experiencing the above problems, please contact Pham Consult for support.