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CIT payers prepare and submit the tax finalization dossiers no later than the last day of the 3rd month from end of the calendar year or fiscal year;
In case of submission of dossiers for business dissolution, contract termination or reorganization, the deadline for submission of annual CIT dossiers is no later than the 45th day from the date of the event execution.
Note: In case there has issue with the e-portal of the tax authority on the last day of the deadline for tax return submission, the taxpayers shall submit tax return and e-tax payment documents on the next day after the web portal is active.
Extension of deadline for submission of tax return dossiers:
In case taxpayers are unable to submit their tax return on time due to natural disasters, disasters, epidemics, fires or unexpected accidents, the head of the managing tax agency shall extend the deadline for tax return submission.
The extension time limit does not exceed 60 days for tax finalization dossier from the deadline of tax return submission.
Taxpayers must send to tax authorities a proposal for extension of deadline for submission of tax return before the deadline, which clearly states the reason for the extension and such proposal should be certified by the competent authority according to the law.
The CIT payable is calculated as follows:
Amount transferred to science and
technology fund (if any)
In which, the assessable income is calculated as follows:
Loss carry forward
And the taxable income is calculated as follows:
3. Deductible and non-deductible expenses
Pursuant to Article 4 Circular 96/2015/TT-BTC:
3.1. Deductible expenses
Every expense is deductible if all of these following conditions are satisfied:
- The actual expense incurred is related to the enterprise’s business operation;
- There are sufficient and valid invoices and supporting documents under the current regulations;
- There is non-cash payment evidence for any purchase of goods/ services of VND 20 million or over (including VAT).
3.2. Non-deductible expenses
- Expenditure on wages and bonuses to employees that have been included in operating costs but do not have proof of payment.
- Expenditure on employees’ clothing without invoices that exceeds VND 05 million/person/year.
- Payment for voluntary pension fund, life insurance premiums for employees that exceeds VND 03 million/person/month.
- Payment of interest on loan serving business operation which exceeds 150% of basic interest rate announced at the time of taking the loan.
- Depreciation of fixed assets that are not used for business operation, depreciation beyond the limit, depreciation without proof of ownership of the enterprise, depreciation that is not recorded in the accounting books.
- Expenditure of lease of assets from individuals without sufficient documents.
-Payment of fines for administrative violations (except for breach of contract).
- Provisions made and used against instructions of the Ministry of Finance.
- Expenditure on infrastructural development during investment phase to create fixed assets.
- Loss on exchange difference due to reassessment of foreign currency items at the end of the tax period
4. CIT finalization dossiers should include
- CIT declarations form (Form No. 03/TNDN issued under Circular 151/2014/TT-BTC);
- An annual financial statement includes:
Balance sheet (Form No. B01-DN issued under Circular 200/2014/TT-BTC);
Income Statement (Form No. B02-DNN issued under Circular 200/2014/TT-BTC);
Cash flow statement according to direct method and indirect method (issued under Circular 200/2014/TT-BTC);
The description of financial statement (Form No. B09-DN issued under Circular 200/2014/TT-BTC);
- Letter of authorization in case the preparer is not legal representative
Law on Enterprises 2020 has officially taken effect since Jan 1st ,2021. Accordingly, there are significant changes regarding regulations on Enterprise’s seal.
Enterprises are allowed to self-determine their own seal
While the Law on Enterprises 2014 has limited the content displayed on the seal, the Law on Enterprises 2020 has abolished the mandatory regulations on information shown on the seal. According to Clause 2, Article 43, Law on Enterprises 2020, an enterprise is allowed to decide the type, quantity, form and content of their own seal.
This means that enterprises will have full discretion on the content of their seal without being bound by the law. In addition, enterprises are also fully empowered to decide the content displayed on the seal of branches, representative offices and other divisions of enterprises.
Eliminate the regulation on prior notification of seal samples before using
From Jan 1st, 2021, enterprises are no longer required to carry out procedure for announcing the seal sample to the business registration office for public posting on the National Business Registration Portal.
This is considered as a new, progressive and suitable regulation in simplifying administrative procedures, which helps to save time and effort in the process of implementing business-related procedures.
Changes related to the seal management, storage and usage
While Law on Enterprises 2014 stipulates that the seal must be managed in accordance with the company's charter, branches, representative offices and other divisions of enterprises now can self-promulgate regulations for using its own seal as per Clause 3, Article 43, Law on Enterprises 2020. However, it is only allowed to use the seal in transactions as prescribed by law.
In addition, according to Decree 130/2018/ND-CP, digital signature can be considered as a form of electronic signature that encrypts data and information of an enterprise and used to sign on types of digital documents of electronic transactions implemented via internet.
Accordingly, digital signature is recognized as seal of enterprises.
The inclusion of considering electronic signature as official seal of the enterprises encourage enterprises having more options in using seal instead of just using traditional engraved seal as currently.
To get into details for specific cases, please feel free to contact us as at: