Amendments in making the corporate income tax finalization in 2018
Preparing documents for corporate income tax finalization plays an important role in the tax finalization of the enterprise. Photo: T.L |
Sufficiently prepare dossier
Preparing documents for corporate income tax (CIT) finalization plays an important role in the tax finalization. Therefore, enterprises should note that the CIT finalization dossier shall be made according to the CIT finalization form No. 03/TNDN (issued together with Circular 151/2014/TT-BTC). The dossier must also include annual financial statements or financial statements at the period of the decision on the enterprise's division, consolidation, merger, conversion of the enterprise type, dissolution and termination of operation.
In addition, there is one or several appendices must be attached to the declaration (depending on the actual situation of taxpayers) such as: Appendix of production and business results according to form No.03-1A/TNDN (for taxpayers in manufacturing, trade and service sectors), form No.03-1B/TNDN (for taxpayers that are banks, credit institutions), form No.03-1C/ TNDN (for taxpayers that are securities companies and securities investment fund management companies) issued together with Circular No.156/2013/TT-BTC; Appendix of loss transfer according to form No. 03-2A/TNDN (transfer of losses from production and business activities), form No.03-2B/TNDN (transfer of losses from land use right and land lease right) issued together with the Circular No.156/2013/TT-BTC; Appendix 03-4/TNDN for CIT paid abroad is deducted in the tax period (issued together with Circular No. 156/2013/TT-BTC); Appendix 03-5/TNDN for CIT for real estate transfer activities (issued together with Circular No. 151/2014/TT-BTC).
In addition, forms No. 01, 02, 03, 04 (if any) are information about the associated linkage and associated transactions (issued together with Decree No. 20/2017/ND-CP). Details for making forms 01, 02, 03 and 04 shall comply with the guidance in Appendix I, II, III of Circular No.47/2017/TT-BTC dated 28 April 2017 of the Ministry of Finance guiding the implementation of a number of articles of Decree 20/2017/ND-CP on associated transactions.
The Tax authority also noted that if the enterprise has a foreign investment project, in addition to these dossiers, the enterprise must supplement the dossiers and documents under the guidance of the Ministry of Finance on CIT. For enterprises in associated transactions, when submitting CIT finalization reports, in addition to the required forms in the provisions of Circular No.156/2013/TT-BTC, Circular No.151/2014/TT-BTC, enterprises must submit the forms prescribed in Decree No. 20/2017/ND-CP of the Government on tax administration for enterprises in associated transactions.
Note on revenue
The time for determining revenue to calculate taxable income is determined as follows: for the goods sale activities, it is the time of transfer of ownership and use rights of goods to purchasers
For service provision activities, it is the time of completing the service provision or partially completing the service provision to the buyers, except for the cases specified in Clause 3, Article 5 of Circular 78/2014/TT-BTC , Clause 1, Article 6 of Circular 119/2014/ TT-BTC.
Revenue for calculating taxable income in some cases is determined as follows: For goods and services sold by installment or deferred payment method, it is revenue from lump-sum payment of selling goods and service excluding interest on installment or deferred payment.
For goods and services used for exchange and internal consumption (excluding goods and services used to continue the production and business process of enterprises), it is determined according to the selling prices of products, goods and services of the same or equivalent type on the market at the time of exchange (Clause 1, Article 6 of Circular 119/2014 / TT-BTC).
For asset leasing, it is the revenue that the lessee pays each period according to the lease contract. In cases where the lessee pays in advance for many years, the revenue for calculating taxable income shall be allocated for the number of years of advance payment or determined according to the lump-sum payment revenue.
For construction and installation activities, it is the value of the works, the value of the construction item or the accepted volume of construction and installation works.
Change regulations on deductible expenses
A noticeable change in the CIT finalization in 2018 is some amendments in Circular No.25/2018/TT-BTC guiding Decree No.146/2017/ND-CP on supplementing a number of regulations on deductible expenses when determining taxable income.
Specifically, according to principle, enterprises are allowed to deduct all expenses if they fully meet the conditions such as: actual expenses related to production and business activities of enterprises; expenses for vocational education activities; expenses for performing defense and security tasks of enterprises according to law provisions; Expenses according to invoices and documents as prescribed by the law. In addition, expenses according to invoice for buying goods and services valued at VND 20 million or more (the price included Value Added Tax), when paying, there must have non-cash payment invoice.
Enterprises should also pay attention to the adjustment of conditions for determining deductible expenses when determining taxable income on non-cash payment invoice for expenses according to invoice for buying goods and services valued at VND 20 million or more (Circular No.173/2016/TT-BTC of the Ministry of Finance amending and supplementing the first paragraph of clause 3 Article 15 of Circular No. 219/2013 / TT-BTC) taking effect from 15 December 2016. Accordingly, abolishing the provision that "bank payment vouchers to transfer money from the buyer's account to the seller's account must be an account registered or notified to the tax authority".
Related News
Facilitates import and export enterprises amid difficult context
09:46 | 06/04/2023 Customs
In Q1, State revenue estimated to rise by 1.3%
13:28 | 04/04/2023 Finance
HCM City Customs make efforts in budget collection
13:43 | 31/03/2023 Customs
Vietnam adjusting policies to adapt to global minimum corporate income tax: Official
15:48 | 27/03/2023 Finance
Latest News
Enterprises have the right to pre-determine HS codes
09:55 | 06/04/2023 Regulations
Amendment to Decree 14 to prevent goods congestion at border gates
11:39 | 01/04/2023 Regulations
Notes for businesses on tax policy
13:44 | 31/03/2023 Regulations
Apply 609 preferential export tax lines, 11,526 special preferential import tax lines to implement the CPTPP Agreement
09:33 | 26/03/2023 Regulations
More News
Difficulties in determining samples for testing
09:32 | 26/03/2023 Regulations
GDVC instructs application of C/O form D
10:16 | 25/03/2023 Regulations
Goods imported from export processing enterprises must pay tax
09:03 | 24/03/2023 Regulations
Review, perfect regulations on decentralization of public property management
11:55 | 22/03/2023 Regulations
MoF develops excise tax policy to promote electric vehicle production
17:21 | 13/03/2023 Regulations
Enterprises must submit dossiers and documents to identify authenticity of goods' value
10:09 | 13/03/2023 Regulations
Removing difficulties in the implementation of VAT policy
15:10 | 27/02/2023 Regulations
Correcting policy to avoid overlaps in inspection and supervision at land border gates
14:13 | 26/02/2023 Regulations
Tax policy for re-imported goods of export processing enterprises
14:43 | 23/02/2023 Regulations
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Enterprises have the right to pre-determine HS codes
09:55 | 06/04/2023 Regulations
Amendment to Decree 14 to prevent goods congestion at border gates
11:39 | 01/04/2023 Regulations
Notes for businesses on tax policy
13:44 | 31/03/2023 Regulations
Revising Law on Corporate Income Tax: Promoting resources for socio-economic development
13:43 | 27/03/2023 Regulations
Apply 609 preferential export tax lines, 11,526 special preferential import tax lines to implement the CPTPP Agreement
09:33 | 26/03/2023 Regulations