VCN – To help enterprises declare 2021 Corporate Income Tax (CIT) finalization, Hanoi Taxation Department has given notes to taxpayers
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|Notices to implement 2016 CIT finalization|
|It is the time for enterprises to make 2021 CIT finalization. Photo: T.D|
For enterprises whose fiscal year coincides with a calendar year, the deadline for submitting the 2021 CIT finalization application is the last day of the third month from the end of the calendar year (March 31, 2022).
For enterprises whose fiscal year is other than the calendar year, the deadline for submission of the 2021 CIT finalization application is the last day of the third month from the end of the fiscal year.
For enterprises stopping operation or terminating contracts or re-organizing their structure, the deadline for submitting the application is the 45th day from the date of the event.
The Hanoi Tax Department also noted that the determination and declaration of CIT reduction of the 2021 CIT term according to Resolution 406/NQ-UBTVQH15 dated October 19, 2021 of the National Assembly Standing Committee and Decree 92/2021/ND-CP of the Government shall be as follows: reduce 30% of the payable CIT amount of the 2021 CIT term not exceeding VND200 billion and the revenue in the 2021 tax term decreased compared to the revenue in the 2019 tax term.
The criterion that the revenue in the 2021 tax period is reduced compared to the revenue in the 2019 tax period is not applied to newly established enterprises, consolidated enterprises, enterprises undergoing a merger, division or separation in the 2020 and 2021 tax terms.
When making a tax declaration, the enterprise declares the reduced CIT amount on the CIT finalization file and the reduced CIT appendix issued with Decree 92/2021 dated October 27, 2021.
In addition, enterprises are allowed to include cash and in-kind donations and sponsorships for Covid-19 pandemic prevention and control in Vietnam through receivers described in Decree 44/2021 dated March 31 2021 of the Government into deductible expenses when determining the taxable income of the 2021 CIT term.
Dossiers to determine expenses for donation and sponsorship include the minutes of confirmation of support or sponsorship in the form issued together with Decree 44/2021/ND-CP dated March 31, 2021 of the Government or documents (in paper or electronic form) certifying the donation and sponsorship signed and sealed by the representative of the enterprise and the representative of the receiver and legal invoices and vouchers as prescribed by the law of cash or in-kind donations or sponsorships.
Hanoi Taxation Department also provides specific guidance on deductible expenses related to medical isolation costs and Covid-19 testing costs.
Accordingly, the expenses for medical isolation due to the Covid-19 pandemic at home and abroad for business trips (accommodation; Covid-19 testing; transportation; other expenses during the medical isolation period) under the request of the competent state agency and the expenses for Covid-19 testing or buying Covid-19 test kits for employees, the expenses to buy clothes and equipment for employees to protect them from the risk of infection at work, and the expenses for accommodation and meals of employees working under “three-on-the-spot” plan, shall be included into deductible expenses when calculating corporate income tax.
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It is noted that the above expenses reflect actual issues arising and have all invoices and documents in accordance with the law.
By Thuy Linh/ Huyen Trang