Instruct retrospective handling for businesses engaged in related-party transactions for tax offset

VCN- The General Department of Taxation has issued a dispatch guiding the implementation of Decree 68/2020/ND-CP for the tax finalization period 2019 and retrospective handling for 2017 and 2018 for businesses engaged in related-party transactions that paid taxes in previous years.
instruct retrospective handling for businesses engaged in related party transactions for tax offset HCM City: Processing more than VND 1,800 billion of tax via inspection and examination
instruct retrospective handling for businesses engaged in related party transactions for tax offset Hanoi Tax Department checked dossiers of deadline extension for paying land rent
instruct retrospective handling for businesses engaged in related party transactions for tax offset Nearly VND 7,000 billion refunded to HCM City enterprises
instruct retrospective handling for businesses engaged in related party transactions for tax offset
The General Department of Taxation has issued a dispatch guiding the implementation of Decree 68/2020/ND-CP. Photo: T.L

Specifically, for the tax finalization period 2019, the General Department of Taxation states that enterprises that declared tax finalization 2019 according to tax period before March 31 are required to make additional declarations of corporate income tax finalization according to the provisions of Decree No. 68/2020/ND-CP amending and supplementing Clause 3, Article 8 of Decree No. 20/2017/ND-CP.

The offset of corporate income tax paid in 2017 and 2018 shall be recalculated according to the provisions of Decree No. 68/2020/ND-CP, if the corporate income tax amount decreases, the corresponding late payment amount shall be reduced (if any).

Specifically, if the paid corporate income tax in 2017 and 2018 has not yet been inspected, the taxpayer shall offset the difference between the corporate income tax and the late payment interest in the corporate income tax amount in 2020. If the difference is deducted fully in 2020, the remainder shall be deducted in the corporate income tax in the next five years. If the above period is over but the remaining corporate income tax is still deducted fully, it shall not be settled.

If there are decisions on inspections and settlement, the taxpayer shall request the tax agency to determine the corporate income tax payable. Based on the taxpayer's request, relevant documents including documents of enterprises and documents, minutes of inspection and examination teams, the tax branch shall re-determinate corporate income tax payable and late payment interest to offset the difference in the corporate income tax in 2020.

In case of necessity, the tax agency shall work with the inspection and examination teams to determine data of taxpayers at tax offices' headquarters.

Similarly, if there arenot enough inspections and examinations, if the year 2020 is not enough to fully offset, it will be offset against the payable enterprise income tax for the next five years from the year 2020. At the end of the above time limit, the remaining enterprise income tax amount has not yet been fully cleared.

The General Department of Taxation guides that the re-determination of tax payable shall be carried out at the tax agency’s office andat the taxpayer’s office; conclusions and inspection decisions in 2017 and 2018 are not permitted to be revised.

If the taxpayer was fined for tax administrative violations or is in the complaint process, the fine shall be not adjusted.

By Thuy Linh/Ngoc Loan

Related News

Proactive plan to meet customs management requirements at Long Thanh International Airport

Proactive plan to meet customs management requirements at Long Thanh International Airport

VCN - Director of Dong Nai Customs Department Le Van Thung requested the Ministry of Finance and the General Department of Customs to pay attention to directing so that after arranging and streamlining the apparatus, human resources can be immediately prepared to serve Customs at Long Thanh International Airport.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN – Motivated by the revenue collection by the end of December 2024, the General Department of Taxation has accomplished the revenue collection.
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
Achievements in revenue collection are a premise for breakthroughs in 2025

Achievements in revenue collection are a premise for breakthroughs in 2025

VCN – Motivated by great efforts and effective implementation of solutions, as of December 10 the total State revenue from imports and exports saw a year-on-year increase of 13.8% to VND397,861 billion, meeting 106.1% of the estimate. The revenue us estimated to reach VND420,000 billion, meeting 112 % of the estimate, up 13.9% over the same period in 2023. The achievements in 2024 are a premise for a breakthrough in revenue collection in 2025.

Latest News

Fed’s foreseen rate cuts affect foreign exchange rate

Fed’s foreseen rate cuts affect foreign exchange rate

After the Fed’s move, the US dollar index (DXY) on December 19 hit nearly 108, the highest level in the past year.
Untying the knot for green finance

Untying the knot for green finance

VCN - Green finance is a crucial resource for greening businesses. Completing the policy framework for green finance is urgently needed to unlock this capital flow.
Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses and land for the right purposes, and to avoid loss and waste.
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.

More News

General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by a representative of the Department of Public Asset Management (Ministry of Finance) at the press conference on the implementation of the General Inventory Project of public assets organized by the Ministry of Finance on the afternoon of December 18.
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN – Important national projects, inter-regional transport projects, riverbank and coastal erosion treatment projects all have disbursement rates lower than the estimated average disbursement rate of the whole country, the Ministry of Finance said.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
PM urges stronger measures to manage interest rates

PM urges stronger measures to manage interest rates

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to proactively, flexibly, promptly, and effectively manage the monetary policy in combination with the expansionary fiscal policy and others.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
Vietnamese products: Conquering foreign customers in supermarket systems

Vietnamese products: Conquering foreign customers in supermarket systems

VCN - According to the Ministry of Industry and Trade, the proportion of Vietnamese goods in distribution channels currently reaches more than 80% in supermarkets and 60% or more in traditional retail channels. For many retailers, Vietnamese goods have become a growth driver as they not only do business successfully in the domestic market but also export.
Enterprises face difficulties in tax refunds due to partners closing

Enterprises face difficulties in tax refunds due to partners closing

VCN - On December 13, at a dialogue conference on tax and customs policies and administrative procedures organized by the Ministry of Finance in coordination with the Vietnam Chamber of Commerce and Industry (VCCI), enterprises proposed solutions to many problems related to tax policies such as VAT refunds, tax declaration procedures, electronic invoices, etc.
Strengthen the management and use of electronic invoices for e-commerce

Strengthen the management and use of electronic invoices for e-commerce

VCN - Prime Minister Pham Minh Chinh requested ministries, branches and localities to strengthen the management and use of electronic invoices and improve the efficiency of tax collection for e-commerce.
Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

VCN - The Ministry of Finance has just completed the proposal to draft the Personal Income Tax Law (PIT) and officially solicited public comments. By amending and supplementing nearly 90% of the total number of articles of the current PIT Law, the Ministry of Finance has submitted to the Government for permission to propose the draft PIT Law to replace the PIT policy system. The project is expected to be approved by the National Assembly in May 2026.
Read More

Your care

Latest Most read
Fed’s foreseen rate cuts affect foreign exchange rate

Fed’s foreseen rate cuts affect foreign exchange rate

After the Fed’s move, the US dollar index (DXY) on December 19 hit nearly 108, the highest level in the past year.
Untying the knot for green finance

Untying the knot for green finance

VCN - Green finance is a crucial resource for greening businesses. Completing the policy framework for green finance is urgently needed to unlock this capital flow.
Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses an
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN - With the determination to accomplish the revenue collection to create resources for economic development under the Prime Minister's direction, the entire Tax sector has made efforts to perform the revenue collection in the last days of 2024.
Mobile Version