Notes to avoid errors in tax settlement
Businesses carry out tax settlement at Ho Chi Minh City Tax Department. Photo: T.H |
Regarding the taxable revenue for goods and services used for donation, the goods and services which are used for donation to customers for production and business activities, shall be subject to CIT; the goods and services used for donations to customers not for production and business activities, shall not be included in deductible expenses upon CIT calculation.
Expenses for purchase of goods and services that are worth VND 20 million or over according to the invoices (including value-added invoices and sales invoices) with non-cash payment vouchers, shall be deductible when calculating taxable income.
For schooling expenses for foreigners’ children studying in Vietnam, from pre-school to high school paid by enterprises, if they are specified in labor contracts with adequate invoices and vouchers as described, such expenses will be included in deductible expenses when calculating CIT.
Salaries, wages and allowances, payable to employees that enterprises have not yet paid by the deadline for submission of annual tax settlement dossiers, unless enterprises have a provision fund to supplement the wage fund of the subsequent year, shall not be deductible. The annual level of provision decided by enterprises must not exceed 17% of the implemented wage fund. The annual reserve level is decided by the enterprise, but must not exceed 17% of the salary fund. The deduction for setting up the wage reserve must ensure that after the deduction is made, the enterprise shall not suffer losses, and if the enterprise suffers losses, it shall not be allowed to deduct 17%. The wage provision must ensure that enterprises do not suffer losses after making deductions for setting it up; if enterprises suffer losses, enterprises shall not be allowed to fully make a deduction of 17% for this provision;
For salaries and wages of owners of private enterprises or single-member limited liability companies (owned by an individual), remuneration paid to the founding members and/or members of the Members’ Council or Board of Directors who are not directly involved in directing production and business, they shall not be included in deductible expenses when calculating CIT.
Within a year, when a company sells all the one member limited liability companies in the form of capital transfer attached with real estate, the tax arising shall be declared in accordance with form no. 06/TNDN, issued together with Circular 151/2014/TT-BTC. At the end of the year, when carrying out final settlement, it needs to submit declaration form 06 / TNDN and declaration form 02 / TNDN in Appendix 03-5 / TNDN, enclosed with the CIT finalization declaration.
The provisional CIT in a year declared on the settlement declaration is determined according to the CIT payment vouchers in the fiscal year (from the first day of the fiscal year till the end of the 30th day after the end of the fiscal year), after deducting all previous years' tax debts as of January 31 (fiscal year coincides with the calendar year) and taxes arisen in the year from production and business activities, or real estate transfer activities (with the same subsection).
In case total provisional paid tax in the tax period is less than the CIT payable determined in the settlement by 20% or above, the company must pay late payment interest for the difference of 20% or above, between provisional paid tax and tax payable determined in the settlement from the next day of deadline for tax payment in quarter IV of the company, to the date of actual payment of the outstanding tax.
Deviousness at tax settlement points on the last days of the tax settlement season VCN - On the last days of the 2016 tax settlement season, overcrowding has not occurred because ... |
If CIT temporarily paid quarterly is less than CIT payable determined in the settlement by 20%, and the company pays taxes later than the regulated deadline (deadline for submitting annual tax declaration), the late payment interest shall be charged from the deadline to the date of actual payment of the outstanding tax under the settlement
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