Ho Chi Minh City Tax Department: Guidance on Revenue-Based Tax Declaration Method and Annual CIT Finalization Obligations
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Based on:Nghị định số 126/2020/NĐ-CP - Ministry of Finance
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Ho Chi Minh City Tax Department responded to queries from a company established in February 2023 (no other legal representative, no related-party transactions, no entity type conversion) regarding its corporate income tax (CIT) declaration obligations. According to the guidance, the company must make quarterly provisional CIT payments (at least 80% of the total annual CIT due). At year-end, the company must submit an annual CIT finalization return and pay any shortfall (or request a refund if overpaid). If quarterly provisional payments are below 80% of the annual CIT liability, late payment interest will be charged. The Tax Department advised the company to contact its direct managing tax authority for specific guidance based on the company's actual documentation and circumstances.
HCMC Tax Department: CIT Declaration and Annual Finalization Obligations
Company Profile
- Established: 27/02/2023
- No other legal representative
- No related-party transactions
- No entity type conversion
HCMC Tax Department Guidance
Based on Decree 126/2020/ND-CP dated 19/10/2020 and related regulations:
Quarterly CIT provisional payments:
- Companies must calculate and remit provisional CIT each quarter
- Total provisional payments for the first three quarters must not be less than 75% of the annual CIT finalization amount
- If total provisional payments for the year are below 80% of the finalization amount: late payment interest will be charged on the shortfall
Annual CIT finalization:
- Submit the annual CIT finalization return (Form 03/TNDN) within 90 days of the end of the financial year
- Pay any remaining tax or file for a refund if overpaid
Recommendation
Contact the direct managing tax authority for confirmation and detailed guidance based on the company's actual documents and circumstances.