Instruction of Tax Declaration For Foreigners in Vietnam

Tax declaration (or CIT finalization declaration) is used by businesses to declare tax finalization according to the provisions of law. Below are instructions for preparing a CIT declaration and notes when preparing a declaration that new accountants need to understand.

1. What is corporate income tax?

Corporate income tax (CIT) is a tax levied on the income of businesses including production and sales of goods, services and other types of income according to the provisions of law.

Corporate income tax is a direct tax, calculated on the taxable income of an enterprise after deducting reasonable expenses and is accounted for by each tax signature.

2. What is a CIT declaration?

2.1. What is tax finalization declaration?

Pursuant to Clause 10, Article 3, Law on Tax Administration 2019, tax finalization declaration is prescribed as follows:

“Tax finalization declaration is the determination of the tax amount payable in the tax year or the period from the beginning of the tax year to the termination of the activity giving rise to tax liability or the time from the arising to the termination of the generating activity according to the provisions of law.”

Thus, for tax finalization declaration, it can be personal income tax finalization declaration, corporate income tax finalization declaration, import-export tax finalization declaration… Tax finalization declaration aims to make revenues and expenditures transparent and serve the corporate tax payment.

Steps for an accurate corporate tax return filing

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2.2. What is a tax finalization declaration?

The corporate income tax declaration (or corporate income tax finalization declaration) is a legal document prepared by the taxpayer to declare information about the business’s income, expenses, and tax payable. The CIT declaration is prepared according to the form prescribed by the Ministry of Finance.

For different production and business activities, different declaration forms are applied and synthesized according to the method of subtracting (-) expenses from revenue. Accordingly, use form No. 03/TNDN issued with Circular 80/2021/TT-BTC.

3. Detailed instructions for preparing a corporate income tax declaration according to form No. 03/TNDN

To prepare a corporate income tax declaration, businesses need to take the following steps:

Step 1: Download the corporate income tax declaration form

Accountants download the corporate income tax declaration form from the website of the General Department of Taxation or from the websites of accounting software providers.

Step 2: Collect information to declare

Accountants need to collect and synthesize information that needs to be declared on the corporate income tax declaration, including:

  • Information about the business: business name, tax code, head office address, operating address,…
  • Information about income: revenue, expenses, taxable income,…
  • Information on tax payable: provisional CIT amount, provisionally paid CIT amount, CIT amount still payable,…

Step 3: Declare information on the declaration form

The accountant declares the information collected and synthesizes it into the corporate income tax declaration according to regulations.

Step 4: Sign and seal the declaration

According to regulations, the taxpayer or the taxpayer’s legal representative must sign and stamp the CIT declaration. Finally, the accountant will submit the CIT declaration to the tax authority within the prescribed time limit through the Electronic Tax Information Portal of the Ministry of Finance. Specifically, the deadline for submitting the CIT declaration is prescribed as follows:

  • Quarterly CIT return: submitted before the 30th day of the first month of the next quarter.
  • Annual CIT return: submitted before March 30 of the following year.

Tax Filing For Foreigners in Vietnam – Tax Declaration For Expat

4. Notes when preparing CIT declarations for new accountants

  • Enterprises need to note the following points when preparing CIT declarations:
  • Declare information fully and accurately according to regulations.
  • The writing and numbers on the declaration must be clear and easy to read.
  • Must be signed and stamped by the taxpayer or the taxpayer’s legal representative according to the law.
  • Prepare tax returns before the submission deadline.

Preparing a corporate income tax declaration is an important task that businesses need to comply with the law. Above are instructions for preparing CIT declarations. Enterprises need to pay attention to the regulations on how to prepare CIT declarations to properly and fully fulfill their obligations.

If your business wants to learn about tax declaration, please contact us immediately for advice:

S4B Vietnam

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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