Official letter No 37175/CTHN-TTHT dated September 30th 2021 of Hanoi City Tax Department notes on temporarily CIT payment for 3 first quarters of year 2021 according to Decree No 126/2020/ND-CP
According to regulation as item 6 article 8 Decree No 126/2020/NDD-CP Corporate Income Tax (CIT) is annual finalization type. The company bases on quarterly report or quarterly profit and loss statement according to Tax and accounting regulation to determine temporary CIT payable amount, whereby:
Total temporarily CIT paid amount of 3 first quarters of year is NOT less than 75% total CIT payable amount of year. In case taxpayers pay less than the temporarily payable tax amount for the 3 first quarters of the year, they must pay a late payment interest calculated on the unpaid tax amount from the day following the last day of the third-quarter CIT temporary payment deadline to the date of payment the remaining tax amount to the state budget.
Currently, there is no detailed instructions on this provision. The company should pay attention to estimate the appropriate amount of temporary payment of CIT in the 3 first quarters of the year, avoiding the risk of late payment interest in the future.