PROVISIONAL CORPORATE INCOME TAX OF 04 QUARTERS TO BE AT LEAST 80% OF ANNUAL TAX

Recently, the Government promulgated Decree 91/2022/ND-CP amending and supplementing Decree 126/2020/ND-CP guiding the Law on Tax Administration. It stipulates that the provisional corporate income tax of four quarters must not be less than 80% of the corporate payable income tax under the annual tax finalization dossier.

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Specifically, the total amount of provisional corporate income tax paid in 04 quarters shall be at least 80% of the corporate income tax payable under the annual tax finalization dossier. If the provisional corporate income tax of 04 quarters is underpaid, late payment interest shall be charged on the tax arrears over the period from the date succeeding the deadline for paying provisional corporate income tax of the fourth quarter to the date preceding the day on which tax arrears are paid to state budget.

Previously according to the Decree No. 126/2020/NĐ-CP the total amount of provisional corporate income tax paid in the first 03 quarters of the year shall be at least 75% of corporate income tax payable under the annual tax finalization dossier).

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Provisional corporate income tax of tax period 2021 will be paid as follows:

- By October 30, 2022, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is not smaller than 75% of the annually finalized tax, regulations of Clauses 3, 4, 5 Article 1 of Decree No. 91/2022/NĐ-CP on the minimum ratio of provisional corporate income tax of 04 quarters (at least 80% of annually finalized tax) shall not apply.

- By 30/10/2022, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is smaller than 75% of the annually finalized tax, the regulations that provisional corporate income tax of 04 quarters must be at least 80% of annually finalized tax may be applied if it does not lead to an increase in late payment interest.

Decree No. 91/2022/NĐ-CP takes effect from October 30, 2022.

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