1. What is corporate income tax?
Corporate income tax (CIT) is a tax levied on the income of enterprises including production and trading of goods, services and other types of income as prescribed by law.
CIT is a direct tax, calculated on the taxable income of enterprises after deducting reasonable expenses and accounted for each tax period.
2.What is tax settlement declaration?
According to Clause 10, Article 3, Law on Tax Administration 2019, tax settlement declaration is stipulated as follows:
“10. Tax settlement declaration is the determination of the amount of tax payable for the tax year or the period from the beginning of the tax year to the termination of the tax-liable activity or the period from the occurrence to the termination of the tax-liable activity as prescribed by law.”
Thus, for tax settlement declaration, it can be personal income tax settlement declaration, corporate income tax settlement declaration, import-export tax settlement declaration… Tax settlement declaration aims to clarify revenue and expenditure and serve the tax payment of enterprises.
3. What is a tax settlement declaration?
A corporate income tax declaration (or corporate income tax settlement declaration) is a legal document prepared by taxpayers to declare information on income, expenses, and taxes payable of enterprises. The corporate income tax declaration is prepared according to the form prescribed by the Ministry of Finance.
There are main types of corporate income tax declarations including:
Corporate income tax declaration form No. 03/TNDN issued with Circular 80/2021/TT-BTC applicable to the revenue-expense method)
Corporate income tax declaration form No. 04/TNDN: issued with Circular 80/2021/TT-BTC applicable to the ratio method on revenue.
Corporate income tax declaration form No. 05/TNDN: issued with Circular 80/2021/TT-BTC applicable to income from capital transfer.
Corporate income tax declaration form No. 06/TNDN: issued with Circular 80/2021/TT-BTC applicable to the sale of the entire enterprise in the form of capital transfer associated with real estate.
For different production and business activities, different declaration forms are applied and summarized according to the method of taking revenue minus (-) expenses. Accordingly, use form No. 03/TNDN issued with Circular 80/2021/TT-BTC.
