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Saturday, July 13, 2024

Rules on temporary CIT payment adjusted

The Saigon Times

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HCMC – The Government has issued a resolution allowing enterprises to temporarily pay 80% of the corporate income tax (CIT) for all of 2022, with the deadline set for the end of January 2023.

The total CIT amount that enterprises pay in advance must not be lower than 80% of the amount in the tax finalization. In case taxpayers underpay the tax amount, they would be fined.

In the old regulations, businesses were required to pay 75% of the payable CIT for the first three quarters by October 31, 2022. Therefore, those businesses that missed this deadline should now pay 80% of the full-year amount by January 30 next year.

The legal adjustment is intended to remove difficulties for enterprises and help them actively monitor the cash flow in the last two months of the year.

With the old regulations, many enterprises with high growth rates in the fourth quarter were fined for failing to ensure that their temporary payment in the first three quarters was higher than 75% of the payable CIT amount in the whole year.

The new resolution takes effect from the date of signing, October 30, 2022.

Additionally, enterprises that carry out infrastructure investment and housing projects are required to temporarily pay the CIT each quarter at the rate of 1% of the proceeds if they can get advances on the purchase prices or rental costs from their customers.

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