Tax finalization for the year 2020

On 1st March 2021, Ha Nam Tax Department issued Official Letter No. 546/CT-TTHT providing some information about tax finalization for the year 2020 as follows:

  1. Deadlines for submitting CIT (Corporate Income Tax) finalization dossier:

For companies having the same fiscal year with calendar year: the deadline for submitting the dossier is 31 March 2021.

For companies having a different fiscal year with calendar year: Deadline is the last day of the 3rd month since the fiscal year-end.

  1. Some notes for CIT finalization

Companies should determine and declare sufficiently the information in finalization form No. 03/TNDN, for example: Item No. [04] – the business line having the highest revenue of the company, or Item No. [05] – % of business line having the highest revenue over the total revenue of the company.

Companies having related party transactions should pay attention to determining the deductible interest expense (with a limitation of 30%) as guidance in Decree No. 132/2020/NP-CP dated 5th November 2020 of the Government.

Companies eligible for CIT reduction according to the Resolution No. 116/2020/QH should declare CIT reduction on the Appendix attached to Decree No. 114/ND-CP. The total revenue as a basis for determining CIT reduction is the total revenue in the tax year 2020, including revenue for sales, processing and service charge, surcharges that companies receive under the guidance of CIT law. CIT reduction is calculated on CIT payable amount in the tax year 2020 after deducting all CIT incentives in the year.

  1. Deadlines for submitting PIT (Personal Income Tax) finalization dossier:

For organizations and companies that are income payers: the deadline for submitting PIT finalization dossier is 31 March 2021.

For individuals who submit the dossiers directly to the tax office: the deadline to submit is 30 April 2021. In case an individual submits PIT finalization dossier after the deadline but he/she has PIT refund after finalization, the tax office will not charge administration penalty for this case.

  1. Some notes for PIT finalization

Taxpayers can apply new deduction amount (self-deduction at VND 11 million/month and dependent deduction at VND 4.4 million/month/person) for the whole tax year 2020.

Individuals having tax payable amount after PIT finalization less than VND 50,000 are exempted from paying tax. They do not need to submit PIT finalization dossier to the tax office.


Monthly PIT declaration for representative office

On 26th February 2021, Hanoi Taxation Department issued Official Letter No. 5911/CTHN-TTHT guiding PIT declaration. According to the Letter, representative offices that are income payers and are not subject to VAT (value added tax) declaration shall declare PIT monthly based on the regulation at Clause 1, Article 8, Decree No. 126/2020/ND-CP.