What is CIT in Vietnam? How to determine trực tiếp bóng đá k+ 2025 CIT tax period in Vietnam?

What is CIT?

CIT stands forCorporate Income Tax, which refers to trực tiếp bóng đá k+ corporate income tax as detailed in trực tiếp bóng đá k+Luật lịch trực tiếp bóng đá hôm. This is a direct tax levied on trực tiếp bóng đá k+ taxable income of enterprises after reasonable and legitimate expenses have been deducted according to legal regulations.

To clarify trực tiếp bóng đá k+ question of what CIT is, below are some of trực tiếp bóng đá k+ main characteristics of CIT for your reference:

(1) What is CIT? Is it a direct tax or an indirect tax?

CIT is a direct tax, levied directly on trực tiếp bóng đá k+ taxable income of trực tiếp bóng đá k+ enterprise after deducting reasonable and legitimate expenses.

trực tiếp bóng đá k+ business entity is trực tiếp bóng đá k+ taxpayer and also trực tiếp bóng đá k+ tax bearer, and this tax liability cannot be transferred to another party, unlike value-added tax (VAT).

(2) Based on trực tiếp bóng đá k+ income of enterprises:

- CIT is calculated on trực tiếp bóng đá k+ total taxable income of trực tiếp bóng đá k+ enterprise, including income from production and business activities and other incomes after deducting reasonable and legitimate expenses and other deductions according to legal regulations.

- trực tiếp bóng đá k+ tax base is trực tiếp bóng đá k+ taxable income of trực tiếp bóng đá k+ enterprise as stipulated in Article 3 of trực tiếp bóng đá k+Corporate Income Tax Law 2008, including:

- Profit from main production and business activities.

- Income from financial activities (interest on deposits, investment in securities...).

- Income from trực tiếp bóng đá k+ transfer of assets, real estate, intellectual property rights...

(3) Adjustments according to economic policy:

- trực tiếp bóng đá k+ CIT rate may be preferential or reduced to encourage investment in priority development sectors, fields, or locations as stipulated in Articles 13 and 14 of trực tiếp bóng đá k+Corporate Income Tax Law 2008, which regulate tax rate incentives and tax exemption and reduction duration for investment projects in areas with particularly difficult socio-economic conditions, economic zones, high-tech areas, and other prioritized fields.

(4) Method of declaration and payment of tax:

Enterprises must declare CIT quarterly and pay taxes on a provisional basis. At trực tiếp bóng đá k+ end of trực tiếp bóng đá k+ year, trực tiếp bóng đá k+ enterprise must finalize taxes and pay additional taxes or receive a refund if applicable.

(5) Types of taxable income:

- Income from production, business activities of goods, and services.

- Income from trực tiếp bóng đá k+ transfer of capital, transfer of land use rights.

- Other income from legal activities of enterprises.

(6) Tax rates:

- trực tiếp bóng đá k+ standard tax rate for enterprise income is 20% (according to current regulations) and may change over time and by type of enterprise. Additionally, trực tiếp bóng đá k+ tax rates include:

- Preferential tax rates: 10%, 15% (applied to high-tech sectors, high-tech agriculture, economic zones...).

- Especially high tax rates: 32% - 50% (applied to enterprises exploiting resources, petroleum...).

- Some enterprises may be eligible for preferential tax rates depending on specific conditions, such as investment in prioritized sectors, fields, or special economic zones.

(7) Loss deduction mechanism:

Article 16 of trực tiếp bóng đá k+Corporate Income Tax Law 2008stipulates that enterprises with losses can carry forward losses to subsequent years and offset them against taxable income.

trực tiếp bóng đá k+ loss carryforward period should not exceed 5 years from trực tiếp bóng đá k+ year immediately following trực tiếp bóng đá k+ year of loss occurrence.

(8) Direct impact on enterprise profits:

CIT reduces trực tiếp bóng đá k+ net profits of enterprises; hence, enterprises need to optimize costs and apply tax incentives to minimize trực tiếp bóng đá k+ tax payable.

What is CIT in Vietnam? (Image from trực tiếp bóng đá k+ Internet)

How to determine trực tiếp bóng đá k+ 2025 CIT tax period in Vietnam?

According to trực tiếp bóng đá k+ provisions of Article 5 of trực tiếp bóng đá k+Corporate Income Tax Law 2008, it is stipulated as follows:

Tax Period

1. trực tiếp bóng đá k+ corporate income tax period is determined according to trực tiếp bóng đá k+ calendar year or fiscal year, except for cases stipulated in Clause 2 of this Article.

2. trực tiếp bóng đá k+ corporate income tax period based on each occurrence of income applies to foreign enterprises as stipulated at points c and d, Clause 2 of Article 2 of this Law.

Thus, trực tiếp bóng đá k+ CIT tax period is determined as follows:

- Determined according to trực tiếp bóng đá k+ calendar year or fiscal year

- Determined on each income occurrence for foreign enterprises, as follows:

- Foreign enterprises with permanent establishments in Vietnam pay taxes on taxable income arising in Vietnam that is unrelated to trực tiếp bóng đá k+ activities of trực tiếp bóng đá k+ permanent establishment;

- Foreign enterprises without a permanent establishment in Vietnam pay taxes on taxable income arising in Vietnam.

When is trực tiếp bóng đá k+ time for determine theturnover for calculating taxable income in Vietnam?

Based on Clause 2, Article 5 ofCircular 78/2014/TT-BTC(amended and supplemented by Article 3 ofCircular 96/2015/TT-BTC), trực tiếp bóng đá k+ time for recognizing revenue to calculate taxable income is determined as follows:

- For sales activities, it is trực tiếp bóng đá k+ time of transferring ownership or trực tiếp bóng đá k+ right to use trực tiếp bóng đá k+ goods to trực tiếp bóng đá k+ buyer.

- For service provision activities, it is trực tiếp bóng đá k+ time of completing trực tiếp bóng đá k+ service provision or completing each part of trực tiếp bóng đá k+ service provision to trực tiếp bóng đá k+ buyer, except for trực tiếp bóng đá k+ cases mentioned in Clause 3, Article 5 ofCircular 78/2014/TT-BTC, Clause 1, Article 6 ofCircular 119/2014/TT-BTC.

- For air transportation activities, it is trực tiếp bóng đá k+ time of completing trực tiếp bóng đá k+ transportation service provision to trực tiếp bóng đá k+ buyer.

- Other cases according to legal regulations.