The corporate income tax loss transfer appendix is an important tool to help businesses effectively manage and exploit arising losses, while ensuring that corporate income tax settlement fully complies with legal regulations according to Circular 80/2021/TT-BTC. Preparing an accurate appendix not only helps to clarify data, reduce legal risks and tax arrears, but also optimize tax obligations in the following periods.
This article will provide detailed instructions on how to create a loss transfer appendix, analyze the structure, common errors, illustrative examples and how to use HTKK software to declare correctly, supporting businesses to perform effective and safe corporate income tax settlement.
What is the corporate income tax loss transfer appendix?
Appendix corporate income tax loss transfer is a document attached to the corporate income tax (CIT) finalization declaration to reflect in detail the losses incurred during the tax period and the losses carried forward to the following periods according to the provisions of law. This appendix helps the tax authority to check, compare and confirm the losses that are tax deductible, while ensuring transparency in tax management.
Making an appendix to transfer corporate income tax losses is mandatory for enterprises that incur losses in the tax period, especially when the enterprise wants to apply the right to transfer losses to reduce corporate income tax for the following periods.
Legal basis and current regulations related to the appendix for transferring corporate income tax losses
To make an appendix to transfer losses corporate income tax To be accurate and comply with the law, businesses need to have a firm grasp of the legal bases and current regulations. The table below summarizes important documents guiding the determination, declaration and transfer of losses, and also points out the principles that need to be followed when preparing appendices attached to the final settlement declaration 03/TNDN. Fully referring to these bases will help businesses limit tax risks and ensure transparency with tax authorities.
| STT | Legal basis | Main content | Note |
| 1 | Law on Corporate Income Tax No. 14/2008/QH12 | Regulations on loss deduction rights, loss carryover period, principles for determining taxable income | Applicable to all businesses that incur losses during the tax period |
| 2 | Circular 78/2014/TT-BTC & Circular 80/2021/TT-BTC | Detailed instructions for preparing corporate income tax finalization declaration, including corporate income tax loss transfer appendix | Update declaration forms and detailed declaration indicators |
| 3 | Relevant guidance documents of the General Department of Taxation | Update on HTKK, electronic filing, detailed declaration indicators | Ensure correct and consistent data when submitting documents via the electronic tax portal |
Purpose and significance of preparing the corporate income tax loss transfer appendix
The preparation of the appendix for corporate income tax loss transfer is not only a mandatory administrative procedure but also plays an important role in tax management and financial reporting of enterprises. This section will detail the purpose and significance of preparing the appendix, helping enterprises understand its role in complying with the law, optimizing tax obligations, ensuring data transparency and supporting explanations when necessary.
Ensuring tax compliance
Preparing a corporate income tax loss transfer appendix helps businesses comply with the provisions of the Law on Corporate Income Tax and guiding Circulars. Businesses must fully declare the losses incurred, the amount of losses transferred and the remaining losses to be transferred to the next period, ensuring that the tax settlement dossier is transparent and legal. This helps avoid the risk of being collected or fined by the tax authority due to incorrect declaration or incomplete dossier.
Optimizing corporate income tax obligations
One of the important purposes of preparing an appendix is to optimize the tax obligations of the enterprise. When declaring the amount of loss that can be carried forward correctly, the enterprise can use this loss to reduce the amount of corporate income tax payable in the following periods when profits arise. This is a tool to help enterprises manage tax expenses effectively, while increasing the ability to maximize after-tax profits.
Ensure transparency and control
The appendix provides detailed information on the number of losses incurred each year, the number of losses used and the number of losses remaining. This helps the tax authority to easily compare and check, and at the same time helps the enterprise to transparently manage the amount of losses transferred internally. The accurate preparation of the appendix is also the basis for explanation when the tax authority conducts an inspection or examination of the settlement records.
Support accurate financial reporting
The information in the corporate income tax loss transfer appendix is directly related to the indicators in the financial statements, especially the balance sheet and the business performance report. Preparing the appendix accurately helps the enterprise to accurately reflect the business performance, thereby enhancing the reliability of the financial statements for shareholders, investors and management agencies.
As a basis for explanation when necessary
In case a business is audited or inspected by the tax authority, the corporate income tax loss transfer appendix is important evidence proving that the business has properly exercised its right to transfer losses according to the law. Preparing and keeping a complete appendix helps minimize legal risks and ensures that the business always has valid records to explain.
The importance of preparing an accurate corporate income tax loss transfer appendix
The preparation of an accurate corporate income tax loss transfer appendix plays a key role in tax management and financial reporting of enterprises. A complete and properly prepared appendix not only helps enterprises to be transparent in data, creating favorable conditions for tax authorities to inspect and avoid disputes, but also limits legal risks related to tax collection or late payment penalties.
In addition, using the correct amount of loss transferred also helps businesses optimize corporate income tax obligations for the following periods and supports accurate reflection of business results in financial statements. Therefore, preparing an accurate corporate income tax loss transfer appendix is a mandatory requirement for businesses that have incurred losses, especially when performing corporate income tax finalization.
Important regulations when preparing an appendix to transfer corporate income tax losses
When preparing an appendix to transfer corporate income tax losses, enterprises need to comply with a number of important regulations to ensure that the loss transfer is legal and avoid the risk of being collected by the tax authority. The table below summarizes the basic regulations that all enterprises need to pay attention to, including the deadline for transferring losses, detailed declaration content and the requirement to attach the appendix to the final declaration 03/TNDN.
| STT | Regulations | Note |
| 1 | Losses can only be carried forward for a maximum of 5 years from the year of occurrence. | Applicable to all businesses with losses |
| 2 | Enterprises must declare in detail: year of loss, amount of loss transferred, amount of loss transferred this period, amount of loss transferred to the next period. | Ensure accurate and transparent data |
| 3 | The appendix must be attached to the final tax declaration form 03/TNDN when submitting electronic tax documents. | Required when submitting documents via the Electronic Tax Portal |
Structure and content of the corporate income tax loss transfer appendix
The Corporate Income Tax Loss Transfer Appendix (Form No. 03-2/TNDN) is used to declare the losses of previous years that are still within the time limit for transferring losses to the current tax settlement year. Making this appendix helps enterprises reduce taxable income, thereby reducing the amount of corporate income tax payable in profitable years.
General information
Indicator [01]: Tax calculation period – Clearly state the tax settlement year corresponding to declaration form 03/TNDN.
Indicators [02] and [03]: Name and tax code of taxpayer – Automatically displayed when declaring via the electronic tax system.
Detailed declaration of loss transfer
To prepare the corporate income tax loss transfer appendix in accordance with regulations and ensure accurate data, enterprises need to clearly understand the meaning of each column in the appendix. The table below explains in detail the content of each column, from the row number, year of loss, total loss incurred, loss transferred, loss transferred in the period, to the loss transferred to the following periods. Mastering these columns will help enterprises declare fully, avoid errors and ensure transparency with the tax authorities.
| Column | Content |
| (1) | Declaration line number |
| (2) | Year of loss – Each year is recorded on a separate line |
| (3) | Total loss incurred in that year |
| (4) | Losses carried forward from previous tax periods |
| (5) | Loss carried forward in this tax period |
| (6) | The remaining loss is carried forward to the following tax periods. |
Total number of carryover losses
The summary of the loss carried forward in the corporate income tax loss transfer appendix helps businesses clearly determine the amount of loss deductible in the current tax period according to each type of activity. These indicators not only ensure accurate declaration data in the appendix but also directly link to the corresponding indicators on the final declaration 03/TNDN. Understanding the meaning of each indicator will help businesses avoid errors, comply with regulations and optimize tax obligations in the finalization period.
- Indicator [04]: Total loss of production and business activities transferred in this tax period shall not exceed the taxable income of the enterprise after deducting tax-free income. This data is transferred to indicator C3a of declaration form 03/TNDN.
- Indicator [05]: Total loss from real estate transfer activities transferred in this tax period, not exceeding taxable income from real estate transfer activities in the period. This data is transferred to indicator D2 of declaration form 03/TNDN.
Illustrative example: Sample appendix for transferring corporate income tax loss according to Circular 80
To help businesses easily visualize how to prepare a corporate income tax loss transfer appendix, below is an illustrative example with detailed explanations for each column and indicator. This form is applied according to Circular 80/2021/TT-BTC.
| STT | Year of loss | Amount of loss incurred (VND) | Transferred from previous years (VND) | Transfer this year (VND) | Remaining balance can be transferred to next period (VND) |
| 1 | 2020 | 1.200.000.000 | 600.000.000 | 300.000.000 | 300.000.000 |
| 2 | 2021 | 800.000.000 | 0 | 200.000.000 | 600.000.000 |
| Total | 2.000.000.000 | 600.000.000 | 500.000.000 | 900.000.000 |
Year of loss
In the appendix, each year of loss is declared on a separate line. For example, if a business incurs a loss in 2020 and 2021, two corresponding lines will be created. This helps the tax authority easily track and confirm the amount of loss transferred, while ensuring transparency in the settlement records.
Number of holes generated
The incurred loss column records the total losses incurred for each year according to the financial report. For example, in 2020, the enterprise lost 1.2 billion VND and in 2021, it lost 800 million VND. This indicator is the basis for calculating the remaining losses carried over to the following periods, ensuring that the enterprise does not exceed the allowed loss carryover limit.
Losses carried forward from previous years
This column reflects the total loss that the enterprise has used to reduce corporate income tax in previous years. For example, in 2020, the enterprise used 600 million VND of loss from previous years. Clearly stating the amount of loss carried forward helps avoid the situation of transferring double loss, ensuring complete and accurate declaration.
Losses carried forward this year
The amount of loss carried forward this year is the amount of loss that the enterprise wants to deduct in the current settlement period. For example, in 2025, the enterprise carries forward 300 million VND of loss from 2020 and 200 million VND of loss from 2021. This figure must be declared correctly and not exceed the taxable income of the current tax period, to comply with legal regulations.
The remaining loss is carried forward to the next period.
The remaining loss carried forward is the unused loss and is allowed to be carried forward to the following years, up to 5 years from the year of occurrence. For example, the remaining loss in 2020 is 300 million VND and in 2021 is 600 million VND will be carried forward to the next period. This indicator helps businesses make the most of the right to carry forward losses according to regulations and manage data transparently.
Instructions on how to create an appendix to transfer corporate income tax losses on HTKK software
To ensure that the preparation of the corporate income tax loss transfer appendix is accurate, complete and in compliance with legal regulations, enterprises can do it directly on the HTKK software. Using HTKK not only helps to automatically check and summarize data, but also ensures synchronization with the final declaration 03/TNDN, minimizing errors compared to manual declaration.
Step 1: Prepare the latest version of HTKK software
Before creating the appendix, businesses need to ensure that they have installed the latest version of HTKK issued by the General Department of Taxation. This helps avoid XML formatting errors and ensures that new indicators according to Circular 80/2021/TT-BTC are fully displayed. At the same time, using the latest version helps businesses declare online, synchronize data and submit documents via the electronic portal without any problems.
Step 2: Open the corporate income tax finalization declaration form
After opening the HTKK, the enterprise selects the Corporate Income Tax Finalization Declaration function and selects form 03/TNDN corresponding to the finalization period. At the declaration interface, the software provides the Corporate Income Tax Loss Transfer Appendix function (form 03-2/TNDN), where the enterprise makes a detailed declaration of losses carried over from previous years.
Step 3: Declare detailed information for each year of loss
In the appendix, the enterprise declares information in turn including the year of loss, the amount of loss incurred, the amount of loss carried forward from previous periods, the amount of loss carried forward in the current period and the amount of loss carried forward to the next periods. HTKK automatically calculates the remaining loss and checks the summary indicators, helping the enterprise detect errors before exporting the XML file.
Step 4: Check and compare data
After entering the data, the enterprise needs to carefully check all the data, ensuring that the summary indicators do not exceed the legal regulations, especially the amount of loss carried forward in the current period does not exceed taxable income. At the same time, the data in the appendix must be consistent with the financial report, declaration 03/TNDN and related appendices.
Step 5: Render XML file and submit application
Once the data is confirmed to be correct, HTKK allows exporting XML files for submission via the General Department of Taxation's electronic portal. This process helps tax records to be accepted immediately, minimizing the risk of rejection due to formatting errors or information errors. Electronic filing also helps businesses store and manage settlement records conveniently.
Step 6: Keep records and track the number of holes
After submitting the appendix, the enterprise needs to store the settlement records and monitor the amount of losses that can be carried forward to the following periods. This helps to manage the loss transparently, supports optimal tax obligations in the following years and complies with the regulation on the maximum loss transfer period of 5 years from the year of occurrence.
Common mistakes when preparing corporate income tax loss transfer appendix and how to fix them
When preparing the corporate income tax loss transfer appendix, enterprises may encounter some common errors that affect the accuracy and validity of the tax settlement dossier. These errors are often related to errors in declaring the year of loss, loss transfer figures exceeding the prescribed time limit, inconsistent with the 03/TNDN declaration, or due to using an outdated version of HTKK.
The table below summarizes common errors, causes and detailed instructions on how to fix them, helping businesses make accurate declarations, avoiding having their records rejected or tax collected by tax authorities.
| Common errors | Reason | How to fix |
| Wrong year of loss | Enter data from incorrect financial statements | Review financial statements and settlement minutes |
| Carry forward losses exceeding 5 years | Not according to Circular 78/80 | Create a table to track the remaining losses that can be carried forward, comply for 5 years |
| Data inconsistent with declaration 03/TNDN | Incorrect A2/A4 entry | Review data before exporting XML |
| No new HTKK update | XML format error when submitting | Always use the latest version of HTKK, download from the General Department of Taxation |
Conclude
The corporate income tax loss transfer appendix is an important tool to help businesses manage losses, optimize tax obligations and ensure transparency in tax settlement. Preparing a complete and accurate appendix not only complies with the provisions of the Law on Corporate Income Tax and Circular 78/2014/TT-BTC, Circular 80/2021/TT-BTC, but also helps businesses minimize legal risks, avoid tax arrears or late payment penalties from tax authorities.
Preparing an accurate CIT loss transfer appendix also brings direct benefits in financial management and business performance reporting. Fully and transparently declared data makes it easy for tax authorities to check, and at the same time supports businesses to effectively monitor the remaining losses transferred to the following periods. This ensures that businesses can make the most of their loss transfer rights as prescribed, contributing to optimizing CIT obligations in the following periods.
To prepare the corporate income tax loss transfer appendix quickly, accurately and in compliance with the law, businesses can trust in the service of MAN – Master Accountant NetworkMAN provides consulting, guidance on declaration, preparation of appendices and full settlement of corporate income tax according to Circular 80/2021/TT-BTC, helping businesses minimize risks, save time and ensure that documents are always valid. Contact MAN today for professional and effective support.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
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- Email: man@man.net.vn
