Instructions on how to prepare the corporate income tax return.

How to write a report corporate income tax settlement This is the most important task that every accountant and business owner must perform at the end of the fiscal year. According to statistics from the General Department of Taxation, every year more than 301 businesses are penalized for administrative violations due to errors in their tax return documents, mainly related to the determination of non-deductible expenses. Corporate Income Tax Law No. 14/2008/QH12.

Mastering this process not only helps businesses comply with legal regulations but also provides an opportunity to optimize tax obligations by reviewing tax incentives and carrying forward losses. Circular 80/2021/TT-BTC, The Ministry of Finance has issued new guidelines on online declaration forms, requiring accountants to continuously update their knowledge to avoid risks related to tax arrears. Let's explore the detailed implementation roadmap with MAN – Master Accountant Network in the article below.

The importance of understanding how to prepare corporate income tax return reports.

Properly preparing financial statements corporate income tax This helps businesses establish a robust internal control system for tax risks. When accounting records are accurately reconciled with regulations, businesses can avoid unnecessary disputes with regulatory authorities during periodic audits.

Furthermore, corporate income tax returns serve as a basis for investors and credit institutions to assess the transparency and financial health of a company. A clean tax return, complying with Vietnamese accounting standards (VAS) and current guiding circulars, will enhance the company's reputation in a volatile business market.

Current legal basis for corporate income tax settlement

To properly prepare corporate income tax return reports, accountants need to base their work on the following legal regulations:

• Law on Corporate Income Tax No. 14/2008/QH12: The original document specifies the taxable subjects, tax-exempt income, and the basis for tax calculation.
• Tax Administration Law No. 38/2019/QH14Regulations regarding deadlines for filing documents, tax declaration procedures, and taxpayer responsibilities.
• Circular 78/2014/TT-BTC: Detailed guidance on the implementation of the Corporate Income Tax Law regarding deductible and non-deductible expenses.
• Circular 96/2015/TT-BTCAmendments and additions to Circular 78 aim to alleviate difficulties for businesses.
• Circular 80/2021/TT-BTCInstructions for implementing certain provisions of the Law on Tax Administration, especially the latest system of declaration forms.
• Decree 126/2020/ND-CP: Detailed regulations on quarterly provisional corporate income tax payments and the difference compared to the annual tax settlement.

Subjects and deadlines for preparing corporate income tax return reports.

Identifying the correct entities and deadlines for filing corporate income tax returns is a crucial step in ensuring businesses comply with legal regulations and avoid administrative penalties. Businesses need to understand who is required to file tax returns and the deadlines for submitting documents as stipulated by the tax authorities. The following content summarizes the entities required to file corporate income tax returns and the deadlines for submitting them according to current regulations.

The entities required to perform settlement

All organizations engaged in the production and sale of goods and services with taxable income must file tax returns. Even businesses currently enjoying tax incentives or operating at a loss must submit complete documentation in accordance with legal regulations.

Deadline for submitting settlement documents

According to Law 38 on Tax Administration, the deadline for submitting annual tax return documents is no later than the last day of the third month from the end of the calendar year or fiscal year.

Summary table of deadlines for submitting settlement documents.

Fiscal year	End date	Deadline for submitting settlement documents
Gregorian year	31/12	March 31st of next year
Other fiscal years	Example: 31/03	June 30th of the same year

Note: If the last day falls on a statutory holiday, the deadline will be calculated on the next working day.

Steps to prepare data before filing the corporate income tax return.

Before filing the tax return, accountants need to perform a data review process to ensure consistency between accounting figures and current tax laws.

Review of taxable revenue

Revenue for corporate income tax calculation is the total amount of sales, processing, and service provision, including subsidies and surcharges received by the business. Accountants need to carefully reconcile the revenue recorded in the general ledger (account 511) with the value-added tax invoices issued during the period.

Classification of deductible and non-deductible expenses

This is the most important step in preparing the corporate income tax return. A deductible expense must meet three conditions: It must be related to business operations; it must be supported by complete and legitimate invoices; and it must be a non-cash payment with an invoice of 20 million VND or more.

Summary of common non-deductible expenses

Type of expense	Key features to note
Clothing	Exceeding 5 million VND/person/year (if paid in cash)
Interest	The portion exceeding the base interest rate or violating the ceiling on related-party transaction interest rates (150%)
Depreciation of fixed assets	Depreciation of passenger cars with fewer than 9 seats for the value exceeding 1.6 billion VND.
Salary	Wages that are not actually paid or not specifically stated in the employment contract.

Detailed instructions on how to prepare the corporate income tax return using the HTKK software.

Currently, most businesses file their tax returns using the Tax Declaration Support Software (HTKK) provided by the General Department of Taxation to ensure consistency.

Step 1: Log in and select the declaration form.

You select the "Corporate Income Tax" module, then select "Corporate Income Tax Final Settlement Declaration Form (03/TNDN) (Circular 80/2021)". The system will prompt you to select the settlement year and accompanying appendices corresponding to your business model.

Step 2: Complete the appendices (Appendix 03-1A, 03-2A)

In preparing the corporate income tax return, you must complete the appendices before submitting the main tax return. Appendix 03-1A reflects the business results, while 03-2A is used to carry forward losses from previous years to the current year.

Step 3: Adjust the indicators on the main Declaration Form 03/TNDN.

After the data from the appendix is automatically transferred to the main tax return, the accountant needs to pay attention to Item B4 (Adjustments increasing revenue/decreasing expenses that are not deductible) and Item B11 (Adjustments decreasing taxable income).

Step 4: Calculate the corporate income tax payable.

The software will automatically calculate the tax amount based on the standard tax rate 20%. The accountant needs to enter the amount of tax already paid provisionally during the year into item E1 to accurately determine the remaining tax payable or the amount overpaid.

Note: If your business is unfamiliar with the HTKK system or the declaration involves many complex adjustments, preparing the declaration yourself may be time-consuming and prone to errors. Therefore, you may consider using a third-party service. Corporate income tax settlement services Contact MAN to receive support from tax experts in reviewing documents, preparing tax returns, and optimizing tax obligations in accordance with regulations.

See the detailed article here: Corporate Income Tax Settlement Service Price List

A practical example of how to prepare a corporate income tax return.

Let's assume Company A had revenue of 10 billion VND and accounting expenses of 8.5 billion VND in 2023. This includes 200 million VND in administrative fines and 300 million VND in excessive vehicle depreciation. In 2022, the company was still incurring a loss of 100 million VND.

Detailed calculation method:

1. Accounting profit = 10 – 8.5 = 1.5 billion.
2. Adjustment increase (B4) = 200 + 300 = 500 million.
3. Taxable income = 1.5 billion + 500 million = 2 billion.
4. Taxable income = 2 billion - 100 million (loss) = 1.9 billion.
5. Corporate income tax payable = 1.9 billion x 20% = 380 million.

Common mistakes when preparing corporate income tax return reports.

Based on our consulting experience at MAN – Master Accountant Network, we have observed that accountants often make mistakes such as: Forgetting to carry forward losses when profits are generated; Using illegal or improperly issued invoices; and Failing to separate related-party transactions as required by Decree 132/2020/ND-CP.

In addition, incorrect exchange rate accounting for monetary items denominated in foreign currencies at the end of the year is also a frequent occurrence. These errors lead to a high risk of tax arrears and late payment penalties when the tax authorities conduct an audit.

Conclude

Preparing corporate income tax final settlement reports is a technical process requiring a combination of accounting skills and the ability to flexibly apply tax laws. Successfully performing this task not only fulfills state obligations but also reflects professionalism in financial management, helping businesses avoid losses from administrative penalties.

To ensure your records are always up to standard, contact MAN – Master Accountant Network today. We are a strategic partner providing auditing services., tax accounting, tax consulting and tax reporting Professional. Let our experts help you optimize your sustainable tax management process today.

Service contact information at MAN – Master Accountant Network

• Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
• Mobile/Zalo: 0903 963 163 – 0903 428 622
• Email: man@man.net.vn

Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.

Answers to frequently asked questions about how to prepare corporate income tax return reports.

Do I still need to file a tax return if I have no revenue?

Yes. Businesses are still required to file annual tax returns unless they have officially notified the tax authorities of a temporary suspension of business operations.

What should I do if I discover errors after submitting my application?

Businesses are allowed to submit supplementary tax returns before an inspection decision is made. If the tax payable increases, the business needs to pay additional tax and a late payment penalty of 0.03%/day.

What are the regulations for making provisional payments under form 80%?

The total amount of provisional tax payments for the four quarters must not be less than 80% the amount of tax payable according to the annual settlement. If it is less, the difference will be subject to late payment penalties.