{"id":1666,"date":"2025-05-21T15:07:25","date_gmt":"2025-05-21T08:07:25","guid":{"rendered":"https:\/\/thue.man.net.vn\/?p=1666"},"modified":"2026-03-04T09:55:44","modified_gmt":"2026-03-04T02:55:44","slug":"quyet-toan-thue-tndn","status":"publish","type":"post","link":"https:\/\/thue.man.net.vn\/en\/quyet-toan-thue-tndn\/","title":{"rendered":"Corporate income tax settlement"},"content":{"rendered":"

Corporate income tax settlement is an important step for businesses to accurately determine the amount of tax payable in the fiscal year, while complying with tax laws and avoiding the risk of being penalized for false declarations or underpayments. In reality, many businesses have difficulty compiling financial reports, comparing provisional tax data and adjusting non-deductible expenses.\u00a0<\/span><\/p>\n

Recent, <\/span>Da Nang City Tax Department<\/span><\/a> has issued a decision to sanction administrative violations in the field of tax against Da Nang Pharmaceutical - Medical Equipment Joint Stock Company (Dapharco). This enterprise has declared incorrectly, leading to a shortage of value-added tax (VAT) payable in the tax periods of 2023 and 2024, and declared incorrectly corporate income tax (CIT) in the years 2022-2024. This act violated the provisions of the Law on Tax Administration, resulting in a total amount of tax arrears and fines of nearly 1 billion VND.\u00a0<\/span><\/p>\n

The case of Dapharco is a clear reminder of the importance of preparing complete documents, checking accurate figures and performing corporate income tax settlement in accordance with regulations. Enterprises need to master the process, deadlines and important notes to avoid the risk of being charged back, fined, and at the same time ensure transparency and compliance with tax laws throughout the entire fiscal year.<\/span><\/p>\n

What is corporate income tax settlement?<\/b><\/h2>\n

Corporate income tax settlement is the activity of synthesizing, comparing and determining the amount of tax. corporate income tax<\/a> The actual amount payable by a business in a fiscal year. This is the final step in the annual corporate income tax declaration process, to ensure that the business has paid the full amount, without any shortage or excess of tax. This activity helps businesses accurately control their tax obligations, while ensuring compliance with current legal regulations.<\/span><\/p>\n

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What is corporate income tax settlement?<\/figcaption><\/figure>\n

Performing corporate income tax finalization brings many practical benefits, including helping businesses avoid the risk of being penalized for incorrect declaration or underpayment of tax. In addition, this is also the basis for tax authorities to check and compare declarations submitted during the year, thereby ensuring financial transparency and enhancing the reputation of businesses before management agencies.<\/span><\/p>\n

Legal basis related to corporate income tax settlement<\/b><\/h2>\n

To properly settle corporate income tax, businesses need to have a firm grasp of important legal bases. These documents provide detailed instructions on how to calculate taxes, prepare declarations, submit documents and handle violations related to corporate income tax settlement. The table below summarizes the basic legal documents that businesses need to refer to before making settlement:<\/span><\/p>\n\n\n\n\n\n\n\n
Summary table of legal basis related to corporate income tax settlement<\/b><\/caption>\n
Legal basis<\/b><\/td>\nMain content<\/b><\/td>\n<\/tr>\n
Corporate Income Tax Law 2019<\/span><\/a><\/td>\nPrescribe principles for tax calculation, declaration and settlement.<\/span><\/td>\n<\/tr>\n
Circular 80\/2021\/TT-BTC<\/span><\/a><\/td>\nInstructions on how to prepare corporate income tax finalization declaration (form 03\/TNDN) and attached appendix.<\/span><\/td>\n<\/tr>\n
Decree 126\/2020\/ND-CP<\/span><\/a><\/td>\nRegulations on tax management and handling of violations in corporate income tax settlement.<\/span><\/td>\n<\/tr>\n
Official dispatch 1909\/BTC-TCT<\/span><\/a><\/td>\nInstructions to answer some questions when preparing corporate income tax finalization declaration.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

When must businesses make corporate income tax settlement?<\/b><\/h2>\n

Enterprises must make corporate income tax finalization in case of taxable income arising in the fiscal year. This applies to all enterprises that have conducted business activities, regardless of whether profits have arisen or not, to ensure that tax obligations are accurately determined. In addition, enterprises that have made provisional tax payments on a quarterly or monthly basis are also required to summarize and compare the tax paid with the actual tax incurred to make finalization.<\/span><\/p>\n

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When must a business make corporate income tax settlement?<\/figcaption><\/figure>\n

In addition, at the end of the fiscal year and when preparing the annual financial report, the enterprise needs to perform the corporate income tax finalization to determine the tax arrears or the tax refund. This activity helps ensure that the actual tax paid matches the actual tax incurred, avoids the risk of errors in tax declaration and payment, and at the same time creates a basis for financial transparency for the enterprise before the tax authority.<\/span><\/p>\n

Cases not required to settle corporate income tax<\/b><\/h2>\n

Although most businesses are required to make corporate income tax finalization, there are some exceptions stipulated by law. These cases are not required to make corporate income tax finalization declarations because they have not yet incurred tax obligations or are subject to tax exemption. The table below summarizes the cases where businesses are not required to make corporate income tax finalization:<\/span><\/p>\n\n\n\n\n\n\n
Summary table of cases not required to settle corporate income tax<\/b><\/caption>\n
Case<\/b><\/td>\nDetail<\/b><\/td>\n<\/tr>\n
Newly established enterprise but has not yet generated revenue or taxable income<\/span><\/td>\nEnterprises that have not yet conducted business or generated taxable income during the year are not required to make corporate income tax finalization.<\/span><\/td>\n<\/tr>\n
Enterprises are exempted from corporate income tax under preferential policies.<\/span><\/td>\nApplicable to enterprises enjoying investment incentives, industrial zones, and special projects according to the provisions of law.<\/span><\/td>\n<\/tr>\n
Accounting units dependent on the State budget or public service units<\/span><\/td>\nThese units are not subject to corporate income tax so do not need to make corporate income tax finalization.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Corporate income tax settlement process<\/b><\/h2>\n

The implementation of corporate income tax settlement must comply with strict procedures to ensure accurate and timely data according to the law. This process consists of 4 basic steps, each step has its own requirements and notes that businesses need to implement.<\/span><\/p>\n

Step 1: Prepare documents<\/b><\/h3>\n

Before making a final tax declaration, the enterprise needs to prepare all relevant documents. These documents are the basis for accurately calculating the amount of corporate income tax payable and ensuring that the declaration and payment of tax are carried out in accordance with the law. The table below summarizes the important documents that the enterprise needs to prepare before making a final tax declaration.<\/span><\/p>\n\n\n\n\n\n\n
Summary of important documents that businesses need to prepare before making a corporate income tax finalization declaration<\/b><\/caption>\n
File<\/b><\/td>\nDetail<\/b><\/td>\n<\/tr>\n
Annual financial report<\/span><\/td>\n\u2013 Includes balance sheet, income statement and cash flow statement.<\/span><\/p>\n

\u2013 The data in the report must match the accounting books and invoices and documents.<\/span><\/td>\n<\/tr>\n

Corporate income tax finalization declaration (form 03\/TNDN)<\/span><\/td>\n\u2013 Is a mandatory form prescribed by the General Department of Taxation.<\/span><\/p>\n

\u2013 Must fill in complete information about the business, revenue, expenses and taxes paid.<\/span><\/td>\n<\/tr>\n

Corporate income tax declaration appendices<\/span><\/td>\n\u2013 Including adjustments to increase\/decrease taxable income, non-deductible expenses, tax incentives (if any).<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Step 2: Prepare corporate income tax finalization declaration<\/b><\/h3>\n

After preparing all the documents, the enterprise proceeds to make a corporate income tax finalization declaration. This is an important step to summarize, compare and accurately determine the amount of corporate income tax payable. The declaration process must be carried out carefully to ensure accurate information and data, avoiding errors that may lead to the risk of fines or tax arrears. The specific steps include:<\/span><\/p>\n

Enter business information<\/b><\/h4>\n

Before starting to fill in the financial data, the first step in the process of preparing the corporate income tax finalization declaration is to enter the business information. This is an important step because all basic information about the business will directly affect the validity of the declaration. Filling in this information completely and accurately helps ensure that the finalization dossier is accepted and avoids administrative errors when the tax authority checks.<\/span><\/p>\n