Apply according to TT 96/2015, review more TT 78/2014
Enterprises directly pay taxes to the State by calculating the following:
CIT payable = (Revenue – Cost of goods – Cost) X CIT rate of 20%
(from January 1, 2017)
Starting from the fourth quarter of 2014, according to 151/2014 / TT-BTC, enterprises do not have to make a temporary quarterly corporate income tax declaration but only have to temporarily calculate the payable tax amount and pay the amount The temporary corporate income tax is calculated for the Tax Authority (if any).
At the end of the fiscal year (December 31), Accounting will summarize the data and make a declaration of corporate income tax self-finalization (form 03 / TNDN) to submit to the Tax Agency, which fully shows the indications. Target: Revenue, Cost, Profit / Loss, Corporate income tax of the year (if any).
Revenue: Based on the invoice for selling goods and services – regardless of whether it is collected or not.
Cost: Calculated when selling goods and services (prices based on purchased goods – must have an invoice, the value of over 20 million, must transfer, attach payment payment authorization).
- For construction and production enterprises, it is necessary to have a table of raw materials and costs to calculate the cost price or the cost of capital.
- There must be input for output to businesses: trade, production. Commercial enterprises should note: goods purchased must have an invoice before the date of sale.
Cost in the enterprise
Telephone charges, electricity, water, drinking water at the office.
Money for receiving guests, advertising, promotions (registering with the Department of Industry and Trade), gifts (billing for customer receipt).
Expenses for stationery, office supplies, freight (delivery costs).
Car rental, taxi, and petrol fees (must be appropriate to the actual situation at the company, vehicle schedule, lease / loan contract).
Rent, office rental, warehouse rental …
Fees for license fees or fees / charges related to business activities (paid).
Air fare (required to have an electronic ticket, ticket, boarding pass or a work order).
Cost of employee salaries (if any).
The cost must have an invoice (value added or regular sales invoice – direct bill).
- If the person providing the goods / services is an individual who does not have an invoice to export, and the total value that the individual provides for a year does not exceed 100 million, the enterprise is listed 01 / CIT to calculate into the cost. deducted) + ID card + Contract (if any) + Receipt of payment.
Costs are deducted when calculating CIT
Circular 78/2014 / TT-BTC
Circular 119/2014 / TT-BTC
Circular 151/2014 / TT-BTC
Circular 96/2015 / TT-BTC.
1. Conditions are included in deductible expenses when determining CIT
According to Article 4 of Circular 96/2015 / TT-BTC amending and supplementing Article 6, Clause 1 of Circular 78/2014 / TT-BTC, conditions for calculation of expenses are deducted as follows:
“Except for expenses not deducted as mentioned in Clause 2 of this Article, enterprises may deduct all expenses if they fully meet the following conditions:
a) Actual expenses arising related to production and business activities of enterprises.
b) Expenses with sufficient legal invoices and vouchers as prescribed by law.
c) Expenses if there are invoices for purchase of goods and services each time with a value of VND 20 million or more (prices inclusive of VAT) when making payment, there must be non-cash payment vouchers. ”
2. Expenses deducted when determining CIT
Expenses are deducted when determining the CIT when all the above conditions are met.
2.1. Actual costs incurred in relation to production and business activities of the enterprise
The actual costs incurred relating to the production and business activities of the enterprise are the expenditures to generate revenue in the period, corresponding to the turnover in the period, including:
- Salaries, wages, remuneration and other expenses paid to employees such as insurance premiums, allowances, prescribed allowances, vocational training
- Cost of materials, raw materials, fuel … expenses for business activities are suitable to norms, generating revenue in the period
- Expenses for services purchased from outside and outsourced to serve production and business activities, generating revenue in the period
- Expenses for depreciation, maintenance and maintenance of fixed assets used in production and business in the period
- Payment of loan interests for production and business activities in the period
- Expenses for management apparatus, or management fees, are paid to higher levels according to regulations
- Taxes, fees and charges payable are not deductible
- Other expenses related to income generation.
- Losses due to natural disasters, epidemics, fires and unforeseen circumstances of compensation
- Goods damaged by the expiration of the date, due to natural biochemistry must not be included in deductible expenses
- Regular expenditures to maintain the production and business activities of enterprises when enterprises have no turnover
- Expenses for advertising, marketing, promotion, brokerage commissions …
- Market research and development costs
- Loss of exchange rate difference
- Spending on scientific research, education, health and natural disaster financing, building houses to support the poor in the right subjects
- Contract penalties
- Allowance provisions
- Set up funds for scientific and technological research.
Enterprises are allowed to account for deductible expenses not corresponding to revenue in the following period:
In Article 4 of Circular 96/2015 / TT-BTC amending and supplementing Article 6, Clause 2, Point 2.31 of Circular 78/2014 / TT-BTC regulating expenses not corresponding to the revenue in the period calculated on deductible expenses include:
- “Amounts of actual spent on HIV / AIDS prevention and control activities at the workplace, including: Expenses for training of HIV / AIDS prevention and control officials of enterprises, expenses for organizing communication rooms, HIV / AIDS prevention for employees of enterprises, fees for HIV counseling, examination and testing, and expenses to support HIV-infected people are employees of enterprises.
- Actual expenses to perform the tasks of national defense and security education, training and activities of the militia and self-defense forces and serve other defense and security tasks according to law provisions.
- Actual expenses to support Party organizations and socio-political organizations in enterprises.
- Other expenses of specific nature, suitable to each business line and field according to the guiding document of the Ministry of Finance.”
2.2. Legal invoices and vouchers
Legal invoices and vouchers are invoices and vouchers that satisfy one of the following conditions:
– VAT invoice or sales invoice as stipulated in Circular 39/2014 / TT-BTC
– Documents evidencing expenses according to the provisions of the accounting law,
– List of 01 / VAT form attached with Circular 78/2014 / TT-BTC
2.3. Non-cash payment for invoices for goods and services valued at VND 20 million or more (VAT included)
According to the provisions of Article 6, Clause 1 of Circular 78/2014 / TT-BTC, non-cash payment is stipulated as follows:
“Non-cash payment vouchers comply with the provisions of the law on value added tax.
In case of purchasing goods and services each time with the value of twenty million dong or more, it is written on the invoice, but at the time of recording expenses, the enterprise has not yet paid and there is no cashless payment voucher then enterprises are included in deductible expenses when determining taxable income. In case when the enterprise does not have cash-free payment documents, the enterprise must declare and adjust the cost reduction for the value of goods and services without the non-cash payment vouchers. Tax period incurred in cash payment ”
Learn more: Instructions for registering an account, submitting tax returns online
(The content is being updated … )