- November 16, 2020
- Posted by: Thu Phuong
- Category: Tax Consulting
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How to calculate provisional corporate income tax for the quarter of 2020
Instruct How to calculate corporate income tax Temporarily calculated quarterly according to the latest revised corporate income tax law in 2020:
According to the current regulations on CIT 2020, businesses will no longer have to make a quarterly CIT provisional declaration, but we only have to temporarily calculate the amount and pay according to that provisional number (if any). Then at the end of the year, prepare the CIT finalization declaration.
Down here, AACS will guide accountants on how to temporarily calculate quarterly corporate income tax:
1.The amount of corporate income tax payable in the tax period is equal to taxable income multiplied by tax capacity.
Corporate income tax payable is determined according to the following formula:
Corporate income tax payable = Taxable income x corporate income tax rate
In case an enterprise appropriates a science and technology development fund, the corporate income tax payable is determined as follows:
Corporate income tax payable = (Taxable income – Science and technology fund appropriation (if any)) x corporate income tax rate
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S&T fund appropriation (if any): maximum deduction of 10% of annual taxable income.
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Tax: In 2020, the corporate income tax rate is 20% (Regardless of revenue level)
Special: For 2020, Enterprises with total revenue in 2020 not exceeding 200 billion VND will receive a 30% reduction in corporate income tax payable in 2020.
Determining taxable income:
1. Taxable income in the period Tax calculation is determined by taxable income minus tax-exempt income and losses carried forward from previous years according to regulations.
Taxable income is determined according to the following formula:
Taxable income is determined according to the following formula:
Taxable income = Taxable income – (Tax-exempt income + Losses carried forward according to regulations)
2. Taxable income
Taxable income in the tax period includes income from production and trading of goods, services and other income.
Taxable income in the tax period is determined as follows:
Taxable income = Revenue – Deductible expenses + Other income
Attention : Enterprises with many production and business activities applying many different tax rates, the enterprise must separately calculate the income of each activity multiplied by the corresponding tax rate.
a, Revenue
Revenue to calculate taxable income is determined to be all proceeds from selling goods, processing fees, and service provision fees, including subsidies, surcharges, and extras that the enterprise is entitled to, regardless of revenue collected. get money or not get money.
– For businesses paying value-added tax using the tax deduction method, revenue does not include value-added tax.
– For businesses that pay value added tax using the direct method, the added value is revenue including value added tax.
a, Revenue
Revenue to calculate taxable income is determined to be all proceeds from selling goods, processing fees, and service provision fees, including subsidies, surcharges, and extras that the enterprise is entitled to, regardless of revenue collected. get money or not get money.
– For businesses paying value-added tax using the tax deduction method, revenue does not include value-added tax.
– For businesses that pay value added tax using the direct method, the added value is revenue including value added tax.
b, Deductible expenses
Deductible expenses when determining taxable income are actual expenses incurred related to production and business activities of the enterprise; Expenditures for carrying out national defense and security tasks of the enterprise according to the provisions of law. Have enough invoices and documents as prescribed by law. For invoices for each purchase of goods and services with a value of twenty million VND or more, there must be non-cash payment documents, except in cases where non-cash payment documents are not required. according to regulations of the Law.
However, there are many actual and documented expenses that cannot be deducted when calculating corporate income tax.
Deductible expenses when determining taxable income are actual expenses incurred related to production and business activities of the enterprise; Expenditures for carrying out national defense and security tasks of the enterprise according to the provisions of law. Have enough invoices and documents as prescribed by law. For invoices for each purchase of goods and services with a value of twenty million VND or more, there must be non-cash payment documents, except in cases where non-cash payment documents are not required. according to regulations of the Law.
However, there are many actual and documented expenses that cannot be deducted when calculating corporate income tax.
3. Losses are carried forward according to regulations
4. Tax-Free Income: These types of income are rare and are for some quite specific businesses
You can read more article: "Income items that are exempt when calculating corporate income tax", here:
Contact now AACS for advice and support
AACS AUDITING COMPANY LIMITED
Phone: 028 66 500 381 – Mobile: 0908 381 550 (Mr Manh) – Mobile: 0908 688 550 (Ms Phuong)
Email: info@aacs.com.vn
