Post-tax profit is the payable CIT amount in a tax period, based on taxed income multiplied by tax rate. Taxable income in a tax period includes income from the production and trading of goods, provision of services and other incomes. The payable CIT amount in a tax period is taxed income multiplied by tax rate.
Deadlines for CIT payment in 2023:
- The provisional CIT payment in Quarter 1/2023: No later than 04/05/2023.
- The provisional CIT payment in Quarter 2/2023: No later than 31/07/2023.
- The provisional CIT payment in Quarter 3/2023: No later than 30/10/2023.
- The provisional CIT payment in Quarter 4/2023: No later than 30/01/2024.
The taxpayer shall determine the post-tax profit within the first 30 days of the quarter succeeding the quarter in which the liability is incurred and may deduct the post-tax profit that remains after fund contributions from the tax payable under the annual tax finalization dossier.
The total post-tax profit that remains after making fund contributions of 04 quarters must be at least 80% of that under the annual tax finalization dossier. In case of underpayment, late payment interest shall be charged on the arrears over the period from the date succeeding the deadline for paying the remaining post-tax profit of the fourth quarter to the date preceding the day on which the arrears are paid to state budget.
Late payment interest will not be charged on the increase in remaining post-tax profit due to adjustment to enterprise classification announced by the owner for the period from the day succeeding the deadline for paying the remaining post-tax profit to the deadline for announcing enterprise classification imposed by a competent authority.
Thus, to proactively manage and optimize corporate income tax for the 4th quarter and the whole year of 2023, you need to quickly review the financial statements for 9 months of 2023 and make a revenue plan – costs, approve the draft 2023 financial report before January 20, 2024.
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