On 19 October 2020, the Government issued Decree 126/2020/NĐ-CP guiding some regulations of the Law on Tax Administration, which will take effect from 5 December 2020, in which stipulates the cases when temporary payment of CIT amount in Section b, Clause 6, Article 8 as follows:
- Taxpayers who are required to prepare quarterly financial statements in accordance with the accounting law shall base themselves on quarterly financial statements and tax laws to determine quarterly temporary payment of CIT amount.
- Taxpayers are not required to prepare quarterly financial statements according to the accounting law on the basis of quarterly production and business results and the provisions of tax law to determine quarterly temporary payment of CIT amount.
- Total CIT temporarily paid for the first 3 quarters of the tax year must not be lower than 75% of the payable CIT amount according to the annual settlement.
- In case taxpayers underpay tax compared to the tax that must be temporarily paid for the first 3 quarters of the year, the late payment interest must be paid based on the underpayment amount from the day following the last day of the third quarterly time limit for temporary CIT payment and pay the missing tax into the state budget.
- Taxpayers who carry out projects of investment in infrastructure, houses for transfer or lease purchase, and collect advance payments from customers on schedule in accordance with law, shall determinate quarterly temporary payment of CIT amount at the rate of 1% of the advance payments amount. If the infrastructure and house have not been handed over and the revenue for calculating CIT has not been taken into account in the year, the taxpayer does not aggregate it into the annual CIT finalization declaration. Declaring CIT finalization upon real estate handover for each part or the whole project.
