Settlement tax business guide: rules and procedures 2024

Settlement tax business or tax is the mandatory process in which the business firms should perform at the end of each year. This is accounting important that the chief accountant or accountant should master. The follow up article to understand the knowledge, processes, procedures performed settlement tax for the year 2022 is Accnet this latest update offline.

1. Settlement tax what is the Business?

Before coming to the steps made settlement tax, business or accounting need to master the concepts and basic knowledge of the following.

1.1 Concept

Process its payments business tax is accounting made declaration, all types of income from business activity, production, service providers are taxable under the provisions of the state agency having jurisdiction.

Tax settlement is done in 2 situations:

• Business carried out periodically at the end of each business year.
• Business cease business operations or implement restructuring type, field of business, change the owner.

Real business is tax settlement will proceed to draw up the declarations settlement tax form 03/CIT in circular no. 80/2021/TT-BTC.

1.2 objects need done

The object following Businesses will have to make settlement as prescribed by state:

• Business established in the territory of Vietnam, the law of Vietnam.
• Foreign companies have headquarters or that are not based in Vietnam.
• The administrative units of the activity under Vietnamese law.
• The business may form cooperative.
• Other organizations have revenue from operations manufacturing business.

2. Process settlement tax corporate 2022, including what procedures?

Profession settlement tax Business should be made according to the process and sequential professional to ensure the accuracy and compliance with laws and regulations. The accountant the follow procedures as below:

2.1 list the taxes required declaration

The taxes need to declare when making settlement:

• Value added tax or VAT: check invoices according to tax reports, check the seal, signature in the invoice. The type of bill has issues that need to copy and tabulated separately. The bills lost the original should have the report loss of bill. Bills head out cancelled must be accompanied by the minutes cancel the invoice. Purchase invoices whose value is greater than 20 million need, accompanied by a copy of proof of payment.
• Corporate income tax: including all types accounting books, documents about the company's accounting such as bookkeeping, certificate of payment receipt, collect, import, export; price list of services, goods, documents on fixed assets, purchase and sale contracts, bank records; documents about depreciation, wage; the minutes cancel orders, cost allocation, revenue; receipts, inventory stock, fund, ...
• Personal income tax: employment contracts, payrolls, vouchers, payroll, employee id cards, receipts, tax withholding relevant documents about circumstance, ...

2.2 process tax settlement businesses need to prepare the record type, form what?

After the establishment of the list and the type of tax, corporate income tax, VAT, personal income tax. Accountants need to prepare the kind of form following:

TH1: Apply for Vietnam business

• Business case determined by the method of revenue - cost

Set declarations settlement tax business form 03/CIT, the appendix issued under circular 80/2021/TT-BTC.

• The case of business income determined according to the method turnover rate

Accountant establishment tax form 04/CIT in circular 80/2021/TT-BTC.

Besides, accountants also need to prepare the form, record the following:

• Appendix CIT be reduced except as prescribed in Decree no. 92/2021/ND-CP.
• Declaration trading link under the template 03 to 7/CIT
• Annual financial report or the report is charged at the time of termination of operation/contract/type conversion or re-organized company.
• Appendix results of business activities: form-03-1A/CIT for business, manufacturing, trade, services; Template 03-1B/CIT for business is banking, and credit; Form-03-1C/CIT with respect to securities companies, fund management.
• Looked preferential corporate income tax: Form-03-3A/CIT for business premises established new shipping address locations from the investment project; Model 03-3B/CIT for expanded investment; Form-03-3C/CIT for enterprises with labor's minority; women workers accounted for 50% of the labor (from 10 - 100 women workers).
• Looked about losses according to the model 03-2/CIT.
• Appendix report use the fund of science and technology in form no. 03-6/CIT
• Appendix CIT filed in foreign income abroad is deducted according to the form 03-4/CIT
• Appendix INCOME tax from transfer of real estate, according to the form 03-5/CIT.

TH2: Business activity in the field of mining, export of crude oil, natural gas

• Use the form no. 02/CIT-DK
• Model number 01/PL-DK: appendix tax obligations of the contractor
• Financial statements for the year or at the time of the end of the contract oil and gas.

TH3: Business foreign contractor

• Certificate of legal residence in the year of settlement
• Confirmation of the parties involved in the signing of the contract.
• Declaration settlement tax business form 03-CIT.
• Profile tax-deductible as prescribed.

2.3 How do the declaration according to the regulation on settlement tax business - CIT 2022

Declaration form tax settlement

• Download template declaration settlement tax corporate income at here

• Complete the information on the declaration

2.4 deadline for submission of tax settlement

Deadline for submission settlement tax business according to the regulations no later than the last day of the time limit for filing tax settlement. Specific is the last day of the 3rd month from the end of the calendar year.

Therefore, the deadline for submission of tax settlement business of the year 2022 is the date 31/03/2023.

In addition, a number of businesses there are special circumstances will be tax deadlines as follows:

• Business meet unexpected accident can apply for an extension of time, renewal no later than after 60 days from the expiration date.
• Business in the case of division, separation, merger, consolidation, transfer owner, dissolution, termination of business activities, the time limit is day 45 since there is the decision of the tax authority.

2.5 Submission of declaration form prescribed about tax settlement business now?

Year 2022, the Business has 3 form filing settlement tax business as follows:

• Submitted directly to the tax authority: Business registration at the place has its headquarters shall submit to the tax manager directly.
• Filing tax audit by mail: The tax authority shall record the date of filing is the date of receipt of records.
• Filing through the portal, the website of the tax authority: follow the order reception - check - accepted record.

3. Rules about tax settlement business of delay shall be fined how much?

Business case does not perform filing deadlines, depending on the duration of delay will be the level of fines as follows:

• Caution: From 1 - 5 days accompanied by extenuating circumstances.
• A fine from VND 400,000 - 1 million VND: late Submission from 1 - the first 10 days.
• 800,000 - 2 million VND: late Submission from 10 - 20 days
• 1.200.000 – 3.000.000 VNĐ: Slow from 20 - 30 days
• 1.600.000 – 4.000.000 VNĐ: Slow from 30 - 40 days
• 2.000.000 – 5.000.000 VNĐ: Slow more than 40 days

The information and knowledge about the process settlement tax business year 2022 has been accounting software Accnet fully updated and most detailed. Hope the article helps businesses, accountants perform a full, accurate and correct term for any settlement 2022, okay.