How to calculate Corporate income tax 2022 the most accurate

Corporate income tax plays an important role in the formation of the state budget. So Corporate income tax is and what how to calculate corporate income tax why? Follow the article below to be proactive in managing your business and avoid the risk of violation should not be.

1. Overview of Corporate income tax

Is one of the sources of the most important in the state budget, tax, Corporate income tax is always organized business operations, interest and regular updates. Therefore, how to calculate income tax expense Business is always the problem of companies, businesses need to learn clearly and thoroughly.

1.1 income Tax what is the Business?

Corporate income tax (Profit Tax) is known to be a kind of direct taxation, gave directly into the account of corporate income subject to tax. The account that includes: income of the business from production activities, trading of goods, services and the types of other income under the provisions of the law.

>> Reference details: Templates Declaration of corporate income tax latest

 

1.2 the meaning of corporate income tax

Side edge how to calculate Corporate income tax then the meaning of this type of tax, this role extremely important for the state and society, especially in the in the work that regulate macro-economic country. Particular the special meaning which is:

• Fact, CIT is the revenues of the state, over here can assess the business situation of any business.
• Provides the base to build an overview about the earnings have been and will be incurred by the business are active in the market.
• Through tax incentives and CIT encourage investors, domestic and foreign investment into Vietnam to promote the production process, the business development.
• Create conditions for businesses on the market can compete fairly with each other, in accordance with guidelines developed by The government today. 

 

1.3 objects Business would need to pay tax

To date, people still often think that only new businesses need to pay tax. However, besides the main subject is business and there is still a number of other objects to make obligations on. 

Before coming to how to calculate income tax expense Businessthen let's AccNet find out the objects which need to file taxes this. According to Article 2 of the Law on enterprise income Tax 2008, to amend and supplement the 2013 regulations, the taxpayer included the following subjects:

• The business is established and operates based on the provisions of Vietnamese law.
• The business is established according to rules based on the rule of law abroad, are permanent basis or do not have permanent establishments in Vietnam.
• The institution is set based on the Law on cooperatives.
• The business unit was established comply with the provisions of Vietnamese law.
• Other organizations are active in manufacturing, trading and bring income.

1.4 the deadline for submission of corporate INCOME tax

One thing to note in the process of how to calculate cost of Corporate income tax is the deadline for submission. In addition, the total number of corporate income tax has been paid by 03 first quarter of the tax year shall not be less than 75% of the corporate income tax payable under the settlement year. In which the deadline for submission and payment of corporate INCOME tax is:

• The deadline for submission of INCOME tax interim quarterly: Delay is the last day of the month of the next quarter incurred obligations tax.
• The deadline for submission of preliminary settlement tax year: As late as the last day of the 3rd month from the end of the calendar year or financial year.

 

1.5 Business paying taxes now?

Currently, the business was a lot easier in the base pay tax. However, not every enterprise knows how to calculate Corporate income tax and place and pay tax accordingly. Because longer have to depend on the object taxpayers with or without dependent units or form of accounting. Following is the detailed locations and pay tax for each business type:

Object taxpayers	Unit depends	Form of accounting	Where the declaration and payment of tax
Business	No	Independent	Agency management tax direct
	Have	Depends	Agency management direct tax of the affiliated units
	Have	Depends	The management of tax headquarters
	Production facilities, such as machining, assembly, ...	Depends	The management of tax unit member
Group corporation	Have	Depends	The management of tax headquarters
	Have	Independent	The management of tax unit member

  >>> Learn more: How to submit personal income tax over the network

2. Guide how to calculate Corporate income tax 2022

The following are the specific instructions on how to calculate Corporate income tax that AccNet synthesis. In the implementation process, businesses need to clearly define the earnings are not taxable and taxable income. Most importantly, businesses need to make tax settlement in the time specified by the state to avoid a penalty.

>>> Read more useful information:

• Distance calculator personal income tax, 2022
• Sample payslip 2022 professional
• How to report cash flows

 

2.1 formula - guide how to calculate Corporate income tax details

According to circular 96/2015/TT-BTC of the Ministry of finance, The formula of how to calculate corporate INCOME tax as follows:

Corporate income tax should submit = (taxable income for the period) * (Tax rate)

In which:

Taxable income = (revenue + other income) – (Cost of production, business + income is tax free + The losses is the shipping)

Tax rate: Tax rate used to calculate the corporate INCOME tax is typically 20%. With respect to the activity in the field of mining in Vietnam, so does the tax rate is 32% - 50%. In addition, to promote development of a number of certain professions, the tax rate of the industry which can be 10%.

Based on the instructions how to calculate Corporate income tax that AccNet offers, businesses can consult and estimate the amount of tax required to submit.

2.2 CIT

• The CIT rate is 20%: Apply with business is not eligible for tax incentives, activities, mining minerals, precious and rare.
• Tax rate from 32% - 50%: Apply to the search operation, exploration and exploitation of oil and gas in Vietnam.
• CIT 50%: Apply for the search operation, exploration and mining of rare resources (platinum, gold, silver, precious stones, ...).
• Tax rate INCOME tax of 40% is Applied to the case of the mine rare resources, has 70% of the area of regional economic conditions are more social especially difficult, the list area is preferential CIT.

2.3 calculation of Corporate income tax - the detailed steps

Continue category how to calculate Corporate income tax, you are invited to follow the steps subject to CIT properly prepared according to state regulations.

• Step 1: Calculate the revenue in from the glass tax deductible expenses and other income.
• Step 2: Calculate the taxable income.
• Step 3: Calculate the income is tax-free and the losses be transferred as specified.
• Step 4: Calculate the income tax calculator INCOME tax.
• Step 5: finally, calculate the tax according to the formula that AccNet have provided in the above section.

On this is only how to calculate corporate INCOME tax according to the rule of law. In fact, the process of calculating corporate INCOME tax will need multiple taps to more complex such as data entry and sent to the tax authority.

2.4 Type of revenue is tax-free

In addition to how to calculate Corporate income tax current, then the revenue that the business organization is tax-free is also an important information to note:

• Revenue from agricultural activities (including technical services for agriculture), forestry, fisheries and salt production.
• Revenue from the implementation of contract research, science and technology.
• Business has business activity, production of labor occupy from 30% and up is disabled, the following drug rehab, persons with HIV.
• Revenue from operations vocational training for the subjects are ethnic minority children in special circumstances difficult object, and after detox, HIV/AIDS and other social ills other.
• Revenue from operations capital contribution, purchase of shares, a joint venture with enterprises in the country.
• Funding is provided for educational activities, scientific research, culture, the arts, humanitarian, ...
• Revenue from finishing the task due to The state from the development Bank of Vietnam in the array of investment credit, export credit, for objects that have difficult circumstances, ...
• Revenue from operations and technology transfer in the fields of priority for the organizations and individuals in the field of economic conditions, social especially difficult.

2.5 expenses holes are aligned movement

According to article 9 of circular no. 78/2014/TT-BTC has prescribed (Quote: The portal of electronic Government ) "Losses incurred in the tax period is the number of disparity of income tax are not included in the losses are carried forward from the previous year shifted to"

The following are the principles hole in how to calculate Corporate income tax current:

• Anal only be transferred when business results business is profitable or profitable.
• Switching losses continuously, move the entire hole, but the maximum does not exceed the amount of interest in the states.
• In particular, the time hole moves continuously from 5 years back.
• ...

2.6 How accounting corporate income tax

Accounting CIT interim quarterly

• Debt TK 8211 - Cost CIT current
• Have TK 3334 - Corporate income Tax

When conducting the process of filing Corporate income tax to the budget state budget:

• Debt TK 3334 - Corporate income Tax
• Have TK : 111, 112, ...

Accounting CIT end of the financial year

When the number of CIT fact must submit a larger number of temporary tax filing:

• Debt TK 8211 - Cost current tax practice.
• Have TK 3334 - Corporate income Tax

When conducting the process of filing Corporate income tax to the budget state budget:

• Debt TK 3334 : Corporate income Tax
• Have TK 111,112, ...

When the number of CIT fact smaller than the tax paid:

• Debt TK 3334 - Corporate income Tax
• Have TK 8211 - Cost CIT current

Accounting for corporate INCOME tax at the end of the accounting period

If account 8211 can balance the Debtor larger balances parties Are:

• Debt TK 911 - defined business results
• Have TK 8211 - Cost CIT current

If account 8211 can balance the Debtor smaller balances parties Are:

• Debt TK 8211 - Cost CIT current
• Have TK 911 - defined business results

>>> Refer to the right: How accounted amount for late payment of tax

3. Specific examples how to calculate INCOME tax

Year 2022 at company TG there arises the following: Figures 2021: Hole 50 million Year 2022:

• Revenue from sales and services: 500 million
• Revenue from Financial activities (Interest on deposits): 6 million
• The cost price of capital: 200 million
• Cost of sales: $ 80 million
• Cost management Business: 90 million
• Financial costs (interest Expense): 5 million (Non-deductible because The company has not contributed enough charter capital)
• Other income (liquidation of fixed assets): 100 million
• Other costs: 20.0 million

So, INCOME tax payable year 2022 of the company, TG is how much? In which: the CIT rate is 20% The following are instructions on how to calculate Corporate income tax 2022 in the correct sequence: Corporate INCOME tax payable = taxable income X Tax rate corporate INCOME tax In which: Taxable income = taxable income - (income is tax free + The losses is the shipping) Taxable income = (revenues - Costs are subtracted) + other income => Taxable income = [(500 + 6) - (200 + 80 + 90 + 20)] + 100 = 216 million -> Income tax = 216 - 50 = 166 million => INCOME tax payable year 2022 = 166 x 20% = 33.2 million

4. How to calculate corporate income tax standard with most accounting software Accnet

Accounting software online AccNet Cloud is the solution accounting software online is suitable design for the business are still struggling to find how to calculate Corporate income tax 2022 his. With simple interface, friendly and easy to use, easy for users to use fluent software in shortest time, help accounting work be quick, save time, costs and increase work productivity.

Besides, be applied technology cloud to help users easily access to the accounting software online and view documents anytime, anywhere. Accounting software online AccNet Cloud always timely updates to the circular, the latest decision of the Ministry of Finance and the provisions of the tax authority. AccNet is always ready to become the companion of your business in the task manager.

Here are the basic rules of how to calculate Corporate income tax current that accounting or business need to know in the process of production and business. If you have any questions related to Corporate income tax, contact AccNet to get advice quickly.

>>> Believe it or should read: The duties of the chief accountant what is?

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