Guide to Completing the 2025 Corporate Income Tax (CIT) Finalization Declaration

1. Introduction to the 2025 CIT Finalization Declaration

The 2025 Corporate Income Tax (CIT) finalization declaration is carried out according to Form 03/TNDN, Section VI, Appendix II issued with Circular 80/2021/TT-BTC. The main method applied is the revenue-cost method, enabling businesses to accurately and comprehensively declare their tax.

2. Detailed Guidance on Important Declaration Items in the CIT Finalization Form

• CIT: Corporate Income Tax; RE: Real Estate.
• Items G1, G3: Taxpayers declare excess CIT paid in previous periods, which can be offset against the CIT payable for the current period.
• Items D11, G2, G4, G5: Declare CIT temporarily paid until the submission deadline. For example, for the tax period 2021, temporary CIT paid until March 31, 2022, is included.
• For lottery businesses: Separate CIT declaration for lottery business activities (item E1) and other production/business activities (items E2, E3).
• Items E, G: Taxpayers do not declare CIT payable or temporarily paid for activities enjoying incentives in other provinces that have been declared separately.
• Items E4, G5, H3: Declare CIT payable and temporarily paid for transferring infrastructure, handed-over houses, and advance payments from customers according to progress.

3. Three Groups of Corporate Income Taxpayers

According to Article 2 of the 2008 Corporate Income Tax Law (amended in 2013), the taxpayers include:

1. Organizations engaged in production and business activities with taxable income, including:
   
   
   • Enterprises established under Vietnamese law.
   • Foreign enterprises with or without a permanent establishment in Vietnam.
   • Organizations established under the Cooperatives Law.
   • Public service units established under Vietnamese law.
   • Other organizations engaged in production/business with income.
2. Taxpayers by source of taxable income:
   
   
   • Vietnamese enterprises pay tax on taxable income generated both inside and outside Vietnam.
   • Foreign enterprises with permanent establishments pay tax on income generated inside and outside Vietnam related to that establishment.
   • Foreign enterprises with permanent establishments pay tax on income generated in Vietnam unrelated to the establishment.
   • Foreign enterprises without permanent establishments pay tax on income generated in Vietnam.
3. Definition of permanent establishment of foreign enterprises:
   
   
   • Branches, representative offices, factories, workshops, means of transportation, oil and gas mines, or other natural resource extraction sites in Vietnam.
   • Construction sites, buildings, installation works.
   • Service providers, including consulting services via employees or other entities.
   • Agents for foreign enterprises.
   • Authorized representatives in Vietnam who sign contracts or regularly deliver goods or services.

4. Conclusion

Accurately completing the CIT finalization declaration ensures businesses optimize tax obligations and avoid errors and legal risks. Understanding Form 03/TNDN and taxpayer groups is essential for efficient tax finalization in 2025.