Simplified, Fast and Accurate Corporate Income Tax Payment Guide (2024)

Corporate Income Tax (CIT) is a direct tax levied directly on a business’s taxable income. This article provides a detailed guide on two methods for paying CIT in 2024: in person at the tax office and online, along with tips for businesses to make timely payments and avoid penalties.

 

1. Introduction

a) Concept

Corporate Income Tax (CIT) is a direct tax levied directly on a business’s taxable income. Taxable income of a business includes income from the production and sale of goods and services, as well as other types of income as prescribed by law.

b) The importance of timely CIT payment

Ensures revenue for the state budget

  • CIT is an important source of revenue for the state budget, contributing to the fulfillment of the state’s common tasks such as national defense, security, education, healthcare, etc.
  • Timely CIT payment helps ensure revenue for the state budget, contributing to social security policies and socio-economic development.

Demonstrates a business’s compliance with the law

  • Businesses are obligated to pay taxes according to the law. Timely CIT payment demonstrates a business’s compliance with the law, contributing to a healthy business environment.
  • Businesses that pay taxes in full and on time are entitled to benefits as prescribed by law, such as reduced interest rates on bank loans, exemptions, and reductions in other taxes and fees.

Enhances a company’s reputation

  • Businesses that pay taxes in full and on time will establish a reputation with the tax authorities, business partners, and customers.
  • A good reputation will make it easier for businesses to access sources of capital, expand their market, and improve their operational efficiency.

Contributes to ensuring social equity

  • Timely CIT payment contributes to ensuring social equity, where no one benefits from business activities without contributing to the state budget.
  • Businesses that pay taxes in full and on time will create fair competition in business, encouraging businesses to improve their operational efficiency and profitability.

Avoids penalties

  • Businesses that fail to pay CIT on time will be penalized as prescribed by law. Penalties for late CIT payment can affect the business operations of the business.

Businesses need to raise awareness of timely CIT payment to fulfill their obligations to the community and enjoy the benefits from legal compliance.

In addition, tax authorities also need to strengthen tax law propaganda and education to raise awareness among businesses about the importance of timely CIT payment.

2. CIT payment methods

a) Direct payment at the tax office counter

Step 1: Prepare payment documents, including:

  • Completed and signed CIT declaration form (form 03/CIT).
  • Tax payment receipt (form 01/GT-CIT).
  • Payment documents (invoices, other valid documents).

Step 2: Submit payment documents at the counter of the competent tax authority.

Step 3: Receive tax payment receipt.

b) CIT payment online

Step 1: Businesses need to have an account to access the General Department of Taxation’s electronic portal (https://thuedientu.gdt.gov.vn/).

Step 2: Log in to your account using the provided username and password.

Step 3: Select the “Pay tax” option.

Step 4: Select the type of tax to be paid (CIT).

Step 5: Select the tax period and enter the amount of tax to be paid.

Step 6: Choose the payment method (online payment through a bank or payment at a bank counter).

Step 7: Make the payment according to the system’s instructions.

Step 8: Print the tax payment receipt.

c) Notes

  • Businesses must pay the full amount of CIT by the prescribed deadline.
  • In case of late tax payment, businesses will be penalized as prescribed by law.
  • Businesses should keep all tax payment documents for reconciliation when necessary.
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