Uni 20-01-2022 - About declaration and allocation of CIT amounts for manufacturing plants other than provinces with CIT incentives

Official letter 46423/CTHN-TTHT about declaration and allocation of CIT amounts for manufacturing plants other than provinces with CIT incentives:

In case the Hanoi-based company has a factory in Hanoi and two dependent accounting branches in Bac Ninh, which are manufacturing plants in Bac Ninh, from 2022 all factories will enjoy tax incentives. CIT, the tax declaration, tax calculation, tax finalization, distribution and payment of CIT of the Company for branches that are manufacturing plants is done as follows:

+ The distribution of CIT payable to branches that are factories in Bac Ninh shall comply with the guidance at point c, Clause 2, Article 17 of Circular 80/2021/TT-BTC.

Accordingly, the payable enterprise income tax amount of the activities entitled to incentives is determined according to the production and business results of the activities entitled to the incentives and the level of incentives to be enjoyed.

The payable CIT amount in each province where the production establishment is located = the payable CIT amount of production and business activities multiplied by (x) the percentage of expenses of each production establishment over the total expenses of the payer. Tax (excluding operating expenses entitled to CIT incentives). The cost to determine the allocation ratio is the actual cost incurred in the tax period.

+ About quarterly CIT declaration and temporary payment, CIT finalization for branches that are factories in Bac Ninh is implemented at Point c, Clause 3, Article 17 of Circular 80/2021/TT-BTC.