In the context of international economic integration, many foreign enterprises have chosen Vietnam as their place of residence and to develop their business operations. During their operations, understanding and adhering to tax regulations is of paramount importance. Corporate tax, specifically Corporate Income Tax (CIT), is always a notable aspect in the financial management of any business. CIT Return Filing Service in Vietnam emerged as a solution to assist foreign enterprises in Vietnam, helping them effectively address rising tax issues. Through this article, we will learn more about the importance of this service and the benefits it offers to FDI enterprises in Vietnam.

Corporate Income Tax Return

Corporate income tax (CIT) is a type of tax that businesses are obligated to pay based on the profits they earn in a specific accounting period. In Vietnam, CIT is a significant revenue source for the state budget and has specific regulations regarding its calculation, tax rates, and payment obligations for businesses.

CIT is a significant revenue source for the state budget and has specific regulations regarding its calculation, tax rates, and payment obligations for businesses
CIT has specific regulations regarding its calculation, tax rates, and payment obligations for businesses

According to the provisions in Article 2 of the Corporate Income Tax Law, the following entities are required to pay corporate income tax:

  • Businesses operating and established according to Vietnamese law.
  • Foreign enterprises operating in Vietnam.
  • Organizations formed as cooperatives under the Cooperative Law.
  • Public service entities formed according to the regulations of our country’s law.
  • Other organizations that operate in the production and business sector and generate income.

Corporate Income Tax Refund

The return of CIT occurs when a business has paid a tax amount that is greater than what they actually need to pay. This could be due to a variety of reasons, such as pre-tax estimates, errors during calculations, or changes in tax law.

In Vietnam, if a business has overpaid compared to the legally required tax amount, the company has the right to request the tax agency to refund the excess amount. Upon verification and approval, the tax authority will proceed with the tax refund for the business in accordance with the regulations.

Guide on Corporate Income Tax CIT Return Procedures 

As stipulated in Circular 156/2013, Clause 1, Article 33, there are certain situations where corporate income tax is considered overpaid:

Criteria for identifying overpaid tax:

  • If the taxpayer pays an amount greater than the actual tax amount needed with the same economic purpose, within about 10 years from the date of payment to the budget.
  • Corporate income tax is based on annual settlement. The tax amount is only considered overpaid when the amount paid exceeds the amount required to be paid according to the tax report.

In case of overpayment of corporate income tax:

  • If the taxpayer has outstanding tax amounts, penalty charges, late fees, or other surcharges, they must specify this on the tax document.
  • The payment order is as follows: Outstanding Tax > Penalty Charges > Late Fees > Surcharges > Fees.

Automatic offsetting:

  • The excess tax amount will automatically be offset against the next tax payment, applicable to the type of tax with a similar economic objective.

Situations where tax refund may be granted:

  • When more than 6 months have passed since the tax overpayment period, and no new tax amounts are due.
  • When the taxpayer has made offsets as per the regulations, but there still remains excess tax amounts, late fees, or surcharges.

Tax refund proposal:

  • Provide a “Request for Refund of State Budget Amounts” form, following template 01/DNHT, accompanying Circular 156/2013/TT-BTC.
Guide on Corporate Income Tax Return Procedures 
Guide on Corporate Income Tax Return Procedures

CIT Return Filing Service in Vietnam

CIT Return Filing Service in Vietnam for FDI enterprises involves a service company on behalf of the business carrying out the procedures and liaising with the tax authorities to retrieve the excess tax amounts they have paid.

⭐⭐ CIT Return Filing Service in Vietnam Bookkeeping Service, Payroll Service, VAT Filling Service, Tax Declaration Service, PIT Return for Foreigners, Expat, Resident and Non-Resident Service
⭐⭐ Hotline +84 924453930
⭐⭐ Benefits Professionalism and Experience, Time Saving, Cost Optimization
⭐⭐ Advantages Service: Efficient, Fast, Optimized
⭐⭐ Commitment Compliance with the Law, Professional Process, Help Business Save Time and Expense

This service typically includes:

  • Consultation on tax laws and regulations related to tax refunds for FDI enterprises.
  • Analysis and review of accounting documents and records to determine the amount of tax paid and the amount of tax that needs to be refunded.
  • Preparation and completion of financial reports and tax reports.
  • Facilitating communication and working with tax authorities.
  • Assisting the business in addressing any arising issues, disputes, or requests from the tax authorities.
  • Monitoring and tracking the tax refund process to ensure the business promptly and efficiently recovers the overpaid tax amounts.

Reasons FDI Enterprises Should Outsource CIT Return Filing Service in Vietnam

⭐ Lack of Understanding of the Legal System

Foreign Direct Investment (FDI) enterprises, upon entering the Vietnamese market, often grapple with adapting to the country’s legal system. Vietnam has a diverse and intricate legal system with specific processes and requirements that may not be familiar to foreign enterprises. The discrepancy stems from legal cultural differences between Vietnam and the FDI enterprise’s home country. Vietnamese legal procedures might be vastly different from what they are accustomed to in their native lands. Ambiguity in the understanding and application of regulations can lead to non-compliance, posing legal risks, financial penalties, and even harming the enterprise’s business reputation and operations.

In this context, the need to seek support from experts or CIT Return Filing Service in Vietnam becomes urgent. Which helps FDI enterprises grasp and adapt quickly to the legal environment in Vietnam.

⭐ Time and effort-consuming

Adhering to Vietnam legal procedures can be a time and labor-intensive endeavor for FDI enterprises. Especially in the field of tax and accounting, the procedures for a CIT return filing demand meticulous preparation of numerous documents and related files. Foreign enterprises, typically unfamiliar with the language, business culture, and Vietnamese legal regulations, may spend more time understanding, cross-referencing information, and navigating procedures.

This underscores the importance of utilizing consultation services or outsourcing CIT Return Filing Service in Vietnam. They not only help FDI enterprises save time and effort but also ensure that every procedure is executed accurately and expediently.

Why FDI Enterprises Should Outsource CIT Return Filing Service in Vietnam?
Why FDI Enterprises Should Outsource CIT Return Filing Service in Vietnam?

⭐ Professional team of experts

Vietnam’s tax system with its distinct regulations and procedures can cause difficulties for businesses that are not familiar with it. The staff of professional tax consulting services are often thoroughly trained, regularly updated on changes in tax law and have practical experience in consulting and supporting many different businesses. .

When using CIT Return Filing Service in Vietnam, FDI enterprises can be assured that they are being assisted by a team of experts, helping them comply with the law and optimize tax benefits. Furthermore, this allows businesses to save time and resources, focusing on their core operations without having to worry about complicated taxes.

In essence, for FDI enterprises operating in Vietnam, engaging in CIT Return Filing Service in Vietnam isn’t merely a matter of convenience; it’s a strategic necessity to navigate the complex tax landscape, ensure compliance, and optimize their operations.

Benefits of CIT Return Filing Service in Vietnam

✅ Time and Cost Savings: FDI enterprises operating in Vietnam often are unfamiliar with the country’s intricate tax regulations and procedures. Managing tax refund processes on their own can consume significant time and resources, especially when facing cultural and language barriers. CIT Return Filing Service in Vietnam allows businesses to save both time and costs while ensuring tasks are executed properly and effectively.

✅ Consultation and Problem-solving Support: Another challenge FDI enterprises often encounter is the ambiguity about tax regulations and refund procedure. Professional service companies possess experienced consultancy teams ready to address any questions and assist in resolving arising issues. Which helps businesses avoid mistakes and potential risks.

✅ High Quality and Precision: The specialists in tax consultancy firms are deeply trained and frequently updated on Vietnamese tax law. They have the ability to accurately assess a company’s tax situation, propose optimal solutions, and execute tax refund procedures efficiently. This ensures all regulations and procedures are properly followed, minimizing risks and optimizing benefits.

CIT Return Filing Service streamlines tax compliance, cost savings, and financial efficiency for FDI enterprises
CIT Return Filing Service streamlines tax compliance, cost savings, and financial efficiency for FDI enterprises.

✅ Avoiding Legal Risks: A minor mistake in tax submission or non-compliance with procedures can lead to severe consequences such as fines, lawsuits, or even business suspension. Professional CIT Return Filing Service in Vietnam help FDI enterprises avoid these risks by ensuring correct and full compliance with all regulations.

✅ Focus on Core Business Operations: Instead of investing time and effort in understanding and handling tax procedures, companies can concentrate on their main business activities, optimizing resources and improving performance by outsourcing service

✅ Understanding Tax Incentives and Regimes: Vietnam offers various tax policies and incentives for FDI enterprises. With tax consultancy services, businesses can fully leverage these benefits, reducing tax burdens and enhancing economic advantages.

CIT Return Filing Service Deployment

1. Initial Assessment:

  • Collect information on the economic and financial situation of the business.
  • Determine the possibility and reasons that may lead to a tax refund.

2. Analyze records and documents:

  • Review documents and tax reports to identify the amount of tax paid and the actual amount due.
  • Compare the paid tax amount with the real payable amount based on accounting records.

3. Report Compilation:

  • Aggregate data and prepare a detailed report on overpaid tax amounts and reasons.
  • Predict the possibility of obtaining a tax refund and the estimated timeline.

4. Liaising with the Tax Authority:

  • Discuss, clarify, and propose to the tax agency about the tax refund.
  • Submit the tax refund application to the tax authority.

5. Support in Resolving Arising Issues:

  • Respond to questions and requests from the tax authority.
  • Provide additional documents and explanations (if necessary).

6. Monitoring and Updates:

  • Track the progress of the application processing and the tax refund procedure.
  • Notify business about the situation and subsequent steps.

7. Archiving and Reporting:

  • Preserve all documents related to the tax refund process.
  • Summarize and provide the final report to the business once the tax refund process concludes.
CIT Return Filing Service Deployment at NNC
CIT Return Filing Service Deployment at NN Consulting

Why Choose NN Consulting

  • High Expertise: With a team of deeply trained and long-experienced staff in the tax field, NNC ensures quality service and accurate, reliable advice for all tax-related issues
  • Extensive Experience: We have been providing tax consulting services, tax declaration, tax accounting,… for many FDI enterprises such as Korea, Japan, China,…
  • Deep Understanding of the Vietnamese Market and Legal System: NNC not only offers tax services but also possesses a profound understanding of the Vietnamese market and legal system. Which helps businesses grasp opportunities and challenges.
  • Regular Legal Updates: Changes in Vietnamese tax laws and regulations occur continually.
    We commits to providing rapid and precise updates to our customers.
  • Reasonable Costs: Given our scale and experience, NNC can offer high-quality services at competitive prices, delivering maximum value to our clients.
  • Economical and Efficient: NNC ‘s Services unburden enterprises from potential financial and legal risks. Additionally, we ensure cost-effectiveness through tax consultancy.
  • Comprehensive Advisory: Beyond our primary offerings, we equip businesses with thorough knowledge into salaries, taxes, and legal regulations.
  • Prompt Assistance: With our professional customer support system, any issues or concerns will be efficiently resolved by our team.
  • Personalized Services: Each business has unique requirements and operations. NNC always listens and understands customer needs to provide the most suitable customized services.

Through professionalism and dedication, NN Consulting has become the top choice for many FDI companies when needing CIT Return Filing Service in Vietnam.

Other Articles

+84924453930 0924453930 @