On 1/10/2022, the Government promulgated Decree 91/2022/NĐ-CP amending the decree 126/2020/NĐ-CP elaborating the Law on tax administration.

For example, some provisions in Decree 126/2020/ND-CP have been amended as follows:

The total amount of provisional corporate income tax paid in 04 quarters shall be at least 80% of the corporate income tax payable under the annual tax finalization dossier.

Previously, according to Decree 126/2020/ND-CP, the total amount of provisional corporate income tax in 03 quarter shall be at least 75% of the corporate income tax payable under the annual tax finalization dossier.

There are two considerations for the provisional payment of CIT applied from the tax period of 2021 as follows:

1/ By the date of 30/10/2022, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is not smaller than 75% of the tax payable under the annual finalization dossier, regulations of Clauses 3, 4, 5 Article 1 of this Decree on the minimum ratio of provisional corporate income tax of 04 quarters shall not apply.

2/ By the date of 30/10/2022, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is smaller than 75% of the tax payable under the annual finalization dossier, the minimum ratio of provisional tax of 04 quarters specified in Clauses 3, 4, 5 Article 1 of this Decree may be applied if it does not lead to an increase in late payment interest.

Decree 91/2022/ND-CP takes effect from 30/10/ 2022.

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