Official Letter 2835/TCT-TTKT guiding the implementation of Decree 68/2020/ND-CP issued by the General Department of Taxation

Updated at 21/09/2022 - 11:25 am


Independence - Freedom - Happiness

Number: 2835/TCT-TTKT
V/v guiding the implementation of Decree No. 68/2020/ND-CP

Hanoi, date 14 month 7 year 2020


Dear: Tax Departments of provinces and centrally run cities

On June 24, 6, the Government issued Decree No. 2020/68/ND-CP amending and supplementing Clause 2020, Article 3 of Decree No. 8/20/ND-CP on tax administration for enterprises. associated transaction. The above Decree has detailed regulations to ensure immediate implementation without issuing a Circular guiding the implementation. During the implementation process, the General Department of Taxation guides a number of contents related to regulations on applying the Decree's effect to the 2017 tax finalization period and retrospectively handling the years 2019 and 2017, specifically. can be as follows:

1/ For the 2019 tax finalization period:

Decree No. 68/2020/ND-CP stipulates: "first. The Decree takes effect from the date of signing and applies from the 1 corporate income tax period.”

– Thus, for businesses that have declared the 2019 tax finalization according to the tax period due before March 31, 3, they will additionally declare the corporate income tax (CIT) finalization declaration according to prescribed in Decree No. 2020/68/ND-CP amending and supplementing Clause 2020, Article 3 of Decree No. 8/20/ND-CP.

– For businesses that have not yet reached the tax declaration and finalization period in 2019, they must comply with the provisions of amendments and supplements in Decree No. 68/2020/ND-CP.

2/ For retroactive processing for the 2017 2018 CIT period:

a/ Regarding the scope of application:

The retroactive handling of controlled interest expenses under the provisions of Clause 3, Article 8 of Decree No. 20/2017/ND-CP for the years 2017, 2018 only applies to the provisions of Point a, Clause 3, Article 8 of Decree No. Decree No. 20/2017/ND-CP is amended and supplemented in Article 1 of Decree No. 68/2020/ND-CP, specifically:

– Raise the threshold for controlling interest expenses from 20% to 30%;

- Apply the method of calculating net interest expense (borrowing interest minus (-) deposit interest, loan interest);

– No retroactive application of provisions on amendments and supplements at points (b) (forwarding costs) and (c) (expansion of exempted subjects) of Decree No. 68/2020/ND-CP for the years 2017, 2018.

b/ Regarding the offsetting of paid CIT amounts in 2017 and 2018:

In case of applying the recalculation of the scope according to the provisions of Decree No. 68/2020/ND-CP, if the CIT amount is reduced, the corresponding amount of late payment will be reduced (if any), specifically:

- In case the inspection or examination has not yet passed:

Taxpayers shall offset the difference between the CIT amount and the corresponding late payment interest in the 2020 CIT amount. If 2020 is not enough to offset the full amount, it will be offset against the payable CIT for the next 05 years from the date of payment. 2020. At the end of the above time limit, the remaining CIT amount that has not yet been cleared will not be handled.

- In case of inspection, examination and conclusion, handling decision:

Taxpayers request Tax Departments, directly managing Tax Sub-Departments to re-determine the payable CIT amount. Pursuant to the taxpayer's proposal; relevant documents, including documents of the enterprise and documents, minutes of the inspection team, the tax authority directly managing the re-determination of the payable CIT amount and corresponding late payment interest for implementation. now offset the difference in the CIT amount in 2020.

+ In case of necessity, the tax authorities directly coordinate with the inspection teams, check, review and determine the data of taxpayers at the headquarters of the tax authority.

+ Similar to the case that has not been inspected and inspected, if the year 2020 is not enough to offset, it will be cleared against the payable CIT for the next 05 years from 2020. At the end of the above time limit, the tax amount will not be processed. The remaining CIT has not been fully offset.

c/ Regarding the place and form of implementation:

– The re-determination of payable tax is carried out at the head office of the tax authority, not to carry out inspection and re-inspection at the taxpayer's office; not make adjustments to the inspection and examination conclusions and decisions 2017, 2018, XNUMX.

- In case the tax administrative violation has been sanctioned or is being resolved according to the complaint order, no adjustment the amount of fines for tax administrative violations.

The General Department of Taxation requested the Tax Departments of the provinces and centrally run cities to implement the Government's Decree No. 68/2020/ND-CP dated June 24, 6, if problems arise during the implementation process. request to send to the General Department of Taxation (Department of Information and Communications) for guidance./.

- As above;
– General Director of GDT (for reporting);
– Leaders of the Corporation;
- Tax Sub-Departments of districts, towns;
– Departments of Revenue, Planning, PC, DNL, ​​CS, Forest Management (TCT);
– Save: VT, TTKT (3b).


Dang Ngoc Minh

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