Circular No. 71/2021/TT-BTC dated August 17th, 2021 of the Ministry of Finance on providing guidance on corporate income tax arrears not yet retrospectively collected from societalized entities under the Government’s Resolution No. 63/NQ-CP dated August 25, 2014

This Circular provides guidelines for additional submission of corporate income tax (CIT) arisen before socialized entities satisfy criteria and standards of entities carrying out the socialization process for entitlement to CIT incentives according to Decision No. 1466/QD-TTg dated October 10th, 2008 or 693/QD-TTg dated May 6th, 2013 or Decision No. 1470/QD-TTg dated July 22nd, 2016.

Accordingly, in principle socialized entities shall be only entitled to CIT incentives for the remaining time when they meet the prescribed criteria and standards.

With regard to CIT incurred before the satisfaction of criteria and standards of entities carrying out the socialization process (if any), the socialized entities shall themselves additionally declare and pay the tax or tax authorities will retrospectively collect such CIT amount.

Notably, in case socialized entities additionally declare and pay CIT before November 2nd, 2021, they shall be exempt from fines and late payment interests. However, if socialized entities fails to make additional declaration and payment of CIT by November 2nd, 2021, they have to pay fines and late payment interests.

This Circular applies to socialized entities established before the effective date of Decision No. 1470/QD-TTg (July 22nd, 2016).

This Circular takes effect from November 1st, 2021.

To abrogate Article 24 of Circular No. 151/2014/TT-BTC dated October 10th, 2014.