Regulations on the time of determination of corporate income taxable revenue

Properly determining the time of turnover is a key factor in accurately calculating the amount of tax payable, while helping businesses avoid risks of incorrect declaration and penalties.

(1) Time of turnover determination for the sale of goods and provision of services

Clause 2, Article 8 of Decree No. 320/2025/ND-CP provides general regulations on the time of determination of corporate income taxable revenue as follows:

• For the sale of goods, it is the time of transfer of the right to own or use goods to the buyer;
• For the provision of services, it is the time of completion of the provision of services or completion of each part of the provision of services for the buyer, except for certain cases of installment payments, deferred payments, transport, banking, securities, insurance, ticket sales, prepaid membership card sales, etc.

(2) Time of turnover determination for special cases

In addition to the cases above, the Minister of Finance defines the time of turnover determination for certain special cases in Article 5 of Circular No. 20/2026/TT-BTC:

Enterprises established in accordance with the laws of Vietnam:

• For exported goods, the time for determination of corporate income taxable revenue is the date of transfer of ownership in accordance with the export goods contract.
• In case of failure to determine the time of transfer of ownership, the time of determination of corporate income taxable revenue shall be based on the regulations on determination of exported goods under the law on customs.
• For air transport activities, the time of determination of corporate income taxable revenue is the time of completion of provision of transport services to the purchaser.
• For construction and installation activities (including shipbuilding), the time of determination of corporate income taxable revenue is the time of acceptance of the work, work item, or construction and installation volume, regardless of whether payment has been received or not.
• For electricity and water supply activities, the time of determination of corporate income taxable revenue is the date of confirmation of electricity or water meter readings recorded on the electricity or water invoice.

Foreign enterprises:

• For capital transfer activities, the time of determination of corporate income taxable revenue is the time when the initial capital transfer contract becomes effective in accordance with regulations.
• For transfer of securities or certificates of deposit, the time of determination of corporate income taxable revenue is the time of transfer.
• For transfer of derivative securities being futures contracts, the time of determination of corporate income taxable revenue is the time of matching of buy and sell orders for futures contracts of the investor on the trading system of the Stock Exchange or the time of maturity of the futures contract.

The above are the regulations on the time of determination of corporate income taxable revenue.