Resolution No. 116/2020/QH14 on reduction of Corporate income tax (CIT) payable in 2020 incurred by enterprises, cooperatives, non-business units and other organizations is adopted by the National Assembly on 19^th June 2020.

Resolution No.116/2020/QH14 applies to CIT taxpayers that are organizations engaged in production and trading of goods and services with taxable income in accordance with the Law on Enterprise income tax (hereinafter referred to as enterprises), including:

• Enterprises are established under the provisions of Vietnamese law;
• Organizations are established under the Law on Cooperatives;
• Non-business units are established under the provisions of Vietnamese law;
• Other organizations are established under the Vietnamese law and engaged in income-generating production and business activities.

Accordingly, the National Assembly has passed a decision to reduce 30% of CIT incurred by enterprises whose revenue in 2020 is less than VND 200 billion, regardless of small or large enterprises, domestic or foreign- invested enterprises. 

Enterprises shall themselves determine reduced tax amount in their quarterly tax periods of 2020 and make the tax accounting at the end of the year.

This Resolution shall take effect from August 3^rd, 2020, i.e. 45 days after the signing date (19 June 2020), just CIT calculation from quarter 3 FY2020 shall be entitled to such 30% reduction.

This Policy is only applied in 2020 exclusively.

To get into details for specific cases, please feel free to contact us as at:

Unit 602A, Tower A, Handi Resco Office Building

521 Kim Ma Street, Ba Dinh District, Hanoi

+ 84 24 3974 4181/ 4182

+ 84 24 3974 3090

service@s4b.com.vn

The Tax Administration Law 2019 (amended and supplemented) which takes effect from July 1 makes various change to tax admin procedures. One of such changes is Taxpayers are entitled more rights as of the following:

1. Taxpayers will not be subject to admin penalties and late payment interest if they declared and paid taxes in accordance with rulings issued by the tax authorities at the time. This is a positive development as previously the ability to rely on such rulings was less clear;
2. Taxpayers will be allowed to look up all the electronic dossier submitted to tax e-portal in accordance with this Law and the Law on electronic transactions;
3. Taxpayers will be able to use the electronic dossiers in communication with Tax Authority and the other related competent agencies.

The other rights of taxpayers remain unchanged according to the former law, including:  

1. To be supported and guided to pay tax liabilities; provided information and documents to perform tax obligations and benefits;
2. To receive documents related to tax obligations from competent agencies when such agency conducts any tax inspection, examination or audit;
3. To request Tax Authority to explain the detail of tax calculation and assessment; to request expertise of the quantity, quality and categories of export and import goods;
4. To be kept all the information private and confidential, except for the information which must be revealed to competent authorities or published in accordance with tax law;
5. To be entitled to tax incentives and tax refund according to the tax law; to know the deadline for resolution of tax refunds and the non-refundable tax amount as well as the legal base for the non-refundable tax amount.
6. To sign service contracts with tax consultants, custom consultants on carrying out necessary procedures;
7. To receive decisions on tax handling, tax examination and tax inspection records, and request to explain the detail contents of such documents; to reserve opinion in tax examination and tax inspection records; to receive written conclusions of tax examination, tax inspection and decisions on tax handling;
8. To be compensated for damage caused by Tax Authority or Tax Agent according to the provisions of law;
9. To request Tax Authority to certify the fulfillment of tax obligations;
10. To do complaints and lawsuits against administrative decisions and actions related to its lawful rights and interests
11. To denounce law-breaking acts of Tax Agent, organization or individual according to the provisions of the legislation on denunciations.

 The Tax Administration Law 2019 (amended and supplemented) replaces the Tax Administration Law 2006. 

To get into details for specific cases, please feel free to contact us as at:

Unit 602A, Tower A, Handi Resco Office Building

521 Kim Ma Street, Ba Dinh District, Hanoi

Tel: + 84 24 3974 4181/ 4182

Fax: + 84 24 3974 3090

Email: service@s4b.com.vn