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 19th 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 3rd, 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:
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521 Kim Ma Street, Ba Dinh District, Hanoi
+ 84 24 3974 4181/ 4182
+ 84 24 3974 3090