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Thursday, 21/10/2021
Corporate income tax shall be reduced by 30%
2-10-2020

     On September 25th, 2020, Prime Minister has signed Decree No. 114/2020/ND-CP detailing the implementation of Resolution No. 116/2020/QH14 of National Assembly on reduction of corporate income tax (CIT) payable in 2020.

     This Decree applies to CIT payers who are organizations engaged in production and trading of goods and services with taxable income, including    enterprises established under Vietnamese laws, organizations established under the Cooperative Law; non-business units and other organizations established under Vietnamese law with income from production and business activities.

     Pursuant to this Decree, enterprises with total revenue in 2020 not exceeding 200 billion VND are entitled to a 30% reduction of payable CIT amount of the tax period 2020.

    Total revenue in 2020 serves as the basis for determining the subjects eligible for tax reduction is the total revenue in the CIT period of 2020, including all sales, processing and service charges, which enterprises are entitled to in line with current regulations.

     In case of newly established enterprises, enterprises transformations, ownership transformation, consolidation, merger, division, separation, dissolution, bankruptcy (collectively referred to as changed enterprises) in CIT calculation period in 2020 for under 12 months of operation, the total revenue in 2020 is determines by total actual revenue in the CIT period of 2020 divided (i) the number of months of enterprises producing and doing business in the CIT period in 2020 multiplied (x) 12 months.

     In cases of estimated total revenue in the CIT period of 2020 does not exceed 200 billion VND, the enterprises shall temporarily pay 70% of the payable CIT amount of the quarter.

     Ending of CIT period of 2020, in case of total revenue in 2020 of enterprise does not exceed 200 billion VND, enterprises shall declare and reduce the CIT in 2020 upon finalization of CIT in accordance with laws.

     This Decree is going to have effect from the valid date of Resolution No.116/2020/QH14 and applies for CIT period of 2020.

 

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Số lượt xem:2314
KON TUM INVESTMENT PROMOTION AND STARTUP SUPPORT CENTER
Address: 12 Nguyen Viet Xuan Street, Kon Tum City, Kon Tum Province; Phone:02603910260 - Fax:02603913436 ; Email: ttxtdt.skhdt@kontum.gov.vn.
Person responsible for the content: Mr. Le Cong Dinh, Director of Investment Promotion and Startup Support Center for Kon Tum province.
 

 

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