Reduce 30% of enterprise income tax in 2020 for enterprises with turnover less than VND 200 billion

On the morning of June 19, the National Assembly passed the Resolution on reduction of corporate income tax (CIT) payable in 6. Whereby, Enterprises with turnover of less than VND 200 billion will be allowed 30% reduction of corporate income tax.

This policy is applicable to enterprises with total revenue in 2020 not exceeding VND 200 billion, equivalent to the revenue criteria to identify medium enterprises in agriculture, forestry, fishery and other fields. industry and construction.https://www.expertis.vn

Subjects eligible for 30% CIT exemption for 2020

Subjects eligible for tax reduction in the Resolution include:

  • Enterprises established under the provisions of Vietnamese law
  • Organization established under the Law on Cooperatives
  • Non-business units established under the provisions of Vietnamese law
  • Other organizations established under Vietnam's law that produce and trade income-generating goods and services.

At the same time, the National Assembly has removed the criteria on the number of employees paying insurance to ensure fairness for labor-intensive businesses.

As such, the National Assembly has removed criteria on the number of employees paying insurance premiums to ensure fairness for labor-intensive businesses and to supplement the subject of 30% reduction of corporate income tax for enterprises having medium scale.

According to Chairman of the Finance and Budget Committee Nguyen Duc Hai, with the expansion of the above-mentioned tax reduction object, the number of State budget revenue reductions in 2020 will increase from VND 15.840 billion to around VND 23.000 billion compared to the Government's plan. submit.

Before the National Assembly voted, many opinions said that in addition to reducing corporate income tax, there should be other measures that have great and direct effects to help businesses recover production and business.

Mr. Nguyen Duc Hai said that to support businesses, remove difficulties and promote production and business, restart the economy to cope with the Covid-19 epidemic, the Government has proactively built and implemented the contract. a range of fiscal solutions, taxes, fees, charges, land rent ... In which the solution package to extend the deadline for paying taxes and land rents is worth about 180.000 billion dong.

He said that until now, the Government, ministries and branches will have more other solutions to support businesses to overcome difficulties because of Covid-19.

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