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 Resolution No. 6/116 / QH2020 on reduction of corporate income tax (CIT) payable by 14. 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 also removed the criteria for the number of employees to pay insurance premiums to ensure fairness for businesses that use many employees.

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 in order to support businesses, remove difficulties and promote business and production, restart the economy to cope with the Covid-19 epidemic, the Government has proactively built and implemented contracts. a set of solutions on fiscal, taxes, fees, charges, land rent ... In which the solution package to extend tax payment time limit, land rent is worth about 180.000 billion VND.

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.

See full text: Resolution: 116/2020 / QH14 (Vietnamese)

                              Resolution: 116/2020 / QH14 (English)

Updated on September 25, 09

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Decree 114/2020 / ND-CP guiding the implementation of tax reduction of 30% of CIT payable by 2020

Revenue in 2020 is up to VND 200 billion: 30% reduction in corporate income tax

This is the content of Decree 114/2020 / ND-CP guiding the implementation of Resolution 116/2020 / QH14 on CIT payable reduction of 2020 for enterprises, cooperatives, non-business units and organizations. other (collectively referred to as enterprises). 

Accordingly, a 30% reduction in the payable CIT amount of the CIT period of 2020 for the case where the enterprise (DN) has a total revenue in 2020 not exceeding VND 200 billion.

Total revenue in 2020 as a basis for determining the subjects eligible for tax reduction is the total revenue in the CIT period of 2020 of the enterprise, including:

All sales, processing and service charges, including price subsidies, surcharges and surcharges, are entitled to enterprises in accordance with regulations.

If the enterprise expects the total revenue in the CIT period of 2020 to not exceed 200 billion VND, the enterprise shall determine the quarterly temporary payment equal to 70% of the payable CIT amount of the quarter.

At the end of the CIT period of 2020, if the total revenue in 2020 of the enterprise does not exceed VND 200 billion, the enterprise shall declare and reduce the CIT of the year 2020 upon finalizing the CIT as prescribed.

The CIT reduction amount of the CIT period of 2020 is calculated on the entire income of the enterprise, including the incomes specified in Clause 3, Article 18 of the Law on CIT.

The EIT period is determined according to the calendar year, if the enterprise applies a fiscal year different from the calendar year, the CIT period is determined according to the fiscal year.

Decree 114/2020 / ND-CP takes effect from August 03, 8 and applies to the CIT period of 2020.

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