On September 25, 2020, the Government issued Decree No. 114/2020/ND-CP, detailing
the implementation of the National Assembly's Resolution No. 116/2020/QH14 on
corporate income tax (“CIT”) payable in 2020 for enterprises, cooperatives, non-business
units and other organizations (”Decree 114/2020/ND-CP”).

Accordingly, guidance on the declaration of CIT payable reduction in 2020, specifically as
follows:

1. Enterprises shall determine by themselves the reduced CIT amount:

– Enterprises determine by themselves the amount of CIT to be reduced when: temporarily
calculating tax (quarterly) and declaring the CIT payable in the CIT period 2020.

– When making a tax declaration dossier, the enterprise shall declare the reduced CIT on the
declaration forms enclosed with Circular No. 151/2014/TT-BTC dated October 10, 2014 of
the Ministry of Finance and the amended and supplemented documents (if any) and in the
CIT Appendix are reduced according to Resolution No. 116/2020/QH14 issued together
with Decree 114/2020/ND-CP.

2. When enterprises underpay/overpay the quarterly temporary tax amount:

– Underpayment compared to the temporarily paid tax amount (quarterly): The enterprise
must additionally pay the outstanding tax + late payment interest in accordance with the
Law on Tax Administration and its guiding documents.

– Overpayment compared to the payable tax amount of the CIT period 2020: Overpaid tax
amounts shall be handled according to the provisions of the Law on Tax Administration
and guiding documents.

3. Inspection and examination by competent state agencies in the declaration of CIT
payable reduction in 2020:

– Through inspection and examination, the competent authority discovered: (1) Enterprises
are not subject to tax reduction according to the provisions of Decree 114/2020/ND-CP; or
(2) The payable tax amount of the CIT period 2020 is larger than the paid tax amount =>
the enterprise must pay: the outstanding tax + late payment interest from the date of
expiration of the tax payment time limit + fines in accordance with the Law on Tax
Administration and its guiding documents.

– In case enterprises: (1) additionally declaring CIT declaration dossiers for the tax period
2020; or (2) implementing a decision after inspection and examination by a competent
authority => Leading to an increase in CIT payable, the additional CIT is reduced by 30%
in accordance with the Decree. 114/2020/ND-CP.

– In case enterprises: (1) additionally declaring CIT declaration dossiers for the tax period
2020; or (2) implementing a decision after inspection and examination by a competent
authority => Leading to the reduction of corporate income tax payable, the overpaid tax amount (if any) shall be handled according to the provisions of the Law on Tax

Administration and guiding documents.

4. The value of the Decree 114/2020/ND-CP provides:

– It is a supporting policy from the state to help enterprises overcome difficult times due to
the impact of the Covid-19 epidemic;

– It is the capital facilitation for enterprises to develop production and business, improve
competitiveness, expand production scale;

– It is a measure to maintain long-term revenues for the state budget.

Above is the news: Guidance on the declaration of CIT payable reduction in 2020, in

Decree No. 114/2020/ND-CP.

Decree No. 114/2020/ND-CP takes effect from the effective date of Resolution No.
116/2020/QH14 and applies to the CIT period 2020, interpreted as August 3, 2020.

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