{"id":12599,"date":"2020-10-05T10:04:20","date_gmt":"2020-10-05T10:04:20","guid":{"rendered":"https:\/\/bizlawyer.vn\/30-reduction-of-cit-payable-in-2020"},"modified":"2020-10-05T10:04:20","modified_gmt":"2020-10-05T10:04:20","slug":"30-reduction-of-cit-payable-in-2020","status":"publish","type":"post","link":"https:\/\/bizlawyer.vn\/zh-hans\/30-reduction-of-cit-payable-in-2020","title":{"rendered":"30% reduction of CIT payable in 2020"},"content":{"rendered":"

On September 25, 2020, the Government issued Decree No. 114\/2020\/ND-CP, detailing
\nthe implementation of the National Assembly’s Resolution No. 116\/2020\/QH14 on
\ncorporate income tax (\u201cCIT<\/strong>\u201d) payable in 2020 for enterprises, cooperatives, non-business
\nunits and other organizations (“Decree 114\/2020\/ND-CP<\/strong>“).<\/p>\n

Accordingly, enterprises that meet the following conditions will receive a 30% reduction
\nin CIT payable in 2020, specifically as follows:<\/p>\n

1. Conditions on subjects eligible for tax reduction policy:<\/strong><\/p>\n

– Enterprises established in accordance with Vietnam\u2019s law;<\/p>\n

– Organizations established in accordance with the Law on Cooperatives;<\/p>\n

– Public service providers established in accordance with Vietnam\u2019s law;<\/p>\n

– Other organizations established in accordance with Vietnam\u2019s law and earning income
\nfrom business operation.<\/p>\n

2. Conditions on total revenue in 2020 eligible for tax reduction policy:<\/strong>
\nThe enterprises whose total revenue in 2020 do not exceed 200 billion VND. Specifically:<\/p>\n

– Total revenue in 2020 is the total revenue in the CIT period 2020 of the enterprise
\nincluding all sales, processing and service charges including price subsidies, surcharges,
\nand extra which enterprises are entitled to under the provisions of the Law on CIT and its
\nguiding documents.<\/p>\n

– In case of a newly established enterprise, enterprise transforming the form of enterprise,
\nownership, consolidation, merger, division, separation, dissolution or bankruptcy in the
\nCIT period 2020 less than 12 months of operation: Total revenue in 2020 is determined by
\nthe total actual revenue in the CIT period 2020 divided (:) by the number of months the
\nenterprise actually operates in the CIT period 2020 multiplied (x) by 12 months. In case a
\nnewly established enterprise or enterprise transforms the form of enterprise, ownership,
\nconsolidation, merger, division, separation, dissolution or bankruptcy in a month, the
\noperation period shall be counted for the full month.<\/p>\n

– If the enterprise expects total revenue in the CIT period 2020 to not exceed VND 200
\nbillion, the enterprise shall determine quarterly temporary payment equal to 70% of the
\npayable CIT amount of the quarter.<\/p>\n

– At the end of the CIT period 2020, if the total revenue in 2020 of the enterprise does not
\nexceed VND 200 billion, the enterprise shall declare and reduce the CIT of the year 2020
\nWhen finalizing CIT according to regulations.<\/p>\n

3. The value of the Decree 114\/2020\/ND-CP provides:<\/strong>
\n– It is a supporting policy from the state to help enterprises overcome difficult times due to
\nthe impact of the Covid-19 epidemic;<\/p>\n

– It is the capital facilitation for enterprises to develop production and business, improve
\ncompetitiveness, expand production scale;<\/p>\n

– It is a measure to maintain long-term revenues for the state budget.
\nAbove is the news: 30% reduction of CIT payable in 2020 in Decree No. 114\/2020\/ND-
\nCP.<\/p>\n

Decree No. 114\/2020\/ND-CP takes effect from the effective date of Resolution No.
\n116\/2020\/QH14 and applies to the CIT period 2020, interpreted as August 3, 2020.<\/p>\n

Hope the above information is helpful to The Valued Readers.<\/p>\n

Bizlawyer is pleased to accompany with you!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

On September 25, 2020, the Government issued Decree No. […]<\/p>\n","protected":false},"author":3,"featured_media":12595,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-12599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-16"],"_links":{"self":[{"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/posts\/12599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/comments?post=12599"}],"version-history":[{"count":0,"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/posts\/12599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/media\/12595"}],"wp:attachment":[{"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/media?parent=12599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/categories?post=12599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizlawyer.vn\/zh-hans\/wp-json\/wp\/v2\/tags?post=12599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}