Reduction of 30% in CIT 2020 for enterprises with total revenue not exceeding 200 billion VND in Vietnam

01:50, 10/07/2024

This is a noteworthy provision in Decree 114/2020/ND-CP detailing the implementation of Resolution 116/2020/QH14 of the National Assembly on the reduction of corporate income tax payable in 2020 for enterprises, cooperatives, public service providers, and other organizations in Vietnam.

Decree 114/2020/ND-CP stipulates a 30% reduction in the amount of corporate income tax payable for the corporate income tax period of the year 2020 for enterprises with total revenue in 2020 not exceeding VND 200 billion.

In which, the total revenue in 2020 used as the basis for determining the subjects eligible for tax reduction is the total revenue in the corporate income tax period of 2020 of the enterprises, including all money from sales, processing fees, service provision fees including subsidies, surcharges, and extra charges that the enterprise is entitled to according to regulations.

At the same time, in case the enterprise is newly established, the enterprise transforms the type of enterprise, changes the form of ownership, merges, etc., during the corporate income tax period of 2020 and operates for less than 12 months, then:

Total revenue 2020 = actual total revenue during the corporate income tax period 2020 (:) to the number of months the enterprise actually operated (x) with 12 months.

For details, see Decree 114/2020/ND-CP which came into effect on August 3, 2020.

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