On June 19th ,2020 The National Assembly has ratified The Resolution on reducing payable Corporate Income Tax (CIT) in 2020 for the enterprises, cooperatives, non-business units and other organizations. Whereby:
The Regulated entities: The Resolution stipulated the applicable subjects are enterprises that are established under Vietnam’s law; Organizations that are established under The Cooperative Law; Non-business units that are established under Vietnam’s law; Other organizations that are established under Vietnam’s law with engagement in the production and trading of income-generating goods and services.
The payable CIT reduction: The Resolution is to reduce the payable corporate income tax in 2020 by 30% for enterprises which havetotal revenue in 2020 less than VND 200 billion. Enterprises based on the provision in Clause 1 of this Article to determine the reduced taxable income when paying the quarterly provisional tax and finalizing the payable CIT in 2020.
The implementation provision: The Resolution takes effect in 45 days from the date of signing and applicable for the tax assessment year 2020. The Government shall provide guidance on the implementation of this Resolution.
