Resolution No. 116/2020 / QH14 reduces 30% of corporate income tax in 2020

On June 19, 2020, the National Assembly passed Resolution No. 116/2020 / QH14 on reducing the corporate income tax of 2020 on enterprises, cooperatives, non-business units and organizations. .

Specifically, a 30% reduction of the payable enterprise income tax amount of 2020 for enterprises with a total annual revenue in 2020 not exceeding VND 200 billion.

This policy applies to corporate income taxpayers that are organizations engaged in production and trading of goods and services with taxable incomes under the Law on Enterprise Income Tax (enterprises), including : Enterprises established under the provisions of Vietnamese law; organizations established under the Law on Cooperatives; non-business units established under the provisions of Vietnamese law; Other organizations established under the Vietnamese law and engaged in income-generating production and business activities.

The National Assembly requires enterprises to base themselves on the above provisions to determine by themselves the reduced tax amounts for temporary payment of corporate income tax on a quarterly basis and for finalization of enterprise income tax by 2020.

This Resolution takes effect from August 3, 2020 and applies to the tax period 2020.