Article 1. Subjects of application
This Resolution applies to corporate income taxpayers who are organizations engaged in production and business activities of goods and services and earn taxable income in accordance with the Law on Corporate Income Tax (hereinafter referred to as enterprises). industry), including:
1. The enterprise is established in accordance with the law of Vietnam;
2. Organization established under the Law on Cooperatives;
3. Non-business units established in accordance with Vietnamese law;
4. Other organizations established in accordance with the law of Vietnam having production and business activities with income.
Article 2. Corporate income tax reduction
1. Reduce 30% of corporate income tax payable in 2020 for enterprises with total revenue in 2020 not exceeding 200 billion VND.
2. Enterprises shall base themselves on the provisions of Clause 1 of this Article to determine the tax amount to be reduced when temporarily paying corporate income tax on a quarterly basis and finalizing corporate income tax in 2020.
Article 3. Terms of implementation
1. This Resolution takes effect 45 days from the date of signing and applies to the tax period 2020.
2. The Government shall guide the implementation of this Resolution.
This Resolution was approved by the 14th National Assembly of the Socialist Republic of Vietnam, 9th session on June 19, 2020.
Whereby:
1. A 30% reduction in corporate income tax payable in 2020 for enterprises with total revenue in 2020 not exceeding VND 200 billion.
a. Total revenue in 2020 as a basis for determining the subjects eligible for tax reduction as prescribed in this Clause is the enterprise’s total revenue from selling goods and providing services in 2020.
According to the above provisions, the 30% reduction of corporate income tax applies to all incomes of enterprises that satisfy the tax reduction conditions specified in Clause 1, Article 2 of the Resolution, not excluding incomes that are not eligible for tax reduction. enjoy incentives in accordance with the provisions of the CIT Law such as: income from real estate transfer, capital transfer, income from mining activities, income from business services subject to special income tax, …
b. Enterprises shall base themselves on the provisions of Clause 1, Article 2 to determine the tax amount to be reduced when temporarily paying quarterly CIT and finalizing CIT in 2020.
In case a newly established enterprise in 2020 does not have enough 12 months, the total revenue in 2020 is determined by the actual revenue of 2020 divided (:) by the number of months the enterprise actually conducts production and business activities in the year. 2020 then multiply (x) by 12 months. In case the enterprise is newly established within a month, the month of establishment shall be counted in full.
– Enterprises determine their own average monthly revenue. In case the average monthly revenue does not exceed VND 16.67 billion, the enterprise shall temporarily calculate the tax amount that the enterprise must pay on a quarterly basis, and then temporarily pay the corporate income tax amount of the quarter after it has been reduced. 30% of the provisional tax amount.
– At the end of the tax year 2020, if the total revenue in 2020 of an enterprise is not more than VND 200 billion, the enterprise shall declare and reduce CIT for 2020 when finalizing CIT according to regulations.
In case an enterprise is newly established in the last 3 months of 2019 and has registered to determine the tax period of the first year to the tax period of 2020 including the newly established months in 2019, the enterprise income as the basis for determining determine the amount of CIT to be reduced under the provisions of this clause excluding the income generated in 2019.
In case an enterprise is newly established in the last 3 months of 2020 and registers to determine the first year’s tax period of 2021, including the newly established months in 2020, the enterprise income shall serve as the basis for determining the CIT amount. The reduction according to the provisions of this clause is only calculated on the income generated in 2020.
c. When making CIT finalization, in case the tax amount temporarily reduced for each quarter is higher than the actual amount to be reduced, the enterprise must additionally declare and pay the outstanding tax amount and late payment interest as prescribed; In case the tax amount temporarily reduced for each quarter is lower than the actual amount to be reduced, the tax authority shall handle the overpaid tax amount according to the provisions of the law on tax administration.
2. The CIT calculation period is determined according to the calendar year or the fiscal year specified in the Law on CIT and current guiding documents.
3. Tax reduction procedures
a. Enterprises determine the tax amount to be reduced when temporarily paying CIT on a quarterly basis and finalizing CIT in 2020.
When making the 2020 CIT finalization declaration, the enterprise, after determining the tax amount to be reduced as prescribed, shall record in target 9.2_ The exempted or reduced CIT amount not according to the CIT Law of the decision declaration. CIT finalization content “The tax amount to be reduced with a caption of 30% reduction of the payable tax amount in 2020 according to the provisions of Resolution No. 116/2020/QH14 of the National Assembly”
CIT finalization declaration form according to form 03/TNDN issued together with Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance and amendments and supplements (if any)
b. Tax authorities do not have to notify
for businesses about accepting tax reductions. If during the tax reduction period, the tax authority has a basis to determine that the enterprise is not eligible for tax reduction, the tax authority shall send a written notice to the enterprise of the non-reduction of tax and the enterprise must pay the full amount. underpaid tax, fines and late payment interest shall be re-determined by the tax authority and re-determined into the state budget.
If, after the tax reduction period expires, the tax authorities discover through inspection or examination that the enterprise has received more tax reduction than the previously declared reduced tax amount, the enterprise may make additional declarations to continue enjoying the reduced tax amount. at the rate determined by the tax authority.
