Tax Alert - Resolution on the reduction of CIT for the fiscal year 2020

On 19 June 2020, The National Assembly approved Resolution 116/2020/QH14 on the reduction of Corporate Income Tax ("CIT") for the fiscal year of 2020 for enterprises, co-operatives, public services organizations, and other organizations.

On 19 June 2020, The National Assembly approved Resolution 116/2020/QH14 on the reduction of Corporate Income Tax ("CIT") for the fiscal year of 2020 for enterprises, co-operatives, public services organizations, and other organizations with the following notable points:

  • The Resolution shall be applicable for: enterprises incorporated under the law and regulation of Vietnam; organizations established under the Law on Co-operatives; public services organizations under the law and regulations of Vietnam; other organizations established under the law and regulation of Vietnam and generating income.
  • The mentioned above organizations shall be entitled to the 30% reduction of CIT payable for the fiscal year 2020, if the total revenue in the year does not exceed VND 200 billion.
  • The Resolution takes effect after 45 days from the signing date and is applied for the fiscal year of 2020.

 

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