On September 25, 2020, the Government issues Decree No. 114/2020/ND-CP on detailing the implementation of the National Assembly’s Resolution No. 116/2020/QH14 on reduction of enterprise income tax payable in 2020 for enterprises, cooperatives, non-business units, and other organizations.

Specifically, to reduce 30% of enterprise income tax amount payable in the enterprise income tax period of 2020 for enterprises having total turnover no more than VND 200 billion in 2020. In case an enterprise’s expected total turnover in the enterprise income tax period of 2020 does not exceed VND 200 billion, such enterprise shall determine its quarterly temporary payment equivalent to 70% of the quarterly payable enterprise income tax amount.

At the end of the enterprise income tax period of 2020, if the enterprise’s total turnover in 2020 does not exceed VND 200 billion, such enterprise shall make a declaration of reduction of enterprise income tax for 2020 when settling enterprise income tax as prescribed.

If the first enterprise income tax period of a newly established enterprise is 2019 or the last enterprise income tax period of an enterprise is converted into another form or has its form of ownership transformed, or is consolidated, merged, split up, divided, dissolved, or bankrupted is 2021, and such period is less than 03 months, then such period shall be added into the enterprise income tax period of 2020 to become an enterprise income tax period.

This Decree takes effect on August 03, 2020, and applies for the enterprise income tax period of 2020.

 
 

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