The Resolution No. 116 was approved by the National Assembly on 19 June 2020 at the 9th session on reducing 30% of corporate income tax amount payable in 2020 for businesses, cooperatives, non-business units and other organizations having total turnover no more than VND 200 billion.
This Resolution shall apply for enterprise income taxpayers being goods and service production and business organizations which have taxable incomes under the provisions of the Law on Enterprise Income Tax, including:
- Enterprises established according to Vietnamese Law;
- Organizations established according to the Law on Cooperatives;
- Non-business units established according to Vietnamese law;
- Other organizations established according to Vietnamese law and engaged in income-generating production and business activities.
The Resolution No. 116/2020/QH14 shall take effect after 45 days from the signing date and be applied for the tax period of 2020.
- Criteria for tax reduction is that total revenue in 2020 shall not exceed VND 200 billion;
- Enterprises shall determine by themselves the tax amount to be reduced when paying temporarily their CIT on a quarterly basis and finalizing CIT in 2020;
- In case the fiscal year is different from the calendar year 2020, the criteria for determining the revenue scale subject to application and the method of calculating the deducted CIT are not specifically guided in the Resolution. Hence, the application of the Resolution to enterprises with fiscal years different from the calendar year needs detailed guidance from the Government.
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Resolution No. 1111 / NQ-UBTVQH14 dated December 09, 2020 on the arrangement of administrative units at district and commune levels and the establishment of Thu Duc City in Ho Chi Minh City. Accordingly, Thu Duc City will be established on the basis of merging 3 Districts: District 2, District 9 and Thu Duc District. Also, some Districts in HCMC have just been reorganized the administrative units at commune levels such as District 3, District 4, District 5, District 10 and Phu Nhuan District.
Decree No. 123/2020 / ND-CP (“Decree No. 123”) regulating invoices and documents, granted by the Government on 19 October 2020, shall take effect from 01 July 2022. Also, agencies, organizations and individuals that meet the information technology infrastructure requirements are encouraged to apply the provisions on e-invoices and documents of the Decree before 01 July 2022.