The Government’s Decree No. 114/2020/ND-CP dated September 25th, 2020 on detailing the implementation of Resolution No. 116/2020/QH14 of the National Assembly on reduction in enterprise income tax payable in 2020 by enterprises, cooperatives, non-business units and other organizations
This Decree regulates the application of the policy on 30% reduction in enterprise income tax (EIT) under Resolution No. 116/2020/QH14 of the National Assembly applicable to enterprises whose revenue in 2020 is less than VND 200 billion regardless forms of enterprises, scale
– The total revenue to be determined includes the whole sales amount, income from processing, charges for provision of services covering price subsidies, surcharges, extra amounts.
– For an enterprise newly established in 2020, its total revenue shall be calculated by multiplying (x) the average monthly revenue by 12.
– At the time of making quarterly EIT declaration (now, it remains quarter 3 and quarter 4), enterprises shall themselves determine their total revenue in 2020, if it does not exceed VND 200 billion, they shall temporarily pay 70% of tax payable quarterly.
– When making EIT accounting for the year 2020, if actual total revenue does not exceed VND 200 billion, it is allowable to adjust for being entitled to a 30% reduction in EIT for the whole year.
– Enterprises that are enjoying EIT incentives (if any) shall be also entitled to 30% reduction calculated on the remaining EIT payable (if any).
This Decree takes effect from the date on which Resolution No. 116/2020/QH14 takes effect (August 3rd, 2020) and inclusively applies to the EIT period of 2020.