[LEGAL ARTICLE]

In order to support people and businesses to cope with the Covid-19 epidemic, in the coming time, the Party and State continue to direct ministries, departments and branches to issue and implement many other solutions to support businesses. . The implementation of the corporate income tax reduction policy to come to life will contribute to supporting businesses during this time.
1️⃣ Subjects of application:
According to Clause 1 Article 1 of Resolution 116/2020 / QH14 promulgated by the 14th National Assembly on reduction of corporate income tax payable by 2020 for enterprises, cooperatives, non-business units and other organizations. corporate income tax payment is an organization engaged in production and trading of goods and services with taxable income in accordance with the Law on Enterprise Income Tax, including:
1. Enterprises established under the provisions of Vietnamese law;
2. Organizations established under the Cooperative Law;
3. Non-business units established under the provisions of Vietnamese law;
4. Other organizations established under the provisions of Vietnamese law having income-generating production and business activities.
2️⃣ Corporate income tax reduction:
According to Article 2 of Decree 114/2020 / ND-CP detailing the implementation of Resolution No. 116/2020 / QH14 of the National Assembly on reduction of corporate income tax payable by 2020 for enterprises and cooperatives, Other non-business units and organizations:
1. A 30% reduction in the payable enterprise income tax amount of the 2020 enterprise income tax period for an enterprise whose total turnover in 2020 does not exceed VND 200 billion.
2. Total revenue in 2020 as a basis for determining the subjects of application for tax reduction under the provisions of Clause 1 of this Article is the total revenue in the enterprise income tax period of 2020 of the enterprise, including all sales proceeds goods, processing costs, service charges including price subsidies, surcharges and surcharges that enterprises are entitled to under the provisions of the Law on Enterprise Income Tax and its guiding documents.
In case a newly established enterprise or enterprise transforms the form of ownership, consolidation, merger, division, separation, dissolution, or bankruptcy in the corporate income tax period of 2020, If there are not enough 12 months, the total revenue in 2020 is determined by the total actual revenue in the CIT period of 2020 divided (:) by the number of months the enterprise actually operates in the period calculating corporate income tax in 2020 multiplied (x) by 12 months. In case a newly established enterprise or enterprise transforms the form of enterprise, ownership, consolidation, merger, division, separation, dissolution or bankruptcy in a month, the operation period shall be counted for the full month. .
3. In cases where an enterprise expects its total revenue in the 2020 enterprise income tax period to not exceed VND 200 billion, it shall determine the quarterly temporary payment of 70% of the payable enterprise income tax amount of the quarter.
In 2020, Vietnam has reduced the obligation to collect corporate income tax, increased the personal income tax deduction, and eliminated about 340 fees and charges…. It can be seen that the solutions to support businesses have been issued and implemented in practice, the support solutions on taxes, fees, charges and land rent are assessed as timely, having an impact. actively and highly appreciated by the business community, contributing to solving difficulties, stabilizing production and business activities and maintaining growth.

The above is the article "SUBJECTS TO BE REDUCED IN THE COVID PERIOD". Customers who need free legal advice please message us on the Fanpage or contact us via hotline (84–28) 2253 7956, website www.medlaw.vn.