It is the content of Decree No. 114/2020/ND-CP guiding the implementation of Resolution No. 116/2020/QH14 on reduction of payable corporate income tax (CIT) in 2020 for the enterprises, cooperatives, public service providers and other organizations (collectively known as enterprises).

Accordingly, reduce 30% payable CIT of CIT assessment period in 2020 for the enterprises whose total revenue in 2020 not exceeding VND 200 billion.

Total revenue in 2020, which is the basis for determining the subjects eligible for tax reduction, is the total revenue in the CIT assessment period in 2020 of corporate, including:

All sales, processing and service charges, including price subsidies, surcharges and addition, which enterprises is entitled to receive in accordance with the regulations.

In cases the enterprises estimated total revenue in the CIT assessment period of 2020 does not exceed VND 200 billion, the enterprises shall determine the quarterly temporary payment equal to 70% payable CIT of the quarter.

At the end of CIT assessment period in 2020, if the total revenue in 2020 of the enterprises does not exceed VND 200 billion, the enterprises shall declare and reduce the CIT in 2020 upon finalizing the CIT in accordance with law.

The CIT amount to be reducted in the CIT assessment period of 2020 is calculated on the entire income of the enterprises, including the incomes specified in Clause 3, Article 18 of the Law on CIT.

The CIT assessment period is determined in accordance with the calendar year, in case enterprises applies a fiscal year which is different from the calendar year, the CIT assessment period is determined according to the fiscal year.

Decree No. 114/2020/ ND-CP takes effect from August 3, 2020 and applies to the CIT assessment period of 2020.

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