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Corporate income tax shall be reduced by 30%

VGP – An enterprise with a total revenue in 2020 not exceeding VND200 billion shall be entitled to 30% reduction of corporate income tax (CIT) payable this year, according to the Government’s latest Decree No. 114/2020/ND-CP.

09/29/2020 03:31

Total revenue in 2020 serves as the basis for determining the subjects eligible for tax reduction is the total revenue in the CIT period of 2020, including all sales, processing and service charges, which an enterprise is entitled to in line with current regulations.

This Decree applies to CIT taxpayers including: Enterprises established under the provisions of Vietnamese law; organizations established under the Law on Cooperatives; non-business units established under the provisions of Vietnamese law; other organizations engaged in income-generating production and business activities.

Due to negative impacts of the COVID-19 pandemic, the Vietnamese economy expanded 2.12% in Jan-Sept period, the General Statistics Office (GSO) reported Tuesday.

Industrial production fell to 10-year low of 2.69% in the reviewed period, said the GSO.

In a effort to better understand the impacts of the COVID-19 pandemic, the Government on September 10 tasked the GSO to carry out the second survey to collect information on the impacts of the pandemic on business activities; assess effectiveness of supportive business policies; and solutions to extricating business difficulties in response to the pandemic.

Earlier, in the first survey, 85.7% of 126,565 enterprises polled in Viet Nam said they had been negatively affected by the pandemic, with those operating in the aviation, tourism, food and education sectors most affected./. 

By Quang Minh