PRIME MINISTER OFFICIALLY APPROVES 30 PER CENT CIT CUT

Any business with a revenue of less than VND200 billion ($8.7 million) this year will see corporate income tax (CIT) cut by 30 per cent.

This was stipulated in the newly-issued Decree No.114/2020/ND-CP approved by Prime Minister Nguyen Xuan Phuc. The decree also offers specific guidelines on the implementation of Decree No.116/2020/QH14 regarding the corporate income tax (CIT) reduction.

Accordingly, in addition to those earning less than VND200 billion ($8.7 million), businesses with preferential tax rate need to be able to show full compliance with corporate regulations. Moreover, newly-formed establishments or those which recently shifted business directions, performed mergers and acquisitions, dissolved, or went into bankruptcy less than 12 months ago are also extended the tax cut.

The CIT for 2020 is calculated based on the entities' total revenue in 2020, including sales, payments from processing and supplying services, and extra payments.

Source: VIR

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