Tax Alert - Resolution on the reduction of CIT for the fiscal year 2020

On 19 June 2020, The National Assembly approved Resolution 116/2020/QH14 on the reduction of Corporate Income Tax ("CIT") for the fiscal year of 2020 for enterprises, co-operatives, public services organizations, and other organizations with the following notable points:

• The Resolution shall be applicable for: enterprises incorporated under the law and regulation of Vietnam; organizations established under the Law on Co-operatives; public services organizations under the law and regulations of Vietnam; other organizations established under the law and regulation of Vietnam and generating income.
• The mentioned above organizations shall be entitled to the 30% reduction of CIT payable for the fiscal year 2020, if the total revenue in the year does not exceed VND 200 billion.
• The Resolution takes effect after 45 days from the signing date and is applied for the fiscal year of 2020.

OUR SUPPORT

We do trust the above points are notable and sufficient, but should you have any questions or need a deeper discussion on this issue, please do not hesitate to contact us.