According to the Decree, the 30% deduction from the payment of CIT accrued in the tax term of 2020 will be granted to enterprises earning 200 billion dong in 2020's maximum total revenue.
2020’s total revenue used as a basis for determining the beneficiary of the tax reduction is the total revenue generated within the 2020’s tax term, including:
All sales or proceeds from toll manufacturing or provision of services, including subsidies, surcharges or extra pays that enterprises receive in accordance with regulations.
In case where an enterprise expects that total revenue generated in the 2020’s tax term does not exceed 200 billion dong, they can make a quarterly CIT advance payment accounting for 70% of total CIT payable in that quarter.
At the end of the tax term of 2020, if an enterprise earns 200 billion dong or less in total revenue in 2020, they must include the registration for the 2020’s CIT reduction when submitting the tax return for their CIT finalization in accordance with regulations.
The CIT deduction in the tax term of 2020 is calculated on the basis of total revenue of the tax-paying enterprise, including incomes prescribed in clause 3 of Article 18 in the Law on Corporate Income.
The tax term is corresponding to the calendar year. If an enterprise uses their financial year other than the calendar year, this tax term will be corresponding to their financial year.
Decree No. 114/2020/ND-CP is taking effect on August 3, 2020, and applying in the tax term of 2020.
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