Decree No. 114/2020/NĐ-CP provides detailed regulations on reducing corporate income tax (CIT) for the year 2020 for enterprises, cooperatives, public institutions, and other organizations with total revenue not exceeding 200 billion VND. The reduction rate is 30% of the CIT payable for the tax period of 2020.
适用范围
Enterprises, cooperatives, public institutions, and other organizations engaged in production and business activities generating income.
要点
- Enterprises, cooperatives, public institutions, and other organizations as stipulated in Resolution No. 116/2020/QH14.
- Reduction of corporate income tax (CIT): 30% of the CIT payable for the tax period of 2020 for enterprises with total revenue in 2020 not exceeding 200 billion VND.
- Total revenue is determined according to the provisions of the Decree, including proceeds from sales, processing, and service provision.
- Declaration of tax reduction: Enterprises self-determine the amount of CIT reduction when making quarterly provisional payments and when declaring CIT payable for the tax period of 2020.
- Final settlement of taxes: In cases where enterprises underpay compared to the provisional tax payments for the quarter, they must make up the shortfall; if overpaid, the excess tax paid will be handled accordingly.
🌐 本文件的社会影响
- Positive impact: Reduces financial burden on enterprises, supports economic recovery post-pandemic.
- Negative impact: May lead to unfairness among enterprises with and without revenue advantages.
❓ 常见问题
Which enterprises are eligible for tax reduction?
Enterprises with total revenue in 2020 not exceeding 200 billion VND.
What is the tax reduction rate?
30% of the corporate income tax (CIT) payable for the tax period of 2020.
How is total revenue determined?
Total revenue for the corporate income tax period of 2020 includes all proceeds from sales, processing, and service provision.
When must enterprises declare tax reduction?
At the time of filing tax declaration forms and during final settlement of corporate income tax for the year 2020.
全文
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THE GOVERNMENT |
SOCIALIST REPUBLIC OF VIET NAM |
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Number: 114/2020/NĐ-CP |
Hanoi, September 25, 2020 |
DECREE
DETAILING IMPLEMENTATION OF RESOLUTION NO. 116/2020/QH14 OF THE NATIONAL ASSEMBLY ON REDUCING ENTERPRISE INCOME TAX PAYABLE FOR THE YEAR 2020 FOR ENTERPRISES, COOPERATIVES, PUBLIC INSTITUTIONS AND OTHER ORGANIZATIONS
On the basis of Law on Government Organization dated June 19, 2015;
On the basis of Law on Tax Administration dated June 13, 2019;
On the basis of The Enterprise Income Tax Law dated June 3, 2008, amended and supplemented by Laws No. 32/2013/QH13 and Law No. 71/2014/QH13;
Pursuant to Resolution No. 116/2020/QH14 dated June 19, 2020 on reducing enterprise income tax payable for the year 2020 for enterprises, cooperatives, public institutions and other organizations;
At the proposal of the Minister of Finance;
The Government promulgates this Decree detailing the implementation of Resolution No. 116/2020/QH14 of the National Assembly on reducing enterprise income tax payable for the year 2020 for enterprises, cooperatives, public institutions and other organizations.
Article 1. Scope of application
This Decree applies to taxpayers who are organizations engaged in production and business activities generating taxable income (hereinafter referred to as enterprises) as stipulated in Article 1 of Resolution No. 116/2020/QH14, including:
1. Enterprises established in accordance with Vietnamese laws.
2. Organizations established under the Cooperative Law.
3. Public institutions established in accordance with Vietnamese laws.
4. Other organizations established in accordance with Vietnamese laws that engage in production and business activities generating income.
Article 2. Reduction of Enterprise Income Tax
1. A reduction of 30% of the enterprise income tax payable for the 2020 tax period for enterprises with total revenue in 2020 not exceeding 200 billion VND.
2. The total revenue in 2020 serving as the basis for determining the application of tax reduction as provided in Clause 1 of this Article is the total revenue during the 2020 enterprise income tax period of the enterprise, including all proceeds from sales, processing fees, service provision revenues, including subsidies, surcharges, and premiums that the enterprise enjoys according to the Enterprise Income Tax Law and guiding documents.
In cases where new enterprises, enterprises changing their business form, ownership form, merging, consolidating, splitting, dissolving, or going bankrupt during the 2020 enterprise income tax period operate for less than twelve months, the total revenue in 2020 shall be determined by dividing the actual total revenue during the 2020 enterprise income tax period by the number of months the enterprise actually operated in production and business activities during the 2020 enterprise income tax period, then multiplying by twelve months. In cases where new enterprises, enterprises changing their business form, ownership form, merging, consolidating, splitting, dissolving, or going bankrupt occur in a month, the operating time shall be counted as a full month.
3. In cases where enterprises anticipate total revenue during the 2020 enterprise income tax period not exceeding 200 billion VND, enterprises shall determine provisional quarterly payments at 70% of the enterprise income tax payable for the quarter.
4. At the end of the 2020 enterprise income tax period, if the total revenue in 2020 of the enterprise does not exceed 200 billion VND, the enterprise shall declare the reduction of enterprise income tax for 2020 when settling the enterprise income tax for 2020 in accordance with regulations.
The amount of enterprise income tax reduced for the 2020 tax period is calculated based on the entire income of the enterprise, including all types of income specified in Clause 3 of Article 18 of the Enterprise Income Tax Law.
The amount of enterprise income tax reduced as prescribed in this Decree is calculated based on the enterprise income tax payable for the 2020 tax period, after deducting the enterprise income tax benefits that the enterprise is currently enjoying according to the Enterprise Income Tax Law and guiding documents.
5. The tax period is determined annually according to the Gregorian calendar; in cases where enterprises apply a fiscal year different from the Gregorian calendar, the tax period is determined according to the fiscal year applied as stipulated in the Enterprise Income Tax Law and guiding documents.
6. In cases where the first tax year of newly established enterprises is 2019 or the last tax year for enterprises changing their business form, ownership form, merging, consolidating, splitting, dissolving, or going bankrupt is 2021 and the duration is shorter than three months, it shall be combined with the 2020 enterprise income tax period to form a single tax period. The determination of total revenue and the amount of tax reduction in such cases only applies to the 2020 enterprise income tax period (twelve months).
Article 3. Declaration of Tax Reduction
1. Enterprises shall self-determine the amount of corporate income tax eligible for reduction when making provisional quarterly payments and when declaring the corporate income tax payable for the 2020 tax year. When preparing tax declaration forms, enterprises shall declare the amount of corporate income tax eligible for reduction on the forms issued together with Circular No. 151/2014/TT-BTC dated October 10, 2014, of the Ministry of Finance and any subsequent amendments and supplements (if applicable), and on the supplementary form for corporate income tax reduction pursuant to Resolution No. 116/2020/QH14 accompanying this Decree.
2. When settling the final corporate income tax, if an enterprise fails to pay the full provisional quarterly tax due, the enterprise shall make up the shortfall and pay interest on late payment according to the Law on Tax Administration and its implementing regulations. If an enterprise has paid more than the tax due for the 2020 corporate income tax period, the excess tax paid shall be handled according to the Law on Tax Administration and its implementing regulations.
3. Through inspection and examination, competent authorities may discover that an enterprise does not qualify for tax reduction under this Decree or that the corporate income tax payable for the 2020 tax year exceeds the amount already paid. In such cases, the enterprise must pay the outstanding tax, penalties, and interest from the date the tax payment deadline expires according to the Law on Tax Administration and its implementing regulations.
If an enterprise supplements its corporate income tax declaration for the 2020 tax period or implements a decision following inspection and examination by a competent authority which increases the corporate income tax payable, the additional tax will be reduced by 30% according to this Decree.
If an enterprise supplements its corporate income tax declaration for the 2020 tax period or implements a decision following inspection and examination by a competent authority which decreases the corporate income tax payable, any excess tax paid (if any) shall be handled according to the Law on Tax Administration and its implementing regulations.
Article 4. Implementation and Effectiveness
1. This Decree takes effect from the date Resolution No. 116/2020/QH14 comes into force and applies to the 2020 corporate income tax period.
2. During implementation, any difficulties arising shall be resolved by the Ministry of Finance providing guidance.
3. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government, and related enterprises and organizations are responsible for enforcing this Decree./.
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Place of Receipt: |
PRIME MINISTER |
Appendix
(Attached to Decree No. 114/2020/NĐ-CP dated September 25, 2020 of the Government)
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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ANNEX
CORPORATE INCOME TAX REDUCED UNDER RESOLUTION NO. 116/2020/QH14 OF JUNE 19, 2020
[01] Tax Period:
□ Occurrence-by-occurrence: Day...Month...Year...
□ Year 2020
[02] First Time □ [03] Supplemental □ Number:...
[04] Name of Taxpayer:...
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[05] Tax Code: |
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[06] Address:...
[07] Phone Number:...
[08] Name of Tax Agent (if any): …
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[09] Tax Code: |
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Currency Unit: Vietnamese Dong
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Index |
Indicator Code |
Amount | |
| 1. |
Total Corporate Income Tax Due |
[10] |
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Of which |
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| 1.1. |
Corporate Income Tax Due from Business Operations |
[11] |
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| 1.2. |
Corporate Income Tax Due from Real Estate Transfer Activities |
[12] |
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| 1.3. |
Other Corporate Income Tax Due |
[13] |
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| 2 |
Amount of Corporate Income Tax Reduced |
[14] |
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Of which |
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| 2.1. |
Corporate Income Tax Reduced from Business Operations |
[15] |
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| 2.2. |
Corporate Income Tax Reduced from Real Estate Transfer Activities |
[16] |
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| 2.3. |
Other Corporate Income Tax Reduced |
[17] |
I hereby certify that the above declarations are true and accurate and take responsibility for the information declared before the law./.
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TAX AGENT STAFF Full name: … Professional certificate number:...
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Date...month...year... TAXPAYER or Signature, Write full name, position, and stamp (if any) |
_________________________
Note:
1. Item [15] - The amount of corporate income tax reduced from business operations in this Annex shall be declared in item [C14] of the final tax return form number 03/TNDN applicable to taxpayers calculating corporate income tax based on revenue-expense method or directly reduced in the total corporate income tax due column 11 of the tax return form number 04/TNDN applicable to taxpayers calculating corporate income tax based on percentage of revenue.
2. Item [16] - The amount of corporate income tax reduced from real estate transfer activities in this Annex shall be directly reduced in item [D2] of the final tax return form number 03/TNDN or directly reduced in item [35] of the tax return form number 02/TNDN.
3. Item [17] - The amount of other corporate income tax reduced in this Annex shall be directly reduced in item [D3] of the final tax return form number 03/TNDN.
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