Decree 114/2020 / ND-CP guiding the implementation of tax reduction of 30% of CIT payable by 2020

Pursuant to the Law on Government Organization dated June 19, 6;

Pursuant to the Law on Tax Administration dated June 13, 6;

Pursuant to the Law on Enterprise Income Tax dated June 03, 6 amending and supplementing a number of articles under Law No. 2008/32 / QH2013 and Law No. 13/71 / QH2014;

Pursuant to Resolution No. 116/2020 / QH14 dated June 19, 6 on reduction of corporate income tax payable by 2020 for enterprises, cooperatives, non-business units and other organizations;

At the proposal of the Minister of Finance;

The Government promulgates the Decree detailing the implementation of the National Assembly's Resolution No. 116/2020 / QH14 on the reduction of corporate income tax payable by 2020 for enterprises, cooperatives, non-business units and groups. other functions.

Article 1. Subject of application

This Decree applies to corporate income tax payers being organizations engaged in the production and trading of goods and services with taxable income (hereinafter referred to as enterprises) as prescribed in Article 1 of the Decree. Resolution No. 116/2020 / QH14, including:

1. Enterprises established according to the provisions of Vietnamese law.

2. Organizations established under the Cooperative Law.

3. Non-business units established under the provisions of Vietnamese law.

4. Other organizations established under the provisions of Vietnamese law and having income-generating production and business activities.

Article 2. Corporate income tax reduction

1. A 30% reduction in the payable enterprise income tax amount of the 2020 enterprise income tax period for an enterprise whose total turnover in 2020 does not exceed VND 200 billion.

2. Total revenue in 2020 as a basis for determining the subjects of application for tax reduction according to the provisions of Clause 1 of this Article is the total revenue in the enterprise income tax period of 2020 of the enterprise, inclusive of all sales proceeds. goods, processing costs, service charges including price subsidies, surcharges and surcharges that enterprises are entitled to under the provisions of the Law on Enterprise Income Tax and its guiding documents.

In case a newly established enterprise or enterprise transforms the form of ownership, consolidation, merger, division, separation, dissolution or bankruptcy in the enterprise income tax period of 2020 If the company does not have 12 months, the total revenue in 2020 is determined by the total actual revenue in the enterprise income tax period of 2020 divided (:) by the number of months the enterprise actually operates in the period. calculating corporate income tax in 2020 multiplied (x) by 12 months. In case a newly established enterprise or enterprise transforms the form of enterprise, ownership, consolidation, merger, division, separation, dissolution or bankruptcy in a month, the operation period shall be counted for the full month. .

3. In cases where an enterprise expects its total revenue in the 2020 enterprise income tax period to not exceed VND 200 billion, it shall determine the quarterly temporary payment of 70% of the payable enterprise income tax amount of 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 VND 200 billion, the enterprise shall declare and reduce the enterprise income tax of the year 2020 upon finalization of the revenue tax. enter the business according to regulations.

The reduced corporate income tax amount of the 2020 corporate income tax period is calculated on the entire income of an enterprise, including incomes specified in Clause 3, Article 18 of the Law on Enterprise Income Tax.

The reduced enterprise income tax amount specified in this Decree is calculated on the payable enterprise income tax amount of the 2020 corporate income tax period, after subtracting the corporate income tax amount that the enterprise has are enjoying incentives according to the Law on Corporate Income Tax and its guiding documents.

5. The EIT calculation period is determined according to the calendar year, in cases where enterprises apply a fiscal year different from the calendar year, the EIT calculation period is determined according to the applicable fiscal year specified in Law on Corporate Income Tax and guiding documents.

6. If the tax period for the first year of a newly established enterprise is 2019 or the tax period of the last year for an enterprise transforming form of enterprise, form of ownership, consolidation or merger, division, separation, dissolution or bankruptcy in 2021 with a period of less than 03 months shall be added to the corporate income tax period of 2020 to form a corporate income tax period. The determination of total revenue and the amount of tax to be reduced in this case only applies to the corporate income tax period 2020 (12 months).

Article 3. Tax reduction declaration

1. Enterprises shall determine by themselves the reduced enterprise income tax amount when temporarily paying quarterly and when declaring the payable enterprise income tax amounts in the 2020 enterprise income tax period. Enterprises declare the reduced corporate income tax on the declaration forms issued together with the Circular No. 151/2014 / TT-BTC dated October 10, 10 of the Ministry of Finance and its amendments and supplements ( if any) and in the CIT Appendix to be reduced according to Resolution No. 2014/116 / QH2020 issued together with this Decree.

2. When making the finalization of corporate income tax, in case an enterprise pays underpayments compared to the quarterly payable tax amount, the enterprise shall additionally pay the outstanding tax amount and calculate the late payment interest according to the provisions of the Management Law. tax and implementation guidance documents. In case the enterprise has paid more tax than the payable tax amount of the 2020 corporate income tax period, the overpaid tax amount shall be handled in accordance with the Law on Tax Administration and its guiding documents.

3. Through inspection and examination, the competent agency discovers that the enterprise is not eligible for tax reduction according to the provisions of this Decree or that the payable tax amount of the enterprise income tax period 2020 is larger than the If the tax has been paid according to regulations, the enterprise must pay the tax arrears, fines and late payment interest from the date of expiration of the tax payment time limit in accordance with the Law on Tax Administration and its guiding documents.

If the enterprise makes additional declarations on corporate income tax declaration for the tax period of 2020 or the decision after inspection and examination by a competent agency increases the payable corporate income tax amount, the The additional tax is reduced by 30% according to the provisions of this Decree.

If the enterprise makes additional declarations on corporate income tax declaration for the tax period of 2020 or the decision after inspection and examination issued by a competent authority reduces the payable corporate income tax amount, manage overpaid tax (if any) in accordance with the Law on Tax Administration and its guiding documents.

Article 4. Implementation organization and implementation effect

1. This Decree takes effect from the effective date of Resolution No. 116/2020 / QH14 and applies to the enterprise income tax period of 2020.

2. In the course of implementation, if any problem arises, the Ministry of Finance shall guide the implementation thereof.

3. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, Presidents of People's Committees of provinces and cities directly under the Central Government, and relevant enterprises and organizations are responsible for implementation. This Decree./.