Decree No. 114/2020 / ND-CP dated September 25th 2020 issued by the Government detailing the implementation of Resolution No. 116/2020/QH14 of the National Assembly about Guidance on application to the policy for reducing 30% CIT in 2020.
This Decree regulates how to apply the 30% CIT reduction policy under the Resolution No. 116/2020/QH14 of the National Assembly for enterprises with the revenues in 2020 below 200 billions, specifically:
- The total revenue in 2020 as a basis for determining the subjects eligible for tax reduction as prescribed in Clause 1 of this decree is the total revenue in the CIT period of 2020 of the enterprises including: all sale proceeds, processing fees, service charges including subsidies, surcharges and extra amounts which the enterprises are entitled the provisions of the Law on CIT and guiding documents.
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- In case a newly established enterprise or enterprise transforms the business form, ownership form, consolidation, merger, division, separation, dissolution or bankruptcy in the CIT period of 2020 which operation is not enough 12 months, the total revenue in 2020 is determined by the total actual revenue in the CIT period of 2020 divided (:) by the number of months the enterprise actually operates in the CIT period of 2020 multiplied (x) by 12 months. In case a newly established enterprise or enterprise transforms the business form, ownership form, consolidation, merger, division, separation, dissolution or bankruptcy in a month, the operation period shall be full month.
- The reduced CIT amount of the CIT period of 2020 is calculated on the entire income of an enterprise, including incomes specified in Clause 3, Article 18 of the Law on CIT.
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- The reduced CIT amount specified in this Decree is calculated on the payable CIT amount of the CIT period of 2020, after subtracting the CIT amount that the enterprise are enjoying incentives according to the Law on CIT and guiding documents.
- The period of CIT is determined by the calendar year, if the enterprise applies a fiscal year different from the calendar year, the period of CIT is determined by the applicable fiscal year specified in the Law CIT and guiding documents.
- In case the tax period of the first year of a newly established enterprise is 2019 or the tax period of the last year for an enterprise transforming the business form, ownership form, consolidation, merger, division, separation, dissolution or bankruptcy in the CIT period of 2021 which be below 03 months be added to the CIT period of 2020 to form a period of CIT. The determination of total revenue and the amount of tax to be reduced in this case only applies to the CIT period of 2020 (12 months).
This Decree takes effect from the effective date of Resolution No. 116/2020/QH14 and applies to the CIT period of 2020.
Please kindly find detail in the attached file.
2020925_ND114_CP_Huong dan chinh sach giam 30% thue TNDN nam 2020
