Nghị định 114/2020/NĐ-CP về hướng dẫn Nghị quyết 116/2020/QH14 về giảm thuế thu nhập doanh nghiệp phải nộp của năm 2020 đối với doanh nghiệp, hợp tác xã, đơn vị sự nghiệp và tổ chức khác

DECREE

ELABORATING THE NATIONAL ASSEMBLY’S RESOLUTION NO. 116/2020/QH14 ON REDUCTION IN CORPORATE INCOME TAX PAYABLE IN 2020 BY ENTERPRISES, COOPERATIVES, PUBLIC SERVICE PROVIDERS AND OTHER ORGANIZATIONS

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Tax administration dated June 13, 2019;

Pursuant to the Law on Corporate Income Tax dated June 03, 2008, amended by Law No. 32/2013/QH13 and Law No. 71/2014/QH13;

Pursuant to the National Assembly’s Resolution No. 116/2020/QH14 dated June 19, 2020 on reduction in corporate income tax payable in 2020 by enterprises, cooperatives, public service providers and other organizations (hereinafter referred to as Resolution No.116/2020/QH14);

At the request of the Minister of Finance;

The Government promulgates a Decree elaborating the implementation of the National Assembly’s Resolution No. 116/2020/QH14 on reduction in corporate income tax payable in 2020 by enterprises, cooperatives, public service providers and other organizations.

Article 1. Regulated entities

This Decree applies to corporate income tax (CIT) payers that are organizations that earn taxable income from manufacture and/or sale of goods and/or services (hereinafter referred to as “enterprises”) defined in Article 1 of Resolution No.116/2020/QH14, including:

1. Enterprises established in accordance with Vietnam’s law.

2. Organizations established in accordance with the Law on Cooperatives.

3. Public service providers established in accordance with Vietnam’s law.

4. Other organizations established in accordance with Vietnam’s law and earning income from business operation.

Article 2. CIT reduction

1. CIT payable in the fiscal year 2020 by an enterprise whose total revenue in 2020 does not exceed 200 billion VND shall be reduced by 30%.

2. The total revenue is 2020 that is the basis for determination of eligibility for CIT reduction prescribed in Clause 1 of this Article is the total revenue of an enterprise in the fiscal year 2020, including revenue from sales of goods, processing and service provision, subsidies and extra charges to which the enterprise is entitled as prescribed by the Law on Corporate Income Tax and its guiding documents.

For enterprises that are established, enterprises that undergo conversion, ownership transfer, consolidation, merger, division, dissolution, bankruptcy in the fiscal year 2020 and have operated for less than 12 months, the total revenue in 2020 will be the total revenue earned in the fiscal year 2020 divided by (:) the number of months of actual business operation multiplied by (x) 12. The month in which the enterprise is established or undergoes conversion, ownership transfer, consolidation, merger, division, dissolution, bankruptcy will also be included in the months of actual business operation.

3. If the enterprise estimates that its total revenue in the fiscal year 2020 will not exceed 200 billion VND, it will pay 70% of the quarterly CIT payable.

4. At the end of the fiscal year 2020, if the enterprise’s total revenue in 2020 does not exceed 200 billion VND, it will declare the CIT reduction of 2020 when making the annual CIT return as per regulations.

The CIT reduction of the fiscal year 2020 shall apply to the total revenue of the enterprise, including the amounts specified in Clause 3 Article 18 of the Law on Corporate Income Tax.

The 30% reduction specified in this Decree shall apply to the enterprise’s CIT payable in the fiscal year 2020 minus the CIT eligible for incentives to which the enterprise is entitled according to the Law on Corporate Income Tax and its guiding documents.

5. The fiscal year will be the calendar year. Fiscal years of enterprises that do not apply calendar years shall be determined in accordance with the Law on Corporate Income Tax and its guiding documents.

6. In case the first fiscal year of enterprises that are established in 2019 or the last fiscal year of enterprises that undergo conversion, ownership transfer, consolidation, merger, division, dissolution, bankruptcy in 2021 is shorter than 03 months, it will be combined with the fiscal year 2020, in which case CIT reduction will only apply to the revenue earned in the fiscal year 2020 (12 months).

Article 3. Declaring CIT reduction

1. Enterprises shall calculate the CIT reduction themselves when paying quarterly CIT and making the 2020’s CIT statement. When preparing tax statements, enterprises shall specify the CIT reduction on the set forms provided in Circular No. 151/2014/TT-BTC and its amending documents (if any) and the Declaration of CIT Eligible for Reduction Under Resolution No.116/2020/QH14, which is provided in the Appendix hereof.

2. When preparing the annual CIT return: If the quarterly CIT is found to have been underpaid, the enterprise shall pay the arrears and late payment interest in accordance with the Law on Tax administration and its guiding documents. If CIT is overpaid, the excess amount shall be handled in accordance with the Law on Tax administration and its guiding documents.

3. In case a competent authority, through inspection, discovers that an enterprise is not eligible for CIT reduction under this Decree or the CIT payable of the fiscal year 2020 is greater than the amount paid, the enterprise shall pay the arrears, fines and late payment interest on the period after the tax payment deadline prescribed by the Law on Tax administration and its guiding documents.

In case the CIT payable by an enterprise increases when it revises the 2020’s CIT statement or implements the competent authority’s post-inspection decision, the 30% reduction specified in this Decree shall apply to the increase in CIT.

In case the CIT payable by an enterprise decreases when it revises the 2020’s CIT statement or implements the competent authority’s post-inspection decision, the overpaid amount (if any) shall be handled in accordance with the Law on Tax administration and its guiding documents.

Article 4. Implementation and effect

1. This Decree comes into force from the effective date of Resolution No.116/2020/QH14 and applies to the fiscal year 2020.

2. The Ministry of Finance shall provide guidelines for the difficulties that arise during the implementation of this Decree.

3. Ministers, heads of ministerial-level agencies, heads of governmental agencies, Presidents of the People’s Committees of provinces, relevant enterprises and organizations are responsible for the implementation of this Decree./.

APPENDIX

(Enclosed with the Government’s Decree No. 114/2020/ND-CP dated 25/9/2020)

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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DECLARATION OF CORPORATE INCOME TAX (CIT) ELIGIBLE FOR REDUCTION UNDER RESOLUTION NO.116/2020/QH14

[01] Fiscal year:

□ Separate declaration: .................. (dd/mm/yyyy).

□ For 2020

[02] First declaration □                           [03] Revision   □     : ...

[04] Taxpayer’s name:...................................................................................................

[06] Address:...............................................................................................................

[07] Tel:.......................................................................................................................

[08] Tax agent (if any): …..............................................................................................

Unit: VND

I hereby declare that I am legally responsible for the accuracy of the information provided above./.

_________________________

Notes:

1. [15] – The same as the amount in box [C14] of Form No. 03/TNDN or directly deducted from the amount in Column [11] of Form 04/TNDN.

2. [16] – Directly deducted from the amount in box [D2] of Form No. 03/TNDN or box [35] of Form No. 02/TNDN.

3. [17] – Directly deducted from the amount in box [D3] of Form No. 03/TNDN.