DRAFT RESOLUTION OF CORPORATE INCOME TAX
REDUCTION
As we previously mentioned, the Government
presented the National Assembly's Standing Committee (UBTVQH) Draft resolution
to reduce corporate income tax for some subjects. At the afternoon of day
01.06.2020, UBTVQH has been consistent with government proposals on the
reduction of 30% of corporate income tax (TNDN) for some enterprises according
to sales and labor criteria of small and super Small business group.
Presenting the proposal on the draft
resolution of Congress to reduce the payable INCOME tax of year 2020 for small
and ultra-small businesses, the Minister of Finance Dinh Tien Dung said that
small and tiny enterprises accounted for more than 93% of the total number of
businesses in Vietnam and these enterprises have an important position in economic
development as well as social stability.
According to the minister, the review, issued
the resolution of the National Assembly to set off the payable CIT-INCOME tax
of the year 2020 for small and ultra-small enterprises and soon put this policy
into practice is necessary. Thereby, the timely support of small and super
small businesses overcome difficulties, challenges due to the impact of #dịch_bệnh_Covid_19
and applied right in the year 2020.
According to the draft resolution, the
National Assembly Government dropped 30% of the CIT payable by year 2020 for 2
groups of objects as follows:
The enterprise has a total turnover of 2020 in
no more than 3 billion VND and has a number of employees participating in the
average social insurance in 2020 no more than 10 people (Small business group);
The enterprise has a total turnover of 2020 no
more than 50 billion and has a number of employees participating in the average
social insurance in 2020 not exceeding 100 people (belonging to small business
groups).
The proposal for small and super small
business proposals is to ensure the effectiveness of the support policy,
avoiding spreading incentives; Ensure the right objectives, the right objects
to support, in accordance with the provisions of the small and medium enterprises
support law and apply the support policy to the small-scale enterprise group
last time.
In order to ensure synchronization with the
law on supporting small and medium enterprises, the inspection Agency suggests
changing the resolution name in accordance with the provisions of the INCOME
tax reduction required in 2020 years for some businesses. Changing the
resolution name aims to avoid cases in which enterprises meet the criteria is
small and super small enterprises in accordance with the current legislation
but do not meet the criteria of turnover and labor as specified in the draft
resolution.
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Source: tapchitaichinh.vn