This is the content of the Draft Decree detailing the implementation of the Resolution of the National Assembly on reduction of payable corporate income tax (CIT) of 2020. Accordingly:
– Subjects eligible for tax reduction: Enterprises, cooperatives, non-business units and other organizations.
– Conditions and reduction of tax: Reduce 30% of payable CIT of 2020 in case the enterprise has a total turnover in 2020 not exceeding VND 200 billion.
– Tax reduction procedures:
+ Enterprises can determine by themselves the reduced tax amount when temporarily paying EIT quarterly and settling the EIT 2020.
When preparing a CIT finalization return for 2020, after determining the tax amount to be reduced in accordance with regulations, record 9.2 – the amount of CIT exempted or reduced not according to the CIT Law of the Declaration. CIT payment content “tax amount to be reduced with a note of 30% reduction of payable tax amount in 2020 according to the provisions of the National Assembly’s Resolution”.
A form of CIT finalization return, made according to form No. 03 / TNDN issued together with Circular 151/2014 / TT-BTC dated October 10, 2014 and documents amending and supplementing (if any).
+ Tax authorities are not required to notify businesses of accepting tax reduction. If during the tax reduction period, the tax agency has grounds to determine that the enterprise is not eligible for tax reduction, the tax agency shall notify the enterprise in writing of the tax reduction and the enterprise must pay a full amount of money. taxes and late payment interest according to regulations into the state budget.
If after the time of tax reduction is over, the tax authority finds out through the inspection that the enterprise is not eligible for tax reduction under this Decree or the declared tax amount for reduction is larger than the tax amount If, according to regulations, enterprises have to pay back the tax arrears, fines and late payment amounts re-determined by the tax offices into the state budget.
If after the tax reduction time limit expires, the tax authority finds out that the enterprise inspected by the enterprise is entitled to a reduction of more than the declared tax amount, the enterprise may make additional declaration to continue enjoying the reduced tax. at the level determined by the tax office.