Vietnam Government to cut corporate income tax by 30%
The Government of Vietnam recently passed a decree #114/2020/ND-CP that allows companies with total revenue of less than VND200 billion to qualify for 30% tax reduction of corporate income tax in 2020. Eligibility for tax reduction will be based upon the total revenue in the corporate income tax period of 2020, inclusive of all sales, processing and service charges. The decree applies to the following categories of businesses: companies incorporated in accordance with the law of Vietnam, organizations established under the Law of Cooperatives and other organizations engaged in income-generating production and business activities. Due to the negative impact of the COVID-19 pandemic, the General Statistics Office of Vietnam reported an economic growth of only 2.12% for the January - September period, with industrial production declining by 2.69%, hitting the lowest level in a decade. The General Statistics Office, commissioned by the Government, will carry out the second survey on business activities and effectiveness of supportive business policies during the pandemic. The first survey polls showed that 85.7% of 126,565 businesses in Vietnam were negatively affected by COVID-19, including aviation, tourism, food and education sectors, which suffered the most.