Vietnam PM enacts 30% cut in 2020 corporate income tax
Under the decree, enterprises’ revenue would be the main criteria to assess whether they are qualified for such a tax reduction.
Under the decree, enterprises’ revenue would be the main criteria to assess whether they are qualified for such a tax reduction.
An expansionary and flexible fiscal policy would help stimulate aggregate demand, create jobs and boost economic growth, stated Prime Minister Nguyen Xuan Phuc.
The resolution would take effect after 45 days since the signing date and be applied for this year’s tax payment period.
So far, total amount of deferrals of tax payment and land rental fees under the government’s support programs stood at VND37 trillion (US$1.58 billion) as of May.
The tax cut would benefit businesses with revenue in 2020 of less than VND50 billion (US$2.16 million) and a workforce not exceeding 100 employees.
As of May 15, budget revenue collection reached VND529.6 trillion (US$22.7 billion), equivalent to 35% of the year's estimate.
More efforts are being made to speed up the economic recovery process while many countries are struggling with the Covid-19 pandemic.