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Legislature adopts resolution on reducing corporate income tax

The National Assembly on June 19 passed a resolution on reducing corporate income tax in 2020 for enterprises, cooperatives, public non-production agencies and other organizations, with 91.1 percent of votes. 

The resolution has three articles, and will enter into force 45 days after the day it is signed. The reduction will be applied to enterprises with revenues not above 200 billion VND (around 85,850 USD) in the assessment period in 2020.

Before the voting, a report on the final amendment to the draft resolution presented by the Chairman of the NA’s Financial-Budgetary Committee Nguyen Duc Hai showed that the tax reduction under the resolution would result in a decrease of 23 trillion VND (nearly 1 billion USD) in State budget revenues in 2020.

Hai said if the economy continues to experience difficulties to the end of the year or the beginning of next year, the NA Standing Committee will ask the resolution drafting board to study and propose to the NA an extension of the resolution’s term of validity.