GROUP ASSIGNMENT

1/ What are tax changes for individuals and businesses after the covid pandemic 19?

According to resolution No. 116/2020 / QH14

Article 1. Subjects of application

1. Enterprises established according to the provisions of Vietnamese law.

2. Organizations established under the Cooperative Law.

3. Non-business units are established according to the provisions of Vietnamese law.

4. Other organizations established under the provisions of Vietnamese law having income-
generating production and business activities.

Article 2. Corporate income tax reduction

1. A 30% reduction in the payable enterprise income tax amount of the 2020 enterprise income tax
period for an enterprise whose total turnover in 2020 does not exceed VND 200 billion.

2. Total revenue in 2020 as a basis for determining the subjects of application for tax reduction
under the provisions of Clause 1 of this Article is the total revenue in the enterprise income tax
period of 2020 of the enterprise, including all sales proceeds. goods, processing fees, service charges
including price subsidies, surcharges and surcharges that enterprises are entitled to under the
provisions of the Law on Enterprise Income Tax and its guiding documents.

In case a newly established enterprise or enterprise transforms the form of ownership,

consolidation, merger, division, separation, dissolution, or bankruptcy in the enterprise income tax
period of 2020, If the company does not have 12 months, the total revenue in 2020 is determined by
the total actual revenue in the enterprise income tax period of 2020 divided (:) by the number of
months the enterprise actually operates in the period. calculating corporate income tax in 2020
multiplied (x) by 12 months. In case a newly established enterprise or enterprise transforms the
form of enterprise, ownership, consolidation, merger, division, separation, dissolution or bankruptcy
in a month, the operation period shall be counted as full month. .

3. In cases where an enterprise expects its total revenue in the 2020 enterprise income tax period to
not exceed VND 200 billion, it shall determine the quarterly temporary payment of 70% of the
payable enterprise income tax amount of the quarter.

4. At the end of the 2020 enterprise income tax period, if the total revenue in 2020 of the enterprise
does not exceed VND 200 billion, the enterprise shall declare and reduce the enterprise income tax
of the year 2020 upon finalization of the revenue tax. enter the business according to the
regulations.

The reduced corporate income tax amount of the 2020 corporate income tax period is calculated on
the entire income of an enterprise, including incomes specified in Clause 3, Article 18 of the Law on
Enterprise Income Tax.

The reduced enterprise income tax amount specified in this Decree is calculated on the payable
enterprise income tax amount of the 2020 corporate income tax period, after subtracting the
corporate income tax amount that the enterprise has are enjoying preferences according to the
provisions of the Law on Corporate Income Tax and its guiding documents.

5. The EIT calculation period is determined according to the calendar year, in cases where
enterprises apply a fiscal year different from the calendar year, the EIT calculation period is
determined according to the applicable fiscal year specified in Law on Corporate Income Tax and
guiding documents.

6. If the tax period for the first year of a newly established enterprise is 2019 or the tax period of the
last year for an enterprise transforming form of enterprise, form of ownership, consolidation or
merger, division, separation, dissolution or bankruptcy in 2021 and shorter than 03 months may be
added to the corporate income tax period of 2020 to form a corporate income tax period. The
determination of total revenue and reduced tax in this case only applies to the corporate income tax
period 2020 (12 months).