On 19 June 2020, the National Assembly of Vietnam has approved a 30% corporate income tax (CIT) reduction to all businesses if their total revenue does not exceed the VND 200 billion (approximately USD 8.8 million) threshold in 2020. After approval, the rate is reduced to 14% from the previous 20%.
Vietnam’s Ministry of Finance proposed to the National Assembly to reduce the rate on 22 May 2020 amid COVID-19 pandemic. Most small and medium enterprises (SMEs) will be eligible for such tax break regardless of the number of employees and the actual financial loss due to the pandemic.
The official resolution is anticipated to take effect 45 days after approval and will be applied for the financial year 2020.