Circular 13/2020/TT-BTTTT (Circular 13) dated 3 July 2020 of the Ministry of
Information and Communications (MoIC) in relation to the identification of software
production.
On 3 July 2020, the MoIC issued Circular 13 to replace Circular 16/2014/TT-BTTTT (Circular
16). Circular 13 introduces some changes with respect to the identification of an operation
which is considered to be engaged in software production, as follows:
Circular 13 Circular 16
Companies will be considered to be engaged
in software production if they perform at
least one of the following stages:

Companies will be considered to be engaged
in software production if they perform at
least one or more of the following stages:
1. Requirement determination 1. Analysis and design of software
2. Analysis and design of software 2. Programming and coding of software

3. Software testing

Circular 13 provides guidance on specific
documents that companies need to maintain
to prove their involvement in each stage of
software production

Circular 16 does not provide any guidance
on the documents for companies to prove
their involvement in each stage of software
production

The software production is an especially encouraged sector which is entitled to significant
tax incentives. Therefore, companies engaged in this sector should carefully review their
business activities, prepare and maintain the supporting documents as required under
Circular 13.
Circular 13 shall take effect from 19 August 2020.
Resolution 116/2020/QH14 (Resolution 116) dated 19 June 2020 of the National
Assembly reducing the CIT payable for 2020.
On 19 June 2020, the National Assembly issued Resolution 116, according to which
enterprises having total revenue in 2020 of VND200 billion or less shall be entitled to a 30%
reduction of CIT payable for 2020.
This Resolution shall take effect from 3 August 2020 (i.e. 45 days from the signing date) and
will apply for tax year 2020.
Official letter 2835/TCT-TTKT dated 14 July 2020 (OL 2835) of the General Department
of Taxation (GDT) in relation to the implementation of Decree 68/2020/ND-CP (Decree
68).
In OL 2835, the GDT provide guidance on the application of the interest deductibility cap
which in Decree 68 for the 2019 CIT finalization purposes, and the retrospective application
for 2017 and 2018. Specifically, as follows: