Enterprises are included in deductible expenses when determining CIT taxable income for donations and sponsorships in cash and in kind for Covid-19 prevention and control activities in Vietnam through support-receiving units. sponsor, sponsor.
The Government has just issued Decree 44/2021/ND-CP dated March 31, 3 guiding the implementation of deductible expenses when determining taxable income for business support and sponsorship expenses, organized for COVID-2021 prevention and control activities.
Deductible expenses when determining taxable income
Enterprises are included in deductible expenses when determining CIT taxable income for support and sponsorship in cash and in kind for Covid-19 epidemic prevention and control activities in Vietnam through the following units: receive support and sponsorship in accordance with the provisions below.
Sponsors and sponsors include:
- Committees of the Vietnam Fatherland Front at all levels;
- Health facilities;
- Armed forces units;
- Units and organizations assigned by competent state agencies to act as concentrated isolation facilities;
- Educational institutions;
- Press Agency;
- Ministries, ministerial-level agencies, agencies attached to the Government;
- Party organizations, youth unions and trade unions at central and local levels;
- Local government agencies and units at all levels have the function of mobilizing funding;
- Fund for Covid-19 prevention and control at all levels;
- National humanitarian portal;
- Charitable and humanitarian funds and organizations with the function of mobilizing funding are established and operate in accordance with law.
Units receiving donations and sponsorships are responsible for using and distributing for the right purposes the received donations and sponsorships for Covid-19 prevention and control activities.
Dossier for determination of support and sponsorship expenditures includes:
Minutes of confirmation of support or sponsorship, made according to the form issued together with Decree 44/2021, or a document or document (in paper or electronic form) certifying the donation and sponsorship expenditure, signed and sealed by the business representative is the supporter, sponsor and representative of the unit receiving the support or sponsorship, together with the invoice, they are from the legality as prescribed by the law of the donation or sponsorship in cash or artifacts.
Decree 44/2021/ND-CP takes effect from the date of signing and applies to the 2020 and 2021 CIT tax periods.
