EXPENDITURES FOR SUPPORTING THE COVID-19 PREVENTION ARE NOT SUBJECT TO ENTERPRISE INCOME TAX
On March 31, 2021, the Government promulgates the Decree No. 44/2021/ND-CP providing guidance on deductible expenses for determining taxable income of enterprises’ and organizations’ expenditures for supporting and financing the Covid-19 pandemic prevention and control.
Specifically, enterprises may account expenses for supporting and financing the Covid-19 pandemic prevention and control in Vietnam in kind or cash through units receiving supports and sponsorships (including Vietnam Fatherland Front Committees at all levels; health establishments; armed forces; Covid-19 Response Funds, etc.), as deductible expenses for determination of taxable income.
Dossiers to identify such funding comprise: Written records of supporting or financing certification made according to the form as prescribed, or paper documents or electronic documents of funding certification signed and sealed by representatives of sponsoring business establishments and representatives of units receiving supports and sponsorships, enclosed with legal invoices and documents of the sponsorship (in-kind or cash).
This Decree takes effect on the signing date.
