Decree No. 44/2021/ND-CP guides the implementation regarding deductible expenses when determining corporate income tax for business support and sponsorship costs provided by businesses and organizations for COVID-19 prevention and control activities.

DECREE

GUIDELINES FOR IMPLEMENTATION REGARDING DEDUCTIBLE EXPENSES WHEN DETERMINING INCOME SUBJECT TO ENTERPRISE INCOME TAX FOR BUSINESS SUPPORT AND SPONSORSHIP FUNDS FOR ACTIVITIES TO PREVENT AND CONTROL THE COVID-19 DISEASE

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Enterprise Income Tax dated June 3, 2008; the Law Amending and Supplementing Certain Provisions of the Law on Enterprise Income Tax dated June 19, 2013; the Law Amending and Supplementing Certain Provisions of Various Tax Laws dated November 26, 2014;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Resolution dated November 12, 2020 of the National Assembly on the State Budget Estimate for 2021;

At the proposal of the Minister of Finance;

The Government issues this Decree guiding the implementation regarding deductible expenses when determining income subject to enterprise income tax for business support and sponsorship funds for activities to prevent and control the COVID-19 disease as stipulated in Clause 8, Article 3 of the Resolution dated November 12, 2020 of the National Assembly on the State Budget Estimate for 2021.

Article 1. Scope of Application

This Decree applies to organizations and enterprises (hereinafter referred to as enterprises) that are taxpayers of enterprise income tax under the provisions of the Law on Enterprise Income Tax, which have support and sponsorship expenditures for activities to prevent and control the COVID-19 disease in Vietnam.

Article 2. Expenses deductible for determining corporate income tax revenue

1. Enterprises shall be entitled to include support and sponsorship expenditures in deductible expenses when determining income subject to enterprise income tax for support and sponsorship in cash or in kind for activities to prevent and control the COVID-19 disease in Vietnam through units receiving support and sponsorship as specified in Clause 2 of this Article.

2. Units receiving support and sponsorship include: People's Committees at all levels; healthcare facilities; military units; units and organizations assigned by competent state authorities to operate quarantine centers; educational institutions; press agencies; Ministries, ministerial-level agencies, and government agencies; party organizations, youth unions, and trade unions at central and local levels; local administrative units with functions to mobilize donations; anti-COVID-19 funds at all levels; the National Humanitarian Information Portal; charitable and humanitarian funds and organizations with functions to mobilize donations established and operating in accordance with the law.

Units receiving support and sponsorship shall be responsible for using and distributing the received support and sponsorship funds for activities to prevent and control the COVID-19 disease in accordance with their intended purposes.

3. Documents to determine support and sponsorship expenditures include: Confirmation records of support and sponsorship according to the model issued together with this Decree or documents and materials (in paper or electronic form) confirming the support and sponsorship expenditures with signatures and seals of the representatives of the supporting and sponsoring enterprises and the receiving units; accompanied by legal invoices and receipts for support and sponsorship in cash or in kind.

Article 3. Effectiveness and Implementation

1. This Decree takes effect from the date of issuance and applies to the 2020 and 2021 enterprise income tax periods.

2. In case of difficulties during implementation, the Ministry of Finance shall provide guidance and resolution.

3. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of provincial and centrally-administered city People's Committees, and related enterprises and organizations are responsible for implementing this Decree./.

ANNEX

(Attached to Decree No. 44/2021/NĐ-CP dated March 31, 2021 of the Government)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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RECORD OF CONFIRMATION OF SUPPORT AND SPONSORSHIP FOR ACTIVITIES TO PREVENT AND CONTROL THE COVID-19 DISEASE

We have the following members:

Name of enterprise (supporting and sponsoring entity):

Address: Phone number:

Tax code:

Name of receiving entity:

Address: Phone number:

Tax code (if applicable):

Both parties confirm that [name of enterprise] has supported and sponsored [name of receiving entity]:

- Sponsorship in kind □

- Sponsorship in cash □

With a total value of the support and sponsorship amounting to...

In cash:...

In kind: converted to VND value:...

Valuable papers: converted to VND value...

(accompanied by legal invoices and receipts for support and sponsorship in cash or in kind as prescribed by law).

[Name of receiving entity] commits to using the support and sponsorship funds for their intended purposes. In case of misuse, the receiving entity will bear responsibility under the law.

This record was prepared at...on...day...month...year..., and is made in...copies, each party retains one copy.