Document for determining the cost of supporting Covid-19 epidemic prevention for CIT-deductible expenses

The government has just promulgated Decree No. 44/2021/ND-CP dated 31 March 2021 for guiding on deductible expenses when determining the taxable income of corporate income tax on support and sponsorship expenses of entities and enterprises for Covid-19 epidemic prevention and control activities as prescribed in Clause 8 Article 3 of the National Assembly's Resolution dated 12 November 2020, on State budget estimates for 2021.

According to Decree No. 44/2021/ND-CP, entities, and enterprises that support and finance Covid-19 epidemic prevention and control activities in Vietnam are entitled to:
- Deduct expenses for financial or in-kind support that they offer for Covid-19 epidemic prevention activities in Vietnam and control activities through accredited charitable intermediaries specified in Clause 2, Article 2 of Decree 44/2021 / ND-CP.

- Accredited charitable intermediaries, including:
+ All-level Fatherland Front Committees;
+ Healthcare establishments; armed forces;
+ Educational institutions; press agencies; Covid-19 prevention and control foundations at all levels; charity or humanitarian funds;…

-    Documentation to determine the sponsorship and sponsorship expense includes:
+ Written document stating confirmation of offer of support package according to the form issued together with Decree 44/2021/ND-CP; or (paper-based/electronic) document evidencing expenses with the signatures or stamps of representatives of sponsoring or donating enterprises and representatives of accredited charitable intermediaries;
+ Enclosing legitimate invoices and evidence according to regulations of the Law of these donations, sponsorships expenses in cash or in kind.

Decree No. 44/2021/ND-CP takes effect from 31 March 2021 and applies for the tax year of 2020 and 2021.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.