DECREE

ON GUIDELINES FOR DEDUCTIBLE EXPENSES UPON DETERMINATION OF INCOME SUBJECT TO CORPORATE INCOME TAX REGARDING ENTERPRISE/ORGANIZATION’S GRANTS TO PREVENTION AND CONTROL OF COVID-19 PANDEMIC

Pursuant to the Law on Governmental Organization dated June 19, 2015; the Law on amendments to the Law on Governmental Organization and the Law on Organization of Local Governments dated November 22, 2019;

Pursuant to the Law on Corporate Income Tax dated June 3, 2008; the Law on amendments to the Law on Corporate Income Tax dated June 19, 2013; the Law on amendments to certain articles of Laws on taxation 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 state budget estimates in 2021;

At the request of the Minister of Finance;

The Government promulgates a Decree on guidelines for deductible expenses upon determination of taxable corporate income regarding enterprise/organization’s grants to prevention and control of COVID-19 pandemic as prescribed in clause 8 Article 3 of the Resolution dated November 12, 2020 of the National Assembly on state budget estimates in 2021.

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This Decree applies to organizations and enterprises (hereinafter referred to as enterprises) which are corporate income taxpayers as prescribed in the Law on Corporate Income Tax and incur expenses being grants to prevention and control of COVID-19 pandemic in Vietnam.

Article 2. Deductible expenses upon determination of taxable corporate income

1. An enterprise may claim a deduction from taxable corporate income for any grant in cash or in kind given to the recipients as specified in clause 2 hereof for the prevention and control of COVID-19 pandemic in Vietnam.

2. Recipients of grants include: The Committees of Vietnamese Fatherland Front at all levels; health facilities; the armed force units; units and organizations tasked by competent authorities to perform duties at centralized quarantine facilities; education institutions; press agencies; Ministries, ministerial-level agencies or Governmental agencies; Communist Party organizations, youth unions, central and local trade unions; agencies affiliated to local governments that have fund-raising function; funds for prevention and control of COVID-19 pandemic at all levels; national humanitarian fund web portals; charitable and humanitarian funds, and organizations incorporated and operating under law that have fund-raising function.

Recipients of grants are responsible for using and distributing the grants received for prevention and control of COVID-19 pandemic with proper purposes.

3. Dossier of grants includes: A written confirmation of grants using the form hereto appended or a document (physical or electronic form) to confirm the grants with signatures and seals of the representative of the grant-giving enterprise and the representative of the grant recipient; enclosed with legal proof as required by law of the grants in cash or in kind.

Article 3. Entry in force and implementation

1. This Decree comes into force as of from the date of signing and applies to the taxable corporate income period of 2020 and 2021.

2. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for consideration.

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ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER




Nguyen Xuan Phuc

APPENDIX

(Issued together with the Government’s Decree No. 44/2021/ND-CP dated March 31, 2021)

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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CONFIRMATION OF GRANTS FOR PREVENTION AND CONTROL OF COVID-19 PANDEMIC

We are:

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Address:                                                                Phone number:

TIN:

Name of grant recipient:

Address:                                                                Phone number:

TIN (if any):

Hereby confirm that [enterprise's name] has given grants to [grant recipient’s name]:

- Grant in kind    □

- Grant in cash     □

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In cash:………….

In kind:…………….  equivalent to VND:…………..

Valuable papers…………equivalent to VND………………….

(accompanying legal proof as required by law of the grants in cash or in kind).

[Grant recipient’s name] hereby declares to use the grants with proper purposes. In a case where the grant is used with improper purpose, the grant recipient shall be held liable.

This document is made at….[time] at…..[place] on………[date] in….[number] copies with equal value, each party shall keep 01 copy.

Grant recipient
(signature, seal)

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Nghị định 44/2021/NĐ-CP hướng dẫn thực hiện về chi phí được trừ khi xác định thu nhập chịu thuế thu nhập doanh nghiệp đối với khoản chi ủng hộ, tài trợ của doanh nghiệp, tổ chức cho các hoạt động phòng, chống dịch Covid-19