Decree No. 44/2021/ND-CP on deductible expenses for taxable income of enterprise expenditures for supporting the Covid-19 prevention

DECREE

Providing guidance on deductible expenses upon determination of income liable to enterprise income tax for contributions and donations given by enterprises and organizations for COVID-19 pandemic prevention and control activities^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and Law on Organization of Local Administration;

Pursuant to the June 3, 2008 Law on Enterprise Income Tax; the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax; and the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Laws on Taxes;

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

Pursuant to the National Assembly’s Resolution of November 12, 2020, on the 2021 state budget estimates;

At the proposal of the Minister of Finance;

 The Government promulgates the Decree providing guidance on deductible expenses upon determination of income liable to enterprise income tax for contributions and donations given by enterprises and organizations for COVID-19 pandemic prevention and control activities under Clause 8, Article 3 of the National Assembly’s Resolution of November 12, 2020, on the 2021 state budget estimates.

Article 1. Subjects and scope of application

This Decree applies to organizations and enterprises (below collectively referred to as enterprises) that are payers of enterprise income tax in accordance with the Law on Enterprise Income Tax and pay expenses as contributions and donations for COVID-19 pandemic prevention and control activities in Vietnam.

Article 2. Deductible expenses upon determination of income liable to enterprise income tax

1. Enterprises may include in deductible expenses upon determination of income liable to enterprise income tax the expenses as their contributions and donations in cash and in kind for COVID-19 pandemic prevention and control activities in Vietnam given to the recipients specified in Clause 2 of this Article.

2. Recipients of contributions and donations include Vietnam Fatherland Front Committees at all levels; health establishments; armed forces’ units; units and organizations mobilized by competent state agencies to be used as concentrated quarantine facilities; education institutions; press agencies; ministries, ministerial-level agencies and government-attached agencies; organizations of the Party, Youth Union and Trade Union at the central and local levels; local agencies, units and administrations at all levels with the function of mobilizing donations; COVID-19 prevention and control funds at all levels; the National Humanitarian Portal; and charity or humanitarian funds and organizations with the function of mobilizing donations that are established and operate in accordance with law.

Recipients of contributions and donations shall properly use and allocate the received contributions and donations for COVID-19 pandemic prevention and control activities.

3. A dossier for determination of an expense as contributions or donations must comprise a record of certification of the contributions or donations, made according to the form provided in the Appendix to this Decree, or a document (paper or electronic) certifying the contributions or donations, bearing the signatures and seals of a representative of the enterprise giving contributions or donations and a representative of the recipient of contributions or donations, and enclosed with a lawful invoice or document of the contributions or donations in cash or in kind as specified by law.

Article 3. Effect and organization of implementation

1. This Decree takes effect on the date of its signing and applies for the enterprise income tax periods of 2020 and 2021.

2. The Ministry of Finance shall provide guidance and settle any problems arising in the course of implementation of this Decree.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related enterprises and organizations shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendix to this Decree is not translated.