Is the sponsorship received for educational activities exempt from corporate income tax in Vietnam?

Is the sponsorship received for educational activities exempt from corporate income tax in Vietnam?

Pursuant to Clause 7, Article 4 of the 2008 Corporate Income Tax Law, supplemented by Clause 3, Article 1 of the 2013 Amended Corporate Income Tax Law, specific regulations on tax-exempt income are as follows:

Tax-Exempt Income

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5. Income from vocational training activities exclusively for ethnic minorities, disabled persons, children in particularly difficult circumstances, and socially disadvantaged groups.

6. Income distributed from capital contribution, joint ventures, or partnerships with domestic enterprises, after corporate income tax has been paid in accordance with this Law.

7. Sponsorship received for educational activities, scientific research, culture, arts, charity, humanitarian activities, and other social activities in Vietnam.

Thus, according to the aforementioned regulation, the sponsorship received for educational activities is exempt from corporate income tax.

Is the sponsorship received for educational activities exempt from corporate income tax in Vietnam? (Image from the Internet)

What types of income are subject to corporate income tax in Vietnam?

According to Article 3 of the 2008 Corporate Income Tax Law, amended by Clause 1, Article 1 of the 2014 Law No. 71/2014/QH13 on Tax Amendments, taxable income is specified as follows:

- Taxable income includes income from production and business activities of goods and services and other income.

- Other income includes: income from capital transfer, transfer of the right to contribute capital; income from real estate transfer, transfer of investment projects, transfer of the right to partake in investment projects, transfer of exploration, exploitation, and processing rights of minerals; income from the right to use and own assets, including income from intellectual property rights as stipulated by law; income from the transfer, lease, liquidation of assets, including securities; income from interest on deposits, lending capital, selling foreign currencies; recovered bad debts previously written off; unrecoverable identifiable debt; business income of previous years omitted and other income.

- Vietnamese enterprises investing abroad transfer a portion of their after-tax income abroad back to Vietnam, for countries with which Vietnam has signed a Double Taxation Avoidance Agreement, will comply according to the Agreement; for countries not having such an agreement, if the corporate income tax rate abroad is lower, the difference will be collected according to Vietnam's Corporate Income Tax Law.

When is the deadline for the provisional corporate income tax payment in Vietnam?

Pursuant to Article 55 of the 2019 Tax Administration Law, regulations on tax payment deadlines are as follows:

Tax Payment Deadlines

1. In cases where the taxpayer calculates the tax, the deadline for tax payment is no later than the last day of the deadline for submitting the tax declaration dossier. In cases of supplementary tax declarations, the tax payment deadline is the deadline for submitting the tax declaration dossier of the tax period with errors or omissions.

For corporate income tax, it is provisionally paid quarterly, with the payment deadline being the 30th day of the first quarter of the following term.

For crude oil, the deadline for paying resource tax and corporate income tax per crude oil sales is 35 days from the date of sale for domestically sold crude oil or from the customs clearance date per legal regulations for exported crude oil.

For natural gas, the deadline for paying resource tax and corporate income tax is on a monthly basis.

2. In cases where the tax authority calculates the tax, the deadline for tax payment is as specified in the tax authority's notice.

3. For other state budget revenues from land, fees for water resource exploitation rights, mineral resource exploitation rights, licensing fees, vehicle registration fees, the payment deadline follows the Government of Vietnam's regulations.

4. For exported and imported goods subject to tax according to tax laws, the payment deadline follows the regulations of the Export and Import Tax Law; in cases where the taxable amount arises after customs clearance or release, the payment deadline for the arising tax obligation is regulated as follows:

a) The deadline for tax payments following supplementary declarations, payment of reassessed tax amounts is applied per the deadline of the initial customs declaration;

b) The deadline for tax payments for goods requiring analysis, assessment to accurately determine the payable tax amount; goods without an official price at the time of customs declaration registration; goods with actual payment amounts, goods with unspecified adjustment factors added to the customs value at the time of customs declaration registration according to the Ministry of Finance's regulations.

Provisional corporate income tax is paid quarterly, with the tax payment deadline being the 30th day of the first month of the next quarter.