What conditions must charitable contributions meet in order to be deductible when determining taxable personal income?
Regulations on Deductible and Non-Deductible Expenses When Determining Taxable Income?
According to Official Dispatch 31943/CTHN-TTHT of 2022 on deductible expenses for charitable contributions issued by the Hanoi City Tax Department, the guidance is as follows:
Based on Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015, from the Ministry of Finance amending and supplementing Article 6 of Circular 78/2014/TT-BTC (as amended, supplemented by Clause 2, Article 6 of Circular 119/2014/TT-BTC and Article 1 of Circular 151/2014/TT-BTC) as follows:
“Article 6. Deductible and Non-Deductible Expenses When Determining Taxable Income
1. Except for non-deductible expenses stated in Clause 2 of this Article, enterprises can deduct all expenses if they meet the following conditions:
a) The expenses actually arise related to the production, business activities of the enterprise.
b) The expenses have sufficient lawful invoices and documents as required by law.
c) If the expenses have an invoice for the purchase of goods, services with a value of 20 million VND or more (including VAT) per transaction, they must have non-cash payment documents when making payments.
...2. Non-deductible expenses when determining taxable income include:
...2.24. Sponsorship expenses for disaster recovery not for the specified subjects at point a of this clause or without documentation confirming the sponsorship at point b below...
2.25. Sponsorship expenses for building houses for the poor not for the specified subjects at point a of this clause; Sponsorship expenses for building gratitude houses, houses for the poor, solidarity houses according to legal regulations without documentation confirming the sponsorship at point b below:..
2.26. Sponsorship expenses for scientific research not in compliance; sponsorship expenses for policy subjects not according to legal regulations; sponsorship expenses not according to state programs for localities with particularly difficult socio-economic conditions...
2.32. Expenses donated to localities; expenses donated to associations, social organizations; charitable contributions (except for expenses sponsoring education, health, disaster recovery, building gratitude houses, building houses for the poor, building solidarity houses; sponsoring scientific research, sponsoring policy subjects according to legal regulations, sponsorship according to state programs for localities with particularly difficult socio-economic conditions stated in points 2.22, 2.23, 2.24, 2.25, 2.26 of Clause 2 of this Article)...”
What conditions must charitable contributions meet to be deductible when determining personal income taxable income? (Image from the internet)
What conditions must sponsorship expenses for education, health, and disaster recovery meet to be deductible when determining personal income taxable income?
According to Official Dispatch 31943/CTHN-TTHT of 2022 on deductible expenses for charitable contributions issued by the Hanoi City Tax Department, the guidance is as follows:
- For sponsorship expenses for education, health, disaster recovery, building gratitude houses, building houses for the poor, building solidarity houses; sponsorship for scientific research, sponsorship for policy subjects according to legal regulations, sponsorship according to state programs for localities with particularly difficult socio-economic conditions through agencies or organizations with the function to mobilize sponsorship as required by law, the company can account these as deductible expenses when determining personal income taxable income if the expenses are for the right subjects and there are sufficient documents confirming the sponsorship according to points a, b of Clause 2.22, 2.23, 2.24, 2.25, 2.26 of Article 6 of Circular 78/2014/TT-BTC (as amended and supplemented at Article 4 of Circular 96/2015/TT-BTC) mentioned above.
What conditions must expenses for charitable contributions to associations, social organizations meet to be deductible when determining personal income taxable income?
According to Official Dispatch 31943/CTHN-TTHT of 2022 on deductible expenses for charitable contributions issued by the Hanoi City Tax Department, the guidance is as follows:
- For expenses donated to associations, social organizations, and charitable contributions that do not meet the conditions specified in Article 4 of Circular 96/2015/TT-BTC, these cannot be counted as deductible expenses when determining personal income taxable income.
Note: During the implementation of tax policy, if there are any problems, entities can refer to the guidance documents of the Hanoi City Tax Department published on the website http://hanoi.gdt.gov.vn or contact Office of Inspection and Examination No. 1 for support and resolution.
Thus, the expenses for charitable contributions must meet the above-stated conditions to be deductible when determining personal income taxable income.
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