What is the form of certification of disaster recovery aid for enterprises in Vietnam? What are the regulations on documents about disaster recovery aid?
What is the form of certification of disaster recovery aid for enterprises in Vietnam?
Currently, the form of certification of disaster recovery aid for enterprises is made according to Form 05/TNDN issued together with Circular 78/2014/TT-BTC as follows:
Download the current form of certification of disaster recovery aid for enterprises: here.
What is the form of certification of disaster recovery aid for enterprises in Vietnam? What are the regulations on documents about disaster recovery aid?
Is the disaster recovery aid deductible when calculating taxable income of enterprises in Vietnam?
Pursuant to Clause 2, Article 6 of Circular 78/2014/TT-BTC as amended by Article 4 of Circular 96/2015/TT-BTC as follows:
Deductible and non-deductible expenses when calculating taxable income
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2. The expenses below are not deductible when calculating taxable income:
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2.1. Expenses that do not meet all of the conditions in Clause 1 of this Article.
If the enterprise incurs expenses related to damage caused by natural disasters, epidemics, blazes, and other force majeure events (hereinafter referred to as calamities) without compensation, such expenses will be deductible when calculating taxable income. In particular:
The enterprise must determine the value of damage caused by calamities in accordance with law.
The damage value equals (=) total damage value minus (-) the value of damage that must be compensated by insurers other entities as prescribed by law.
a) Documents about assets/goods damaged by calamities that are included in deductible expenses include:
- A statement of value of damaged assets/goods made by the enterprise.
A statement of value of damaged assets/goods must specify the value of damaged assets/goods, causes, responsibilities for such damage, categories, quantity, value of recoverable assets/goods (if any); statement of damaged goods certified by legal representative of the enterprise.
- A compensation claim upheld by the insurer (if any).
- Documents about responsibility for provision of compensation (if any).
b) Expired goods and goods damaged because of natural deterioration that are not compensated will be deductible expenses when calculating taxable income.
Documents about expired goods and goods damaged because of natural deterioration and that are included in deductible expenses include:
- Statement of damaged goods made by the enterprise
A statement of value of damaged goods must specify the value of damaged goods, causes; categories, quantity, and values of recoverable goods (if any) enclosed with a statement of inventory of damaged goods certified by the legal representative of the company.
- A compensation claim upheld by the insurer (if any).
- Documents about responsibility for provision of compensation (if any).
c) The aforementioned documents shall be retained at the enterprise and presented to the tax authority on request.
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2.24. Provision of disaster recovery aid for illegitimate subjects according to Point (a) or without documentation mentioned in Point (b) below:
a) Disaster recovery aid includes: direct provision financial aid or in-kind aid serving disaster recovery for an organization established and operating under the law, for individuals suffering from the disaster via an organization permitted to call for aid as prescribed by law.
b) Documents about disaster recovery aid: Certification of aid bearing the signature of the representative of the contributing enterprise, representative of the unit that suffers from the disaster (or an organization permitted to call for aid) (form 05/TNDN enclosed with Circular No. 78/2014/TT-BTC); invoices/receipts for purchase of goods (in case of in-kind aid) or proof of payment (in case of financial aid).
According to the above regulations, provision of disaster recovery aid without enterprises having records to determine such funding will not be deductible when calculating corporate income tax.
In addition, expenditures outside of the following grants are also not deductible when determining taxable income:
- direct provision financial aid or in-kind aid serving disaster recovery for an organization established and operating under the law,
- for individuals suffering from the disaster via an organization permitted to call for aid as prescribed by law.
What are the regulations on documents about disaster recovery aid of enterprises in Vietnam?
Pursuant to Clause 2, Article 6 of Circular 78/2014/TT-BTC as amended by Article 4 of Circular 96/2015/TT-BTC as follows:
Expenses that are deductible and non-deductible when determining taxable income
...
2. Expenses that are not deductible when determining taxable income include:
...
2.24. Provision of disaster recovery aid for illegitimate subjects according to Point (a) or without documentation mentioned in Point (b) below:
a) Disaster recovery aid includes: direct provision financial aid or in-kind aid serving disaster recovery for an organization established and operating under the law, for individuals suffering from the disaster via an organization permitted to call for aid as prescribed by law.
b) Documents about disaster recovery aid: Certification of aid bearing the signature of the representative of the contributing enterprise, representative of the unit that suffers from the disaster (or an organization permitted to call for aid) (form 05/TNDN enclosed with Circular No. 78/2014/TT-BTC); invoices/receipts for purchase of goods (in case of in-kind aid) or proof of payment (in case of financial aid).
Thus, the dossier for determining the funding for disaster recovery will include the following components:
- Certification of aid
- invoices/receipts for purchase of goods (in case of in-kind aid)
- proof of payment (in case of financial aid)
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