Deducting expenses for supporting COVID-19 when calculating CIT in 2022

The National Assembly allows deductible expenses to be included when determining corporate income taxable income for expenditures in support of COVID-19 prevention and control for the tax year 2022.

Deducting expenses for supporting COVID-19 when calculating CIT in 2022

Deducting expenses for supporting COVID-19 when calculating CIT in 2022 (Artwork)

On January 11, 2022, the National Assembly issued Resolution 43/2022/QH15 on fiscal and monetary policies to support the program of socio-economic recovery and development.

Accordingly, the National Assembly allows to include deductible expenses when determining corporate income taxable income for expenditures to support and sponsor businesses and organizations for COVID-19 prevention and control activities. in Vietnam for the tax year 2022.

Thus, in 2022, the support for COVID-19 prevention and control will be deducted when calculating corporate income tax and the Government will guide in detail this content.

Previously, the Government issued Decree 44/2021/ND-CP guiding the implementation of deductible expenses when determining corporate income taxable income for business support and sponsorship expenditures, organized for COVID-19 prevention and control activities.

Specifically, enterprises are included in deductible expenses when determining their taxable income for expenditures on support and sponsorship in cash and in kind for COVID-19 prevention and control activities in Vietnam. South through the units that receive support and sponsorship in accordance with regulations. This policy applies to the corporate income tax period of 2020 and 2021.

In addition, the National Assembly also agreed to reduce the value-added tax rate by 2% in 2022, applicable to groups of goods and services currently applying the 10% value-added tax rate (remaining 8 percent). %), except for the following groups of goods and services: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, metal products prefabricated products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to excise tax.

In addition, the National Assembly assigned the Government to urgently promulgate solutions to implement fiscal, monetary and other policies within its competence as prescribed by law to implement the Program; guide the organization and implementation of the mechanisms specified in Article 5 of Resolution 43/2022/QH15 in association with specific responsibilities, ensuring that no profiteering for policies, group interests, loss or waste occurs.

Proactively and expeditiously promulgate and organize the effective and synchronous implementation of the COVID-19 epidemic prevention and control program and relevant regulations; cut, reduce, simplify administrative procedures, improve investment and business environment; focus on solving problems in mechanisms, policies and laws related to social housing and housing for workers; adopt breakthrough policies, give priority to encouraging innovation, digital transformation, digital economy, green economy, circular economy associated with sustainable development.

Studying a plan to allow enterprises to make additional deductions at a certain rate on the basis of actual expenses when calculating corporate income tax, applicable to the cost of creating fixed assets and labor costs; plan to increase tax on securities transactions, real estate, report to Standing Committee of the National Assembly for consideration and decision.

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