Contributions and donations for COVID-19 prevention will be deductable when calculating corporate income tax in Vietnam

To be specific, according to Resolution 149/NQ-CP regarding the recognition of contributions and support in Covid-19 prevention activities as deductible expenses when determining taxable income for corporate income tax, the Government of Vietnam agreed with the proposal of the Ministry of Finance in Submission 175/TTr-BTC dated October 1, 2020, on reporting to the National Assembly to allow the recognition of contributions and support in Covid-19 prevention activities as reasonable expenses deductible for corporate income tax calculation. The Minister of Finance of Vietnam is authorized by the Prime Minister of the Government of Vietnam to report this content to the National Assembly on behalf of the Government of Vietnam.

Additionally, to support employees and businesses facing difficulties due to the Covid-19 pandemic, the Government of Vietnam assigned the Ministry of Labor, Invalids, and Social Affairs to lead and cooperate with the Ministry of Planning and Investment and related ministries, agencies, and localities to urgently gather opinions from Government members, complete, submit to the Prime Minister of the Government of Vietnam for consideration, and sign the promulgation of the resolution to amend and supplement Resolution 42/NQ-CP and the decision to amend and supplement Decision 15/2020/QD-TTg in the direction of adding subjects, reducing conditions, creating favorable conditions for employees and businesses facing difficulties due to the Covid-19 pandemic to easily access the 16 trillion VND support package.

More details can be found in Resolution 149/NQ-CP, issued on October 10, 2020.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE