On 31 March 2021, the Government released Decree 44/2021/ND-CP ("Decree 44") providing guidance on the conditions for being deductible expense of the donation and sponsorship in cash or in kind for prevention of COVID-19 pandemic.
According to Decree 44, such expenses shall be deductible if the below conditions are met:
- Eligible organizations for receiving donations and sponsorship are: The Vietnam Fatherland Front Committee at all levels; health facilities; armed forces; units and organizations assigned by competent state agencies to serve as centralized quarantine facilities; educational institutions; press agencies; Ministries, Ministerial-level agencies, Government agencies; state and local agencies of the Communist Party, youth unions, trade unions at all levels; local government agencies at all levels with fund-raising function; Covid-19 prevention funds at all levels; National Humanitarian Portal; charity, humanitarian funds, and organizations with fundraising function which are established and operated in accordance with the laws.
- Required supporting documents are: a written confirmation as the form attached to this Decree, or documents (in paper or electronic form) certifying the donation or sponsorship which is signed and stamped by both the representatives of the sponsor and the organisations receiving donations and sponsorship; legitimate invoices and documents as required by the laws for the donation or sponsorship in cash or in kind.
Decree 44 takes effective from the signing date and is applicable to the fiscal year 2020 and 2021.
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