Firms aiding Covid-19 fighting efforts to enjoy tax cuts
Firms aiding Covid-19 fighting efforts to enjoy tax cuts
The Ministry of Finance has proposed exempting firms from paying corporate income tax (CIT) for the amounts spent to support the Government in the fight against the coronavirus pandemic.
A medical staff member sprays disinfectants to contain the spread of the coronavirus. The Ministry of Finance has proposed, in a draft decree, that firms which support the fight against Covid-19 should be exempted from paying corporate income tax – PHOTO: VNA
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The National Assembly asked the Government to issue guidelines to exempt firms from CIT for the money they used to fund various Covid-19 infection prevention and control efforts.
Over the past few months, the pandemic has taken a heavy toll on the country’s economy and the lives of residents, according to the Ministry of Finance.
Despite the difficulties, many enterprises and organizations nationwide have actively rolled out a series of support and sponsorship programs, including giving cash and medical equipment and supplying food for the poor, during the fight against the pandemic.
However, these firms and organizations still had to pay CIT for the money spent on the support and sponsorship activities in line with the corporate income tax law.
As such, it is necessary to issue a decree this CIT break, reported the Government news website.
The draft decree for this matter regulates that firms which offer gifts and cash to sponsor Covid-19 infection prevention and control activities through units that receive sponsorships will be entitled to a CIT cut on the costs.
Units that receive relief aid comprise local governments, the Vietnam Fatherland Front Committees of provinces and cities, healthcare centers, schools and charities, among others, according to the draft decree.
