Official Letter No. 4102/TCT-CS dated September 17, 2024, from the General Department of Taxation, providing guidance on tax policies for sponsored funds
Accordingly, the General Department of Taxation provides guidance: under the current Law on Corporate Income Tax (CIT), only income exempt from tax is sponsorship received for educational activities, scientific research, culture, arts, charity, humanitarian, and other social activities in Vietnam.
Therefore, the sponsorship received by the Company (in the form of certifications for products and factories) is not used for the aforementioned purposes and is not qualified for tax exemption. This sponsorship falls under other income as stipulated in Clause 15, Article 7 of Circular No. 78/2014/TT-BTC dated June 18, 2014. It is considered as an intangible fixed asset, and the Company is obligated to declare, account for, and pay CIT on this sponsorship as per regulations.
Please refer to the attached file for detailed information.
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