On October 19, 2022, Hanoi Tax Department issued Official Letter No. 50626/CTHN-TTHT, according to which:
In case the Company receives the proceeds from sponsorship as prescribed in Clause 1, Article 5 of Circular 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance, it is not required to declare, calculate and pay tax, prepare payment receipts according to regulations.
In case an operation receives sponsorship money from an organization or individual to perform services for such organization or individual such as repair, warranty, promotion, or advertisement, it must declare and pay tax according to regulations.
The sponsorships received from the overseas partner company, if it is not eligible for tax exemption as prescribed in Clause 7 Article 8 of Circular 78/2014/TT-BTC, is determined as other incomes. other. Taxable income in the tax period includes income from production and business activities of goods and services and other incomes.
