August 11, 2020 04:16

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Does grant in aid for lottery ticket vendors count for corporate income tax?

13:41 | 10/07/2020

VCN – The Ministry of Finance has elaborated the draft circular guiding lottery companies on calculating deductible expenses when determining the taxable income of corporate income tax for grant in aid of lottery ticket vendors.

does grant in aid for lottery ticket vendors count for corporate income tax
The Ministry of Finance gave instructions on the calculation of deductible expenses when determining the taxable income of corporate income tax for grant in aid for lottery ticket vendors

The Ministry of Finance gave instructions on the calculation of deductible expenses when determining the taxable income of corporate income tax for grant in aid for lottery ticket vendors as prescribed in Clause 3, Article 7, Chapter IV of Decision No. 15/2020/QD-TTg of the Prime Minister dated April 24, 2020.

Expenses of grant in aid for lottery ticket vendors of lottery companies should be included in deductible expenses when determining the taxable income of the lottery company if it identifies the right beneficiary and has sufficient documents of grant in aid as stipulated in Clause 2 and Clause 3 of this article.

In case the amount of grant in aid is in cash or in kind to support lottery ticket vendors through a local agency or organisation approved by the People's Committee of a province or city, the dossier should include a list of lottery ticket vendors receiving support and total value of sponsorship of the lottery company certified by representatives of agencies and organisations receiving aid, invoices, vouchers for buying goods (if sponsored in kind) or vouchers of money payment (if sponsored in cash).

If the amount of grant in aid is in cash and given directly to the lottery ticket vendors, it should meet the following conditions: actual expenditure for support lottery ticket vendors, with proof of payment from April 1, 2020; the list of lottery ticket vendors who receive support from lawful financial resources of the lottery company approved by the president of the provincial People's Committee in accordance with Clause 4, Article 8, Chapter IV of the Decision No. 15/2020/QD-TTg dated April 24, 2020 of the Prime Minister.

The draft stated that the legal representative of the lottery company is responsible before the law for the accuracy and truthfulness of the documents and vouchers as prescribed in this article.

By Thùy Linh/Thanh Thuy