Vietnam – Sponsorship Expenditure To Clients Shall Not Be Regarded As Tax Deductible Expenses.

21 August, 2016

 

On 27th May 2016, Ho Chi Minh Tax Department has issued Official Letter providing guidance on tax deductible expenses of enterprises for sponsorship expense to its Clients. In particular:

 

In the event if the Company incurs sponsorship expenses in cash or goods for its Clients to participate in overseas conventions, organizing parties, holidays instead of sponsorship for education, health, disaster recovery, building gratitude houses, such expenses shall not be regarded as tax deductible expenses when determining taxable income.