The Ministry of Finance wants to stop collecting tax from entrepreneurs who donate items or provide services to charitable organizations that are dealing with the effects of the September flood – according to the published draft regulation.
The draft regulation was published by the Government Legislative Center. It assumes the cessation of collecting a lump sum from entrepreneurs' income in the amount of the costs of producing or purchasing items that are donated to charitable organizations and the amount of costs incurred for the company's provision of free services aimed at removing the effects of a flood.
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“Any benefits, regardless of their type”
The justification explained that currently income from expenses unrelated to business activitywhich includes donations and costs of providing benefits, is taxed. The Ministry of Finance proposes that “it should cover all benefits, regardless of their type (except cash donations) and free benefits provided or provided to entities conducting public benefit activities.” As noted, the Ministry of Finance proposes not to specify the types of aid due to their diversity, which depends on the actual situation. “Assistance may include meeting basic living needs, i.e. providing housing or providing food,” the ministry said.
Main photo source: TVN24