This Circular amends and supplements certain provisions on deductible or non-deductible expenses for CIT calculation, specifically including:
- Fixed asset depreciations are supplemented as those that are not deductible if an enterprise is a transferee of a portion of capital or the whole of another enterprise).
- If expenses for purchase of employee’s life insurance policies exceed the prescribed limit, or documentation related to these expenses does not describe requirements that they have satisfied as deductibles for CIT purposes, they will not be eligible for such deduction.
- The amounts withheld for payment to the voluntary retirement pension fund, voluntary retirement pension insurance plan and life insurance plan for employees, etc., which are eligible for being deducted for CIT purposes will be increased to 03 million dong/month/person at maximum; in this case, they must meet the following requirements:
+ The requirements for eligibility for deduction and the amount of deduction are specified in the following documents: Employment Contract, Financial Regulations of Company, General Company or Incorporation; Regulations on Rewards decided by the Chair of Management Board, General Director or Director in compliance with Financial Regulations of Company or General Company or Incorporation.
+ Enterprises have to fulfill compulsory obligations to employees (even if they owe contributions to the compulsory insurance).
The Circular No. 25/2018/TT-BTC comes into effect on May 1, 2018.
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