Four remarkable Circular coming into force from beginning of May 2018

1. Amendments to some guidelines for fair expenses arising out of corporate income tax

Circular No.25/2018/TT-BTC which comes into force on May 01, 2018 amends some regulations on deductible and non-deductible expenses for determining corporate income tax, to be specific:

- More non-deductible depreciation of fixed assets when an enterprise receives stakes in another enterprise will be added.

- Purchase of life insurance for employees exceeding the limits or without specifying eligible requirements for insurance benefit will not be deductible.

- Deductible expenses for determining corporate income tax on voluntary pension fund, voluntary pension insurance, life insurance for employees, etc will be increased to not more than VND 3 million per month/per capita if they satisfy the following requirements:

+ Eligible requirements for insurance benefit and benefit rate must be specified in one of the following documents: labor contracts; collective labor agreements; financial regulations of the company, general company, corporation, etc.

+ The enterprise must fulfill all obligations regarding compulsory insurance for employees (including payment of outstanding compulsory insurance premium).

2. Guidelines for costs of enforcement of civil judgments

Circular No.43/2018/TT-BQP provides for expenses and expense rates incurred on judgment enforcement, compulsory funding for enforcement of civil judgments in military. To be specific:

- Payments for public services, supplies, stationery including:

+ Payments for electricity, water and environment sanitation services; payments for fuels of vehicles serving enforcement of civil judgments; other expenses incurred while carrying out the mission, payments for invoices and contracts (if any)

+ Payments for supplies, stationery, equipments serving enforcement of civil judgments, other expenses incurred while carrying out the mission, payments for invoices or contracts (if any).

- Costs of organizing delegations of inspection, examination or appraisal, delegations conducting survey or acquiring know-how about enforcement of civil judgments including:

+ Domestic delegations: expense rates shall be applied as prescribed in Article 2 in Circular No.259/2017/TT-BQP dated October 17, 2017.

+ Outbound delegations: expense rates shall be applied in accordance with Circular No.102/2012/TT-BTC dated June 21, 2012.

Circular No.43/2018/TT-BQP comes into force on May 05, 2018.

3. Reduction in charges for phone calls between two mobile networks

This is a new regulation in Circular No.48/2017/TT-BTTTT providing for charges for phone calls from landline to mobile networks and charges for interconnection between two mobile networks. 

According to the Circular, charges for calls between two mobile networks will be reduced from 500-550 Vietnam dong per minute to:

- 400 Vietnam dong per minute for incoming calls from subscribers of mobile networks provided by Viettel;

- 440 Vietnam dong per minute for incoming calls from subscribers of mobile networks provided by Vietnam Posts and Telecommunication Group, MobiFone, Vietnamobile, Gtel Mobile JSC.

In addition, charges for phone calls from inner-provincial networks to mobile networks will be reduced from 415 Vietnam dong per minute to 320 Vietnam dong per minute.

Circular No.48/2017/TT-BTTTT comes into force on May 01, 2018.

4. Requirements applied to aviation staff

Circular No.10/2018/TT-BGTVT provides for aviation staff; training and examination of aviation staff.

According to the Circular, an eligible aviation security controller must:

- be a Vietnamese citizen from 18 years of age and above and have a clear background, good health and at least graduated from high school;

- not have any previous conviction or incur administrative penalties and is not on drug;

- be granted aviation security controller license by Civil Aviation Administration of Vietnam.

Circular No.10/2018/TT-BGTVT comes into force on May 10, 2018.

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