New Points in Corporate Income Tax: Excess Insurance Contribution Tripled

12:17, 11/07/2024

The Government of Vietnam has officially passed Decree 146/2017/ND-CP amending and supplementing Decree 100/2016/ND-CP and Decree 12/2015/ND-CP related to VAT and CIT.

Noteworthy are the regulations on non-deductible expenses when determining a company’s taxable income. To be specific:

- The portion of expenses exceeding VND 3 million/month/person for contributions to voluntary pension funds, the purchase of voluntary pension insurance, and life insurance for employees (currently, only the portion exceeding VND 1 million/month/person is stipulated);- The portion exceeding the provisions of the law regarding social insurance (BHXH), health insurance (BHYT) for contributions to social welfare funds, health insurance funds, and unemployment insurance funds (BHTN) for employees.

Note: The above contributions are considered deductible expenses as long as they do not exceed the stipulated limit and are specifically mentioned in relevant company documents such as employment contracts (HDLD), labor agreements, regulations, etc.

See more details in the new regulation at Decree 146/2017/ND-CP, effective from February 1, 2018.

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