Update on Deductible and Non-Deductible Expenses when Calculating Corporate Income Tax

Duy Thịnh

17:53, 10/07/2024

Recently, the Ministry of Finance issued Circular 25/2018/TT-BTC guiding Decree 146/2017/ND-CP and amending and supplementing certain provisions of Circular 78/2014/TT-BTC, Circular 111/2013/TT-BTC. Accordingly:

- If the enterprise transfers capital and transfers assets, it is only allowed to depreciate fixed assets into deductible expenses for transferred assets that qualify for depreciation according to the remaining value on the accounting books at the transferee enterprise;- Contributions to social welfare funds, voluntary retirement insurance, and life insurance shall not be included in deductible expenses if the enterprise does not fully fulfill its obligations regarding mandatory insurance for employees (including cases of outstanding mandatory insurance payments);- The expense of purchasing life insurance for employees shall be included in deductible expenses if it does not exceed 3 million VND/person/month and is specifically recorded in one of the following documents: labor contract, collective labor agreement, etc.

More details can be found in Circular 25/2018/TT-BTC effective from May 1, 2018.

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