Circular 25/2018/TT-BTC has just been issued with many new policies related to the fields of value-added tax, personal income tax, and corporate income tax. Notably, the following 04 regulations are of particular interest.
Article table of contents
1. Only allowed to depreciate fixed assets into deductible expenses if eligible for depreciation
In the case where an enterprise transfers capital and transfers assets, the enterprise receiving the transfer is only allowed to depreciate the fixed assets into deductible expenses for the transferred assets if those assets meet the conditions for depreciation based on the remaining value as recorded in the accounting books of the transferring enterprise.
2. Increase the amount of insurance expenses for employees to calculate corporate income tax (CIT) income
Expenses for voluntary pension fund contributions, social welfare funds, voluntary pension insurance, and life insurance for employees can be included in deductible expenses if both of the following conditions are met:
- Not exceeding 3 million VND/person/month (the old regulation was 1 million VND) for voluntary pension fund contributions, voluntary pension insurance, and life insurance for employees; and not exceeding the legal limit for contributions to social welfare funds, health insurance fund, and unemployment insurance fund;- The expenses must be specifically stipulated with conditions and rates in one of the following documents: Labor contract; Collective labor agreement; Financial regulations of the Company, Corporation, Group; Reward regulations issued by the Chairman of the Board of Directors, General Director, or Director according to the company's financial regulations.
However, enterprises are not allowed to include the expenses for the above voluntary programs in deductible expenses if they do not fully comply with mandatory insurance obligations for employees (including overdue payment of mandatory insurance).
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3. Detailed regulations on taxable income from securities transfers
Personal income tax applies to income from securities transfers, including:
- Income from the transfer of shares, share purchase rights, bonds, treasury bills, fund certificates, and other types of securities as prescribed in Clause 1, Article 6 of the Securities Law;- Income from the transfer of shares by individuals in joint-stock companies as prescribed in Clause 2, Article 6 of the Securities Law and Article 120 of the Enterprise Law.
4. Guidelines for determining VAT on goods processed from mineral resources
Exported goods processed directly from the main materials which are mineral resources, with a total value of mineral resources and energy costs accounting for 51% or more of the production cost of the product, are not subject to VAT.
The ratio of the value of mineral resources and energy costs to the production cost of the product is determined based on the previous year's financial settlement and this ratio remains stable throughout the export year. In the case of the first year exporting the product, the ratio is determined according to the investment plan and it remains stable throughout the export year; if there is no investment plan, the ratio is determined based on the actual export product.
