Official Dispatch No. 53407/CTHN-TTHT dated November 4, 2022 of Hanoi Tax Department instructing some expenses to be deducted when calculating corporate income tax
In 2020, the Company incurred expenses such as salary, wages and allowances payable to employees; Accrued amounts payable to suppliers but the deadline for submitting the annual tax finalization dossier has not yet been implemented , these expenses are not deducted when determining the CIT taxable income.
By the tax period of 2021, the Company has paid the above accrued amounts, which shall be included in the deductible expenses when calculating corporate income tax of the tax period that the entity actually spends if meeting the conditions specified in Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance.
In case the company accrues, appropriates and uses provisions not in accordance with the guidance of the Ministry of Finance on provisioning and incurring losses from exchange rate differences due to revaluation of monetary items denominated in foreign currencies at the end of the tax period, they shall not be deducted when determining the taxable income under the provisions of Article 4 of Circular No. 96/2015/TT-BTC.
