Official Dispatch No. 796/TCT-CS dated March 20, 2023 of the General Department of Taxation guiding the Corporate Income Tax policy for damaged and defective products in the production process.
Pursuant to the provisions of Clause 1, Article 3 of Decree No. 126/2020/ND-CP and Article 4 of Circular No. 96/2015/TT-BTC regulating deductible and non-deductible expenses when determining taxable income.
Accordingly, in case the Company has defective or damaged goods in the production process that cannot be recycled and must be destroyed not falling into the cases prescribed by the law on corporate income tax, the value of destroyed goods shall not be deducted when determining the taxable income.