Guidance Circular on Corporate Income Tax

Circular No. 96/2015/TT-BTC, issued by the Ministry of Finance, mainly amends and supplements some provisions on deductible and non-deductible expenses in determining taxable income; on tax-exempt income, and on conditions and rates of preferential income tax. Specifically, Circular 96 adds some deductible expenses in corporate income tax calculation fixed assets used to serve employees and professional training; expenses of accommodation for foreign experts working in Vietnam; expenses paid to teachers, learning materials and equipment used for professional education, practice materials and other expenses in support of trainees; costs of corporate training for workers; welfare-like expenditures for employees such as accident insurance, health insurance and other voluntary insurances for employees (excluding expenses for purchasing life insurance for employees, and voluntary pension insurance for employees), etc.

 

The Circular amends and supplements a number of provisions in order to reduce the tax payment time for taxpayers like the agreed time on recording revenue for taxation based on international accounting standards; eradication of regulations that businesses must build the estimated quotas of fuel, material, energy and commodities used in production and business operations and stored at enterprises; abolition of regulations on excessive spending on sickness leave allowances and per diems; and annulment of regulations on excessive pays for compulsory insurance funds for workers. According to calculations, the time needed to carry out tax payment will be reduced by 31 hours a year.

 

The Circular will be effective on August 6, 2015 and applicable to corporate income tax from 2015.