On June 22, 2015, the Ministry of Finance issued the Circular No. 96/2015/TT-BTC guiding the Enterprise Income Tax in the Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the decrees on taxes; amending a number of articles of the Circular No. 78/2014/TT-BTC dated June 18, 2014; Circular No. 119/2014/TT-BTC dated August 25, 2014 and the Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance, defines that the enterprise may include expenditure of lease of assets and tax payment on the individual’s behalf in deductible expenses.
Besides, the Circular also annuls the control for allowance for employees on business trips, allowance for travelling and accommodation of employees on business trips will be deductible expenses when calculating taxable income if they have adequate invoices.
Similarly, in case the enterprise has both monetary and in-kind expenditures on employees’ clothing, the monetary expenditure must not exceed VND 05 million/person/year and the in-kind expenditure must have invoices in order to be deductible.
Also in accordance with this Circular, in a tax period, if a enterprise makes a transfer of real estate, project of investment, or right to participate in a project of investment (except for mineral exploration and extraction) and suffers from a loss, such loss shall be offset against the profit from the business operation. The loss that remains after offsetting shall carried forward to the next years within the carry forward time limit.
This Circular takes effect on August 06, 2015 and applies to the EIT tax period 2015 onwards.
