The recent Typhoon Yagi has caused severe damage to people and property. In this difficult context, many businesses are looking for ways to overcome the consequences and support the community. So are the expenses arising from disaster recovery activities deductible when determining taxable income? This article, Bizzi will answer the above questions and provide useful information for disaster expenditures for businesses.
Natural disaster expenses are deductible when determining taxable income for corporate income tax in 2024
In Article 6 Circular 78/2014/TT-BTC (modified at Circular 96/2015/TT-BTC) has stated the natural disaster expenses that businesses will be able to deduct when determining taxable income for corporate income tax, including:
(1) Expenses related to the value of losses due to natural disasters, in which this expense must satisfy the conditions in Clause 1, Article 6. Circular 78/2014/TT-BTC (modified at Circular 96/2015/TT-BTC), specifically as follows:
+ Actual expenses incurred related to the production and business activities of the enterprise.
+ Expenses have sufficient invoices and legal documents according to the provisions of law.
+ Expenses if there is an invoice for purchasing goods or services each time with a value of 20 million VND or more (price includes VAT) when paying must have a non-cash payment document.
Non-cash payment vouchers comply with the provisions of legal documents on value added tax.
In case of one-time purchase of goods or services with a value of twenty million VND or more recorded on the invoice but at the time of recording the cost, the enterprise has not yet paid, the enterprise will be included in the deductible expenses upon confirmation. determine taxable income.
In case the enterprise does not have non-cash payment documents when making payment, the enterprise must declare and adjust costs for the value of goods and services without non-cash payment documents. The tax period in which cash payments arise (even in cases where the tax authority and functional agencies have decided to inspect and examine the tax period in which this expense arises).
In case an enterprise purchases goods and services related to its production and business activities and has an invoice printed directly from a cash register in accordance with the law on invoices; if this invoice has a value of VND 20 million or more, the enterprise shall base on this invoice and the enterprise's non-cash payment documents to calculate deductible expenses when determining taxable income.
In case an enterprise purchases goods and services related to its production and business activities and has an invoice printed directly from a cash register in accordance with the law on invoices; if this invoice has a value of less than 20 million VND and is paid in cash, the enterprise shall base on this invoice and the enterprise's cash payment documents to calculate deductible expenses when determining taxable income.
(2) Funding for overcoming the consequences of natural disasters includes: funding in cash or in kind to overcome the consequences of natural disasters directly for organizations established and operating in accordance with the provisions of law; individuals suffering damage caused by natural disasters through an agency or organization with the function of mobilizing funding in accordance with the provisions of law.
Note: There must be a dossier identifying the funding for overcoming the consequences of natural disasters, including: Minutes confirming the funding signed by the representative of the sponsoring enterprise, the representative of the organization damaged by natural disasters (or the agency or organization with the function of mobilizing funding) as the funding recipient (according to Form No. 05/TNDN issued with the attached document). Circular 78/2014/TT-BTC) with invoices, documents for purchasing goods (if sponsoring in kind). Or documents for paying money (if sponsoring in cash).
(3) Expenditure to support families of workers affected by natural disasters.
Note:
– The total amount of expenses mentioned above shall not exceed 01 month of the actual average salary paid during the tax year of the enterprise. The determination of 01 month of the actual average salary paid during the tax year of the enterprise is determined by dividing the salary fund paid during the year (:) by 12 months.
– In case the enterprise has not been operating for 12 months: The determination of 01 month's average actual salary implemented in the tax year is determined by dividing the salary fund implemented in the year by (:) the actual number of months of operation in the year.
The implemented salary fund is the total amount of actual salary paid in the settlement year up to the final deadline for submitting the settlement dossier as prescribed (not including the amount of salary reserve fund deduction of the previous year spent in the tax settlement year).
Through this article, we have learned about whether natural disaster expenses can be deducted when determining taxable income in 2024. Understanding this regulation will help businesses reduce their tax burden and have more resources to restore production and business. However, to ensure compliance with legal regulations, businesses need to consult with accounting experts or tax authorities.
According to Law Library
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