On July 12, 2019, the Ministry of Finance issued Circular No. 43/2019/TT-BTC stipulating investment costs determined as reasonable expenses when deducting expenses for employee working in industrial zones and economic zones, Circular 43/2019 / TT-BTC takes effect from August 26, 2019.
Accordingly, Circular 43/2019 / TT-BTC regulates investment costs determined as reasonable expenses when deducting expenses for workers working in industrial parks and economic zones. Specifically:
– Expenses for investment in construction, operation or lease of condominiums and social infrastructure works for workers working in industrial parks and economic zones of enterprises with investment projects. In industrial parks and economic zones, it is allowed to deduct when determining income subject to enterprise income tax as follows:
– For fixed asset value: calculated into the value of the project and depreciated into deductible expenses when determining the income subject to enterprise income tax if it meets the condition of fixed assets according to regulations. Ministry of Finance’s regulations on management, use and depreciation of fixed assets.
– For expenses (except for the case specified at Point a, Clause 1 of this Article), it shall be calculated into deductible expenses when determining incomes subject to enterprise income tax according to the provisions of law on enterprise income tax.
– Incentive for investment projects to build houses, cultural facilities, sports, social infrastructure works for workers working in industrial parks and economic zones.
Investment projects on construction of houses, cultural works, sports and social infrastructure works in service of workers working in industrial parks and economic zones shall enjoy preferences according to the law on construction. Building social housing and related laws.
Thus, Circular No. 43/2019/TT-BTC has detailed provisions, concretizing and explaining the content, guiding the application of Clause 4, Article 24 of Decree No. 88/2018/ND -CP of the government on the management of industrial parks and export processing zones on the cost of construction, operation or rental of apartment buildings and social infrastructure works for workers working in public areas industries and economic zones are reasonable expenses deductible for calculating taxable incomes of enterprises having investment projects in industrial parks or economic zones.